Same mentality that any hole in the ground is a “snake hole”. The iguanas will flee into any pipe or dark hole. I am not aware of them digging any sort of burrow. Along most brackish canals there are numerous land crab holes that are very deep and do cause damage along seawalls. If these holes or any other, become big enough from erosion I could see an iguana using it as an escape, but I don’t think the iguana dug first, I could be wrong. I have seen them in great numbers in some neighborhoods here where there is no damage or holes of any kind to be seen along the canal banks and sea walls. I can tell you they seem to favor just sitting in the sun along the canal right on the ground or concrete sea wall, and will jump in the water before climbing up a tree. There are plenty of trees for them. They seem to generally go up the trees only at night.