[LLVResident]

I already reported this in a prior post, but thought it needed its own title and heading.

Below is the the press release filed today from the Business Wire. The plan looks solid and well thought out to protect all parties involved, including the present and future homeowners of Lake Las Vegas. Under the plan, the LID and HOA assessment will continue to be paid by the developer and not incurred by the homeowners.

I want to express my gratitude for all those involved in getting this matter approved so LLV can move forward. This could have easily been resolved through Chapter 7, which would have been terrible for LLV. Chapter 11 re-organization will allow LLV to move forward and thrive. Thank you again!

------------
Court Confirms Lake Las Vegas Plan of Reorganization

Company Expects to Emerge from Chapter 11 Shortly

LAS VEGAS--(BUSINESS WIRE)--Praising the efforts and cooperation of the participants in the Lake Las Vegas chapter 11 cases, Bankruptcy Judge Linda B. Riegle yesterday ruled that she would confirm the Plan of Reorganization proposed by Lake Las Vegas and the official committee of unsecured creditors.

"We are delighted by the Court's decision today and look forward to emerging from chapter 11 as a restructured going concern with a clean balance sheet," said Frederick E. Chin, the CEO of Lake Las Vegas. "This restructuring process has been extremely complex, and at times, heavily contested, and we appreciate the patience and cooperation of the various constituents, including homeowners, landowners, and vendors. The debtors and the committee worked very hard to develop a consensual plan of reorganization that would have broad support, and we are gratified that we were able to achieve overwhelming creditor approval and resolve every objection to the plan's confirmation.

"I am excited that we will now be able to focus all of our efforts on continuing to create an environment in which the community will grow and prosper as the area's economy and the real estate market recover."
Lake Las Vegas will remain under the stewardship of The Atalon Group LLC, which will provide asset management services to and for the benefit of the reorganized company. Mr. Chin and James Coyne, principals in The Atalon Group, will continue in their current roles as project managers through December 31, 2011.

Under the Plan of Reorganization Lake Las Vegas will sell much of its remaining land in Phases I and II of the project over the next two years, and focus its efforts on the long-term development of Phase III.
Among other significant benefits, the Plan provides for exit financing for the reorganized company to cover operating expenses, fund Plan obligations, and finance T-16 LID (“Local Improvement District T-16”) development improvements.

These include building a replacement P-40 Pump Station and completing the roadway improvements on Lake Las Vegas Parkway, the entrance to the Community, which should enhance the value to all stakeholders. Under the Plan, funding for continued subsidy payments to the Lake Las Vegas Master Property Owners Association (“MPOA”), LID assessments and property taxes will continue, allowing Lake Las Vegas to satisfy its ongoing obligations as a landowner and as master developer. The plan also provides for the establishment and funding of an independent creditor trust to prosecute avoidance actions and claims against former insiders. Larry Lattig of Mesirow Financial will serve as the trustee of the trust.

Sandra Sternberg
Sitrick Brincko Group
310-788-2850

[hard888]

So does this mean home owners (both South and North Shore) don't have to pay the LID and HOAs anymore? If so, starting when? And if the HOA is just the Master HOA correct? Subdivision/communities still need to pay theirs?

Thanks.

[LLVResident]

@hard888. The LID and HOA dues referred to is for the unsold properties in Phase II and potentially Phase III. That means that the current homeowners in LLV won't have to absorb the extra dues/fees that are being paid by the owner/developer. The HOA dues are based on 9 to 10k homes. As there are currently just 1,800 homes, the master HOA could try to assess the shortage against the current homeowners, but they are not. The owner/developer will continue to pay them until the homes are sold and the new owner begins to pay them. This is a great benefit that we aren't stuck with them as many predicted. We still have to pay our HOA, Master HOA's & LID's on our current homes.

I just read on the BK website that the judge will sign the final confirmed Chapter 11 BK Plan Friday 6/25/10 at 10:30 am. Some rumors are that there will be some announcements about the golf courses and/or hotel/casino once the judge's ink dries on Friday morning. The courses look amazing! Looks like they are prepping them for play. You don't go through all of that expense just to let them sit.

[hard888]

Sounds good.

So who's in the running for the Ritz? Wynn? Maloofs? The Chinese?

Are they still planning on building that island out in the middle of the lake?

[LLVResident]

That island is nearly dug out. They stopped digging the rest the "moat" when the bankruptcy was filed. Phase 3- north shore views of Lake Las Vegas is pretty spectactular. My profile photo is actually taken on/near that island. Phase 3 is on hold for about 18 months, waiting for the housing market to return. The 4th golf course in phase 3 will likely be a park and the housing will be at a lower price point to attact more full-time buyers.

As far as buyers for the Ritz/Casino, there are many rumors... but that's it, rumors. I've heard Wynn has been out there, as well as the Maloofs and another high end hotel from Asia. It's hard to tell actual fact rumors from hopeful rumors. All of the hotel media sources are reporting that the luxury brand is returning now across the country. I personally think there is more"insider politics" going on behind the scenes with the hotel and the casino (and the golf courses) than anyone knew. On one of my earlier posts, I found that the casino's lease was up in Sept 2010. So, Deutsche Bank fought hard to get them out. However, that was never disclosed by anyone.

Stay tuned for further updates. I'll report them as soon as I hear.

[hard888]

Appreciate all your updates. As a resident of LLV I continue to hope for the best. It has the potential to become unlike any other residential destination in Vegas. Perhaps even to go as far as saying unlike anything on the West Coast?

[LLVResident]

I totally agree with you! It's such a special place and Lake Las Vegas has the potential to be something amazing in the future. If you read all of the (now 800 pages) of the bankruptcy exit plan, you can really see the work that went into moving LLV forward. Now that the judge has approved this great plan as well as untangled the messes of the original developers, the platform is there for LLV to prosper.

Once Lake Mead Parkway construction is completed and the new Galleria Parkway added (there will be a new round-about added where you turn right on the road that takes you to the casino) access will be much better and I imagine you will begin to see more services added once more roofs are added.

If you haven't seen it yet, check out www.llvsocial.com for social events for the LLV community. I haven't been to one yet, but am on the mailing list and the coordinator is doing a great job bringing the community and businesses together.

I was informed that Montelago Village hotels are sold out for the 4th of July Holiday weekend. That is fantastic!

[jpk]

Any idea when Galleria Parkway will be completed? It's been there for years and still isn't finished.

[LLVResident]

@jpk. According to the bankruptcy plan Galleria Pkwy is not to be completed until 18 months post-bankruptcy. I never understood the logic in that idea, as you would think that creating a quicker, more scenic access route would have high priority. Most of the complaints about LLV is the drive on Lake Mead Pkwy.

However, the good news is it will be completed. I drove for a mile or so on the dirt road that will be the Parkway and it's going to be a pretty drive. You also wonder that who ever buys the hotel and casino has some "clout", they could pull strings to get Galleria Parkway completed sooner?

[LLVResident]

The order confirming the chapter 11 bankruptcy plan by Judge Riegle-docket # 2502 has been filed. It's now official-official that Lake Las Vegas has emerged from bankruptcy.