District on the hook for drainage work as developer backs out of outlying area

Sam Morris

Crews work on utilities outside the new Jesse Scott Elementary School (in background). Pardee Homes, which had planned to develop an adjacent site as part of a master-planned community, was to pay for such work, but decided to hold off on the development project.

By Emily Richmond (contact)

Friday, July 11, 2008 | 2 a.m.

The new Jesse Scott Elementary School in North Las Vegas ran into the first of its problems when it was still just a blueprint.

Neighbors fiercely opposed it, saying the location, less than a half-mile from a pig farm, was a mistake and would create a traffic nightmare.

The City Council withheld approval until the Clark County School District agreed to expensive concessions, including design changes and road improvements.

The one consolation for the School District was Pardee Homes’ plan to develop an adjacent site as part of the Vista Cielo master-planned community. That meant Pardee would cover the cost of the culverts and a drainage channel needed in the area.

But in April, Pardee decided to hold off on the project, leaving the district stuck with the responsibility for the drainage system, to the tune of $1.5 million.

And that work has to be finished and pass city inspection before the school can open. It’s supposed to welcome its first students Aug. 25.

So, how’d the School District get into an expensive race against the clock?

It has to do with the way costs and responsibilities for development are allocated.

The owner of the first project to break ground in an undeveloped area — whether it’s a private builder, a school district or amunicipal agency — is responsible for any of the off-site improvements needed for that project — sewer, water, power, telecommunications lines.

Qiong Liu, public works director of North Las Vegas, said Pardee’s development plans were approved before the School District’s, and it was expected the homebuilder would be responsible for the off-site improvements.

When Pardee put its project on hold, Liu said, she immediately saw “a potential conflict” for the School District.

Liu met with Pardee representatives and asked whether they would still be willing to do the drainage work. At first Pardee was receptive, Liu said, but then the company ran into obstacles, including the refusal of private property owners to yield the right of way so Pardee could connect the necessary drains.

A spokeswoman for Pardee did not return the Sun’s calls seeking comment, so it is unclear whether the right of way difficulties are to blame or whether the project’s cancellation really has more to do with the slumping residential housing market.

Dave Broxterman, the district’s administrative manager of facilities, sounds as if he leans toward the latter.

“It’s perfectly understandable that Pardee phased back, given the economy,” he said.

If the housing market is to blame, that could make it more likely that the School District will find itself in similar straits as developers delay projects and the accompanying off-site improvements.

Linda Perri, director of real property management for the district, said her office keeps a close watch on builders to make sure they are meeting their obligations.

The district has often gotten stuck with paying the price of being first. Clever developers delay their projects so they can tap into the district’s lines. When that happens, the district can be reimbursed for part of the cost, provided there’s an agreement in place with the utilities.

Take Liberty High School, which opened in 2003 at the far end of what was then a desolate stretch of Bermuda Road northwest of the Henderson Executive Airport. Once word got out that a high school was planned, the developers “pulled back their own permits, sat there, and waited for us to do the work,” Broxterman said.

The district doesn’t often have the luxury of delaying construction until a builder breaks ground. The district’s schedule is driven by the need for more classroom seats. Scott Elementary is to operate year-round with more than 700 students and is expected to relieve overcrowding at two nearby campuses.

The district is also hurrying to finish work at the intersection of Bruce Street and Ann Road, which is a central access route to the campus. If the intersection isn’t done in time, Broxterman said, he has several backup plans for rerouting school traffic as a short-term solution.

In addition to Scott, the district is to unveil nine more campuses next month — three new and three replacement elementary schools, the replacement Roy Martin Middle School, the East Career Technical Academy and the new Desert Oasis High School. All the campuses are close to completion and expected to open on time.