BLM land auction pulls in almost $16 million

Birusk Tugan

Friday, June 9, 2000 | 11:08 a.m.

Trying to generate money to buy and improve environmentally sensitive land in Nevada, the federal Bureau of Land Management sold almost $16 million worth of public land in a two-day auction.

"Making $14 million in 2 1/2 hours is not a bad day's work," said BLM spokesman Phil Guerrero after the first day of the auction on Thursday.

The hottest among the 87 properties offered Thursday and today was the 10-acre parcel on the corner of Serene Avenue and Eastern Avenue. Nine out of 54 registered bidders, mostly developers, real estate agents and investors, competed to buy the land, which was initially assesed at $2,820,000.

Some 100 spectators saw its value climb to $347,000 an acre in less than 15 minutes. The land was bought for $3,470,000 by developer Yoel Iny of the YNT Iny Family Trust.

"Have you saved your money for this one?" asked Mike Graham, the auctioneer from the federal General Services Administration, when the item came up for sale.

Seven parcels sold Thursday had single bidders and were sold at assessed values. One of them, a 17.5-acre property on Eastern Avenue between Wigwam and Ford avenues, sold for $3,830,000, or $218,857 an acre, to real estate agent Parvez Mehdiabadi.

"If I get the zoning I want, I am happy," Mehdiabadi said, adding that way he will make a good profit on a shopping center he plans to build.

Selling public land at the fair market value was the driving force behind the auction for the BLM, which had been accused of "not getting the most bang for the buck" during land exchanges.

"I don't think anyone can say (that) now," Guerrero said.

Assessments at higher than market value assessment and the small sizes of many parcels, however, led to 40 properties going unsold.

"I am little disappointed," said BLM District Manager Mike Dwyer. He said that that the agency will adopt a more aggressive market strategy before future sales.

The agency will reassess values of some items, erect "for sale" signs on its property, mail letters to adjacent land owners, and perhaps try an Internet or satellite auction, Guerrero said.

"What's important about this land sale is everything that's raised here will stay in Nevada to benefit the people of Nevada," Guerrero said.

The proceeds had gone into the U.S. Interior Department's general fund until President Clinton signed the Southern Nevada Land Act two years ago.

Now, about 85 percent of the money pays for the needs of national recreation and conservation sites in Nevada, with priority given to Clark County.

"Some of it will be used to pay for new boat ramps at Lake Mead, picnic tables at Mount Charleston, or perhaps some renovations at Red Rock Canyon," Guerrero said.

The Southern Nevada Water Authority gets 10 percent and the final 5 percent goes to the Nevada State Permanent School Fund. The water authority has already received more than $6.6 million, and the school fund has been given $3.3 million from the BLM auctions in Las Vegas.

The BLM will offer the properties that did not sell in the auction at a later one. The next land auction is scheduled for November. The federal agency plans to host two sales a year until all 27,000 acres allocated for public sale have been sold.

In addition to developers, a handful of people who want to build new homes or develop their property participated in the auction Thursday.

Electrical engineer Bruce Waggoner paid $96,000 for each of the two 1.25-acre parcels buffering his house in the Green Valley.

"Seven years ago when we moved there, there was nobody," said his wife, Liz Waggoner. "We paid above the market value but it's OK. Just so it is quiet."