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Builder sees green light in red-flag economy
Seeking gaming OK, he says outlying city is coming along
Steve Marcus / FILE
Harvey Whittemore, the lobbyist and businessman behind Coyote Springs, looks out in 2006 over a portion of the 43,000 acres he purchased for $15 million.
Thursday, Dec. 4, 2008 | 2 a.m.
BY THE NUMBERS
43,000 acres -- Total land purchased for Coyote Springs project
$15 million -- Price paid to Aerojet-General Corp. for the land
Beyond the Sun
Harvey Whittemore has boasted that his Coyote Springs project, 55 miles northeast of Las Vegas, won’t be just another Southern Nevada housing development. Rather, it will be a master-planned city unlike anything in the state.
Yet like most Nevada communities, it will have at least one casino.
Whittemore, a powerful lobbyist and businessman, is seeking county approval for a 330-room gaming resort.
One was always planned, he said Wednesday. Now that nearly all of the 43,000-acre development’s water system is in place, and 60 percent of its sewer treatment plant is completed, it’s time to bring this piece of the development to the county, he said.
“It’s just about timing,” he said. “We couldn’t present a specific gaming enterprise district until we had other facilities in place.”
The project requires a change in zoning for 125 acres, from rural and commercial to zoning more appropriate for a gaming hotel. The Clark County Zoning Committee postponed a vote Wednesday because Commissioner Tom Collins, who represents the area, was not present.
Whittemore predicted that when the proposal comes back in two weeks, it will pass. “I think our plans will be well received by the board,” he said.
Considered a long shot in good economic times by some developers because of its distance from Las Vegas and existing infrastructure, Coyote Springs faces more doubt about its fate because of the region’s deep housing slump.
But Whittemore said the development, with 159,000 housing units approved, is still moving forward. He noted how far the development has come since its announcement in 1998.
“People said we wouldn’t have a golf course in 20 years,” he said. “I said we’d have one in 10 years.”
The course was finished in 2007.
Asked whether the bad economy has caused Coyote Springs some troubles, Whittemore smiled.
“Well, let’s talk about all the good news,” he said.
The Coyote Springs golf course has been called one of the best new courses in the country, he said, with three golf publications this month ranking it in their top 10.
He attributed delays in construction more to time-consuming work than economics.
“So the news is, despite what is happening in the valley, a lot of working is going on at Coyote Springs,” Whittemore said.
Whittemore said construction will begin in late 2009 or early 2010, roughly 18 months later than initially predicted.
“Obviously, the date can be changed depending upon general economic conditions, but the delays which have been taking place so far really relate to the fact that what we’re doing is developing a new city. And it’s the first of its kind in Nevada — it’s an entirely master-planned city.
“This is not an extension of a subdivision map ... this is a city being built from the ground up,” he said. “The point is, we anticipated this would be a very long process and it’s not one of those things you simply say, ‘We’re going to do X’ and decide to do it. You really have to dot the i’s and cross the t’s to get things done.”
Other master-planned developments aren’t faring well in this economy. Last month, Wachovia Bank foreclosed on the 1,710-acre Kyle Canyon Gateway project, which was approved for more than 16,000 houses.
Yet analysts noted a major difference between Whittemore’s 43,000 acres and the Kyle Canyon acreage: Whittemore and a partner purchased their land from Aerojet-General Corp. for a relatively paltry $15 million, while Focus Property Group and eight homebuilders purchased their 1,710 acres for $510 million at a Bureau of Land Management auction.
Whittemore got 25 times the land at 1/34th the price.
“I’m not suggesting that major master plans won’t continue to face delays, but that lower ... overall investment in the land at a time when there is little development activity gives the project some level of staying power,” said Brian Gordon, a principal in Applied Analysis, a firm that does economic analytical work for government and private interests.
Coyote Springs is a client of Applied Analysis.
John Restrepo, principal of Restrepo Consulting Group, which has also done work for Coyote Springs, also noted a long-term advantage for Coyote Springs is that land remains limited in the Las Vegas Valley.
“Long term, Las Vegas has a bright future,” he said. “We won’t see the hyper-growth that we did in the past, but a restriction on developable land in the valley means that demand for housing will go up again and those kind of satellite communities will likely come back into vogue.”
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First lets clarify how Harvey got the land so cheap! He used his lawyer/lobbyist influence and friends Harry and now Rory Reid to steal the land from the public.... Water rights, SNWA, Pat "the water witch", Richard "Bunkerville"...it gets scary confusing when you have democrats working with conservative morman's, working with powerful morman democrats working with influential left wing lobbyist businessmen...omg
Tom Collins...is that a horse head in your bed?
A bad idea gets worse. A golf course with no one to play on it. Houses no one can afford to live in. But this is America, where a guy like Harvey can chase his dream no matter what it costs or how much beautiful desert it destroys.
It's funny; the "public" doesn't really own anything. The government is taking charge of almost every major corporation, bank, and industry to save our economy. We pay for it, well get taxed for it, but we have absolutely no say on how our moneys being spent.
While it's still possible for any one of us, I for one am greatful that this article did no start out "government bales out...", and that it's a business that had the savy to not overdebt itself and that has potential to provide work for thousands upon thousands of Nevada's people, and a business whose taxes will help recover this states infrastructure, and who wants to develop a quality project unlike any in Nevada. They've got my props.
Yep - what a waste - we don't have enough water already so let's build another golf course and some more unaffordable homes to go along with it - why don't these people with all this money use it to help someone less fortunate instead of living their lavish lifestyles - I esp. love the ones who spend millions on a wedding when the marriage is likely to last 24 mos. or less....the rich get richer.......
LOL...jobs? Well maybe construction workers can commute 100 miles round trip to build Havey's development. Then what, ok the residents can work at the casino Harvey wants to build? Or, they can drive to Mesquite and work for Randy Black (opps have to put that off, closed the casino and laid off 500 people right before Christmas).
Jobs, construction jobs are not sustainable! Growth; "for growth's sake" is the problem we have today!
How about that "carbon footprint" Mr. Reid? All those residents driving to and from Las Vegas to work....if they have a job!!!!
You guys need to get a grip. This is hilarious. Nevada has grown, prospered and will survive because of two, and only two, things: gaming and new growth. That new growth will come in the form of new investment in Las Vegas projects (creating jobs), which in turn will require new homes.
Every article I have ever read states that Coyote Springs will be built on private land, with private water rights.
Welcome to the American West, where nothing is more sacred than the rights associated with one's property"including the right to develop, and the right to have that development succeed or fail.
The people always want to fault to the developer for "creating new growth""a developer is merely looking at present and future demand, and providing a supply. They don't just build entire subdivisions without looking at how they are going to sell the homes and to whom. I for one wouldn't bet against Harvey's information and instincts...
The people are coming to the Intermountain West folks, one way or another, they will continue to come to Colorado, Utah, Nevada, and Arizona. Along the way, I hope the developers continue to build new schools, and great neighborhoods like Anthem, Summerlin and by all accounts, Coyote Springs.
Wow! Given the horrendous state of Southern Nevada's economy, one would think that everyone would be rooting for Coyote Springs to make it, because if Coyote Springs makes it, then it's a sign that Southern Nevada is recovering. Southern Nevada is going to keep growing no matter what we do. I would rather have a developer like Harvey Whittemore, who is a native Nevadan make it because he has a track record of building GREAT communities and has always been a steward of the environment(his development in Sparks is an Audubon sanctuary) instead of some out of state developer who is going to come in, build a not so great community and leave the state with their riches.
Also, it is amazing to see people post about Coyote Springs tearing up the pristine desert. The last time I checked, every part of Las Vegas was part of a "pristine" desert before development began in the early 1900's. No one seems to have a problem with having the desert torn up to build their house or community, however once their house is built, they want all new development to stop.
I agree with JJspeaks, I wouldn't bet against Harvey's instincts.
I agree. We need any economic activity that we can get.
Things are just going to get worse.
There will be a lot of layoffs throughtout the USA next year.
That will drive down the tourist market here some more and therefore more layoffs here.
This property looks like it WILL make it.
If anyone has EVER lived in a big city you will know that communities sprawl out for 50+ miles from the center. As long as they build the roads to allow for a quick commute this place should thrive for people who want to live in suburbia while being close enough to enjoy the spoils of LV.
It was public land before Harvey bought Reid. Get a grip and get educated...
And Police and Fire? Emergency 911 service? Schools?
Get cheap land, lobby for water, then build and have the folks in Las Vegas pay taxes to send police and fire to the new development.
sounds great!
Bighorn; this land was sold to private interests (defense contractors)during the Reagan era for MX Missile program. It went unused nearly 30 years because MX Missile program was killed. Whittemore bought the land cheaply from these defense contractors because it was unused for so long.
A lot of conjecture and defamatory remarks Bighorn, short on facts.
A little research (as in a 5 second Google search) shows:
"Reno attorney and political lobbyist Harvey Whittemore purchased the Coyote Springs land for $15 million in 1996. California-based defense contractor Aerojet was the previous owner, obtaining the land in a federal land swap in 1988 for use as a rocket-testing facility."
May, 2008
http://www.lvrj.com/business/18758729.ht...
So Harvey had Reid craft the deal for Aerojet in 1988 (as a first term Senator, right!), so he could buy the land in a private party sale in 1996? You should be writing fiction. Albeit bad and inaccurate fiction.
You should all listen to JJSpeaks, jfnance and nicoreilly...but then again I guess it is easier to talk about what you think you know then to check facts and write intelligently. First, this article is about a development not to target Harvey personally. Those who know him or read about him know what a generous person he is. He gives away an amazing amount of money to charities.
Second, of course we need to support any kind of development that will provide jobs and economic support to our state. Most of us know a few people who have lost jobs in the past few months and are at risk of losing their homes. If jobs aren't being created in Vegas many more will suffer which causes all of us to suffer.
Bighorn - you think that everytime a paper writes a positive story it means they are advertising for the company. You sound like the jacka$$. Are the articles about our country falling apart not depressing enough for you - you need more drama in your life?
New developments especially urban sprawl will always spark conversation good and bad. Do the research into how it is being developed before you comment. Jobs will be created in Coyote that will allow residents to work from their homes because of the fiber optic capabilities. That sounds like their carbon footprint will be greener than those traveling everyday from Lake Las Vegas to Summerlin. You think those people sitting in that traffic arent creating worse problems for us?
And Judy...seriously...work with me here. You have to build police, fire, schools, etc in every new community. The developer pays the initial fees and then your tax dollars do the rest. So are you saying that we as citizens shouldnt pay for those safety agencies to be in place? I dont mind paying tax dollars to keep myself safe and educate my children - much more than bailing out a country of people who overspent when they knew they couldnt afford their lifestyles. Even if Coyote wasnt being built and new developments were still going up in Vegas these services would still need to be added....they are necessary and unavoidable.
How many other developments have taken the time and money to ensure they are doing their part to be responsible developers like Harvey? Coyote Springs has received more awards and EPA blessings than any other development in Vegas/Henderson. Frankly, these days I would welcome the opportunity to live in a new town that offered its residents the opportunity to start something new and feel like they contributed to the success of their town. How many other places offer this kind of opportunity to you? We should all be so lucky that not every company/developer/small business, etc hasnt already closed their doors or filed bankruptcy. We should be cheerleaders for those who can make it through these times and offer us the chance to succeed, have a place to live, food to eat and services for our families.
It is sad the little people who do not know the facts continue to make outrageous accusations. The land was private to begin with. Whitmore did not need Reid or Pat to do anything. Petty little people with absolutely nothing to offer except misery and gloom when infact they don't have dime invested in this venture. They are simmering in theur hate and missery while looking out of their windows jealous of anyone who shows signs of life.
By the way Summerlin's original concept was a city within itself. The powers to be at Las Vegas City hall could not stand the thought of losing all of the tax dollars.Do you suppose the citizens of Mesquite,Primm and Laughlin would like to be their own masters? It will never happen to many tax dollars involved. So don't make believe like the put upon citizens of Las Vegas are coming to anyones rescue.
I have lived in Summerlin for seventeen years and I will move to Whitmores development get away from some of the ignorant, narrow minded, slugs that make some of these ridculous posts.Little people with little brains.
Chloewinter1976, Well put. You are now learning about some of the nit its who post here and just exactly how desperate they are to destroy anything and everyone who has an idea. For the most part they are not worth addressing.
I have lived in Summerlin for seventeen years and your assessment of the 'carbon footprint' foolishness is correct.Just try to get to the courthouse at 7:30 a.m. and home at 4:00 p.m..These people are incapable of positive thinking and could not foster a new idea if they had to. They simply live to hate and destroy and have not got a dime to promote a better community with.
Face it, Las Vegas will never grow like it was earlier in the decade-- this was unsustainable to the max. I hope if we get Coyote Springs we can stop there for a while and let the cities/counties/state catch up. We need to shift the city to other forms of economic development besides rampant real estate and land sales. I watched a part of beautiful Summerlin desert right next to Red Rock get developed with nice condos. Then my father retired into one of them. He passed away a year ago and the place hasn't sold of course, and probably won't for many years. How are we going to sell Coyote Springs, is what I wonder? Let's not rely on this for jobs and Nevada budgets!
If the golfers could eat and drink sand and never had to go anywhere else or do anything else...then it makes sense.
If the 150,000 houses would be off grid...
(and one could eat and drink sand)
Hopefully, this piece of xxxx will fail and Mr. Whittemore will go bankrupt. As the saying goes: "developers go build in hell." Otherwise, I hope all the folks who are crazy enough to live there enjoy their commute when gasoline hits $10 per gallon and a carbon tax has been implemented.
1) Anyone ever been to Palm Springs??? Over 125 golf courses in one city! Where does Southern California's water come from? That's right, the Colorado river. They have been prospering for years, while we get a pittance of the "public" water. Coyote Springs will have to use private water and is talking about a maximum of 15 courses. Go back to California and attack Palm Springs for its excesses, and leave us Nevadans to ourselves.
2) I have been out there (unlike most people who whine about the poor desert), and there is nothing but scrub brush, and then you see this gorgeous new course and community sprouting up. But Mr. Whittemore is spending millions upon millions upon millions to create value (and tax base!) where none existed before. This will be Nevada's Palm desert, but no you are right, let's save it for the sage brush. We can always prosper by saving our sage brush. What is wrong with you people?? This isn't the rain forest. This isn't Yosemite. This is private land that was going to be used as a missile site!!! Can you imagine the impacts to the surrouding habitat? Instead, they are having to work with the Federal and local government to develop the right way.
3) All you developer haters, where do you live? 90% of people living in the US are living in neighborhoods that were "developed." If homes and schools and roads and businesses are so bad, give up yours or quiet down, and let us workers (not naysayers) get the economy back on track.
Why would they have to commute? He's building a "city" in it's own... you would be close enough to enjoy the best of vegas when you prefer, but far enough to enjoy a newly constructed community, with modern amenities, and the best today's engineers, designers, and architects have to offer. It's a "big picture" project, and the bigger the picture, the better for everyone.
Evidently Dirk is not an avid golfer or he would have realized that PGA Golf Club Coyote Springs has recently been named as a "Top New Golf Course" by Golf Magazine, Golf Digest, and Travel & Leisure Golf. But I am sure that Dirk would proclaim that Mr. Whittemore undoubtedly bought these international designations as well. As an avid golfer and sports enthusiast from SNv, I have experienced the wonder to PGA Golf Club Coyote Springs and can say without doubt that it honors our State and is a testament to Mr. Whittemore's vision for this unique site. Personally, I can't wait to be one of the first homeowners at Coyote Springs!
P.S. 2zero forgot to relate Mr. Whittemore's personal successes to Area 51 which resides just a mountain range away to the northwest. There must be some nefarious connection to someone who has experienced success after risking his own personal fortune. Come on, please!!!!!
Maybe 2zero should carefully read JJspeaks poignant discussions. I personally love the west, the desert and Southern Nevada. I am also a sport and recreational enthusiast, and believe this incredible location will become the home to a truly memorably new town in the desert southwest.
I also love Nevada's low taxes and realize how this universal benefit is funded...gaming and development. This is especially relevant as the State and all Nevadans struggle through today's economic slowdown!
Howard Hughes had a similar vision for Summerlin, by the way, and I remember some 15+ years ago people thought Hughes Corporation was CRAZY to start a new master planned community west of Las Vegas.
We need more visionary like yourself, Mr. Whittemore.
I think Coyote Springs is the best idea in a long, long time!
It's super...
"Hopefully, this piece of xxxx will fail and Mr. Whittemore will go bankrupt."
That's what you really hope for someone else? You should take care in what you wish for others. The universe is likely to give it to you instead.
I applaud this mans's vision and his intestinal fortitude. Bravo Mr. Whittemore.