Utilities Inc. filed a lawsuit against Willow Creek Holdings in 5th District Court Wednesday over water rights, making for one more legal problem facing the owners of the Willow Creek Golf Course.

The utility seeks a declaratory judgment that it is the sole owner of the water rights; that the golf couse owners have no legal ownership of the rights; and that the Aug. 23, 2007, deed of trust purporting to use the Utilities Inc. water rights as collateral is void and unenforceable.

At about the same time, a trustee sale to sell off the golf course, scheduled to be held in front of the Nye County Courthouse in Tonopah Wednesday, was postponed until Dec. 12 by mutual agreement.

The minimum asking price for the property was $7.5 million. A second, companion notice of trustee sale included 1,802 acre feet of annual water rights.

The property includes 18 parcels of Calvada Unit 7 recorded in February 1973 in the vicinity of Mount Charleston and Red Butte Drive.

The golf course closed Oct. 13.

Nye County commissioners Oct. 30 rescinded a rezoning for a nine-acre hotel and casino at the clubhouse site after AMI Management failed to notify them about the notice of foreclosure.

AMI claimed the project was needed to save the golf course but failed to amend a deed that would preserve the property as a golf course, a condition imposed by county commissioners.

Anthony Caiati, AMI director of operations, said his company had the option of renegotiating the $6.5 million first trust deed with Jorie Enterprises or file for Chapter 11 protection.

"I can file for the pending reorganization all the way up to the 11th and quash that sale, not a problem," Caiati told commissioners.

Another trustee sale is still pending in front of the courthouse next Wednesday, to satisfy a $400,000 note owed to Ashland Capital by Willow Creek Holdings.

Property owner Aram Maissian, a defendant in the Utilities Inc. suit, told county commissioners he shut down the golf course but wants to make sure the water rights stay intact for the property. He said the water is worth more than the land and was used by creditor Jorie Enterpries, a final defendant in the lawsuit, to secure its assets.

AMI Management continues to pump water from the Utilities Inc. sewer treatment plant at Willow Creek golf course using rented generators after terminating power service with Valley Electric Association.

Caiati confirmed Utilities Inc. representatives were kicked off the golf course property around Nov. 1, when they attemped to install pumps. Utilities Inc. was concerned about effluent ponds nearing capacity.

But Utilities Inc. Regional Vice-President Paul Burris said he was relieved to hear the effluent was being recycled to both Willow Creek and Lake View golf courses Nov. 1, after power bills for pumping the recycled water were put in the name of Utilities Inc. and the owners of Lake View.