The Nevada Economic Development Commission has approved eight economic incentive requests projected to create 618 jobs — including 499 in Clark County — in one of the busiest sessions the state agency has ever had.
Five of the eight requests that came before the commission during Tuesday's session came from out-of-state companies relocating to or developing branch offices in Southern Nevada. Another was for a Nevada company that is expanding its work force and requested $6,000 in training grants administered by the commission, the Employment Security Division and the State Job Training Office.
The Nevada Development Authority endorsed and assisted the five new Clark County companies and the expansion.
While state officials were cautious in explaining the sudden burst in incentives requests, they also noted that it was another indicator that the Nevada economy was changing for the better.
“I hope that it signals the tide that is coming,” said Lt. Gov. Brian Krolicki, who chairs the commission. “It’s an indication of much better things to come.”
Steve Hill, state director of economic development, said the requests for incentives showed that companies were ready to begin investing in their future.
Hill said there had been a significant increase in interest in locating in Nevada, which he attributed in part to real estate and assets being relatively inexpensive compared with the rest of the country. But he added that it was a welcome improvement after years of economic struggles.
New companies moving to Nevada ranged from renewable energy and recycling businesses, manufacturers and distributors to financial services and consulting companies. A major dairy operation also is planning to move into Churchill County.
To entice the companies, the commission, in separate unanimous votes, approved $10.1 million in tax abatements, $521,297 in sales tax deferrals and a total of $578,220 in Train Employees Now grants.
But as in all economic development incentive efforts, the state looks at the long-term dividends. Over 10 years, the incentives approved Tuesday are expected to generate $27.9 million in new taxes and have an estimated economic impact of $2.14 billion.
Under Nevada’s incentive program, the state doesn’t issue money or property to an applicant, but enables it to pay just 2 percent in sales tax for a year, 50 percent of its modified business tax for four years, 50 percent of its personal property tax for 10 years and 50 percent of its real estate tax for 10 years if it delivers a certain level of new jobs paying above-average wages and a certain level of capital investment with different levels based on the type of industry the company is engaged in.
A company also can seek a sales tax deferral, meaning it would pay the entire tax at a later date.
Generally, companies apply for some, but not all of the incentives because they don’t qualify for every type.
In Tuesday’s session, the commission approved incentives for:
• SA Recycling LLC, an Anaheim, Calif.-based scrap metal recycling company that operates 50 facilities in California, Arizona and Nevada. Brandon Smith, regional manager of operations, said he was drawn to the state by the business-friendly attitude of state leaders. The company is expected to hire 27 people.
• Ameriprise Financial Inc., a Minneapolis-based financial services company that is in the first phase of developing a west regional sales and service call center. Dwayne Cosby, vice president of business transformations, said the company was moving into a facility on Pilot Road in Las Vegas with plans to expand to a second building. Initially, the company will create 35 executive-level jobs, with plans to expand to 272 workers.
• Rockford, Ill.-based Patriot Precision Ammunition, which is moving the company’s corporate headquarters to Southern Nevada. Founder and Chairman Philip Pritchard said the company would operate three work shifts manufacturing precision ammunition used by Special Forces units, police snipers, target shooters and competition shooters. The company expects to hire 37 people.
• DayDra Holdings Group, a privately held contract management and consulting company also founded by Pritchard. Pritchard said he planned to locate that company in downtown Las Vegas and would hire 55 employees.
• BrightPoint Inc., a Hayward, Calif., LED lighting company, which plans a manufacturing and distribution center in Southern Nevada. BrightPoint CEO Tom Griffin told the commission that his company worked on a business-to-business basis with Fortune 1000 companies and was dedicated to product development and research as well as manufacturing. The company will hire 79 people.
• LED Solar Green Energy Technology, based in Las Vegas. The company's president and CEO, Sharon Wu, said the training grants requested would be used for training classes for 29 new employees in energy conservation, quality management, solar, wind and thermal energy programs, safety, human resources policy and customer service.
The largest of the requests came from Quail Hollow LLC, a subsidiary of the Kansas City-based Dairy Farmers of America which is developing a dairy foods processing plant to serve a cooperative from Fallon, east of Reno. The operation will add 44 jobs in Northern Nevada, and the company is investing $65 million in equipment and dairy cows.
The commission also approved incentives for Tyson Corner, Va.-based CustomInk LLC for a manufacturing and distribution plant for custom T-shirts and hats in Reno.