Water deal for Whittemore’s Coyote Springs project to go before state

Sunday, Dec. 25, 2005 | 9:21 a.m.

CARSON CITY -- Another step in developer Harvey Whittemore's plans for a giant project straddling the Clark and Lincoln counties line goes before state Engineer Hugh Ricci next year.

Ricci has set April 4 to begin hearings on the applications of Lincoln County and the Vidler Water Co. to pump 14,000 acre-feet a year from Kane Valley to supply the Whittemore housing development.

In a contract signed Oct. 12, Whittemore's Coyote Springs Investment LLC agrees to pay $6,050 per acre-foot per year for the water from Lincoln County and Vidler. An acre-foot is enough to supply a family of five.

Dorothy Palmer, chief operating officer for Vidler, said the company has spent close to $2.5 million developing and test drilling for water in Kane Valley, about four miles from the Whittemore project.

Palmer and Steve Hartman, attorney for Vidler, said they hope Ricci will initially approve applications for 5,000 acre-feet. Hartman said the state engineer will probably take a "phase approach," allowing partial use of the water to see if it will have any effect on other ground water in the area.

"He's (Ricci) conservative, and he probably should be," Hartman said.

If the project shows there is no detrimental effect, Lincoln County and Vidler could apply for the rest of the water later.

Federal agencies and White Pine County have protested the application. Hartman said the National Park Service and the U.S. Fish and Wildlife Service are worried about the effect on Muddy Springs, but he suggested that drawing the water from Kane Valley would not hurt other areas.

Whittemore plans 49,000 units in Clark County and 110,000 units in Lincoln County over 25 to 50 years. Not all of them are single-family homes.

Whittemore said he has enough water for 80,000 units for the project 60 miles north of Las Vegas, and he plans to buy more water rights.

He said Thursday that construction is under way on the Jack Nicklaus Signature Golf Course and the PGA Golf Center in Clark County. The first homes in Clark County should be ready in May 2007.

He already has 4,600 acre-feet of water to supply the first phase of the home development and an additional 5,000 acre-feet, if approved by the state engineer, would be added as backup to the first phase of the planned 10,000 units in Clark County.

Whittemore, a former powerful lobbyist at the Nevada Legislature, says he has purchased 40,000 acre-feet of water from ranchers and others in Lincoln County. That water would be shipped to the development through the pipeline planned by the Southern Nevada Water Authority, he said.

Pardee Homes is a partner in the project and has an option to buy 13,000 acres that could accommodate 85,000 units, he said.

If and when Lincoln County and Vidler get approval on their water application, it will turn the water over to the Whittemore group, which will be responsible for design and construction of the pipeline to the project in Lincoln County.

Lincoln County and Vidler will present their case first beginning April 4 followed by the protesters White Pine County, Wayne Lister, Ruby Lister, Bevan Lister and the federal agencies.

Cy Ryan can be reached at (775) 687-5032 or at cy@lasvegassun.com.