A development agreement was approved for the Indian Roads subdivision last week, after a snag over offering land for collateral to construct public works improvements was resolved.

Greg Hafen, representing the Hafen family of developers, said the deal would offer $2.25 million worth of land as collateral for constructing infrastructure valued at $593,000. Developers are usually required to post a performance bond.

L.I. Development, consisting of the Hafen family, wants to construct up to 440 homes on 120 acres on the north side of Turner Boulevard east of Fox Avenue. A sewer treatment plant would be constructed on another 40 acres on the northeast corner of the subdivision.

A report from Nye County planners, states: "For various reasons, including the volatility of land values as well as the potentially time-consuming or difficulty in obtaining a buyer for the land, staff recommends that a performance bond be required."

Advocates for the project urged the county to draft a development agreement as protection for any changes the county may require while the subdivision is being constructed.

The 120-acre site is already zoned VR-8, which requires a minimum of 8,000-square-foot lots; the 40 acres is zoned general commercial. The agreement mandates no more than four housing units per acre.

Subdivision maps won't require the addition of a master traffic impact analysis or technical drainage study.

The plan is to build the project in five phases, with the initial 84 homes up by 2010, another 99 constructed by 2012, 107 by 2014, 92 by 2016 and 64 by 2018.

Developers will contribute $1,332.66 for each unit for street improvements, $359 for constructing and operating public parks, $167 for each unit for police and $167 for fire services.

In addition, $20,000 donations will be made to the Nye County Sheriff's Office and Pahrump Valley Fire and Rescue Service for equipment and administrative expenses when the first building permit is issued.

Tim Hafen submitted a copy of the development agreement with the Nye County School District, which includes a $1,600 fee for the construction of each residential unit. The developers also will construct pathways from the Artesia subdivision to the new Floyd Elementary school along with water and sewer stub-outs.

Greg Hafen said using the land as collateral was the exact way the Artesia subdivision was developed.

"We think that land is a good bonding vehicle for the county," he said. "Bond companies may come and go. The land is always going to be there."

Greg Hafen said the county could look at the land first and if they don't like it, require a cash bond. He emphasized the good track record of the family of developers.

Vicki Hafen Scott said the property is well situated in Pahrump valley and holds its value well. She added in the alternative, "If you have a bonding company that refuses to pay, that's a very expensive process."

But Commissioner Joni Eastley said while the Hafens were good managers of their housing projects, "It puts the county in a position of being a real estate agent, and I'm not sure I like that."

Nye County Chief Deputy District Attorney Ron Kent said it's legal to take property in lieu of cash or a bond. He suggested the planning department weigh in on the issue.

Local resident Bernadel "Bernie" Cleveland, 5101 E. Turner Blvd., complained she couldn't get a copy of the storm drainage study. Nye County Manager Ron Williams said those technical reports aren't normally given to the public.