KINGMAN - Like a number of other proposed large housing developments in Mohave County, Pravada may be a thing of the past. The Las Vegas Review-Journal reported April 10 that 1,300 acres of the Rhodes Homes Pravada master-planned community will be sold.
Rhodes Homes filed for Chapter 11 bankruptcy last April. A bankruptcy judge approved an agreement between Rhodes Homes and its creditors in January. That agreement declares that Rhodes Homes will sell all of its Las Vegas holdings and the 1,300 acres from Pravada. The exact date and the terms of the land sale have not yet been set. Rhodes Homes may hold onto the remaining 4,000-plus acres of the property.
A representative from Rhodes Homes could not be reached for comment. Bill Marion of Purdue Marion and Associates said he no longer represents Rhodes.
Pravada has been a source of concern for some Mohave County residents ever since the massive project was announced in the mid-2000s. The main concern was the amount of water the community would use once it was fully built.
Rhodes Homes also struggled to get approval for a wastewater and a water treatment plant for the project after the Arizona Corporation Commission questioned company owner Jim Rhodes' fitness to operate the plants.
Jim Rhodes was allegedly involved in several real estate scandals in the Las Vegas area. Former Clark County Nevada Commissioner Erin Kenny testified in a federal case that Rhodes paid her $16,800 a month or about $200,000 a year for consulting services.
Rhodes Homes finally sold the two proposed plants to Illinois-based Utilities, Inc. in 2007. They were approved by the ACC in December 2008.
According to the Review-Journal, Dunhill Homes from Dallas has already agreed to purchase and continue to develop Rhodes Ranch in Las Vegas and Tuscany in Henderson, Nev.
During the housing boom, Rhodes Homes used Rhodes Ranch and Tuscany as collateral for a $500 million loan from Credit Suisse, Highland Capital, General Electric Investment Corporation, Cypresstree Investment Management and Sorin Capital Management.
The company used the funds to expand during the boom, but because of the downturn in the market, the company was not able to make a March 2009 payment and was forced to file for bankruptcy.