Grand Canyon Skywalk Legal Battle Continues

The tug of war over the Grand Canyon Skywalk continues. On Feb. 7, the Hualapai Indian Tribe unanimously voted to declare eminent domain and seize management control of the attraction. It’s the latest development in a nasty spat that’s sure to generate more controversy.

From CBS News: “The Tribe did not ask for this dispute,” Councilman Charles Vaughn said in a statement. “But we have made a sincere effort through private negotiations with Mr. Jin, and he still refuses to make the most basic concessions and complete the work he promised. His participation has been unproductive and created countless delays. At this point, there are simply no other options.”

The Mr. Jin being referred to is the Las Vegas businessman who hatched the idea of the Skywalk and invested $30 million dollars of his own money to make it happen. Under the eminent domain seizure, the Tribe is prepared to pay Jin $11 million to exit the project.

That, according to the Jin camp, won’t fly because the buyout number represents about one-tenth of what the entrepreneur estimates is “fair market value for [his] $30 million investment.” Jin’s basing his return on his original agreement with the Tribe in which the two parties split revenues for 25 years.

Jin’s Attorney, Las Vegas-based Mark Tratos, said the Tribe’s latest action is a “desperate attempt to avoid the embarrassment of explaining how ticket revenues evaporated under its watch and to keep from paying [Mr. Jin] millions of dollars in management fees owed to him.”

Tratos added, “They want all decisions to be made by tribal judges that they hire, fire and pay, and have resisted all efforts to have an independent judge or arbiter fairly review the facts,” Tratos said. “Mr. Jin has been their partner for more than 20 years, and his counsel asserts the tribe has awarded themselves this draconian power to strip Mr. Jin’s company of its constitutional rights.”

Tough words. Last time such assertions were made, Mr. Jin had to offer up an apology. Specifically, he accused the Hualapai Nation of running a “lawless” and “archaic government” during an interview in the August 2011 issue of a Las Vegas magazine.

Mr. Jin asserts in court documents that the Tribe is passing the ordinance in order to duck explaining missing revenues from Skywalk ticket sales. The Tribe denies the accusation, saying that Mr. Jin’s company has failed to meet its contractual obligations and complete construction of a visitor center.

Grand Canyon Skywalk was open to the public in 2007. It’s a fantastic attraction that’s made up of 40-plus glass panels that cost $200,000 each. Each year, more than 300,000 people visit the Glass Walkway and experience the thrill of walking 70 feet past the edge of the West Rim of the canyon.

The Skywalk is the centerpiece of Grand Canyon West, a 100-mile swath of Hualapai Indian land that upon build out will feature restaurants, a museum, a theater, a hotel and a cable car ride to the bottom. Located just 120 miles east of Las Vegas, the West Rim is a major tourist destination that can be reached by car, bus, airplane and helicopter.

In my opinion, both parties have a good thing going. Let’s hope they get their differences worked out.