Governor's Proposal - Are they Enough Safeguards?
Governor Guinn's innovative proposal to acquire
parcels of federal land throughout Nevada and inviting
private developers to build homes and condominiums on
the acreage, which would be kept in a state trust.
Individuals purchasing the homes would pay only the
cost of the housing unit, and not of the land. This
proposal has been widely welcomed by the residents and
the housing industry, which find that owning a home
may no longer be possible for large sections of the
society. But this proposal has received a lukewarm
reception from legislators when the governor announced
the affordable housing proposal during his during his
Jan. 24 State of the State address.
The Senate Minority Leader Dina Titus, D-Las Vegas,
and Assembly Minority Leader Lynn Hettrick,
R-Gardnerville, want more details about the proposal
before committing their support.
The following are the concerns that Senators have:
1. The state may be taken for a ride by some
homebuyers who may quickly these homes at market value
and earning a windfall profit. They feel there should
be some restrictions and safeguards to prevent this
from happening.
One solution might be to require people selling the
homes to return to the state the share of the sales
price that represents the land's value, he said. This
money could be used to acquire additional land or
cover administrative costs.
2. Would the homeowners pay property taxes on the
land's value if the property is owned by a state
trust? If not, how will the state earn revenue from
these projects for putting up roads and
infrastructure.
3. The program could never become very big, as there
is little federal land available.
It is noble cause and it may do some good, but it is
not going to solve the problem of affordable housing
feel the majority of the people.
New Condos From The Rock
The owner of the Hard Rock Hotel, Peter Morton has
announced a new residential project. He says many of
his patrons were interested in being a part of the
Rock and had made many requests to come up with a
project like this.
Even 10 years ago Morton says he would not have the
built the condos but for the rapid growth of the city.
Las Vegas has been the fastest-growing city in the
United States for nearly 20 years and is one of the
top housing markets in the country. Home prices
increased by nearly 50 percent in the past year. "It's
the greatest growth in a city since records have been
kept," said Steve Bottfeld, executive vice president
of Marketing Solutions, a Las Vegas-based real estate
advisory firm.
Morton says he is targeting 20- and 30-year-olds.
These people were an untapped market in Las Vegas. By
creating an environment that was geared to that market
with concerts by performers such as Norah Jones, The
Rolling Stones and Velvet Revolver, the Hard Rock has
been able to attract this important demographic, along
with other age groups looking for a hip experience.
Construction of the Hard Rock residential complex is
scheduled to start in August and the will be completed
in about 2 years time.
Las Vegas - Booming Real Estate Projects.
Frank Martin of Martin-Harris Construction said
construction is booming so fast in Las Vegas that he
and other contractors are turning away jobs. And he
doesn't see the boom ending soon. Even Industry
analysts have not yet predicted a date by which time
this boom will peter out for Las Vegas.
There are so many construction projects going on
right now in Las Vegas that sometimes Martin and other
construction companies officials get a little worried
about whether they would be able to keep pace with the
developments. In addition last year there was the
problem of rising costs and shortage in the supply of
construction material. Steel prices rose from $895 to
$1,460 a ton; lumber prices rose by 47.6 percent and
concrete went up by 25.4 percent. This year supply
seems to be matching demand and prices are also
leveling off according to Martin-Harris Vice
President.
Martin-Harris Constructions alone is working on
Urban Village, Manhattan condos on Las Vegas
Boulevard; Consolidated Resorts' Tahiti Village
time-share towers, also on Las Vegas Boulevard; a
350,000-square-foot addition to Rancho High School;
the visitors quarters at Nellis Air Force Base; and
Paradise Aviation Jet Hangars being developed by
Molasky Group of Cos. on a 10-acre parcel next to
McCarran International Airport. Martin-Harris also has
the contract for Streamline Tower, a 21-story
high-rise condo tower under construction at Las Vegas
Boulevard and Ogden Avenue.
