Clark County to auction 190 acres of vacant land

Clark County plans to auction off about 190 acres of vacant land, most of it west and southwest of McCarran International Airport, in November.

The land is in 31 parcels and is the first multiparcel auction in the county’s plan to sell about 1,500 acres of vacant Department of Aviation land during the next several years.

The surplus county land includes an 8.1-acre parcel along Las Vegas Boulevard South, between Serene and Richmar avenues. South of some of the most coveted real estate in the U.S., the land has a limited resort and apartment zoning, which allows gaming development and compatible commercial and residential uses.

There’s also a 4.81-acre of general commercial-zoned land west of Las Vegas Boulevard South, north of the 215 Beltway.

But it’s not all about high-profile spots. Lower-profile locations are also part of the land sales.

Jerry Stueve, the county’s director of real property management, said future auctions will depend on community interest, prevailing market conditions and the location of the parcels. He said the market will determine the county’s pace in the auctions, adding that likely is going to take seven or eight years to sell all the land.

“We expect a lot of interest from the development community,” Stueve said.

The county’s efforts toward this auction go back to March, when officials identified its inventory of unnecessary vacant land and set policies for selling it.

Future auctions are expected to follow a similar format, selling multiple parcels of roughly 150 to 250 acres.

The 31 parcels will be sold in 14 individual units that range from one parcel to seven parcels.

The biggest unit has nearly 63 acres in seven parcels located south of West Russell Road between South Buffalo Drive and South Durango Drive. The smallest unit, by comparison, is a 0.76-acre parcel along the 1400 block of Helm Drive, south of East Sunset Road.

Rick Hildreth, a senior adviser with Land Advisors Organization in Las Vegas, said factors like low lease rates for commercial property and home prices will affect the land’s value. The brokerage company specializes in land acquisitions.

“I would tell them to be cautious,” he said, when asked about his advice to potential buyers. “… Unless you’re getting higher lease rates or higher home prices, there’s no need for the land to go up in value because it just doesn’t work.”

The economy is improving and the region is still climbing out of the recession, he said.

“A lot of tenants I talk to are still struggling,” Hildreth said. “They’re able to survive because they’re getting lower lease rates. A lot of retailers are still struggling.”

Preliminary values of the land are estimated at between $350,000 and $400,000 an acre, but final figures from appraisals aren’t yet determined.

The land originally made its way to the Department of Aviation through different paths. Some of the parcels were obtained to avoid incompatible development within the airport’s noise contour. The federal program they were purchased under requires the airport to dispose of the properties when they are no longer needed for noise compatability.

The size of the noise corridor was reduced in 2013.

The airport obtained other parcels because of the 1998 Southern Nevada Public Land Management Act. The law resulted in the transfer of about 5,230 acres of vacant federal land around the airport to Clark County. The county sold much of that land for commercial development from 2000 to 2006.

Recent history shows that the level of competition among buyers for individual parcels can be low, even in high-profile locations.

When the county auctioned off its old courthouse at 200 S. Third St. in downtown Las Vegas in October 2013, Derek Stevens, the CEO of the D Las Vegas, was the only bidder. He picked up the vacant 2.76-acre property for the $10 million starting price.

Starting bids will be based on appraisals, which officials will finish in October and post online. By the end of October, county officials will have instructions about minimum bids, how to register for the auction and how to submit written bids.

The county will open bids at its County Commission meeting Nov. 18 at a live public auction and receive verbal bids.

Money from the land sales will be spread through three areas under the Southern Nevada Public Lands Management Act. The bulk, 85 percent, goes into the Bureau of Land Manageament Special Account, 5 percent goes to the Nevada Education Fund and 10 percent goes to the county’s Department of Aviation for airport development and noise mitigation.

Contact Ben Botkin at bbotkin@reviewjournal.com or 702-405-9781.