Las Vegas Paiutes sign development deal

Jennifer Shubinski

Wednesday, Jan. 14, 2004 | 10:52 a.m.

The Las Vegas Tribe of Paiute Indians said Tuesday it entered into an agreement with a California developer with local ties to master plan 3,800 acres of reservation land that will possibly include houses, retail stores and a casino.

The tribe has long talked about developing a casino, hotel and housing on its reservation in the northwest part of the Las Vegas Valley. So far all that has materialized are three Pete Dye-designed golf courses, a 50,000-square-foot clubhouse, restaurant and pro shop, gas station and convenience store.

"We weren't ready," Gloria Hernandez, Paiute Tribal chairwoman said of past efforts to develop the land. "There were several times that our plan was reviewed and there where interpersonal problems."

Hernandez said the tribe of 48 members went through several applicants before settling on LasCal Development Corp., a California-based development company owned by Jerome Turk and two California Indian tribes that developed and manage the Pala Casino Resort and Spa in North San Diego County.

Turk is a former Las Vegas resident and former partner in Fitzgeralds hotel-casino in downtown Las Vegas.

"The tribe has asked us to help master plan the entire 3,800 acres," Turk said. "We don't know yet what will be included in that."

It probably would include a mix of residential, commercial and possibly industrial, he said. A casino also is a possibility, but it would not be built right away, Turk said. Any development would include the golf courses that are located on the 3,800 acres.

The tribe's administrative offices, under-construction health center and smoke shop are on 14 acres not included in the overall master plan, Hernandez said.

The tribe and LasCal will be in the "exploration" phase for the next 90 days, which will include research of opportunities, restraints on the land and market conditions. The second phase will include review of master plans, and an announcement of a final master plan and financing for the project, Turk said.

Development has long been creeping up along U.S. 95, which splits the reservation down the middle. Many industry experts expected development to occur around the reservation.

"It is just the nature of our market right now," said Richard Lee, a local land expert and vice president of First American Title Co. "The city has just been marching up there and because of the price of land, any alternative for less expensive land to develop on is pretty appealing."

Buying a home or developing a property on sovereign tribal land is not clear-cut, and may not be any cheaper than working with a private landowner.

Reservation lands are held in trust by the federal government for the tribes, meaning tribes cannot sell the land outright. Long-term leases, often 99 years, are worked out with homeowners or developers to build on reservation land.

Land ownership issues have often been a hindrance to development on tribal lands, but Hernandez said as area land prices go up it's become less of a sticking point.

"The tribe has been bombarded with proposals for land leases and development opportunities," she said.

Tribal sovereignty can come with some perks. Developers or home buyers would most likely be exempt from Clark County property taxes, Hernandez said.

Some title companies are hesitant about issuing title insurance for projects built on reservation land under long-term land leases, but Lee said it is becoming more common around the country.

"We insure 99-year lease projects all the time and do a lot of business in Hawaii and some in Palm Springs," he said.