Company swaps for LV land

Monday, May 5, 1997 | 11:59 a.m.

A major swap that netted the federal government 174 acres of pristine conservation and recreation land in exchange for 2,326 acres of Las Vegas Valley property is now complete.

The U.S. Bureau of Land Management and Olympic Management of Phoenix signed off on the second and final phase of a deal in which both sides traded about $41.8 million worth of assets.

The federal government ended up with 47 acres of beachfront property in Zephyr Cove along Lake Tahoe, 118 acres in the Sunrise Mountain area, and nine acres at the historic Oliver Ranch in the Red Rock Canyon National Conservation Area. BLM also received $153,000 in cash.

"The lands that were acquired were certainly of value for the future protection of those areas," BLM spokeswoman Lorraine Buck said.

Olympic Management obtained scattered acreage west of Interstate 15, north of Lake Mead Drive and south of Cactus Avenue. The company also obtained property in the Blue Diamond area.

The exchange with Olympic Management was among six land swap deals BLM plans to complete before enforcing a self-imposed temporary moratorium on such activity. The other five deals are still pending.

"It was an agency decision to step back and take a look at the (land swap) program to make sure we were making the best use of the exchanges," Buck said of the moratorium. "We're looking at modifying the program and making it more competitive."

Rep. John Ensign, R-Nev., was among the critics last year who questioned whether the BLM was getting fair return for the land it was swapping. Typically, companies who deal with the federal government trade for property they convert into residential and commercial developments.

Last month, the House passed Ensign's bill to require that an estimated 22,000 acres of federal lands in Clark County go to auction at fair market value. The county and the BLM would decide which land to sell.

Auction proceeds would be used to purchase "environmentally sensitive" land. The money would also help finance the proposed $1.7 billion regional water pipeline, and the state's education fund. Ensign's bill has moved over to the Senate, where it is being sponsored by Sen. Richard Bryan, D-Nev.

Both Ensign and Bryan have said they supported the BLM swap with Olympic Management.

Guy Inzalaco, one of the company's partners, said the land acquired from BLM will be included in a proposed 1,800-acre master planned development that will be considered by the Clark County Commission later this month. Inzalaco said most of the property would probably be earmarked for homes but that mixed zoning is likely.

He said plans for the Blue Diamond land haven't been determined.

"With what we got from a development viewpoint and what they got from a resource viewpoint, it was a great exchange," Inzalaco said.

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