Las Vegas Sun

March 29, 2024

County approves airport land swap

A complex land swap forwarded by McCarran International Airport but staunchly opposed by an affected neighbor was approved Tuesday by the Clark County Commission.

With the approval, the county Aviation Department acquired about 19 acres a quarter-mile southeast of the intersection of Interstates 215 and 15, just off Las Vegas Boulevard.

Developer Howard Bulloch and his partner received three pieces of airport-owned land, including the Cactus Ridge Mobile Home Park, in exchange.

But Steve Sisolak, a member of the state Board of Regents who owns land adjacent to the Bulloch property and has been fighting airport-imposed height restrictions affecting development in the area, and his attorney Laura FitzSimmons called the swap a sweetheart deal designed to benefit Bulloch to the detriment of taxpayers.

"It is so blatant what is going on here," Sisolak said. "I couldn't live with myself if I became a part of this."

FitzSimmons said the development of the Bulloch property as commercial or industrial, as it is master-planned now, would affect the value of Sisolak's similarly sized property, which borders two sides of the Bulloch property.

"It's going to devalue it," she said. "This is a do-or-die investment for Mr. Sisolak."

FitzSimmons, as she has in public meetings before, attacked the appraised value of Bulloch's property as unrealistic. She suggested the appraisers, the law firm Jones Vargas, which works for both the airport and Bulloch, and the airport colluded to engineer a sweetheart deal.

"I think it is time to bring all stakeholders together, get it studied, and get it fair," she said. "Because even if you think it's fair, there is a perception among some people that it is not fair."

FitzSimmons said the deal also could be an effort to force Sisolak to drop a lawsuit against the county for imposing the height restrictions, which make a potentially lucrative resort development unlikely.

Sisolak sued and won a $6.5 million judgment in March, arguing that airport height restrictions had damaged the value of his property. Airport officials are appealing the decision and other awards based on the height restrictions on land near the airport.

McCarran officials have warned that paying off all property owners who lost land value because of the height restrictions could cost more than $1 billion and make air travel to or from Las Vegas more expensive.

Airport Director Randy Walker said the goal isn't to squeeze Sisolak or to provide Bulloch with a windfall. The goal is to control land so that the owners don't try to build into the airspace or sue the airport when they cannot, Walker told the board.

Walker also said the airport went to certified appraisers on several occasions to value Bulloch's property.

The commission approved the land swap in a 6-1 vote, with Commissioner Yvonne Atkinson Gates voting against it. Gates was not the only commissioner with concerns about the deal, however.

"I am really uncomfortable with this situation," Commissioner Myrna Williams said. "I really don't know what is happening here."

But other commissioners said they ultimately have to trust the advice of staff.

"In the end, I think we have to depend on staff to guide us on these issues," said Commissioner Mary Kincaid-Chauncey.

Commissioner Bruce Woodbury said the control of land near the airport was a central concern. He noted that the commission earlier this year had to reverse a decision made last year that would have allowed what he called incompatible residential development near the airport.

The county also receives complaints about noise and lawsuits over the height restrictions, all of which can be avoided when the airport controls the property, Woodbury said.

FitzSimmons said Sisolak could attempt another lawsuit arguing that the county's decision has damaged the value of her client's property.

"It's obvious that it was a done deal," she said.

Bulloch, however, said the airport only took advantage of a deal that was open to any potential buyer.

"It was fully advertised," he said. "If it is such a sweetheart deal, why didn't (Sisolak) submit a bid?"

The cost for his land comes out to be about $20 for a square foot, Bulloch said.

Walker said that with the cost of the land and the air rights, Sisolak is asking for about $37 a square foot for his adjoining property.

Kris Ballard, a Jones Vargas attorney representing Bulloch, said FitzSimmons and Sisolak were "dragging a skunk through the proceedings" in an effort to soil anybody associated with the deal.

"This was a fair and open process," he said.

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