NEVADA
From Site Selection magazine, September 2007
Protecting a
Haven for Industry
Haven for Industry
Nevada Governor Jim Gibbons
N
evada Gov. Jim Gibbons is a busy man these days. That's what happens when you preside over a state that, along with Arizona, is one of the two fastest-growing in the nation.
Keeping up with that growth is a daily challenge for Gibbons. Case in point: on June 7, the governor signed into law a bill that provides US$1 billion in funding for statewide transportation projects – and he did it without adding or raising taxes.
Gibbons recently took time to speak with Site Selection.
Site Selection: How are Nevada's economy and its work force changing?
Gov. Gibbons: No doubt about it, economic vitality is critical to our quality of life. While tourism and gaming will continue to be economic anchors for Nevada, we are also experiencing strong growth in advanced manufacturing, logistics, renewable energy, life sciences, and business and financial services. As these industries take more focus, the work force of Nevada will change. The entrepreneurs who are coming here are changing our work force. You have to look at our business-friendly climate. We have a very encouraging tax structure. Nevada has no corporate income tax, no personal income tax, and we generally have a strict fiscal discipline of limiting our state tax revenues to what we need to provide the quality of life we need. My administration has worked hard to limit our need for taxes. When other states' incentives are turned out, low taxes and a business-friendly environment will win out.
SS: Are there any misperceptions about Nevada that you would like to clear up?
Gibbons: Nevada has had a rich and storied past, and you constantly see tourism ads about Las Vegas. There is a perception that Nevada is not a family-oriented state. I would like to correct that. We constantly rank as one of the top five states to do business. Our tax laws are conducive to business growth. More importantly, our quality of life here in Nevada makes it a great place to raise a family.
SS: What have been your biggest successes, in corporate facility projects, over the past year?
Gibbons: Over the last six months, we have had at least 41 businesses request incentives to either expand or move their company here. These companies will spend over half a billion dollars in Nevada. That is a 57 percent increase over last year. They will create over 1,500 new primary jobs, and they will pay an average hourly wage of nearly $20. These companies will infuse more than $160 million in new wages into our economy for each of the next five years.
SS: What are the biggest challenges facing Nevada's economy?
Gibbons: My administration maintains a strict fiscal discipline of limiting state tax revenues and maintains a business-friendly environment. That is a challenge. Our challenge is going to be, in addition to that, being able to meet the expectations of the current community and encourage new industries to come here. We are committed to treating everyone fairly.
SS: What key industries are you targeting for growth and recruitment?
Gibbons: The energy industry will play a huge role in the growth and development of Nevada. We are in position to become a net exporter of energy. We have more than 300 days of sunshine each year, so solar energy is a key resource.
We are also very prominent in geothermal energy. We have about 5,000 megawatts of untapped geothermal energy in Nevada. We need to harness more types of energy. We are actively seeking companies to help us develop that. We have set a high goal for ourselves for a renewable energy component. This will help us keep up with the demand for power and will help us keep our prices competitive. We must ensure a consistent power grid and resource.
SS: By several different standards, the Las Vegas metro area is considered the fastest growing in America. How are you dealing with the massive influx of population?
Gibbons: The West is almost always the fastest-growing region in the U.S. We have had nearly two decades of continuous and consistent growth here in Nevada. That enables us to budget and appropriate funds for growth. States that are either losing population or are growing unevenly have bigger challenges. We have planned for this growth over the past two decades. We also have an expanding economy that requires us to employ new workers and bring in new construction and new energy sources. We are the hub of an 11-state Western region. We have the available commercial real estate to meet the needs of expanding companies. The bottom line is that many states have incentives, but when those incentives expire in other states in four to 10 years, businesses in Nevada still win because Nevada is a non-corporate income tax state. That money can be used in expansion. A study recently conducted by the Boyd Company of Princeton, N.J., compared the one-year operating costs of corporate headquarters facilities nationwide. Las Vegas was ranked as lowest in total operating costs in the entire U.S., and that study did not include the fact that we have no personal income tax and no corporate income tax.
Keeping up with that growth is a daily challenge for Gibbons. Case in point: on June 7, the governor signed into law a bill that provides US$1 billion in funding for statewide transportation projects – and he did it without adding or raising taxes.
Gibbons recently took time to speak with Site Selection.
Site Selection: How are Nevada's economy and its work force changing?
Gov. Gibbons: No doubt about it, economic vitality is critical to our quality of life. While tourism and gaming will continue to be economic anchors for Nevada, we are also experiencing strong growth in advanced manufacturing, logistics, renewable energy, life sciences, and business and financial services. As these industries take more focus, the work force of Nevada will change. The entrepreneurs who are coming here are changing our work force. You have to look at our business-friendly climate. We have a very encouraging tax structure. Nevada has no corporate income tax, no personal income tax, and we generally have a strict fiscal discipline of limiting our state tax revenues to what we need to provide the quality of life we need. My administration has worked hard to limit our need for taxes. When other states' incentives are turned out, low taxes and a business-friendly environment will win out.
SS: Are there any misperceptions about Nevada that you would like to clear up?
Gibbons: Nevada has had a rich and storied past, and you constantly see tourism ads about Las Vegas. There is a perception that Nevada is not a family-oriented state. I would like to correct that. We constantly rank as one of the top five states to do business. Our tax laws are conducive to business growth. More importantly, our quality of life here in Nevada makes it a great place to raise a family.
SS: What have been your biggest successes, in corporate facility projects, over the past year?
Gibbons: Over the last six months, we have had at least 41 businesses request incentives to either expand or move their company here. These companies will spend over half a billion dollars in Nevada. That is a 57 percent increase over last year. They will create over 1,500 new primary jobs, and they will pay an average hourly wage of nearly $20. These companies will infuse more than $160 million in new wages into our economy for each of the next five years.
SS: What are the biggest challenges facing Nevada's economy?
Gibbons: My administration maintains a strict fiscal discipline of limiting state tax revenues and maintains a business-friendly environment. That is a challenge. Our challenge is going to be, in addition to that, being able to meet the expectations of the current community and encourage new industries to come here. We are committed to treating everyone fairly.
SS: What key industries are you targeting for growth and recruitment?
Gibbons: The energy industry will play a huge role in the growth and development of Nevada. We are in position to become a net exporter of energy. We have more than 300 days of sunshine each year, so solar energy is a key resource.
Cashman Equipment Co. is building a new corporate headquarters in Henderson, one of the fastest-growing cities in both Nevada and America. The 295,000-sq.-ft. (27,406-sq.-m.) complex will cost $65 million and house 450 employees upon buildout in 2008. With 350,000 residents, Henderson is second only to Las Vegas in population in Nevada. Other new corporate facility projects in Henderson include a business aviation center for Jetsource; 105,000 sq. ft. (9,755 sq. m.) for Ferguson Enterprises, a distributor of plumbing supplies; a 400,000-sq.-ft. (37,160-sq.-m.) factory for Poly West; and a 71,000-sq-ft. (6,596-sq.-m.) manufacturing plant for VSR Lock.
SS: By several different standards, the Las Vegas metro area is considered the fastest growing in America. How are you dealing with the massive influx of population?
Gibbons: The West is almost always the fastest-growing region in the U.S. We have had nearly two decades of continuous and consistent growth here in Nevada. That enables us to budget and appropriate funds for growth. States that are either losing population or are growing unevenly have bigger challenges. We have planned for this growth over the past two decades. We also have an expanding economy that requires us to employ new workers and bring in new construction and new energy sources. We are the hub of an 11-state Western region. We have the available commercial real estate to meet the needs of expanding companies. The bottom line is that many states have incentives, but when those incentives expire in other states in four to 10 years, businesses in Nevada still win because Nevada is a non-corporate income tax state. That money can be used in expansion. A study recently conducted by the Boyd Company of Princeton, N.J., compared the one-year operating costs of corporate headquarters facilities nationwide. Las Vegas was ranked as lowest in total operating costs in the entire U.S., and that study did not include the fact that we have no personal income tax and no corporate income tax.
Site Selection Online – The magazine of Corporate Real Estate Strategy and Area Economic Development.
©2007 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and not warranted to be accurate or current.
©2007 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and not warranted to be accurate or current.