Panel: Bedroom community trend to continue in LV

Jennifer Shubinski

Tuesday, March 1, 2005 | 10:47 a.m.

Environmental factors, water and infrastructure issues will be key factors in the future development of Las Vegas' neighboring communities, leading real estate experts said.

With the tremendous growth of the Las Vegas market and rising land prices, the small communities outside of Las Vegas will continue to see an influx of development and residents.

But among the issues developers will have to be sensitive to is the environmental conditions found in many of Nevada's rural areas, a panel of local real estate insiders said at a meeting of the Southern Nevada CCIM Institute. CCIM is an affiliate of the National Association of Realtors and refers to the Certified Commercial Investment Member, a special designation.

Panelist Darrin Badger, a partner and director of acquisitions for Focus Property Group, said development in Mesquite and the Moapa Valley, which respectively have the Virgin and Muddy Rivers flowing through them, must be sensitive to the flora and fauna found there.

He said developers must be cognizant of any environmental issues from the start.

"It's amazing how these things can come up and bite you," he said. "It starts with the desert tortoise and will grow from there."

Panelists said water rights also are extremely important as development grows outward from Las Vegas.

Badger said Focus, which owns about 2,500 acres in Pahrump, is in the process of buying Desert Utilities, one of the existing utility companies in Pahrump. Badger said he expects the sale to be complete in three to four months.

"Control over water rights gives us the ability to set development and conservation standards," he said.

Panelist Rob Derk, chief operating officer of Coyote Springs, a proposed 42,000-acre master-planned community about 60 miles north of Las Vegas along U.S. 93, said there are already water rights on the property, but water conversation will be an issue.

To keep control over those water rights, Coyote Springs is creating a General Improvement District (G.I.D.) that will, among other things, own and operate the community's water facility, Derk said.

Infrastructure needs in Las Vegas' neighboring communities vary quite a bit, said panelist Mark Dunford, vice president of homebuilder American West Development.

He said Pahrump, where many homebuilders are looking toward for future development, has huge hurdles to make in terms of infrastructure development.

"They are simply not ready," Dunford said.

As to whether people will be willing to live in outlying areas and commute to Las Vegas, the panelists said that already is happening, and the trend will continue to grow.

"As land prices rise, we are forcing them (people) out of our town because they can't afford to live here," Dunford said.

Derck said in his research he found that people are willing to live in an outlying community to get away from Las Vegas' growing congestion.

"There are people willing to live out there now and already people are driving from Pahrump and Mesquite," he said.