Cost of state college projected at $1.3 billion

Jeffrey Libby

Friday, April 6, 2001 | 11:15 a.m.

Henderson city officials estimate the cost of building the proposed Nevada State College in Henderson at as much as $1.3 billion, according to an application filed with the Bureau of Land Management.

As part of a request to annex 555 acres of federal land for the college, city planners projected the cost of constructing seven college buildings and making improvements to the land at between $755 million and $1.3 billion over 16 years. No estimation of operating costs was made.

The projections for developing the site are based on today's dollar. Construction is scheduled to begin in 2001 and continue through 2017.

The BLM application raises issues that go beyond questions about the fiscal responsibility of starting a new state college while legislators are contemplating a possible $140 million budget shortfall this session and a less-than-rosy long-term economic forecast.

BLM administrators said Thursday that an act of Congress may be required before the state can secure more than half of the land requested for the college.

The land is located in southeast Henderson in the foothills of the McCullough Range west of Railroad Pass.

Nathan Naylor, press secretary for Sen. Harry Reid, confirmed Thursday that Reid's office is working with Henderson city officials on the acquisition of the BLM land.

Local staff members for Reid met with BLM administrators last week to look into ways to fast-track the city's request for the federal land.

"In recent weeks we've seen that the Las Vegas metropolitan area is the fastest growing area in the nation," Naylor said. "With education being one of the most important issues facing the state, Senator Reid believes land acquisition should not get in the way of higher education for Nevadans."

Henderson Mayor Jim Gibson said Thursday that despite Reid's offer of help, attorneys working for the city are not convinced that an act of Congress is needed. They are looking into alternative methods of obtaining the land as well, he said.

But Phillip Guerrero, a BLM spokesman, said that of the two options available for annexing the federal land, an act of Congress would be the quickest. Even then, Guerrero estimated it could take from six to 18 months to convey the land to the state system of higher education.

The other alternative could take far longer and run into more severe hurdles if there is public opposition, Guerrero said.

That alternative involves amending federal land-use regulations to allow more than half the requested land to be sold. Of the 555 acres requested by the city, only 235 acres fall within the Las Vegas Valley area of federally owned land earmarked for sale. The other 320 acres have not been been targeted for development.

Before a congressional act is passed or land-use regulations are amended though, the university system will have to first persuade state legislators to approve the $23 million in initial funding recommended by Gov. Kenny Guinn.

The college requested $26 million for construction expenses alone, but Guinn suggested $16 million for buildings and another $6.8 million for operating expenses.

Of the $10 million promised in private funding, the state college foundation has been able to secure just $750,000 in cash and in-kind donations.

Jack Finn, press secretary for Gov. Guinn, said Thursday that Guinn continues to stand by his stated support of the college.

But Finn declined to comment on the billion-dollar development cost projected by Henderson city planners. When offered a faxed copy of the document, he also declined. "Gov. Guinn supports the college. He thinks it's visionary. But if it's not economically feasible he doesn't want to proceed in an irresponsible manner," Finn said.

Few in the university system were aware of a projected cost for the college when called for comment. Richard Moore, founding president of the state college, said he was unaware of a long-term cost estimate for the school.

"Excuse me, I'm trying to get $16 million for my first building," Moore said. He called the billion-dollar figure from Henderson planners "angels dancing."

University system Regent Thalia Dondero said she also had not been told of the expected costs by Henderson city officials. But Dondero gave credence to the cost estimates.

"When you think of seven buildings and all the improvements to the land and perhaps looking at dormitories for students, it could play into that kind of figure," Dondero, the board chairwoman, said. "It could very easily come to that figure. Very easily."

The university system has no estimates of its own to compare against the Henderson estimates, Dondero said.

The billion-dollar figure confirmed growing concerns for state Sen. Minority Leader Dina Titus, D-Las Vegas, that the state college will divert funds from other state educational institutions if it is approved.

"This is the gift that eats," Titus said. "How many times have we seen estimates turn out to be too low, not too high?"

Titus said she supports the idea of a state college, but not the college that has been revealed over the past months. She listed as her concerns the increasing costs, the continuing problems with locating a site, slackening student enrollments state-wide and the state attorney general's investigation of Moore and other administrators.

Gibson said Thursday he was aware of the $1.3 billion figure, a number that rivals the $1.6 billion cost of building the Bellagio hotel-casino in 1999.

Gibson said he remained confident that his city and the state can overcome the fiscal and legal challenges posed by the newest site proposed for the college.

"I'm an optimist. I happen to think this is a good thing for the state," Gibson said. "Most things worth doing -- for anyone who's ever achieved anything -- are fraught with challenge."