Land bill places Ensign in middle

Jeff Schweers

Monday, July 8, 1996 | 11:59 a.m.

Rep. John Ensign, R-Nev., has found himself in the middle of a feud between Southern Nevada's most powerful developers.

By calling for a freeze on public-private land swaps, Ensign could block plans by Del Webb, a Phoenix-based developer, to obtain 5,000 acres of federal land for real estate projects in the Las Vegas area.

That would play into the hands of the Howard Hughes Corp., a competing development company that doesn't want the exchange to go through.

"I knew the delays would potentially hurt, because time costs money," Ensign said. "My goal is to make sure the taxpayers get their fair share."

Ensign said his call for a freeze that hurts political supporters demonstrates he is siding with the public, and not political supporters.

"If I was protecting people that contributed to me, I could understand why people would look at me and be a little suspicious," Ensign said.

Ensign has asked Interior Secretary Bruce Babbitt for a freeze on public-private land exchanges until a bill can be heard giving local governments control over which lands get sold.

Ensign and Sen. Richard Bryan, D-Nev., have introduced matching versions of the bill.

Bureau of Land Management officials defend the land exchange process and dispute a preliminary finding in a federal audit that the agency cost taxpayers millions in faulty appraisals on four land swaps in the early 1990s.

One insider said Ensign knows the moratorium is doomed and is just posturing politically to win votes.

"This is the issue he got into office on in the first place," the insider said. "It's now time to rekindle the fire to get the issue back up to the front page with John Ensign leading the charge."

Ensign said he had no control over the timing of the inspector general's report criticizing the land exchanges.

But Ensign admitted that the part of his bill giving counties approval authority on land swaps has no support from Babbitt.

If the freeze goes through, Hughes would have a virtual lock on local real estate if public lands are no longer available to developers. Hughes could then artificially raise prices, critics said.

Hughes, with 17,899 acres available for development, is the largest owner of vacant private land in the Las Vegas area.

However, the government has 20,000 acres available in the valley, and that has created a feud among developers who want the land for projects.

Tim Morse, an independent professional appraiser and chairman of the Clark County Board of Equalization, which hears appeals on property tax assessments, said supply and demand is driving the debate.

"You cut down on supply, the demand is still there, the price has got to increase," Morse said.

Hughes could further benefit if the County Commission has control over what lands are exchanged.

One board member said Hughes has two staunch supporters who can secure the votes necessary to approve land deals beneficial to Hughes.

County officials said they support Ensign's bill because it would give the county a tool for controlling growth, which is the same reason Bryan supports the bill.

An aide to Bryan said the part giving the County Commission control over land sales is a vital part of the bill, but Ensign said it's equally important that federal law is changed to allow proceeds from land sales to stay in the county.

Ensign said he also realizes he's gotten himself in the middle of a feud between Hughes and Del Webb.

Del Webb, the single largest purchaser of Hughes land, has sold off most of its holdings and is seeking federal land to expand its MacDonald Ranch project south of Green Valley Ranch.

The company began searching for cheaper acreage years ago after Hughes raised prices on property it possessed. Del Webb's first attempt to obtain federal land was blocked by then-Rep. James Bilbray's bill to expand the Red Rock Canyon National Conservation Area.

Ensign made a campaign issue out of the legislation, claiming that Bilbray was crafting legislation that could have made millions for Don Williams, a consultant and friend of Bilbray's who owns the White Beauty mine in the expansion area.

Bilbray is now a lobbyist for the firm that represents Hughes.