Industrial park may get jump-start from suburb

By Mike Trask

Friday, March 28, 2008 | 2 a.m.

The concept behind Apex Industrial Park was simple and logical: Every region has power plants, landfill operations and other things that are necessary but that aren’t the kind of things you want as neighbors.

With that in mind, Clark County decided two decades ago to confine industries that were either aesthetically unattractive or posed safety concerns — or both — to a zone away from residential development. That idea seemed to make even more sense after a rocket fuel plant explosion in Henderson killed two workers and injured more than 300.

The reality of Apex Industrial Park, however, has not been as successful as the idea seemed promising. In large measure that is because the area’s remoteness — about 20 miles north of downtown Las Vegas along Interstate 15 — has been a barrier to attracting industries.

Now, in an attempt to realize more of the potential seen in 1988 when the county purchased Bureau of Land Management land for the park, North Las Vegas soon may take over the 21,000-acre site.

Over the years, the county has resisted attempts to develop housing on the site, which abuts both rapidly growing North Las Vegas and Nellis Air Force Base. But Apex also failed to draw as much industry as expected and thousands of acres remain vacant.

The possibility of the city’s assuming control of the property has raised concerns that the change in ownership could bring a change in attitude toward the possibility of housing in the area.

All parties, however, insist that is not the case, saying North Las Vegas’ possible annexation is driven primarily by the fact that it would be easier for the city to extend water and sewer lines to the park — perhaps opening the door to further industrial development. A county hookup would cost about $10 million more than the city’s, with a price tag estimated at $25 million-plus.

North Las Vegas, though attracted by the prospect of a broadened tax base, still is studying the hookup’s costs and feasibility. If they prove problematic, either for economic reasons or because of the rocky terrain, the city would have little interest in annexing the area.

Kapex LLC, which owns 3,250 acres that were part of the Kerr-McGee rocket fuel manufacturing plant, is pushing for the annexation.

“We are in a desert and land is valueless without water,” Kapex Chief Executive Adam Titus told In Business Las Vegas, a sister publication of the Sun. “Whoever commits to providing it first, that’s where we are going.”

Titus did not return calls seeking further comment this week.

In addition to its location, the park has been hampered by strict air quality standards that have made it difficult to attract certain industries.

The water problem, at least, might be solved with annexation.

“The advantage would be to get water and sewer up there to development,” said Mike Majewski, North Las Vegas’ economic development director. “It’s been a proposed industrial area for 20 years now and nothing has happened because they don’t have the infrastructure.”

Majewski stressed that any plans would not involve residential development, saying he believes there is little chance the idea would even be considered. That point was underlined by Councilwoman Shari Buck, who said housing would not be an option for the Apex site.

The most recent attempt at residential development at the site came in 2002 when developers proposed a housing project the size of Summerlin. Clark County opposed that plan.

The county will continue to oppose any residential development, Assistant County Manager Phil Rosenquist said. However, it couldn’t do anything about it if the land were annexed by North Las Vegas.

Nellis Air Force Base also would protest any residential development at the Apex site, because jets carrying live ammunition fly over the area during training.

“As soon as people permanently live there it’s a problem,” said Michael Estrada, a base spokesman. “Any incompatible rezoning and we would voice our opinion.”

Majewski said that although annexation discussions are continuing with the county and business interests, the city would not need permission from the county to take control of the land. Local municipalities never need county consent to annex land.

“It’s just the tip of the iceberg,” he said, talking about the annexation discussions. “But it certainly looks good conceptually.”

North Las Vegas, which currently has the highest property taxes in the county, could use the extra tax base, Majewski said. But he said it has not been determined how much the land might earn the city annually.

Annexation would require a review by the North Las Vegas Planning Commission, followed by City Council approval.

The annexation would not affect air quality standards, which are overseen by the county and the state Division of Environmental Protection.

Sun reporter Brian Wargo contributed to this story.