A group headed by investment banker Credit Suisse has, for now, waived any default obligations, after Lake Las Vegas, the lake resort community developed by Transcontinental Corp., did not meet its debt obligation on a sales volume quota by Sept. 30, said David Cox, the chief financial officer of Lake Las Vegas.

The group of lenders has loaned Lake Las Vegas additional money to cover its operational expenses and is considering loaning even more funds to cover any shortfalls, Cox said.

Transcontinental's cash crunch is direct fallout from the ongoing housing slump.

The latest financial woes center on buyers of the third phase of Lake Las Vegas dropping their plans to acquire land as expected, Cox said. Lake Las Vegas, although it took sizable deposits, was counting on $100 million in option payments from builders that fell through, he said.

"We had some option payments that came due, and they were not met," Cox said. "Those guys are doing their best to find funding sources, but they are in turmoil right now. Sales have dried up (in the industry)."

The lenders have given waivers to Lake Las Vegas in the past when it comes to debt payments, but Cox said he doesn't know what their strategy will be going forward.

In exchange for the creditors' assistance, Lake Las Vegas has promised not to file for bankruptucy protection, he said.

Credit Suisse officials did not return phone calls.

As part of its original five-year loan obtained in 2004, Lake Las Vegas is required to meet land sales quotas on a quarterly basis, Cox said.

The loans, due by 2010 and 2011, are secured by undeveloped land at the 3,500-acre development.

The development's hotels, restaurants, golf courses, retail and residential areas are unaffected, he said.

The loan payment problems are nothing new, Cox said.

Lake Las Vegas has been given waivers on meeting its debt requirements since running into problems a year-and-a-half ago, Cox said.

Because builders are walking away from exercising their options to acquire Lake Las Vegas land, Transcontinental is looking abroad for potential buyers of the undeveloped property, about 1,000 acres east to northeast of Loews Lake Las Vegas, said Cary Boeddeker Krukowski, director of marketing at Lake Las Vegas and daughter of R.F. Boeddeker, Transcontinental's chairman.

She said they are optimistic land sales will eventually go through but doesn't have a timetable.

"We are pursuing and continue to pursue large sales," Cox added. "They are just not U.S. buyers. That is dead as we see it. We are trying with Korean buyers. They have a different perspective. They see it as a discount."

Cox wouldn't name the builders and developers who walked away from the acquisitions but it includes people not developing in Lake Las Vegas at this time.

Builders at Lake Las Vegas include Pardee Homes, Toll Brothers, Innovative Resort Communities, Woodside Homes, Amland Development and Centex Homes.

Of that group, only officials from Amland could be reached.

Wayne Krygier, Amland's president, said he's heard rumors of Lake Las Vegas's financial problems, which he said are not uncommon for any builder and developer these days.

When home sales are down more than 40 percent, adjustments must be made, he said.

"They are not the only builder (with problems)," Krygier said. "Focus Property Group has the same situation with builders who had options and walked away from them."

Focus is the developer of Mountain's Edge, Kyle Canyon, Providence and Inspirada, the new master-planned community in Henderson.

Focus company officials could not be reached for comment.

Amland, which has built 74-single-family homes and 26 condos in Lake Las Vegas, hasn't walked away from any options, Krygier said.

However the financial problems shake out, Lake Las Vegas will continue to thrive because problems in the housing industry are short-lived with development taking place on the Strip, he said.

"It is beautiful property. It is not going to become a trailer park," Krygier said. "It is a luxury property, and people are going to buy it for sure."

The big question, however, is when.

Dennis Smith, the president of HomeBuilders Research, which monitors the housing market, said land at Lake Las Vegas will sell but it has to be priced right.

Land in Lake Las Vegas, depending on its location, has sold for more than $1 million an acre to as much as $3.5 million an acre, Krukowski said.

"No one is selling land right now," Smith said. "If you are going to sell land, it is going to be discounted. Just ask the BLM (Bureau of Land Management). That is how it works. It is called supply and demand. No builders are buying land because they have got enough land in inventory to handle current absorption."

When completed, Lake Las Vegas will have about 9,000 homes. It has 1,500 homes at this time, and land has been sold for another 2,000 to 3,000 homes. The third phase will have about 2,500 housing units with prices ranging from $500,000 to $10 million.

Lake Las Vegas started adding homes priced as low as $500,000 two years ago to broaden its market segment.

The market shifted quickly for Lake Las Vegas, as the development had one of its best years when builders sold more than $300 million in homes and condos in 2006, Cox said.

The development caters to a demographic of homebuyers who aren't affected financially in purchasing a home, but they have been affected psychologically — and that has impacted sales, Cox said.

If they don't think the price will escalate and may even go down, they will wait on their purchase, Cox said.

Some market observers suggest Lake Las Vegas has been hurt by the luxury condo market along the Strip that stole potential buyers.

Lake Las Vegas countered by creating a a stronger luxury community environment with high-end concerts and high-end retail.

Despite the current woes, Cox remains optimistic about the resort community's future, especially give the lack of land in the valley. The project has been a two-decade vision of R.F. Boeddeker, who took thousands of acres of desert land, built a 320-acre lake and turned Lake Las Vegas into one of the area's premier resort communities.

"We are biased," Cox said. "We think we have been the best land in the whole city. Sooner or later this housing slump will turn around and people will start buying again. We have got entitled land and in our opinion the best views and amenities."

Smith agrees that Lake Las Vegas is poised for a strong recovery because whenever there is a downturn in the housing cycle, it helps to sell homes that are unique.

"It is not going to dry up and blow away," Smith said. "It is still a really beautiful community out there."