Bill requiring auctions of public lands would hurt LV, officials say

Tuesday, May 17, 2005 | 9:52 a.m.

CARSON CITY -- Las Vegas officials told a Senate committee Monday that a bill that would require state and local governments to hold public auctions on the sale of surplus land would cripple their economic development efforts.

Las Vegas City Manager Doug Selby said, "Our efforts to see a diversified economy would be stifled."

Selby and others spoke in opposition to Assembly Bill 312, which was pushed before the Senate Government Affairs Committee by Assemblyman Scott Sibley, R-Las Vegas, who said "taxpayers have gotten the short end of the stick" in some of the private sales or other disposal of public lands in Southern Nevada.

Sibley's bill would stop swps of airport land, such as the controversial property deals involving McCarran International Airport.

Sibley said all governments should be required to follow the same procedures in selling off the public's land.

Sen. Warren Hardy, R-Las Vegas, chairman of the committee, told the opposing parties to get together and come up with an acceptable bill by Wednesday. The committee must pass the bill by a Friday deadline.

Sibley said the Bureau of Land Management using public auctions has seen prices higher than anticipated. His bill requires two appraisals and they must be within six months of the proposed auction. In addition, if the land is not sold during public auction, it can be listed with a broker to sell, Hardy said.

Scott Adams, director of business development for Las Vegas, said the bill, if not amended, would hurt the city's efforts in redevelopment or economic development projects. To entice a company to locate on those sites, Adams said, in some cases the property must be sold for lower than appraised value.

"An auction doesn't work," he said.

Adams, asked by Sen. Terry Care about the city condemning property, said the city does not use eminent domain any more. It negotiates to buy a piece of property, and if a deal cannot be reached, the city walks away, Adams said.

Adams said the city was not opposed to auctioning off surplus property not to be used for economic development or redevelopment purposes.

Private developer Irwin Molasky said the bill would hurt redevelopment efforts. He said now both sides sit down and decide what's best for the city in the sale of this land. He cited his construction of the regional headquarters for the IRS and the plans for a new headquarters for the Southern Nevada Water Authority.

"This could not happen if there was public auction," Molasky said.