County may require Walters to buy land

Adrienne Packer

Tuesday, Dec. 3, 2002 | 11:03 a.m.

Clark County commissioners are considering recommending that golf course developer Billy Walters be required to purchase a 65-acre parcel in Spring Valley where he plans to build a massive shopping center and office complex.

Two weeks ago the board voted 4-2 to amend the Spring Valley master plan to change the designated zoning from park space to commercial.

McCarran International Airport had granted Walters a 99-year lease on about 250 acres free of charge. Walters, in return, agreed to develop two municipal golf courses along Durango Drive near Warm Springs Road.

Walters intends to build a shopping center and medical office complex on about 65 acres and develop the remaining acreage into golf courses, as promised.

However, at least two of the six commissioners are concerned that because Walters acquired the land for free, he has an unfair business advantage over private developers in the neighborhood who paid millions of dollars for land.

"Whoever leases the land from us has no land costs and that places private property owners at a competitive disadvantage," said Commissioner Yvonne Atkinson Gates, who along with Chip Maxfield opposed the master plan amendment.

The board is scheduled to consider a formal zoning change request for the land on Wednesday.

But because of a death in the family, Atkinson Gates has asked Williams to request that the zone change item be postponed Wednesday. Williams' request is likely to be backed by Maxfield and Commissioner Bruce Woodbury.

One thing that will definitely happen Wednesday will be the submission of petitions with more than 400 signatures of area residents who oppose the shopping center project, Spring Valley activist Lisa Mayo-DeRiso said.

Commissioners Dario Herrera and Erin Kenny, who have been strong supporters of Walters' plan, could not be reached for comment Monday.

Maxfield said he would prefer to sell the land to Walters and keep the lease intact for the adjacent golf course. Because the airport owns the property, Maxfield expressed concerns about the government competing with private enterprise.

"I'm not comfortable with this," Maxfield said. "Nobody can compete with government. They don't have the time, staff, money or wherewithal to compete with government. The government is doing this at the expense of the private enterprise system."

Walters, however, said because the land is within the airport-controlled Cooperative Management Area, 50 percent of lease revenues are returned to the McCarran. The airport keeps 10 percent of those revenues, 85 percent is returned to the federal government and 5 percent is funneled to the school system.

That makes the deal fair, Walters said.

In addition, Walters said, the airport has entered several lease agreements in which it has allowed commercial developments.

"The United States is made up of partnerships where deals like this are done on a regular basis," Walters said. "I don't think there is anyone who knows anything about business who would evaluate this and say it wasn't equitable."

Commissioner Myrna Williams agreed that because Walters has to forfeit half of his profit, the proposed deal is fair.

"There are conditions in the lease that would require whoever rents it to pay equal to what other commercial renters in that area are paying," Williams said. "In essence it would not be an unlevel playing field."

Assistant County Manager Rick Holmes said the Cooperative Management Area policy prohibits Walters from undercutting competitors' lease rates.

Commercial developer Ed Nigro has publicly criticized the deal, saying if the board approves the zone change, Walters will have a clear advantage.

Nigro is developing a Vons grocery store on the corner opposite Walters' proposed shopping center. Walters' shopping center would be at Durango Drive and Warm Springs Road and would be anchored by Albertson's. Nigro did not return phone messages Monday.

The county planning staff is recommending that the board approve the zone change now that it conforms with the master plan. Although the planning report says Walters' plan doesn't "incorporate many of the goals and policies" in the master plan, it recommends approval.