May 9 -- Before the Regional Planning Governing Board

Protect Our Washoe
P. O. Box 20397
Reno, NV 89515
Telephone: (775) 827-2000
Facsimile: (775) 827-2185
E-mail: protectourwashoe.org

May 8, 2002

Hon. Geno Martini, Chair
Regional Planning Governing Board
Sparks City Council

Hon. Dave Aiazzi, Vice Chair
Regional Planning Governing Board
Reno City Council

Hon. Joanne Bond
Regional Planning Governing Board
Washoe County Board of County Commissioners

Hon. Mike Carrigan
Regional Planning Governing Board
Sparks City Council

Hon. Sherrie Doyle
Regional Planning Governing Board
Reno City Council

Hon. Jim Galloway
Regional Planning Governing Board
Washoe County Board of County Commissioners

Hon. Jeff Griffin
Regional Planning Governing Board
Mayor, City of Reno

Hon. Pierre Hascheff
Regional Planning Governing Board
Reno City Council

Hon. Ron Schmitt
Regional Planning Governing Board
Sparks City Council

Hon. Ted Short
Regional Planning Governing Board
Washoe County Board of County Commissioners

Regional Planning Governing Board
Washoe County Commission
P.O. Box 11130
Reno, NV 89520

Members of the Regional Planning Governing Board:

The following is some background information with respect to the Ballardini Ranch as it relates to the hearing before you on May 9th as a member of the Regional Planning Governing Board. I hope this background is helpful in connection with any information you may wish to have regarding its history.

Protect Our Washoe (POW) believes that the correct planning decision for the protection of the Ballardini Ranch would be to remove the sphere of influence (SOI) of the City of Reno and the Truckee Meadows Services Area (TMSA) from the entire Ballardini Ranch. Under the current circumstances, POW believes however, the fairest approach to take is to ask the Regional Planning Governing Board (RPBG) for the status quo, namely, upholding the decision of the Regional Planning Commission (RPC) on April 24, 2002. The RPC recommended on April 24th (a) that the SOI of the City of Reno remain only in the northern half of the Ballardini Ranch and it not be extended into the southern half and (b) removal of the TMSA from the southern half of the Ballardini Ranch, so that it serves only the northern half of the Ballardini Ranch.

We believe the status quo is fair, namely keeping the SOI and TMSA the same, as it was when the Minnesota owner/developer acquired the Ballardini Ranch on May 11, 1998, for $8.5 million. Much has happened since that time, including, of course, a bond issue approved by the public of which $4 million is to be applied toward the acquisition of the Ballardini Ranch, and a promising pending application for federal funding is pending for an additional $15 million at this time. Accordingly, we believe it is not fair to ask governmental entities to place the Minnesota owner/developer in a negative position through a change of the status of the property at this same time while negotiations should be taking place; conversely, it is not fair to artificially increase the value of the property by sending a signal to the owner/developer that the City of Reno has an interest in developing the property to a higher density than at present exists. Accordingly, under the circumstances the status quo is the fairest course to take.

We therefore ask that the Regional Planning Governing Board support the decision of the RPC of April 24, 2002, with respect to the Ballardini Ranch.

In taking the foregoing position, it does not mean that POW would oppose annexation or any increase in density over that density which presently exists on the property by virtue of existing zoning or land use designation. Those issues will be subject to further hearings if the owner/developer makes a move to bring to a hearing his Petition for Annexation filed April 29, 2002, or takes any other step to develop the northern or southern half of the property.

The following is a background on the Ballardini Ranch might be helpful:

      1. Original Elimination of the "A-Line" Freeway Segment into the Ballardini Ranch Area —1978 - 1982.

Public recognition of the value of the Ballardini Ranch (also previously known as the Gaspari Ranch) to the entire community began to surface in the 1970's. This recognition was spurred by an effort by the Federal Highway Administration (FHWA) and the Nevada Department of Transportation (NDOW) to extend the I-580 freeway from the intersection of McCarran Boulevard and U.S. Highway 395 through a portion of the Ballardini Ranch and the Redfield/Arrowcreek property aligning immediately south of the Ballardini Ranch, through the Callahan Ranch to the Winter Ranch. This segment from the intersection of McCarran Boulevard and Highway 395 to the Winter Ranch, traveling along the foothills mentioned in the previous sentence, gained a common parlance as a "A-line"and shall be referred to hereafter as the "A-line"or "A-line segment."

The A-line segment would have decimated the pristine value of the Ballardini Ranch, along with residential character and wildlife habitat lying in its path. As a result of the implications of the A-line, litigation which was commenced with the FHWA and the NDOW to prevent the alignment from being approved without preparing an additional or Supplemental Environmental Impact Statement. In litigation the FHWA and NDOW stipulated to prepare a Supplemental Environmental Impact Statement. The Supplemental Environmental Impact procedure afforded an analysis of the damage the A-line segment would cause to the Ballardini Ranch area and the southwest generally.

As part of the Supplemental Environmental Impact Statement that was ultimately issued in connection with the A-line segment, the value of the Ballardini Ranch was discussed and especially recognized as a valuable wildlife habitat and pristine area. Ultimately, the A-line was abandoned and rejected, after a serious examination of the damage it would cause to the entire environment in that area. A principal consideration, of course, was the indelible injury it would cause to the habitat, environment and serenity of the Ballardini Ranch.

As a result, NDOW determined to select the "S-line" which has an "S" configuration from the McCarran Boulevard and U.S. Highway 395 to the Mount Rose Highway, and which will thereafter travel, as part of the next segment, through the hills to the Winter Ranch. Over 2,000 persons signed a petition approving the "S"alignment, and supporting the rejection the "A" alignment.

      2. Adoption of the Southwest Truckee Meadows Land Use and Transportation Plan — Protecting the Ballardini Ranch — 1982 -1984

On the heels of the decision to select the "S" alignment, the Washoe County Commission formed the Southwest Truckee Meadows Citizens Advisory Board which was then charged with the responsibility of preparing the land use and transportation plan for the Southwest Truckee Meadows. After 24 months of study and numerous hearings, it was recognized that a land use and transportation plan should be adopted to protect the primitive open spaces of the Ballardini Ranch and a substantial part of the Redfield development, which consisted of several thousand acres lying south of the Ballardini Ranch. A compromise was forged with the owners of the Redfield property that allowed for dedication of approximately 1,400 acres along the foothills between the Mount Rose Highway and the Ballardini Ranch. This compromise exists today, and the successor to Redfield, Arrowcreek Development, is required to dedicate approximately 1,400 acres, along the foothills, between the Mount Rose Highway and the Ballardini Ranch.

As a consequence, if the 1,019-acre Ballardini Ranch is brought into public hands, it would provide for wildlife habitat, open space, and pristine beauty from McCarran Boulevard to the Mount Rose Highway, consisting of nearly 2,500 acres. If the Ballardini Ranch were developed to the full density proposed by the developer in 1997 for approximately 2,200 homes, the traffic impact would be devastating and might also result in elimination of the need for the open space (known as the Arrowcreek dedicated property) now committed for dedication.

      3. Initial Efforts to Acquire the Ballardini Ranch — Mid-1990's

           A. Efforts by the American Land Conservancy

In the mid-1990's the American Land Conservancy (ALC) obtained an option to acquire the Ballardini Ranch. The intent of the ALC was to obtain the Ballardini Ranch by means of an exchange program whereby federal land in Las Vegas was being exchanged to preserve other properties throughout the state. The land exchange program that the ALC intended to use was placed on hold, and, as a result, the option expired. As a result, the Ballardini family, because of fiscal reasons, believed it had to sell the ranch, and ultimately sold the same to Evans Creek LLC, the current owner.

           B. Ultimate Acquisition by the Current Owner

In 1997, prior to the acquisition of the Ballardini Ranch by the current owner/developer of the Ballardini Ranch, a Minnesota developer (who ultimately acquired the ranch) now known as Evans Creek LLC, entered into an agreement with the Ballardini family to acquire the ranch subject to obtaining certain approvals for higher density and annexation. POW believes the purchase price agreed upon at that time was approximately $12 million. Application was made for that increased density, but a few hours before the hearing the prospective owner pulled the application. On May 11, 1998, the current owner/developer from Minnesota acquired the Ballardini Ranch. Public records show that the Ballardini Ranch was acquired for $8.5 million. After the current owner acquired Ballardini Ranch, it sought approval for higher density in the northern half of the Ballardini Ranch, for approximately 1,000 homes. After a hearing, that effort was turned down.

On April 29, 2002, the owner applied for annexation to the City of Reno for the entire ranch, although only the northern half is in the SOI of the City of Reno at this time.

      4. Action by the Washoe County Commission — $4,000,000 Bond Issue

After the failure of the effort by the ALC to acquire the Ballardini Ranch for public use through the means of the federal land exchange program, it became clear there was need for a bond issue to assist in the acquisition of the ranch. As a result, a bond issue was ultimately approved by the Washoe County Commission, working with the cities of Reno and Sparks, was approved by the voters and allocated $4 million for the acquisition of the Ballardini Ranch.

Accordingly, at present $4 million is available for the acquisition of the Ballardini Ranch through the bond issue approved by the voters of Washoe County. Additionally, an application is pending through the Southern Nevada Public Lands Management Act (SNPLMA) for an additional $15 million for the acquisition of the Ballardini Ranch, making a total of $19 million if the SNPLMA application is approved. At present the Ballardini Ranch has made it through round three of the properties under consideration, and the application is currently pending for decision.

On August 14, 2001 Washoe County Commissioners formally approved a resolution authorizing the seeking of additional funding under SNPLMA and the City of Reno on September 18, 2001 approved a similar resolution, approving request for federal funding, and supporting acquisition of the Ballardini Ranch through SNPLMA.

Senator Reid and Congressman Gibbons have expressed strong support for the acquisition of the Ballardini Ranch and a willingness to seek additional ways to obtain funding for the acquisition of the Ballardini Ranch.

   5. The Tueller Report — October 23, 2000

As part of the workup for determining the unique characteristics of the Ballardini Ranch that make it so special for public acquisition, a study was prepared by Dr. Paul T. Tueller, Ph.D., completed August 23, 2000, (the "Tueller Report"), which is quite comprehensive in nature. Dr. Tueller is a professor at the University of Nevada, Reno, and is the most knowledgeable individual in the state on issues involving the ecology of the Ballardini Ranch. The full text of the Tueller Report may be found on the POW website.

The conclusions of Dr. Tueller, among others, were as follows:

° The protection of the Ballardini Ranch is critical for the long-term survival of the mule deer herd in the Truckee Meadows.

° If the Ballardini Ranch is developed and not acquired for public use, the Arrowcreek/dedicated property, consisting of approximately 1,400 acres, would be insufficient to protect the deer herd and assure its survival on the Truckee Meadows side of the Toiyabe National Forest.

° The acquisition of the Ballardini Ranch through a combination of funds from the Washoe County bond issue, and federal funding, working in conjunction with the U.S. Forest Service, would provide a unique partnership which would benefit all governmental entities and, of paramount importance, the citizens of Truckee Meadows.

° If the Ballardini Ranch is not developed and not protected as a permanent refuge for wildlife, the Forest Service land adjacent to the Ballardini Ranch in the Toiyabe National Forest would lose substantial value because those lands would no longer be able to house the deer herd and would be lost as a valuable wildlife refuge because of that development.

      6. Recent Action by the Regional Transportation Commission Protecting the Ballardini Ranch

An important recognition of the value of the Ballardini Ranch, and a need to strong governmental measures to protect it, occurred by decision of the Regional Transportation Commission 2030 Steering Committee (the "2030 Steering Committee") which was created by the Regional Transportation Commission (RTC) with the specific charge of making recommendations regarding the transportation system for the next 30 years.

The 2030 Steering Committee conducted hearings for approximately 24 months over the new road system for the next 30 years. The study included the advisability of a "Southwest Cutoff" which would constitute a two-four lane road from McCarran Boulevard to the Mount Rose Highway through the Ballardini Ranch and the Arrowcreek Development. Studies were done with respect to the implications of this. Bruce Arkell, a former staff member of the RTC, and now a private traffic consultant in both northern and southern Nevada on large highway projects, performed an analysis that showed the Southwest Cutoff would have devastating effects on the future of the area, and put unacceptable stresses on the transportation system in the Truckee Meadows.

After taking into consideration the devastating effects construction of the Southwest Cutoff would have on the Ballardini Ranch and the Arrowcreek Development, how it would interfere with the efforts to acquire the ranch through public funding and the expressed will of the voter to utilize the funds for the acquisition of the Ballardini Ranch, and the stresses it would cause on the transportation system as a whole, the 2030 Steering Committee recommended against construction of any Southwest Cutoff and, accordingly, removed it from the map to be considered by the RTC.

The RTC, sitting as the supervising entity of the 2030 Steering Committee, upheld the decision of the 2030 Steering Committee and, accordingly, there is presently no proposed road such as the Southwest Cutoff through the Ballardini Ranch or the Arrowcreek dedicated property, for the next 30 years.

      7. Comprehensive Regional Planning Process To Date

A few months ago it was learned the draft Comprehensive Regional Plan included provisions for the extension of the SOI of the City of Reno through the entire Ballardini Ranch, thus picking up the second half of the ranch. It was further learned that the TMSA was proposed to be included to encompass the entire ranch.

On May 7, 2002, John Hester, in the Planning Department of the City of Reno, advised that the initial draft Comprehensive Regional Plan which was circulated included the SOI and TMSA in the southern half of the Ballardini ranch because, following the acquisition of the Ballardini Ranch by the Minnesota owner/developer, the owner had made an application to annex the property. Mr. Hester indicated that his department was under instructions from the Reno City Council to include, in the draft plan for discussion, any previous applications for annexation, as part of its SOI. Inclusion of the SOI and TMSA in the southern half of the Ballardini Ranch, according to Mr. Hester, did not represent either a recommendation from the Planning Staff of the City of Reno or from the Reno City Council.

If the Ballardini Ranch is placed in Reno's SOI, and the TMSA includes the southern, the property owner would be encouraged to believe that the City has an appetite to annex, possibly develop, and provide services for a higher density than exists at present. This action would have a very negative effect on any appraisals on the property. The developer would be able to argue for a much higher price than that to which the developer would be entitled when the developer initially acquired the property.

Having said the foregoing, it should be understood that Protect Our Washoe does not believe that the northern half of the Ballardini Ranch should ever be annexed into the City of Reno, or that it should ever have higher density than that which exists under the zoning and land use planned for the last several years. It should be remembered that the Ballardini Ranch, along with Arrowcreek development, and all of the other people who reside in the southwest Truckee Meadows, have been subject to essentially the same density (with some lessening of density) since the land use and transportation plan was adopted in 1984. To provide the Ballardini Ranch with a higher density in the northern half would be making a major exception to the plan that has otherwise withstood the test of time. Nevertheless, those arguments are ones to be made at a later time.

If the Regional Planning Governing Board allows the SOI to be extended into the southern half of the Ballardini Ranch, as well as the TMSA, it would fly directly in the face of the efforts made by the Washoe County Commission to acquire the ranch, and would disrupt the current zoning which has been in place for many years over the entire Ballardini Ranch, and would frustrate, we believe, the intent of the voters to have a fair shot at acquiring the ranch with the status that existed when the votes were taken. The entire Ballardini Ranch is currently under the jurisdiction of Washoe County.

      8. Action of the Regional Planning Commission on April 24, 2002

At present the SOI of the City of Reno extends to the northern one-half of the Ballardini Ranch. It does not extend into the southern half of the Ballardini Ranch. During the hearings before the Regional Planning Commission (RPC) a few weeks ago, the draft proposal (which recommended the SOI of the City of Reno to be included in the entire Ballardini Ranch as well as the TMSA) was vigorously opposed by POW and citizens from the entire Truckee Meadows.

The RPC fully understood the consequences of including the SOI and TMSA in the southern half of the Ballardini Ranch and the negative effect it would have on the ability to negotiate for the property. It also clearly understood the long-term land use, which was in existence for the Ballardini Ranch prior to 1984, but was confirmed in 1984 by the Southwest Truckee Meadows Land Use and Transportation Plan.

On April 24th, the RPC voted to exclude the SOI and the TMSA from the southern half of the Ballardini Ranch. At the same time the RPC expressed an interest in examining whether or not the SOI and TMSA of the City of Reno should be excluded from the northern half as well. However, it was unclear whether the RPC had jurisdiction to do so. Counsel for the RPC, which is from the office of the Attorney General located in Carson City, was not present, due to a traffic emergency that was caused by the shooting in Pleasant Valley. In the absence of legal counsel, and in view of the uncertainty that existed, the RPC declined to vote on that issue. It is clear from a decision by the United States Supreme Court on April 23, 2002, that the RPC could have voted to exclude the SOI and TMSA from the northern half of the Ballardini Ranch, but the RPC formal vote on that issue has not yet been taken.

Further, it is clear from the U.S. Supreme Court decision that a declaration of a moratorium on any annexation, entertainment of applications for increased density or for the creation of a Planned Unit Development (PUD), could be made for a reasonable period of time without constituting a "taking."

elationship of the Ballardini Ranch to the Arrowcreek dedicated property can be found in a document entitled Southwest Truckee Meadows Open Space and Public Use Plan" at the conclusion of, and as part of, the Tueller Report.

      9. The April 29th Annexation Petition

As stated above, on April 29, 2002, the Minnesota owner of the Ballardini Ranch filed a petition for annexation to the City of Reno of the entire Ballardini Ranch.

The owner filed the petition for annexation on the heels of the decision of the RPC to maintain the status quo, namely not to extend Renoís SOI or the TMSA into the southern half of the Ballardini Ranch. It is clear the incentive of the owner is solely an economic one. Accordingly, all efforts should be made to fully explore with the owner the method of acquiring the property (preferably absent condemnation), for the fair market value of the property. Clearly some leadership is necessary to allow the public will to prevail in this instance.

      10. Request for Action from the Regional Planning Governing Board

We therefore seek from the Regional Planning Governing Board the following:

          A. A strong statement of support for the acquisition of the Ballardini Ranch for permanent public use.

          B. For the Comprehensive Regional Plan be adopted to exclude the TMSA from the southern half of the Ballardini Ranch and that the sphere of influence of the City of Reno shall remain only in the northern half of the Ballardini Ranch.

          C. A decision that the recommendation of the RPC on April 24th be upheld in its entirety, namely, to exclude the SOI of the City of Reno and the TMSA from the southern half of the Ballardini Ranch, and that the SOI of the City of Reno shall remain only in the northern half of the Ballardini Ranch.

          D. A recommendation that a moratorium be declared on any action to annex, increase the density, establish a PUD, or any other action requiring governmental approval for a period of 24 months, to allow the County (or any other governmental or private entity desiring to place the Ballardini Ranch in public hands) and the owner to engage in good faith negotiations for the acquisition of the Ballardini Ranch by the public.

Thank you for considering our position with respect to this matter.

Sincerely,

PROTECT OUR WASHOE

Steven T. Walther

Funding Report No. 1 by Steven T. Walther
to the Regional Planning Governing Board, May 22, 2002

Funding Report No. 2 by Steven T. Walther
to the Regional Planning Governing Board, May 23, 2002

Protect Our Washoe Report to the Executive Committee
of the Southern Nevada Public Lands Management Act
May 16 ,2002
The above provides a useful history in discussion of the issues.