Clean air named top issue for LV real estate developers

Phil Levine

Friday, Feb. 18, 2000 | 11:14 a.m.

Builders and developers in Clark County must accept the "difficult reality that federal regulators hold all the cards" when it comes to establishing air quality standards.

That message was delivered Thursday by John Schlegel, director of the Clark County Department of Comprehensive Planning, during a meeting of the National Association of Industrial and Office Properties Southern Nevada chapter.

"I'll be honest, it will likely cost you more to develop (projects) when these new (air quality) proposals pass," Schlegel said.

"But it would end up being far more costly if we don't arrive at an acceptable proposal."

In January, the Environmental Protection Agency deemed Clark County's latest proposal to control carbon monoxide and dust emissions as "inadequate."

Problems cited by the EPA in the last county proposal included lack of sufficient control measures and emission reductions needed to meet established goals.

Under federal law, the county must put forth an acceptable plan to control both carbon monoxide and particle matter -- most notably dust -- if it hopes to attain federal funds for new highway construction.

Several local regulatory bodies, including the county planning office, Health District and Regional Transportation Commission, are working with developers to put together a proposal acceptable to EPA officials.

Schlegel warned that failure to produce an acceptable proposal by January 2001 could also result in Clark County being "fipped," an acronym for "federal implementation plan" wherein federal authorities assume control of air quality control.

"We're working to put together two SIPS (state implementation plans) so we avoid being fipped," Schlegel said.

In fact, the deadline for a new plan looms even closer than next January. Schlegel said federal authorities will require a few months to approve any plan, so an initial proposal needs to be put together by mid-year.

The two main pollutants plaguing the Las Vegas Valley stem from different sources, Schlegel said.

"Our research found that motor vehicles were responsible for 87 percent of the carbon monoxide in our air," he said. "As for particle matter, 46 percent came from construction activities, while 33 percent was from dust off disturbed vacant land."

Schlegel warned developers that federal authorities have a reputation for deciding issues and taking action "at a glacial pace."

"I can assure you that it's greatly preferable for local authorities to be in control of this issue," he said. "We're also accountable locally, and bring a local perspective that is more pragmatic than the federal government's."

Rick Smith agrees.

"This (air quality matter) is without a doubt the number one issue this year for our members," said Smith, president of NAIOP's Southern Nevada chapter.

"The federal government holds all the cards and has the ultimate trump card too. They can say 'we'll cut off your (highway) funds' and roads are key to the development of this area.

"It's not like we can negotiate on this issue."

Smith said local developers are working closely with Clark County authorities to head off the need for federal intervention.

"If we were to get 'fipped,' that would likely slowdown speculative purchases of land," he said. "If a developer is looking to develop 50 acres of land, that's usually phased in over a few years.

"People will be less likely to commit long-term (to development projects) if the federal government is involved in this process."

Smith said another consequence of federal involvement could be significantly higher costs for building new residential and commercial projects.

"If you don't add to the supply (of new properties) and the demand continues to rise -- as everyone says it will -- it's inevitable that prices will rise too," he said.

Despite the tight timetable and current lack of consensus, Smith said he remains optimistic a proposal acceptable to federal officials can be worked out.

"In the development industry, we're all optimists," he said. "We build empty buildings and expect them to eventually be full.

"Still, that optimism is tempered somewhat by experience. In the end, we all just hope for logical minds to prevail."