Takeover at Havasu Palms

By Bobbi Holmes

Part 1 of 2

            Do you remember Havasu Palms, Inc.? They built and developed the mobile home park, store, and marina located on the California side of the lake, six miles south (by water) of Lake Havasu City, once the home of the Road's End Restaurant.
            On May 4, 1999 the Chemehuevi Tribe and members of Havasu Ventures, Inc. broke into the Havasu Palms store and restaurant, seizing personal assets of Havasu Palms, Inc. The lease status is in litigation.  
            James Foster, one of the owners of Havasu Ventures, Inc. and his wife Jane are former residents of Lake Havasu City. They once owned a furniture store in Lake Havasu City and Lake Havasu Verticals. Reportedly, Foster is the current manager of Havasu Landing. (Correction: we stated, "Foster is the current manager of Havasu Landing". Although there is documentation that Foster is in some way connected to Havasu Landing, Scott Mathews is the General Manager of Havasu Landing.)
            Havasu Palms' property (totaling over $50,000) including approximately $4,000 in fuel, the store inventory, equipment, and other removable trade items, was taken by Havasu Ventures, Inc., the claimed new lessee of the property. Havasu Ventures reopened the store and began selling Havasu Palms' property.

Why didn't Havasu Palms remove their
property before the lease ended?

            There are several reasons for this. First, they believed the lease had not ended. That dispute will ultimately be determined in court. Second, even if the lease did end on May 2, 1999, a section of the lease Havasu Palms, Inc. had with the Tribe provided that Havasu Palms could remove any property from the site when the lease expired, if they paid a daily rent. Havasu Palms planned to do this. In fact, the Bureau of Indian Affairs (the agency that Havasu Palms, Inc. must send Tribal rents to) had in its possession a Havasu Palms check for $3,250, which would have paid for about 45 days. Third, Havasu Palms was awaiting a ruling on a restraining order and injunction. The restraining order was denied on May 3, and the injunction was denied at the end of May.
            Various government agencies have stated that, since the Chemehuevi Indian Reservation is considered a sovereign nation, the Tribe seems to be able to do whatever they want, even if it violates the U.S. Constitution and their own leases. It is important to note that Havasu Palms Inc. leased the property from the Federal Government in 1967. The land was added to the Indian Reservation in 1974. Havasu Palms did not enter the reservation willingly. They were placed there.
            When the land was transferred to the Tribe in 1974, Havasu Palms signed an agreement with the Tribe and the Department of Interior that Havasu Palms would not contest the land transfer, providing the Tribe dealt in good faith with Havasu Palms for a long-term lease. Originally Havasu Palms was promised a 25-year lease with a 25-year option. The promised long-term lease never materialized.
            When Walt Johnson developed Havasu Palms, built the restaurant, store and marina, and added over 100 mobile home sites, it was under the Fish and Game Concession Agreement, which guaranteed Havasu Palms had the right to either sell back the improvements at the end of the lease or remove them. The lease specified Havasu Palms owned the buildings, and that right would apply to any future lease. A result of the session of the property to the Tribe, may ultimately result in Havasu Palms' improvements being gifted as well.  Next Page>