Carson auto dealers buy Douglas County land

MINDEN -- Two Carson City auto dealers purchased 144 acres in northern Douglas County with a winning auction bid of $14.6 million Wednesday morning.

Michael Hohl, who owns six auto and RV dealerships in Carson City, and A.M. "Dink" Cryer, owner of Carson Dodge Chrysler, decided within the last few days to partner up to make a bid for the property.

"There's no question, it would be an awesome site for an auto mall retail hub for Carson City and Carson Valley right now," Hohl said.

"Not bad for a handshake," Cryer said after the purchase.

Hohl said Carson auto dealers gave the city "every opportunity to put something together that made sense" to keep dealers within city limits.

But after a proposed auto mall deal was rejected by the Carson Board of Supervisors in May,dealers facing pressure from stockholders and corporate officials to relocate and renovate had to find opportunities of their own, Hohl said.

"We have to do what's best for us," he said.

Though he didn't take part in the bidding, auto dealer Dick Campagni sat next to Hohl at the auction.

Hohl and Cryer said plans for development of the property were uncertain Wednesday, but said it is prime real estate for retail development. The parcel is off Topsy Lane, across from the newly built Wal-Mart Supercenter and the developing Carson Valley Plaza.

The contentious sale of the land by the Bureau of Land Management will not be final until the resolution of a lawsuit filed by Carson City against the federal government. Carson sued the U.S. Dept. of the Interior and the BLM last month after failing to reach agreements over the sale with Douglas County and the BLM.

The city first protested the sale, but the action was denied by the Department of Interior. Carson argues that the sale violates several federal land acts and will severely affect the city's economy and environment.

A judgment in the case is expected by the end of October. If the case is decided in Carson's favor, the judge could order the BLM to vacate the sale, and the $2.9 million cash deposit paid Wednesday would be returned to the buyers.

Carson Deputy District Attorney Mark Forsberg attended the auction to take notes on the process and see if a court order was followed.

"I have no problem with how it went," he said.

Douglas County and BLM officials at Wednesday's auction said they were surprised with the final bid. Bidding started at $7.5 million, the estimated market value.

"It went higher than expected," said John Singlaub, manager of BLM's Carson City field office. "The main thing is, the lawsuit didn't dampen the bidding."

Two other bidders vied for the parcel. Bidding went quickly between the three as they held up orange, numbered cards and auctioneers from TNT Auctions called out prices in the commission chamber of the old Douglas County courthouse.

Land investor John Steitz, of Orangevale, Calif., said he saw the sign on Highway 395 and was looking to invest in other sites in Nevada, too.

Steitz dropped out of the bidding quickly as Hohl and Carson land developer John Serpa strove to outbid each other. Within 10 minutes, the price had doubled, until Serpa dropped out when $14.6 million was offered by Hohl.

"You never know what's going to happen," Serpa said.

He and his family own several commercial properties in Carson Valley and Carson City, including North Valley Plaza across from the disputed site. Home Depot, Staples, Ross and Target are tenants in the plaza.

Hohl and Cryer have 180 days to remit the remainder of the selling price to the BLM, but the sale will not be finalized until 30 days after a final judgment is reached in Carson's lawsuit.

Douglas County Commissioner Bernie Curtis said he thought the auction was a success. The sale will have a two-fold benefit to the county, he said, by allowing the purchase of conservation easements for the preservation of ranch land and green open space and by creating a stable tax base when the parcel is developed.

"It will keep property taxes low and be a benefit to the people who live in this county and provide good shopping for people in the future," Curtis said.

The potential retail development of the site is the last in a long line of commercial development along the northern Douglas County corridor. Each recent development has lured retailers from Carson City, taking a substantial amount of the city's sales tax revenue with them.