BLM will try again to auction land

Tuesday, June 1, 2004 | 10:59 a.m.

The federal Bureau of Land Management on Wednesday will take another swing at selling nearly 2,000 acres of land for development on the southwest outskirts of Henderson.

Unlike last November, when the parcel failed to attract any bidders at the BLM land auction, the agency and city officials hope the property will sell. The 1,940 acres south of Pulte Homes' Anthem development was included in the regular auctions the agency holds under the 1998 Southern Nevada Public Lands Management Act.

The BLM requires a minimum bid of at least $250 million for the land. Henderson will require the buyer to develop the land as a master-planned community.

"The exciting thing is that we have interested bidders for the 1,940 acres inHenderson," said Judy Fry, BLM land sales manager. "There are at least half adozen (potential bidders). Whether they will actually bid or not, we don'tknow."

BLM and Henderson city officials were disappointed last year when the 1,940 acres in Henderson," said Judy Fry, BLM land sales manager. "There are at least half adozen (potential bidders). Whether they will actually bid or not, we don't know."

BLM and Henderson city officials were disappointed last year when the 1,940 acres failed to sell. Developers said the $250 million minimum bid along with development requirements imposed by the city, including the construction of affordable housing, made the purchase a gamble.

The soaring price of land, the difficultly finding new parcels of similar size, and the relaxation of some of the city's previous rules may make the deal more palatable this time around.

"There were some development issues that were part of the first auction, imposed by the city, that have been removed in this particular auction," Henderson Mayor Jim Gibson said. "Another thing that is different is we have seen an enormous increase in value in Southern Nevada generally. Suddenly, the appraisal at the number we're looking at must look more reasonable."

Although Gibson said the requirement for affordable, or "work-force" housing, has been removed, the master-planned community that a developer plans should still have a mix of different housing that includes apartments, condominiums, and other generally more affordable options.

"We're hoping so," he said. "In an ideal world, police officers, teachers, firefighters would be able to live in Henderson."

Despite the optimism of the BLM and city officials, several prominent local developers suggested they are not likely to bid.

John Ritter, chief executive of Focus Property Group, said his company is busy developing thousands of acres in the southwest and northwest Las Vegas Valley.

"Don't be surprised if we're not bidding," Ritter said. "It isn't so much about the property, but right now our company has a lot of opportunities. We're just juggling a lot of opportunities that look like they might take precedence."

Another prominent local company, American Nevada Corp., said it would sit out the bid on the Henderson land. "We're not bidding," said Phillip Peckman, chief operating officer of The Greenspun Corporation, parent company of American Nevada. The Greenspun family owns the Greenspun Corporation and the Las Vegas Sun.

"We looked at it before and we didn't bid. We've decided we're going to see how this one goes and focus our attention on our properties in North Las Vegas."

Local developers, however, said that several national development companies have expressed interest in the 1,940 acres. Pulte Homes, which has worked in partnership with the locals, is a company that some expect to bid.

Company spokeswoman Allison Copening said she could not confirm that Pulte plans to bid, but the company would attend the auction. In last November's auction, Pulte Homes bought 480 acres next door to the Anthem community for $66.5 million, or $138,541 per acre.

Would-be owners of the 1,940 acres will have to provide $50 million in certified funds in order to bid, Fry said. The total acreage up for auction Wednesday morning is 2,532 acres in more than 70 parcels at a total appraised value of about $310 million.

Also on the block is a 355-acre parcel in Henderson with an appraised value of $22 million, Fry said. Potential bidders for the 355-acre parcel must provide the BLM with a certified check for $4 million.

The auction begins at 10 a.m., but potential bidders must register before the sale and provide a refundable $10,000 certified check for the other parcels up for sale.

Registration begins at 8 a.m. at Sam's Town, 5111 Boulder Highway.

Most of the money raised from the land auctions goes to the purchase and protection of environmentally sensitive land and other conservation efforts in Nevada.