Fernley has completed the first phase of a federal land transfer authorized more than a decade ago, and city officials say the final phase could be completed within the next year.
Former Acting City Manager Lydia Altick provided an update on the 2014 Fernley Lands Bill during a meeting of the Nevada Legislature’s Interim Public Lands Committee, held at Fernley City Hall on June 26.
The legislation, included in the 2014 National Defense Authorization Act, directed the Bureau of Land Management to convey approximately 9,779 acres of federal land to the city.
Eight parcels included in the first phase were formally conveyed to Fernley on May 30. The process began about five years ago.
The newly conveyed parcels are located throughout the Fernley area, including land across from the Meadows at Inglewood and Pioneer Crossing Casino, with frontage along both sides of U.S. Highway 50.
Other parcels are east of the Fox Peak and Donner Trails subdivisions, north of the Fernley 5 subdivision, around Fernley High School, west of the city and Northern Nevada Veterans Memorial cemeteries, and south of the Truckee Canal and east of U.S. Highway 95A.
Two parcels are farther east along Highway 50 beyond the golf course. The easternmost parcel includes the site of an existing geothermal lease.
Although the land is now under city control, its use is initially restricted by the federal Recreation and Public Purposes Act. That means the property must generally be used for parks, recreation, public facilities or other approved public purposes.
The land cannot automatically be sold or converted to housing, commercial or industrial development.
To use any of the property for economic development, the city must ask the Department of the Interior to remove the federal government’s reversionary interest. The city must then pay for an appraisal and purchase that interest from the BLM at fair market value.
Altick said Fernley has begun that process for the easternmost parcel associated with the geothermal lease.
Before land can be conveyed, the city must also complete a series of studies and reports, including cultural-resource surveys, biological inventories, mineral-potential studies and environmental reviews. The city pays the BLM’s administrative expenses associated with the transaction and must provide a development plan showing how the property will be used.
The first phase required about five years to complete, but officials expect the second and final phase to move more quickly.
The city initiated the second phase in May 2023. It includes 15 additional parcels designated in the 2014 legislation.
The BLM has completed a categorical-exclusion review under the National Environmental Policy Act and is preparing the documents and boundary surveys needed to issue the patents transferring the land.
Studies conducted during the second phase identified a segment of the California National Historic Trail. A historic-preservation treatment plan may be required to address possible effects before the property is conveyed.
The review also included botanical, fire and fuels, hydrology, water-right and grazing inventories. According to the city’s presentation, the parcels have few water sources, are largely unsuitable for grazing and contain no BLM-authorized range improvements.
The city’s current plan calls for passive recreation on the second-phase parcels.
Altick said city officials have been told the remaining properties could be conveyed within eight to 12 months. Once that transfer is completed, the city will have received all the land authorized under the 2014 Fernley Lands Bill.
During questioning, Sen. Ira Hansen asked whether the transfer would give Fernley enough room to accommodate expected growth over the next several decades.
Altick said the city believes it will.
Fernley has completed planning work for areas southwest of the city and north of Interstate 80 and is now working on a south-area plan covering land east of U.S. 95A and south of the canal.
Altick also said the city’s working relationship with the BLM has improved during the past two years after the agency experienced staffing shortages and personnel changes.
A BLM representative later told the committee that the phase-two parcels are part of the checkerboard pattern of federal and private ownership north of Fernley and along the Interstate 80 corridor. The agency is drafting the final patent documents and completing boundary surveys.
The city’s land-transfer effort may also be supported by a broader Lyon County proposal.
The Lyon County Commission approved a resolution June 6 supporting a new county lands bill. The proposal includes support for the Fernley Economic Development Act, along with 2,747 acres proposed for direct conveyance from the BLM to the county and another 3,989 acres identified for possible future conveyance.
County officials said during the hearing that the land could support roads, water and wastewater systems, communications, workforce housing and economic development.
According to the county presentation, the county hopes to have the proposal ready for consideration by Congress in January. Officials said early discussions with Nevada’s congressional delegation have been encouraging.
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