At its latest meeting, the Board of the Nevada Governor’s Office of Economic Development approved an application for incentives sought by Sutherland Global Services for a new facility they plan to establish in Las Vegas.
Sutherland Global Services Inc. is one of the world’s largest independent business process outsourcing companies employing more than 30,000 professionals across over 40 operation centers and business operations around the world.
The company will make a capital investment of more than $5.38 million into the project, including equipment costs and $2 million for improvements of the 94,000-square-foot leased space they are considering at the Boulevard Mall on Maryland Parkway.
As a start, they plan to create 230 jobs with an hourly wage of $14.43. Within five years, they expect to create up to 1,000 full-time jobs at the facility.
A review undertaken by Sutherland Global Services showed that they would have much lower operating costs in Nevada than at their headquarters in Rochester, NY. The company’s site selection process also took into consideration sites in Boise, Detroit, Houston, Oklahoma City and Phoenix.
If the company goes ahead with the project in Las Vegas, they have been offered Nevada economic development incentives totaling $297,900. This includes abatements of sales tax, modified business tax, and personal property tax.
The cumulative economic impact of the project in Clark County over a 10-yer period is estimated at $191,657,150, and the estimated new taxes generated over the same period are pegged at $8,817,261.
Furthermore, the potential Las Vegas location the company has picked in the Boulevard Mall comes under a severely distressed area in Paradise, NV, which means that job creation and investment projects will be eligible for New Markets Tax Credits. The Boulevard Mall, which first opened its doors in 1968, is the oldest mall in Las Vegas, and is currently undergoing significant renovations.
In a letter to GOED Executive Director Steve Hill, Sutherland Global Services Inc. Senior Account Manager Joseph Magliozzi writes that “The economic development incentives offered by the State of Nevada have been an integral factor in our decision making process to locate our operation here in the state.”
The letter goes on to add that they examined multiple locations throughout the western states and ultimately, after much due diligence and economic feasibility analysis, Nevada was chosen “for its overall incentive package and pro business climate.”
The Sutherland Global Services project was supported by the Las Vegas Global Economic Alliance. LVGEA is a Las Vegas economic development group focused on growing the economy in Southern Nevada.