Feds probe Del Webb land deal

Friday, Jan. 16, 1998 | 10:22 a.m.

The Interior Department is investigating alleged irregularities in the large-scale federal land swap that will allow Del Webb Corp. to build Anthem, a 12,000-home community in Henderson, the Wall Street Journal reported today.

The front-page story, focusing on the work of lobbyist Donald Moon, says the Interior Department's inspector general has begun a formal investigation of complaints from current and former Bureau of Land Management officials about the deal.

The story says the 4,754-acre deal also raises questions about the role of Interior Secretary Bruce Babbitt and points out it was promoted by Sen. Harry Reid. Phoenix-based Del Webb, developer of two existing Sun Cities in Las Vegas, held a fund-raiser for Reid in Phoenix in 1994, raising $10,000, the Journal said.

In the story, Reid says he supports the swap because Del Webb is a good corporate citizen and not because of the fund-raiser.

"A growing number of critics say the BLM's land-swap program is too susceptible to political meddling and too generous to developers, especially here in Las Vegas, where land values are high and big parcels scarce," the Journal said.

The Journal said Babbitt, who himself once represented Del Webb in efforts to acquire BLM land, formerly recused himself from the Anthem deal -- except at one critical juncture when he ordered the BLM to prioritize it and move forward at a time when other exchange applications were put on hold.

The story said the Interior inspector general is looking at the process that initially valued the land at just $9,000 per acre. It was later valued at $10,900 -- though land swap critics say it's worth $36,000 per acre.