BLM recommends land sale in blocks

Diana Sahagun

Wednesday, Jan. 5, 2000 | 11:22 a.m.

The Bureau of Land Management set the stage for the future of North Las Vegas on Tuesday by recommending that 7,500 acres of federal land be used for master-planned communities.

While the recommendation for the undeveloped land doesn't give city officials total control of how the public land will be sold, it does set the wheels in motion for development of new communities, which could bring 78,000 new residents to the area.

The City Council can either accept or reject the "North Las Vegas Land Sales Market Study," released Tuesday. Accepting it could mean a land auction as early as 2002. Rejecting it would mean that the 7,500 acres would remain an issue for an indefinite period.

The agency recommended that 7,500 acres, which would be auctioned, developed and annexed into the city, be sold over the next 25 years in 500- to 700-acre parcels. The parcels should be developed into "village" areas and built in several phases, it said.

City officials had lobbied the BLM and Interior Department to have the land sold for master-planned communities, but in one block to one developer for the sake of consistency.

Tuesday's recommendation meets the city part way. It agrees that the land should be master planned, much like Green Valley or Summerlin, but stipulates -- to gain maximum revenue -- that the sale should be in multiple blocks sold to the highest bidder at auction.

The city's desire to turn the federal acres into a master-planned area has been an ongoing issue for more than 10 years. The city's vision -- one sale at auction to one developer -- clashed with the vision of Interior Secretary Bruce Babbitt, who said taxpayers would benefit more by chopping up the acreage into hundreds of smaller parcels and selling them over time.

North Las Vegas Mayor Michael Montandon negotiated the parcel size with the Nevada congressional delegation in Washington, most recently discussing the option of selling the land in four to five chunks.

Tuesday's recommendation, advising that the land be sold in 10 to 15 chunks, came as Montandon and City Manager Pat Importuna were meeting with Sen. Harry Reid, D-Nev., in Washington. The land was one of the issues discussed.

BLM spokesman Phillip Guerrero said Tuesday, "We feel pretty good because we have the scientific facts that say we can get the most bang for our buck, and also allow North Las Vegas to achieve its goals."

While the findings aren't exactly what city officials had hoped for, the study shows a master-planned community is now a viable option, Guerrero said.

Commissioned by the BLM in April, the market study was conducted by Restrepo Consulting Group of Las Vegas. Its task was to determine how the local real estate market will react to various models of selling. The findings and recommendations are based on an analysis of historical and projected economic and population trends, real estate market dynamics and more.

The study suggests that the market would support development in four phases: the sale of one to two parcels between 2002 and 2007, three to four between 2008 and 2013, three to four between 2014 and 2019 and the balance by 2024.

By then the land would potentially contain 3,900 acres of residential space, 475 acres of business parks and 775 acres of retail commercial space. The balance, more than 2,300 acres, would be for uses such as parks and schools.

The development would also increase the city's population by about 60 percent, adding about 78,300 people.

"This would set the standard for the entire Southern Nevada community," Guerrero said. "It would make North Las Vegas competitive with Summerlin and the other types of master-planned communities.

"The acreage in North Las Vegas is some of the most valuable land that the United States manages in the West," he said. "It also has the potential to bring in more money into the coffers, which will allow the BLM to buy more environmentally sensitive land."

The 1998 Southern Nevada Public Land Management Act allows for the sale of public land in the Las Vegas Valley by the BLM. An important provision of that act is that the money generated will remain in Nevada.

Under the legislation, 85 percent of land-sale money is returned to the BLM to buy environmentally sensitive land elsewhere in Nevada. The law also calls for 10 percent of the money to pay for Southern Nevada water projects, and 5 percent will go toward public education.

If the BLM's most recent auction of public land is any indication, the potential value of North Las Vegas land could reach $100,000 an acre. At the last auction in November 100 acres brought in $9.5 million in 2 1/2 hours, Guerrero said.

If that would hold up with the 7,500 acres, the land could bring in a total of $750 million. One parcel of 700 acres could bring $70 million.

If the City Council approves the BLM recommendation, the first auctions in 2002 would coincide with completion of the northern leg of the Las Vegas Beltway through North Las Vegas, which will link U.S. 95 and Interstate 15.

Local developers say they have their eyes on the parcels.

"We have been following the issue with a lot of interest," John Kilduff said Tuesday. He is executive vice president of American Nevada Corp., developer of Green Valley and Green Valley Ranch. "We've met with the city ... and are very interested in pursuing an opportunity."

Representatives from Pardee Construction Co., which built Eldorado, a master-planned community in North Las Vegas, are also interested in the parcels.

"Pardee has always been interested in a piece of that land," said Klif Andrews, area manager for Pardee. "Pardee supports the idea. We think it is an appropriate way to build a city."

Eldorado is a 1,100-acre parcel, and has two schools, two parks and retail stores.

But Andrews admits that Pardee is concerned that city officials have continued to try to negotiate for a one-block, one-developer sale, even when it has seemed impractical.

Del Webb Corp., whose Las Vegas communities include Sun City Summerlin, Sun City MacDonald Ranch and the Anthems, also remains interested.

"Del Webb is interested in any large parcel of land in the Las Vegas market," said Scott Higginson, vice president of governmental affairs for Del Webb. "We are limited in opportunities for land of that size in Las Vegas, so we will evaluate any opportunity that comes about. We have been waiting for the city and the BLM to come to some sort of agreement."

Higginson added that if the parcel should go up for sale, Del Webb will most definitely attend the auction and evaluate the price of the parcels.

Montandon, reached in Washington on Tuesday before he boarded a flight to Las Vegas, said he had only seen a few pages of the study, but that developing the land in four phases, "is something that initially looks like it could work for the city."