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Real Estate and Development
Legislative battles already developing for builders
By Brian Wargo / Staff Writer

What's in store in Carson City in 2007 when it comes to real estate and development?

It's never too early to look ahead because lobbyists are already gearing up for the 2007 session that will see lawmakers looking at ways to spend surpluses, improve health care and education. But there will be plenty of discussion on issues that more directly impact the development community.

Nevada's cities are already taking the offensive to protect their sources of revenue and even boost it, sometimes at the cost of the development community.

Through the Nevada League of Cities, local governments are backing the expansion of authority to charge developmental impact fees to help pay for the cost of growth — fees that could increase the cost of a house. State law prohibits the use of impact fees for police and fire equipment, including vehicles, but governments want state law to allow funding of more capital expenses and authorize funding of administration buildings.

Existing state law caps the residential construction tax at $1,000, which is based on 1 percent of the valuation up to the maximum amount. Cities want to remove the fixed cap and add park maintenance as an appropriate expenditure in addition to its current use of park construction.

The Legislature could also take up home construction defect legislation. Lawyers representing homeowners are lobbying for a law that would strengthen their arsenal in court after the state Supreme Court nullified a multimillion-dollar judgment in a North Las Vegas home construction defect case.

The Supreme Court said that except for rare cases, single-family home construction defect suits can't be lumped together because the damage claims are so diverse. That means that homeowners' lawyers sometimes would have to prove hundreds of cases instead, lengthening the time and cost of trials.

Homeowner lawyers want legislation allowing them to estimate damages for entire subdivisions by testing only a small percentage of homes. That's in response to the Supreme Court saying there is no basis for extrapolating damage in instances where only some homes are inspected exhibiting various kinds of damage.

If that happens, look for the representatives of the home construction industry to gear up to stop the effort and push for legislation that would extend them even more legal protection from broad and potentially expensive class action lawsuits in defect cases.

The topics will get the attention of the Southern Nevada Home Builders Association which is already gearing up for the legislative session. It hired Maureen Brower, a former assemblywoman, for its newly created position of political and legislative advocate.

For the past three years, Brower, who will assume her role at the end of October, has served as director of Gov. Kenny Guinn's Las Vegas office. Prior to that, she served as director of government affairs for the law firm Wadhams & Akridge.

"We will be watching for any legislation that comes forward that we feel places additional regulatory requirements and burdens on the home building industry in particular as that will impact the cost of housing in our state," association spokeswoman Monica Caruso said.

Cities will be looking to Carson City for the ability to at least maintain or enhance incentives it offers the business community. That includes allowing local governments to deliver services to benefit specific areas.

Cities are also calling for protections when it comes to land use planning by backing proposals to preserve a city's sphere of influence regarding urbanization policies and opposing changes that undermine their existing control over public works contracting.

Redevelopment agencies will be looking to preserve their ability to engage in public-private partnerships to develop the best projects in areas that need revitalization.

On Friday, the Las Vegas law firm Snell & Wilmer held a seminar that in part looked ahead to the 2007 legislative session and trends in gaming and real estate.

Sam McMullen, who runs the government affairs division of the firm, said any legislation dealing with water resources and infrastructure, especially transportation funding, will be of interest to the development community. There also could be changes in rules for homeowners associations, especially with the advent of condo towers and condo hotels.

"They created homeowner's associations for large single-family residences, but there is going to be some interest in adjusting the rules for high-rise condos because the rules don't always fit."

James Mace, who is the firm's real estate partner, talked about the marriage between residential, retail and gaming given the scarcity and high cost of land.

"I think we are going to see more density and mixed-use developments," he said.

One11, a high design firm that specializes in imaging, branding and advertising, has been hired to work on the Las Vegas Union Park project, a 61-acre downtown development. A name for the project has yet to be announced.

The Greater Las Vegas Association of Realtors will host a free seminar for home buyers from 6 p.m. until 8 p.m. Thursday at the Cashman Center, 850 N. Las Vegas Boulevard. The event will include a trade show where home buyers can get information from lenders and title companies. To reserve a seat, call 383-4617.

LM Construction has received the 2006 Metal Architecture Design Award for metal buildings at the Arlen Ness Motorcycles of Las Vegas dealership on Boulder Highway in Henderson. The builder and dealership were featured in Metal Buildings magazine in August. The building measures 17,375 square feet with a 115-foot clear span showroom, offices, parts department and multi-bay service shop.

Tuesday Morning, the national discount retailer, opened a store Tuesday in Henderson in the Warm Springs Promenade, 1225 W. Warm Springs Road.

Picerne Development Corp, a multihousing development firm, announced The Presidio, its project in North Las Vegas is under construction. It will feature 47 buildings with 580 units.

The luxury high-rise condominium community Turnberry Towers marked a milestone when its 45-story east tower was topped off. The tower is slated for completion in the spring while the west tower is under construction for a spring 2008 completion.

Brian "Buck" Wargo covers real estate and development for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at (702) 443-3604 or by e-mail at buck@lasvegassun.com

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