MARK WAITE / PVT Graffiti mars the wall on Blagg Road outside where the Celebrate Homes subdivision was supposed to be built. Advertisement

Wulfenstein Construction Co. filed a lawsuit against Celebrate Homes for $388,227 in paving costs at the proposed subdivision, now only a shell of a project with a wall surrounding it and paved streets inside -- a victim of the economic downturn.

The suit requests another $9,549 in attorney's fees, $4,290 in pre-judgment interest and $3,472 in other costs.

The problem may be finding anyone from Celebrate Homes.

Four of the five telephone numbers listed for Celebrate Homes in Las Vegas and North Las Vegas were no longer working, at one number there was a recording for which callers could leave a message.

Celebrate Homes was originally going to include 405 residential lots, according to plans presented during the construction boom of 2006.

The final subdivision map for Celebrate Homes was approved by the Nye County Commission on Dec. 6, 2006, for phase I which was to consist of 116 lots, at a density of 2.7 lots per gross acre. The subdivision is located on 41.61 acres near the intersection of Mesquite Avenue and Blagg Road.

The developer, Celebrate Homes 50 LLC, was required to construct water, sewer and street improvements within three years. The Dec. 6, 2006, subdivision agreement requires payment of a performance bond or letter of credit for $3.5 million. The road work alone was estimated to cost just over $1 million.

The performance bond is required by Nye County to ensure the infrastructure work gets completed, not to ensure the contractor gets paid.

Celebrate Homes got in trouble early on, after Nye County commissioners in December 2006 upheld a $26,500 fine for dust control violations. Nye County Air Quality Code Compliance Officer George Bernath issued a verbal stop work order Aug. 16, 2006, after clouds of dust from site preparation blanketed Mesquite Avenue near Highway 160.

Celebrate Homes was granted an extension on its subdivision map May 19, 2008. A justification letter from Nye County planners mentioned the county commission in February 2008 had approved a two-year extension of time for several subdivisions in Mountain Falls for William Lyon Homes.

Nelson Stone, vice-president of Forward Planning for Celebrate Homes, noted a 10-year development agreement for the project didn't expire until Aug. 25, 2016.

In a written comment that proved to be a vast understatement, Stone wrote, "With the current downturn in the homebuilding market, this project has not proceeded at our anticipated rate. Granting this request will not adversely affect the health, safety and welfare of the surrounding residents."

The June 15 application for a default judgment filed by Wulfenstein Construction claims Celebrate Homes 50, Western Insurance Co. and American Contractors Indemnity Co. failed to answer a complaint within the time frame. The application claims the defendants were served notice of the suit on March 12.

Jim Wulfenstein, president of Wulfenstein Construction, signed an agreement with Celebrate Homes Inc. May 9, 2007, to construct on-site construction services and supply building material to the Pahrump Ranch subdivision. Work got under way between July 2007 and June 2008, the suit claims. Despite repeated demands for payment, Celebrate Homes failed to pay, and a mechanics lien was filed on Sept. 5, 2008.

Wulfenstein claims it was never paid for repaving Blagg Road after sewer line improvements were installed; as well as the preparation, graveling and asphalting of Shaded Canyon Street and Celebrate Way. In addition, Wulfenstein performed shoulder work, preparation and gravel work on Adkisson Street at the south end of the project.

American Contractors Indemnity Co. and Western Insurance Co. were granted orders to voluntarily dismiss claims against them without prejudice. Attorneys for Western Iinsurance Co. said the entire surety bond had been exhausted by claims from other contractors.

ACIC was dismissed from the case after the company filed a motion to deposit a surety in the court, allowing contractors to seek payment, which is a requirement of the contractor's license. But attorney Curt Ledford, who is representing Wulfenstein Construction, said that fund is only $10,000.

Celebrate Homes Inc. lost its contractor's license April 24, according to Art Nadler, spokesman for the state contractor's board.

"They're not even defending, they're not doing anything. I have received no notification from them ever," Ledford said of the company.

A trustee sale of 120 residential lots and one common lot in the Celebrate Homes subdivision was scheduled for 11 a.m. June 16 to satisfy an obligation of $11.5 million. It was postponed to Aug. 17 at the request of the beneficiary, Bank of the West.

Ledford said Wulfenstein is hoping to be able to record a default judgment to the foreclosure, if there's remaining funds after the other creditors.