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Sep. 21, 2007

Hafens seek development pact for 446 homes

By MARK WAITE
PVT

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During the discussions over Nye County development agreements, Nye County Manager Ron Williams told the county commission the amounts collected weren't enough to properly compensate the county for the administrative work required to monitor them.

But Wednesday, consultant Bob Swadell argued for continuing the agreements, claiming they provide a long-term standard on which developers could build improvements without worrying about changes along the way.

He persuaded commissioners to sign a development agreement for the Indian Road Subdivision, at 5400 E. Turner Blvd., between Fox Avenue and Sandy Lane, where developer Tim Hafen plans to build 446 residential units on 120 acres, with another 40 acres as the site of a sewer treatment plant and green space.

But Swadell argued the situation involves more than just a schedule of improvements.

"Development agreements are the only way of ensuring legitimate financing for projects in this valley. No financial institution is going to go in and fund the project unless they have a reasonable assurance for what the project is going to call for," Swadell said.

Commissioners spent two days hammering out a development agreement with Focus Property Group for the Gateway project on Highway 160 and Manse Road a year ago. It took almost as long soon after to come to terms with William Lyon Homes for a development agreement on the Mountain Falls North subdivision.

Swadell said contrary to popular belief, many developers want to install amenities like parks as a way to sell the projects.

But while Swadell said developers should be able to negotiate a development agreement on any project larger than 40 acres, Williams disagreed.

Swadell presented Mark Dunford, of America West Homes, who said he formerly spent eight years as a commercial real estate lender for a large West Coast bank.

"Development is an extremely capital-intensive business. At this point it's very difficult to sell finance and financing, so the entitlements are very important. In my opinion, development agreements are a valuable tool so the county and the developer have fixed expectations moving forward and developments are covered and understood," Dunford said.

Greg Hafen, from HHH Investments, said his outfit wants the development agreement to fix its budget to manage the improvements, like streets, sewer and water lines. Hafen said the company didn't close on escrow until they had a master plan amendment and zone change last October, at which time the county agreed to negotiate a development agreement.

"We submitted our technical drainage study and our traffic study. In our view, we have done everything that is required to move forward with a development agreement," Hafen said.

"I have never heard why it's so burdensome to Nye County. There has to be reasonableness and fairness in all these issues and that fairness needs to be extended to the developer as well. All improvements must be approved and inspected by Nye County whether there's a development agreements or not. All those costs are paid for by the developer," said Tim Hafen.

Nye County Planning Director Jack Lohman, a relative newcomer from a prestigious planning consultant company in Las Vegas, said he had concerns over locking the county into conditions for the next 10 to 15 years.

"We feel in this particular case you can get all the requirements we want in a standard subdivision improvement agreement," Lohman said. "We need to safeguard the community's quality of life."

Lohman said Nye County development attorney Mark White advised the county the mitigation provided by the developers doesn't justify granting the invested rights during the life of the agreement.

But Commissioner Roberta "Midge" Carver spoke in favor of the Hafen's request.

"I don't like to referee my grand kids, why should I want to referee adults? The development agreements, yes, they're a pain in all parts of the anatomy, but when they're done, they're done," Carver said. "As much of a pain as they are, I think the development agreements are an absolute necessity."

Commissioner Peter Liakopoulos agreed.

"The biggest complaint I hear about our county is inconsistency. What drives people away from the county is they don't know what they have to go through at any point in time," He said.

But Williams countered, "I'm also talking about every checkpoint and milestone on a development agreement we haven't had to monitor before."

Williams said he hasn't heard from finance companies willing to confirm Swadell's argument or the county's financial experts. Commissioner Joni Eastley supported Williams, casting the sole vote against drawing up the development agreement.

On another planning matter, Liakopoulos changed his mind after a 10-minute recess into a back room and made the motion to deny a zone change and master plan amendment for D & G Car Mine Ltd. to build an impound lot at 2770 E. Commerce St.

Consultant Dave Richards, from CivilWise Services, said the intent was to use it only for cars impounded by law enforcement agencies. But Lohman said, "They turn them into junk yards, based on our experience, based on our field review."














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