The city of Henderson has revealed new evidence that it says bolsters its claim that the developer behind a proposed complex of sports arenas never intended to build the complex and instead sought to sell off the land for new home building. Henderson officials say they were defrauded by the developer and his team of professionals, who allegedly promised in the contract selling them the federally-owned property not to attempt to “flip” the land.
We previously discussed this business litigation in our Feb. 19 blog post. The city of Henderson agreed to help the developer purchase the 480-acre lot, which is owned by the federal government, at a discount price of $10.5 million. The developer presented a plan to build a series of sports arenas, including a football stadium and a basketball arena, which he later said to have secured funding to build.
But the sale was never finalized, with the purchase money still in escrow. According to attorneys for the city, in April the developer began discussing the resale of some of the land to a housing developer. They developers made a secret agreement to “flip” the land in violation of the agreement with the city, the attorneys say. In an email to his attorney and lobbyist, the developer allegedly discussed keeping the plans confidential so that the city would not find out about them.
The litigation could be complex and involve millions of dollars in damages. Businesses that get involved in deals with government entities such as cities should consult with an attorney to make sure that their rights are protected.
Source: VEGAS INC, “Henderson alleges developer had struck secret deal to develop homes on stadium site,” Eli Segall, Feb. 28, 2013