Feds list more than 4,500 acres for February sale

What will the groundhog have to say about Las Vegas land prices? Bids on two major parcels may hold the answer when the Bureau of Land Management hosts its next oral auction, scheduled for Feb. 2, 2005. The auction comes later than most under the Southern Nevada Public Lands Management Act, which to date has held auctions in late spring and late fall.

Seventy-four parcels totaling 4,321 acres are slated for auction. Most of that acreage comprises just two parcels.

The largest is a 2,396-acre piece immediately east of the Aliante master-planned community in North Las Vegas. Too remote to visit by car even two years ago, the site is bisected by Interstate 215, one of the primary reasons why it was the next of several parcels to be nominated for auction by North Las Vegas, according to Michael Majewski, manager within the city's Economic Development department, as it is the closest to emergency and other services.

Despite escalating prices and two major parcels for sale simultaneously, Majewski said he expects demand is great enough for his city's parcel to attract a winning bidder.

"I don't see a problem with it going head-to-head (with another parcel) at all. I think there's a lot of interest in this valley right now, including from outside the valley," he said, citing a phone call he returned to Orange County, Calif., just minutes before.

Majewski said the buyer of the parcel can expect the city to negotiate a development agreement similar to the one that created Aliante, including provisions such as arroyo preservation and open space requirements, which accounted for roughly 22 percent of the total acreage of the 1,905-acre development.

The other major piece, 1,711 acres located along the northwestern edge of Las Vegas city limits, has been dubbed the Kyle Canyon Gateway by city planners, who say it has several advantages for developers: it straddles U.S. Highway 95, has a topography desirable to potential residents and is situated at the end of state Route 157, a short drive from recreational sites on Mount Charleston.

The city is working on a draft of development requirements for the parcel. A condition of purchase for both parcels is for the buyer to enter a development agreement with the city that has jurisdiction. The draft is expected to go before the Las Vegas City Council next month.

Some of the development guidelines the city intends to require, according to Tom Perrigo, comprehensive planning manager for the city of Las Vegas, include:

-- acreage for public facilities, including parks, fire stations and schools.

-- preservation of arroyos and other natural features.

-- energy- and water-saving amenities, both publicly and within homes for sale.

-- design principles.

-- a transportation center with right-of-way for a possible light-rail system.

Perrigo said the city has many requirements under consideration, but plans to remain flexible enough to consider a number of possible alternatives.

"We don't want to tie our hands anymore than we have to," he said. "If someone can do a good job on certain main requirements, such as conservation, we may offer some flexibility on other points."

Minimum bids for the parcels, which are based on fair market value, have not been determined. They are expected to reflect the results of the last BLM auction, held on June 2, where a Henderson parcel measuring 1,940 acres sold to Focus Property Group for $557 million -- more than double its starting bid.

Only two parties, Pulte Homes being the other, bid on the Henderson parcel, while smaller parcels often drew half a dozen or more. Murmurs erupted at the last auction as onlookers speculated on how high prices could go.

Majewski said developers always find a way to finance their deals.

"I'm not so sure that the pool is shrinking. I think it's more that you find more elaborative deals among developers. Look at how Aliante came together. It was a unique partnership just for that project," he said, referring to the alliance between American Nevada Co. and Del Webb.

With a few exceptions, the remaining parcels measure 5 acres or less and are situated within urban and suburban areas of Clark County. Most are in the southwestern portion of the valley.

The planned venue for the upcoming auction is the 2,000-seat theater at Cashman Field Center, 850 Las Vegas Blvd. North. The few auctions had been held at the 1,100-seat venue within Sam's Town, which filled beyond capacity with bidders and spectators.

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