County to receive land deals report

Stephen Curran

Tuesday, July 19, 2005 | 10:50 a.m.

Clark County commissioners this morning were expected to get their hands on the first phase of a review of two of the Aviation Department's controversial land deals.

The report, which county spokesman Erik Pappa said was finalized Monday afternoon, details what led to a deal between McCarran International Airport officials and land broker Scott Gragson. Airport officials had initially suggested the land would be limited to development as a cemetery, although it was never labeled as such and was later reclassified for commercial use.

County Manager Thom Reilly said the audit -- which began in February -- suggests commissioners restrict airport officials from negotiating the land deals, a move approved in April. He would not elaborate further on the findings Monday afternoon, saying the presentation was still in draft form.

"I think a lot of the recommendations will re-affirm some of the action the board has already taken," Reilly said.

County Audit Director Jerry Carroll was expected this morning to present findings from the investigation into the cemetery deal and a June 2002 sale of land on Blue Diamond Road to Blue Valley Development, a company owned by former Commissioner Jay Bingham, to the board this morning.

Critics have said the deals cast doubt on how the county appraised the valuable pieces of undeveloped land, allowing private buyers to resell the land at profits of up to $32 million.

In an earlier interview with the Sun, Reilly estimated that more than 40 such land trades are now under review.

Airport spokeswoman Elaine Sanchez said aviation officials received a draft of the report on Thursday and formally responded Monday morning. She refused to discuss specific information within the audit until it is presented publicly to the commission.

Sanchez would not characterize the Aviation Department's response before it is delivered to the board but said airport officials would continue cooperating with the audit's next phase.

"The airport has fully cooperated in this since the inception and we will continue to do so," she said. "Nothing has changed in that regard and nothing will."

Commissioners in April approved transferring sales of airport-owned land from the Aviation Department to the county's Real Property Management Department. The changes hinge on guidelines that require any land previously owned by the Aviation Department be sold at public auction.

The policy also dictates that all land parcels must be independently appraised and verified by at least one other appraisal. The rules also require land sales be brokered by a real estate agent from an "approved list" should a public auction be unsuccessful.

The district attorney's office, Metro Police, the FBI and federal officials are expected to determine in a second phase of the audit later this year if the deals broke any laws.