Almost two years ago, a spokesman for Las Cruces developer Philip Philippou said he expected that drainage improvements in the Dos Sueños subdivision would be completed in 4-6 weeks.
The drainage issue was one of many problems with the controversial developer’s subdivision that journalist Vicki Nisbett revealed in an article published on this site in October 2007. And, despite the statement made at the time to Nisbett by Kirk Clifton, development administrator for Philippou’s company, the drainage improvements have still not been completed.
Apparently, the City of Las Cruces has had enough. The Las Cruces Sun-News is reporting that the city has filed a lawsuit alleging that Philippou has failed to comply with building requirements in several of his subdivisions and is asking a district court judge to force Philippou to complete the work he started.
The city states in its 15-page complaint that Philippou has “failed to construct drainage infrastructure improvements” in the Dos Sueños subdivision and that the city, its citizens and others “will suffer irreparable injury unless injunctions are granted due to the fact that persons purchasing lots in this subdivision will be unprotected from the non-performance of Defendants and will be forced to live in lots lacking basic infrastructure or services.”
The complaint also seeks to force Philippou to comply with infrastructure requirements he agreed to but has not met in several other Las Cruces subdivisions. In addition to drainage improvements, the issues identified include roadway and utility work and rock wall improvements.
What happened to finishing the work in 2007?
In 2007, Nisbett quoted Clifton as saying most of the outstanding work in Dos Sueños, which is located north of U.S. Highway 70 on both sides of Jornada Road, should be completed in four to six weeks. That included construction of a 20- to 40-foot-wide concrete drainage ditch the city required on the north side of the subdivision.
“There’s been continuous work out there, although it might be slow,” Clifton said. “We just want to get done and out of there as quickly as everyone wants us to.”
Kyle Moberly, a Las Cruces attorney who represents Philippou, had something much different to say to the Sun-News on Monday when asked about the lawsuit.
“Apparently, the city wants to publicly embarrass Mr. Philippou, who in his ongoing efforts to resolve these matters in this difficult economic climate, earlier this morning (Monday) submitted proposals to the city for resolving these matters,” the newspaper quoted Moberly as saying. “Since we only received a copy of this complaint late this morning, we have not had a chance to thoroughly review it and, therefore, are not in a position to properly respond. However, our cursory review reveals the complaint appears to be overly broad and inconsistent with previous communications we received from the city.”
Mayor Ken Miyagishima had this to say to the newspaper:
“This lawsuit is really about the public trust. The city has the best interest of the public to consider,” he said. “We have a responsibility to ensure that residents get what they’re promised when they move into a city-approved subdivision.”
A history of controversy
The lawsuit is the latest trouble for Philippou, a man who is arguably one of the most controversial developers in the state. Here are some of the other headline-grabbing situations in which he’s been involved in recent years:
• Last month, he paid the city more than $200,000 for an outstanding water bill only after the city placed liens on his properties.
• In 2007, it was revealed that then-District 1 City Councilor José Frietze had failed to disclose land donations Philippou made to a non-profit Frietze runs.
• Philippou’s most visible controversy relates to his dealings with the State Land Office. Pat Lyons, the state land commissioner, bypassed his own bidding process and agreed to lease thousands of acres of public land in Las Cruces to Philippou in 2006. Around the same time, Lyons received approximately $30,000 in campaign contributions from Philippou and a political committee and lobbyists tied to the developer.
It’s a land deal Attorney General Gary King has said is flawed. The AG’s formal opinion states that the lease agreement’s method of compensating Philippou’s company for developing the land is “not comprehended by and in conflict with” a statute that allows developers who improve land for the state to be compensated only for the appraised value of the improvements.
The controversies surrounding the land office and Frietze helped fuel public outcry over the city’s growth policies and helped lead to the overthrowing of the city council in two elections held in late 2007 and early 2008.
A prior version of this posting incorrectly attributed a quote to Clifton that should have been attributed to Moberly.