Building Nevada - September 2000

APEX INDUSTRIAL PARK

Poggemeyer Provides Master Planning for Huge Site

by Norm Johnson

Poggemeyer Design Group, a design and engineering firm with offices in Reno and Las Vegas, has been retained to provide master planning services for the Apex Industrial Park. Larry Carroll, principal at Poggemeyer, reports they will provide engineering services for approximately 40 miles of roadway, a water system, a sanitary sewer system and necessary flood control facilities at the 21,000 acre site north of Las Vegas. Additionally, Poggemeyer will complete the final construction documents for those facilities that lie within the 1,658-acre Phase One project. The overall master planning and Phase One contract is expected to extend 18 months. The company has been heavily involved in many other Nevada projects, including the Downtown Entry Corridor, Bonneville Underpass and improvements to Jones Blvd. Its employees number over 225 nationally, with 45 staff members across Nevada.

An Explosive Background

On May 4, 1988, a massive explosion destroyed the PEPCON facility in Henderson. The blast not only rocked the residents of Henderson and Las Vegas, but also alerted the United States government and NASA to a dangerous situation. PEPCON at the time was one of only two domestic manufacturers of ammonium perchlorate, an oxidizer used by NASA in its space shuttle and Titan missile programs. On that day in May, a neighbor facility, Kerr McGee, became the only remaining manufacturer of the oxidizer. Not only did local governments wake up to the fact that the remaining facility was a potential hazard, but NASA's space program was in jeopardy.

Congress passed an act on July 31, 1989 detailing a two-part plan for the area now known as Apex Industrial Park. First of all, it created a safe site for Kerr McGee to move its blending facility out of the populated Henderson area. Second, it provided for a large tract of undeveloped property (approximately 21,000 acres), to be purchased from the Bureau of Land Management (BLM) by Clark County, for the purpose of moving other polluting and dangerous facilities out of populated areas. Clark County immediately followed up by embarking on a study to create a master plan, and in July 1990 the Clark County Commission adopted the study by resolution. During the next few years, the master plan was refined to allow for marketing efforts. Soon, however, the County realized it would have to spend considerable amounts of money in order to get the appropriate BLM paperwork completed. There would also be a huge investment in additional up-front engineering and design costs.

Private Investors Take Over

In 1995, Al Levy approached the county about the possibility of a group from the private sector taking over the project. The group currently consists of Ralph Engelstad, Floyd Meldrum, Bob Mendenhall, David Carver, Kevin Parkinson, Jerry Snyder, Tony Tegano, Kenneth Gragson, Peter Thomas, Dr. Edward Hoffman, Rod Reber, Leon Friedman and others. The county checked with the Solicitor General's office in San Francisco to make sure the congressional act allows for such a marriage between public and private sectors. While waiting for the opinion, Levy suffered a stroke and passed away. Carver was elected president of the group and completed the master developer agreement with the county.

On August 19, 1997, the commission approved Apex Industrial Park Inc. (AIPI) as master developer for the massive project. On July 29, 1999, one day before expiration of the legislation, all the requirements were met. AIPI invested nearly $10 million as its share of the purchase price and the patents were recorded in the name of Clark County. AIPI also spent several million dollars on complying with the National Environmental Policy Act (NEPA) requirements, cultural surveys, site surveys, and acquisition and perfection of water rights prior to obtaining ownership of the land.

Location Offers Advantages and Challenges

Apex Industrial Park is located just off Interstate 15, about 18 miles north of downtown Las Vegas and three miles north of the Las Vegas Motor Speedway. It is bounded on the north by US 93 and has excellent freeway access. The Union Pacific Railroad has two spur lines reaching two existing private sites. "We are working closely with Union Pacific to have another spur leading to our site," Frank A. McRae, chief operating officer, said.

Much of the property, however, cannot be developed due to the lack of access to remote locations and the slope of the property. "We knew that going in, and figured we would be able to develop about 5,000 acres to begin with," McRae explained. "Remember, Apex was created to locate both dangerous and polluting industries. Its present topography is perfect for doing just that. The mountainous terrain and the size of the park ensure these facilities will be remotely located and will provide excellent protection for any and all surrounding facilities."

Currently there are numerous electrical transmission lines running across the park. The Kern River gas line, a 36 inch high-pressure gas line, runs across the northern section and down the westernmost boundary of the park. There are no public water or sewer facilities currently located on site. Each of the existing facilities located within the 21,000 acres have either drilled wells or are piping water to the site. Water has been and will continue to be one of its largest challenges. According to McRae, one of AIPI's major concerns is the ability to provide the necessary water needed for the site. To that end it will invest millions of dollars into water rights, wells and pipelines.

A Promising Future

The first company to commit to locating in the new park was Southern Energy Inc., a unit of Southern Company, the largest producer of electricity in the United States. It is the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. Southern Energy has entered a strategic alliance with Apex Industrial Park to assist in developing the site, building a state-of-the-art power generation facility and working with the public and private sectors to recruit new industries to the site. McRae expects them to begin construction on the first of two phases by this coming winter. Phase One will consist of a 500-megawatt facility, which will be fueled by natural gas, and should be in service by the first quarter of 2003. "This project is a classic example of what we do best--working with businesses and local governments to bring new jobs and capital investment to areas served by our power-generation facilities," Richard J. Pershing, president of Southern Energy's Americas Group, said.

"We're pleased to achieve the milestone of acquiring the Apex property and look forward to fulfilling the intent of the federal legislation which envisions the park as a major component in addressing air quality issues in southern Nevada," Dave Carver, president of Apex Industrial Park Inc., said recently. "The park is also the premier location in the western United States for industrial and commercial companies to expand and relocate. Nevada's business climate is superior, and Apex possesses a prime location for access to interstate highways, rail service and proximity to the fastest growing metropolitan area in the country."

From land that at one time was used only for a railroad crossing, transmission towers and an occasional off-road race, Apex has slowly evolved into a major industrial site. And thanks to a few southern Nevada businessmen who were not afraid to invest time and money, Apex Industrial Park has become a major player in the future of the 21,000 plus acres of once barren land.