Nevada Focus: Whittell estate deal not done yet

Thursday, Jan. 8, 1998 | 3:33 a.m.

The deal involves trading the Whittell land - now owned by the Del Webb Conservation Holding Corp., a subsidiary of the Del Webb Corp. - to the Bureau of Land Management in exchange for property in Las Vegas.

Sen. Richard Bryan, D-Nev., says the process will likely occur through several incremental transfers involving exchanges between the Del Webb Corp. and the Bureau of Land Management.

And, although Del Webb is ready to trade immediately, there are some legal bumps in the road.

"We have sufficient lands in our hands to make the exchange," said Scott Higginson, vice president of government and public affairs for Del Webb.

The problem is that the Bureau of Land Management has only committed to exchanging about $15.5 million worth of the approximate $40 million worth of Whittell property.

The BLM has committed to exchanging about 960 acres of land in Las Vegas with Del Webb and another 45 to 50 acres with PermaBuilt Homes.

At the moment, however, the BLM hasn't designated the rest of the land Del Webb wants to trade for as disposable land.

And, this may not occur, said Jo Simpson, external affairs chief for the BLM in Nevada.

The land is being proposed for disposal but the proposal - the BLM's Resource Management Plan - won't be published until around spring, Simpson said. Then, the matter is opened to public comment and a decision must be rendered.

If the decision is to not retire the land, the U.S. Forest Service would have to come up with a different way of obtaining the rest of the Whittell property, Simpson said.

Other options for the agency could include additional land exchanges besides Del Webb, obtaining federal funds for the outright purchase of the property or orchestrating its own land exchange.

Del Webb's goal is to have the project completed by mid-1998, enabling the corporation to build a 5,000 acre, master-planned community with housing and a country club, in Las Vegas.

Owned by New York philanthropist and mutual fund tycoon Jack Dreyfus, the Whittell property has been for sale for years but the American Land Conservancy, which helped arrange the exchange, was able to convince Dreyfus to give the ALC an option and several extensions.

Even though the exchange hasn't been finalized, Higginson said the corporation has only one intention with the property and that is to trade it.

"Del Webb Corp. has no intention of developing this property. The only intent is to include it with other lands in the state to exchange," he said.

The exchange of land and making it public has been one of Bryan's top priority for the last two years.

"This was our last chance," he said.

Once the property is in the public's hands under the direction of the Forest Service, an additional mile of Lake Tahoe beach front property will be accessible to people, Bryan said.

Details on how it will be made available, however, haven't even been discussed by Forest Service officials.

"Until the actual transfer takes place and we see the terms, we can't determine (what will be done)," said Linda Massey, USFS spokeswoman. "We want to make as much of it accessible to the public as possible."

When the time comes, Massey said there would likely be some sort of forum available for public comment on the matter.

"I would hope access to me public would be a prime consideration," Bryan said. "We have one more public recreation jewel to add to the Tahoe experience."

If the property does become public, it is expected to boost tourism, according to tourism representatives.

"There is no doubt it would open something unique in the area for public viewing and there is no doubt it would be a benefit," said Vicki McGowen, executive director of the Lake Tahoe Visitors Bureau Incline Village/Crystal Bay.

McGowen views the prospect as an addition to what is already here as opposed to a major attraction.

"I don't think it will overpower the attractions we do have," she said, adding that historical sites are becoming more and more popular attractions.

Pettit Gilwee, spokeswoman for the North Lake Tahoe Resort Association agrees.

"The mansion will open up access to the lake on the east shore where there is not much access," she said.

The proposal to create a conference center will also add to the appeal, Gilwee said.

Even South Shore's Lake Tahoe Visitors Authority believes public access will make a difference.

"I think a lot of people would like to go through it," said Phil Weidinger, spokesman for the authority. "I think people would like to see the old-time castle on the shore of Lake Tahoe."