CARSON CITY -- Henderson officials voiced objections Tuesday to a bill that would require governments to sell property in public auctions.
Assembly Bill 312 was crafted in response to recent news reports that a developer exchanged public land near McCarran International Airport for huge profits. The Assembly Growth Committee heard the bill Tuesday, though it did not take action.
The bill would require all public lands to be sold by public auction instead of allowing land swaps, as current law does.
"The methods are not serving the public's best interests," said Assemblyman Scott Sibley, R-Las Vegas, who is sponsoring the bill. "We as taxpayers are, I believe, getting the short end of the stick."
But Henderson lobbyist Santana Garcia said the city has extensive rules in its charter describing how land can be exchanged. He suggested an amendment stating that cities with provisions in their charters could continue exchanging land.
Henderson has used sealed bids for most sales, leases or exchanges of land in past years, according to a memo city officials sent to Growth Committee Chairman Richard Perkins, D-Henderson.
"The public auction process is not necessarily the best process for disposal of public lands as it is based solely on obtaining the highest price for the land that can be obtained in an atmosphere of frenzied bidding between competing developers," said the letter, signed by Henderson Senior Assistant City Attorney Andrew Urban and Manager of Property Management and Redevelopment John Rinaldi Jr.
Some properties that the city exchanged with non-profit organizations or companies looking for irregularly shaped parcels "allowed for a definite win-win outcome for both parties," the letter stated.
The city has also obtained land for fire stations, public parks and an existing golf course through land exchanges, according to the letter.
State officials also expressed concern about selling state land by public auction because the Interim Finance Committee already approves all state land sales.
Clark County lobbyist Dan Musgrove said that, in light of the recent news reports, the county instituted a moratorium on any land transactions and is in the midst of a thorough investigation into recent land exchanges.
But the county welcomes the bill, he said.
"Our County Commission wants transparency," he said. "They want this as a transaction that's open to the public and that the public can weigh in on."
The county would like to amend the bill so it retains the ability to donate land to non-profit organizations or to swap with other government entities for public purposes, he said.
Assemblywoman Chris Giunchigliani, D-Las Vegas, said she understands that Henderson and the state have not had problems with land sales as Clark County has. But she said she thinks it's important to set up a law that treats all governments the same and prevents abuse.
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