Property tycoon Mohamed Hadid owes $1.2million in back taxes on his disaster mega-mansion


Embattled Los Angeles property tycoon Mohamed Hadid owes almost $1.2 million in back taxes on his controversial mega-mansion that a judge has ordered to be torn down, DailyMail.com can reveal.

The unpaid property taxes are revealed in new court documents filed by Douglas Wilson, the receiver appointed by LA Superior Court to oversee the demolition of the giant, half-built house.

‘Review of the tax bills shows a total amount due of $1,178,754 for the main house parcel, which includes delinquent amounts dating back to 2017,’ wrote Wilson in a report to Judge Craig Karlan obtained by DailyMail.com.

Real estate tycoon Mohamed Hadid owes almost $1.2 million in back taxes on his controversial mega-mansion

A judge ordered Hadid's home to be torn down out of safety concerns with a deadline of May 4, saying it was a nuisance and a danger to the public and the homes below

A judge ordered Hadid’s home to be torn down out of safety concerns with a deadline of May 4, saying it was a nuisance and a danger to the public and the homes below 

Exclusive aerial photo show large sandbags and plastic sheets covering large parts of the slopes below to try to prevent landslides that could be caused by recent heavy rains in LA

Exclusive aerial photo show large sandbags and plastic sheets covering large parts of the slopes below to try to prevent landslides that could be caused by recent heavy rains in LA

Hadid's home has been branded a 'clear and present danger' by Judge Karlan as its believed a heavy downpour could cause a massive landslide  and send the property sliding down to the properties below

Hadid’s home has been branded a ‘clear and present danger’ by Judge Karlan as its believed a heavy downpour could cause a massive landslide  and send the property sliding down to the properties below 

In addition, Hadid owes $13,160 in back taxes on a smaller parcel of land on the mansion property, bringing the wealthy developer’s outstanding tax bill to almost $1.2 million.

It was recently revealed that Mohamed's supermodel daughter Gigi, 25, is pregnant with singer Zayn Malik's child

It was recently revealed that Mohamed’s supermodel daughter Gigi, 25, is pregnant with singer Zayn Malik’s child

In his report to the judge, Wilson also disclosed that he’s hired a landscaping company – at a cost of $148,000 – to add new plastic sheeting and sandbags around the hilltop house, to try to prevent landslides that could be caused by recent heavy rains in LA.

As these exclusive aerial photos show, large plastic sheets – supposed to combat rain – cover large parts of the slopes below the house which Judge Karlan has branded a ‘clear and present danger’ and ordered demolished after May 4.

But neighbors suing the father of supermodels Bella and Gigi Hadid are skeptical about such protection measures and believe that another heavy downpour could send the massive structure – perched precariously above several multi-million dollar homes in exclusive Bel-Air – hurtling down the hill causing massive destruction, injury or even death.

‘It’s a menace, it’s unsafe and it’s a danger to the whole neighborhood,’ said Joe Horacek – whose house is immediately below the looming shadow of Hadid’s mansion.

‘There have already been several landslides on the property.

‘I and other people who live below this monstrosity are really worried that if there is another major rainstorm, on top of the rain we already got recently, that hillside could shift and the whole house could come down the hill.’ 

DailyMail.com obtained court documents showing a total amount due of $1,178,754, 'which includes delinquent amounts dating back to 2017'

DailyMail.com obtained court documents showing a total amount due of $1,178,754, ‘which includes delinquent amounts dating back to 2017’

Horacek, 78, and his wife Bibi are so scared of the prospect of Hadid’s mammoth structure – dubbed the Starship Enterprise because it’s so huge – sliding down on to their single-story house, that they refuse to live there any more and instead now live at their other home near Palm Springs, a hundred miles east of LA.

‘I’m not going to spend another night there,’ he added. ‘Not until they tear that eyesore down.’

Hadid has tried several legal moves to stop or delay the demolition, including a bankruptcy case

Hadid has tried several legal moves to stop or delay the demolition, including a bankruptcy case 

The May 4 deadline for the house to be knocked down was set by Judge Karlan in January to allow time for receiver Wilson to draw up detailed plans for the orderly demolition of the massive structure.

Hadid, 71, has tried several legal moves to stop or delay the demolition.

First he filed chapter 11 bankruptcy, claiming that he ‘couldn’t afford’ the $5 million cost of the demo.

His bankruptcy case was dismissed by the US Bankruptcy Court.

Then he filed an appeal against Judge Karlan’s order to raze the mansion to the ground.

But when his lawyers went to court to ask the judge for a stay in the demo, pending the outcome of the appeal, Judge Karlan point blank refused, telling them,

‘This structure is a clear danger to the community. If there is a 1.0 or 2.0 earthquake, it could come down.’

Noting that much of the colossal house was built illegally, Judge Karlan added: ‘This court has found the structure to be a nuisance…It’s really unsafe and dangerous.

‘Given the court’s findings, why would the court issue a stay? For the court to issue a stay runs contrary to public policy.’

The Appeals Court took the same view as Judge Karlan and last month denied Hadid’s appeal.

Now Horacek and other neighbors are hoping demolition work will begin on May 4, despite the current coronavirus health crisis.

‘New construction is being allowed to continue during this time so I am hoping the demolition will also be deemed essential work, particularly from a safety point of view,’ Horacek told DailyMail.com. 

The judge was snapped pointing at the property and asking questions during the visit to the construction site and the nearby homes of suing neighbors Joe Horacek and John Bedrosian, who were also present

The judge visited the building site in his capacity of overseeing a civil lawsuit against Hadid brought by angry neighbors who claim the half-finished project is not only an 'eyesore' and a 'monstrosity', but also a dangerously unstable hazard to their homes

Judge Craig Karlan visited the construction site last year to see first hand the progress on the removal of the home’s illegally-built third floor and pool deck, a partial demolition he had ordered to make the building safer and bring it into line with local planning regulations 

Neighbors have been fighting for years for the demolition of the property because of all the alleged unapproved construction. The development of the home has also been an eyesore to nearby residents and now a danger due to heavy Los Angeles rain

Neighbors have been fighting for years for the demolition of the property because of all the alleged unapproved construction. The development of the home has also been an eyesore to nearby residents and now a danger due to heavy Los Angeles rain 

Hadid blames his disgruntled 'nasty' neighbor Joe Horacek (pictured in front of his home with Hadid's home in the background) Horecek is the man who has spear-headed the campaign against him

Hadid blames his disgruntled ‘nasty’ neighbor Joe Horacek (pictured in front of his home with Hadid’s home in the background) Horecek is the man who has spear-headed the campaign against him

The COVID-19 pandemic has already delayed the start of the jury trial in which neighbors are seeking cash damages from Hadid for the eight-year ‘nightmare’ they claim he’s put them through.

It was scheduled to begin March 17 but has been postponed till July – and that date could be put off even farther if the health scare continues through the summer.

Whenever the trial eventually starts, the neighbors have good reason to be optimistic about the outcome, since Judge Karlan has declared that they are likely to win their case against the purported multi-millionaire.

In granting a recent motion asking to delve into Hadid’s personal finances, the Judge said in a written ruling: ‘There is a substantial probability that they (the neighbors) will prevail in their claim for punitive damages.

‘Plaintiffs (the neighbors) argue Hadid directed and controlled all the illegal construction at issue in this action, there is a substantial probability that they will prevail on their claim that Hadid’s conduct was fraudulent, malicious or oppressive…

‘Hadid acted with conscious disregard for Plaintiff’s safety and rights and Hadid’s eight-year campaign to build an illegal structure evidences despicable conduct.’

The notorious mansion - which Hadid hoped to sell for $100 million - was originally permitted for 15,000 square feet but the house grew to around 30,000 square feet

The notorious mansion – which Hadid hoped to sell for $100 million – was originally permitted for 15,000 square feet but the house grew to around 30,000 square feet 

Mohamed Hadid, 71, is the property tycoon father of supermodels Gigi and Bella Hadid. It's been revealed that Gigi is pregnant with her first child with singer Zayn Malik

Mohamed Hadid, 71, is the property tycoon father of supermodels Gigi and Bella Hadid. It’s been revealed that Gigi is pregnant with her first child with singer Zayn Malik

The notorious mansion – which Hadid hoped to sell for $100 million – was originally permitted for 15,000 square feet but the house grew to around 30,000 square feet with much of that additional construction illegal.

Hadid ignored orders from Los Angeles City to stop building and in December 2015, in an almost-unprecedented move, the city decided to prosecute him criminally.

He pleaded no contest to three criminal charges involving illegal construction and in July 2017 he was told he would serve a 180-day jail sentence if he doesn’t reduce the size of the house and bring it into compliance with city building codes – or demolish it – within the three years of probation the judge also imposed.

In addition, he was fined $3,000, ordered to pay $14,191 in fees to LA city, and serve 200 hours of community service.

 

Read more at DailyMail.co.uk