Thursday, October 17, 2002
Copyright © Las Vegas Review-Journal

EDITORIAL: End the land swaps

Once again, the Bureau of Land Management has gotten a "thumbs down" following a review of the agency's land swaps. The Appraisal Foundation, an independent institute hired by the bureau to review its policies, found that despite repeated criticisms of the BLM's handling of property exchanges, the agency continues to give "special treatment" to developers in land trades and surrenders land to private owners at below-market value.

Reaction to the report was swift. Sen. John Ensign called on the Justice Department to investigate the land deals. The BLM has also reportedly reassigned two senior officials responsible for the trades, and placed a 90-day hold on pending land swaps in the West, including a deal involving the Lake Las Vegas resort.

The agency, though, claims it has taken "aggressive action" to improve oversight of the land deals.

What a joke. Government appraisers are ill-equipped to determine an appropriate value for holdings the BLM wishes to divest through land exchanges. Private owners have an incentive to make a killing at taxpayer expense; unless they can gain an advantage by completing a transaction, they'll refuse to deal.

Nevada's congressional delegation anticipated this problem years ago, and came up with a sensible procedure: public auctions of BLM holdings. The 1998 Southern Nevada Land Management Act requires the BLM to shift its focus from land trades to auctions. The BLM can thus relinquish a portion of its holdings at market value.

While the auctions have been limited to Southern Nevada so far, the practice should become the principal means the BLM employs nationwide to get rid of property.