Nevada

Nevada Gov. Seeks $5M for UAS Test Site Application

Nevada Governor Brian Sandoval announced that he is proposing a budget amendment to appropriate $5 million in support of the state’s application to the FAA to be chosen as one of the six unmanned aircraft systems (UAS) test sites where drones will be tested for integration into the National Airspace System (NAS).

Predator drone at Air Force base in Nevada

Predator drone at Air Force base in Nevada (photo – defense.gov)

The final date for submitting complete proposals to the FAA was May 6, 2013. Before that, 50 applicants from 37 states had filed initial responses expressing an interest in being chosen as one of the pilot sites.

One of these applications was submitted by a 28-member consortium from Nevada, led by the Nevada Economic Development Office as the applicant.

Included in this team are public, private and academic entities such as Navigator Development Group, Drone America, Bowhead Systems, the Nevada National Guard and the Nevada System of Higher Education.

The team is being led by Steve Hill, head of the Economic Development Office, and by Bill Burks, adjutant-general of the Nevada National Guard.

The $5 million the Governor is asking for would come partially from the state’s Catalyst Fund and the remaining from higher revenues expected over the next couple of years, as per forecasts by the Economic Forum . The money would be used to collect more data supporting Nevada’s application and convince the FAA of Nevada’s readiness to handle the project.

The project is estimated to have the potential to create 15,000 new jobs in the state. The Governor’s statement said that thousands of direct UAS employees would earn average annual wages of $62,000.

Being selected as a UAS test site by the FAA would mean an economic impact of $2.5 billion for Nevada, with estimated additional annual local and state tax revenues of $125 million.

Nevada has certain built-in advantages over other applicants, including the fact that the military already tests its drones in the state and this has created a well-trained talent pool of veterans who know how to operate drones and fulfill other job functions for UAS manufacturers and research companies.

Not to mention that Nevada contains the largest expanse of restricted airspace in the continental United States. The state’s proposal includes a plan for drone testing in contiguous restricted and commercial airspace, which makes it ideal as a pilot site for testing UAS-NAS integration.

The state is offering four sites where commercial drones can be located, including the Fallon Naval Air Station, Boulder City, Desert Rock and Stead.

Gov. Sandoval said that with the airspace and climate in Southern Nevada, the state was uniquely equipped to assist with the development of UAVs. He added that the economic benefits of being chosen as a test site were exponential, and that he believes the state would see a great return on this $5 million investment.

Chief Executive Survey – Best States for Doing Business

Chief Executive Magazine has published its ninth annual survey of CEO opinions regarding the best and worst states for doing business.

Texas Top State for Doing Business

Texas Top State for Doing Business (Photo – state.tx.us)

The top five remain unchanged from last year’s listing, with Texas at the top and Indiana bookending the top five list in fifth place. Florida, North Carolina and Tennessee take the second, third and fourth spots respectively.

The two surprises in the 2013 list are Arizona and Nevada. Arizona jumped up four spots to take the sixth place, while Nevada jumped three rungs to climb up to ninth place.

Virginia and South Carolina were each pushed down one slot to seventh and eighth place rankings, while Georgia was pushed down two slots into the 10th place.

Among all 50 states, the biggest mover on the list was Ohio, whose ranking jumped up 13 places from 35th place last year to 22nd this year.

The list is based on responses from 736 CEOs who graded states they were familiar with on a variety of metrics such as living environment, workforce quality and taxation and regulation.

Not to put too fine a point on it, but 19 out of the top 20 states on the list are states which currently have Republican governors. The only outlier is Colorado, which is in 13th place and has a Democrat in the governor’s mansion.

Progressive states similarly crowd the bottom of the list. California is listed dead last, preceded by New York and Illinois. New Jersey and Massachusetts join these three as the five worst states for doing business, as per the 736 CEOs surveyed by Chief Executive Magazine.

You can see the full list of all 50 states here.

Indiana Governor Mike Pence said in a statement that their fifth ranking nationwide and top ranking as the best state for business in the Midwest was a validation of the work they have put in to make Indiana the country’s top jobs state.

Gov. Pence added that chief executives knew that Indiana was among the few states that actually works for business.

Las Vegas to Create Global Business District

The Las Vegas Convention and Visitors Authority (LVCVA) unveiled plans for the Las Vegas Global Business District, a transformative project centered around the Las Vegas Convention Center and the surrounding area.

Las Vegas Convention Center

Las Vegas Convention Center (photo – LVCVA)

The Las Vegas Global Business District aims to create an international business destination in Las Vegas, Nevada by incorporating major renovations of the Las Vegas Convention Center, leveraging the World Trade Center designation and developing transportation connectivity through a centralized hub.

“I truly believe this is a transformative project. Las Vegas is known for defining moments that change the hospitality industry, and this project will be the next defining moment,” said Rossi Ralenkotter, LVCVA president and CEO. “This is more than a project, this is a vision that will launch Las Vegas forward ahead of the competition for decades to come.”

The Las Vegas Global Business District will be developed in phases over several years based on three key findings that emerged after conducting research and holding several focus groups with clients and stakeholders.

The first part of the project focuses on renovating the Las Vegas Convention Center with additional exhibit space, meeting rooms and general session space; upgrading technology; adding new food and beverage outlets; and, creating a grand concourse connector with more lobby space.

Outside the convention center, plans call for a cohesive business center district with outdoor public and gathering spaces.

The second component of the project will leverage the World Trade Center designation. By creating a dedicated World Trade Center facility, the LVCVA plans to expand international business opportunities and increase market share by attracting more meetings and conventions to the destination.

The third key element creates a centralized transportation hub that will improve connectivity in the resort corridor. The LVCVA is working with local transportation stakeholders to define a long-term strategy to accommodate the movement of people as Las Vegas projects to host approximately 44 million annual visitors, and as many as seven million convention delegates over the next 10 years.

Over the next two years, the LVCVA will work on programming and design for the Global Business District, along with development of the overall budget, improvements to the current space at the Las Vegas Convention Center and land acquisition. The LVCVA plans to issue up to $150 million of commercial paper to fund phase one elements.

Nevada ED Board Caught in Cross-Fire Between NRA and GTA

Morality critics usually find themselves ignored by Nevada, so the argument over whether Nevada should have provided $600,000 in incentives to help video game company Take-Two Interactive Software, Inc. (NASDAQ: TTWO)  relocate to Las Vegas comes as a surprise.

Grand Theft Auto

Grand Theft Auto (photo – Silvio Sousa Cabral/flickr)

Nevada officials are being forced to respond by the media mostly because of the unfortunate timing of the decision to approve incentives to Take-Two on Dec 14, 2012 – the same day on which the 20 Sandy Hook school kids and six adults were shot dead by a deranged killer.

But at that time, nobody really knew or cared that much about the fact that Nevada was providing incentives to a video game development company whose flagship game is Grand Theft Auto (GTA) and its many versions.

GTA has often been criticized for its excessive violence and alleged propensity to encourage children towards lawless behavior.

Nobody cared, that is, until the NRA executive vice president Wayne LaPierre gave a press conference on Dec 21, 2012, where he blamed the Sandy Hook incident on violent video games, and specifically named Grand Theft Auto.

That got the LV Sun interested, with an article titled – “Should tax dollars be spent to draw maker of violent video games to Las Vegas?” The article quotes Secretary of State Ross Miller as claiming that the meeting to approve the Take-Two incentives had already adjourned on Dec 14 by the time they heard of the Sandy Hook shootings.

Even so, the critics are piling on now. Former State Sen. Sheila Leslie said it is hard to believe Nevada would stoop to this level and invest in a business like this. Nevada Assembly Minority Leader Pat Hickey wants to invite the Take-Two CEO for a discussion on the influence of video game violence on youngsters.

Take-two had no comment, and neither did the Entertainment Software Association (ESA). However, ESA’s position on this issue is perfectly clear – they hauled the State of California all the way to the U.S. Supreme Court last year to strike down a California law regulating the distribution of computer and video games.

The U.S. Supreme Court ruled, “California’s effort to regulate violent video games is the latest episode in a long series of failed attempts to censor violent entertainment for minors…Even where the protection of children is the object, the constitutional limits on governmental action apply.”

So Nevada has plenty of legal cover if they want to justify their decision to provide incentives for Take-Two.

Besides, it’s a no brainer from a purely economic development point of view. Steve Hill, director of the Nevada Governor’s Office of Economic Development, pointed out the positives – 150 new jobs at $18 per hour, and a new company that would be a part of the downtown Las Vegas revitalization.

Not to mention the fact that consumers spent $24.75 billion on video games, hardware and accessories in 2011 (latest data available).

Lyon County Lands Bill to Create Wilderness Area and 800 Jobs in Nevada

Nevada Senators Harry Reid and Dean Heller jointly introduced the Lyon County Economic Development and Conservation Act of 2012 in the U.S. Senate. This bill will designate the Wovoka Wilderness area, while allowing the City of Yerington, NV to work with Nevada Copper Corp. (TSX: NCU) to expand its mining operation, resulting in 800 new mining jobs and 500 construction jobs in the area

Nevada Copper Pumpkin Hollow project

Nevada Copper Pumpkin Hollow project (photo – nevadacopper.com)

Senator Reid said it was a bill that was going to meet “the needs of modern day Nevada.” This bill is an amended version of the first bill introduced earlier this year.

The compromise changes included make it a sustainable model that takes into account the concerns of wilderness advocacy groups, ranchers and other residents, and the mining industry.

“My father was a miner. I’ve worked in the mines. I know how important mining has always been for the state of Nevada, and for the first time in a long time Yerington is going to benefit from mining,” added Senator Reid. “I am very happy to be part of this legislation which will create lots of jobs in Lyon County, which are so desperately needed.”

The City of Yerington will partner with Nevada Copper to develop roughly 12,500 acres of land surrounding the Pumpkin Hollow project site, which is estimated to create 800 mining jobs and 500 construction jobs.

Pumpkin Hollow is a high grade IOCG deposit within a porphyry copper rich district with a mineral inventory of over 24 billion pounds of copper. It also happens to be an excellent site for mining based on the ease of permitting and availability of power, rail, roads, labor, etc.

“Lyon County has the highest unemployment rate in the state and this legislation will bring more than 800 jobs to the area. Mining is a critical component of Nevada’s economy and we are fortunate to have resources in our own backyard for economic development,” said Senator Dean Heller.

The proposed Wovoka wilderness area is approximately 48,000 acres and withdraws from mining and development additional land with sensitive cultural resources. Wovoka has invaluable prehistoric cultural and contains landscapes and wildlife habitat that have historically been a huge attraction for hunters, outdoors enthusiasts, and explorers.

Crafting the bill required an endless series of meetings, discussions, and site visits with and between Lyon County officials, the City of Yerington, Nevada Copper, wilderness groups, and the local residents.

“We are very pleased that this revised bill has now been introduced and can be acted upon at any time. There are several critical bills being considered in the lame duck session of Congress, and high priority actions like this are often combined for passage before Congress adjourns,” said Timothy M. Dyhr, vice president, Environment and External Relations, Nevada Copper.

Read more about the Lyon County Lands Bill – S.3701

Vegas, Venture for America Get $1M from Zappos CEO Tony Hsieh

Non-profit Venture for America (VFA), which recruits bright graduates (VFA Fellows) to work and learn at emerging start-ups and early-stage companies, is about to get a million dollars from Zappos CEO Tony Hsieh.

Venture for America

Venture for America (Photo – downtownproject.com)

The money will be used by VFA to fund the recruitment and training required for 100 of its Fellows, who will then be sent to Las Vegas, Nevada over the next five years.

Hsieh is already spending about $350 million in an effort to revitalize downtown Las Vegas through investments in startups and community programs.

VFA, which was founded in 2011, already has a total of around 40 Fellows in five cities, including seven Fellows in place in Hsieh’s Downtown Project in Las Vegas, which aims to create the most “community focused city” in the world.

The $350 million Downtown Project includes $100 million in real estate, $100 million in residential development, $50 million in small businesses, $50 million in education, and $50 million in tech startups through the VegasTech Fund.

In addition to this, Hsieh has relocated the Zappos headquarters from its original location in Henderson, NV to the site of the former City Hall building in Vegas. This relocation will add about 1,200 jobs to the downtown area. Last month, video game company Take-Two Interactive announced the opening of a branch in downtown Vegas that will create another 150 jobs.

Venture for America is modeled after Teach for America, and aims to provide a path for entrepreneurship to college grads who want to learn how to build companies and create jobs. Each VFA Fellow is sent to a start-up or early-stage company for two years. VFA has sent its Fellows to five cities (Detroit, New Orleans, Providence, Cincinnati and Las Vegas) and will be expanding to Baltimore.

Andrew Chatham, a Cornell University graduate who was sent this year as a VFA Fellow to work on the Downtown Project in Las Vegas, Nevada, says that he wants to “build the skills and connections that will allow me to build my own business in the near future.” He adds that he would like to be in a position to hire a VFA Fellow himself within 5-7 years.

In their own words, “Venture for America’s purpose is job generation – our immediate goal is to generate 100,000 new U.S. jobs by 2025.”

Take-Two To Relocate Testing Studio from California to Vegas

New York, NY-based Take-Two Interactive Software, Inc. (NASDAQ: TTWO) announced that its 2K publishing label is working on a deal to relocate the 2K West QA Testing studio from Northridge, California to downtown Las Vegas, Nevada.

Take-Two Interactive

Photo – Take-Two Interactive

Take-Two, which is a leading developer and publisher of video games, is reportedly planning to open a 24,700 square foot office in Las Vegas, with the relocation creating 150 new jobs in Vegas with a median wage of $18 per hour.

“2K is continually evaluating its expanding needs for future growth,” said David Ismailer, chief operating officer for 2K. “As part of that evaluation, 2K has been considering options for its 2K West QA Testing studio and has chosen to relocate our facility to Las Vegas, Nevada. This move will allow 2K to operate a significantly larger and more effective QA facility as we continue to grow our business across all divisions.”

The move is expected to be completed by early 2013, with Take-Two already having secured incentives for the deal from both the City of Las Vegas and the state. The Las Vegas Redevelopment Agency has offered $600,000 in incentives to Take-Two.

“To have a company the caliber of Take-Two choose to locate in downtown Las Vegas speaks volumes about the opportunities that exist in this area for new businesses,” said Las Vegas Mayor Carolyn G. Goodman. “We have a skilled and talented workforce in Las Vegas that is ideal for companies like Take-Two. I am so thrilled that they will be a part of the downtown community, and I know that their presence will attract other high-tech firms to Las Vegas.”

Las Vegas Councilman, Bob Coffin, who represents this area of Ward 3, added, “Take-Two and its talented employees will add to the synergy that is happening downtown. We are so fortunate that, after looking at locations around the valley, Take-Two selected downtown Las Vegas. They will be a welcome addition to our community.”

Take-two is also applying for Catalyst Funds from the state. Nevada’s $10 million Catalyst Fund incentivizes the expansion or relocation of businesses that will quickly result in the creation of high-quality, primary jobs in Nevada.

The business that wants to relocate has to apply to the local government first, and then the local government files its own application to the recently opened Governor’s Office of Economic Development (GOED).

“Attracting a company of this stature is a very important step for southern Nevada, and we congratulate the city in helping to make this exciting opportunity a reality,” said GOED director Steve Hill. “Today’s announcement is the result of a strong partnership between the city and GOED in strengthening economic development in the state. We very much appreciate Take-Two’s commitment to Nevada and look forward to working with them to complete the Catalyst Fund and abatement process.”

GSA Leverages 9,600 Federal Buildings for Testing Energy Saving Technologies

The U.S. General Services Administration (GSA) released reports for two technologies to be added to their Green Proving Ground (GPG) program, under which they test technologies that reduce energy use in federal buildings.

GSA Green Proving Ground program

GSA Green Proving Ground program (Photo – gsa.gov)

The GPG program aims to drive innovation in environmental performance in federal buildings and help lead market transformation through deployment of new technologies.

GSA owns and leases 9,600 buildings across the country and has the real estate portfolio needed to broadly test and install these technologies.

The two reports include a Responsive Lighting study and a Plug Load Control study.

The Responsive Lighting study evaluated the performance of new workstation-specific lighting systems. The study was conducted at seven sites in five federal buildings in California and Nevada that represented a diverse set of agencies, occupancy patterns, work styles, and lighting.

Results showed energy savings that ranged from approximately 27 to 63 percent over baseline conditions depending on the work space’s normal use. Lighting accounts for 39 percent of electricity costs in office buildings.

The 63 percent energy savings figure may sound stunning, but it was for a call center at the Roybal Federal Building that is illuminated 18 hours a day, seven days a week. In the call center, payback was less than seven years.

“This innovative program is another example of GSA leading the way for the federal government,” said Dorothy Robyn, Commissioner of GSA’s Public Buildings Service. “By testing the effectiveness of these technologies, GSA is finding new ways that federal buildings across the nation can save both energy and taxpayer dollars.”

As for the plug load study, GSA assessed the effectiveness of advanced power strips (APS) in managing plug load energy consumption in eight of its buildings. Plug loads account for roughly 25% of total electricity consumed within office buildings.

Results underscored the effectiveness of schedule-based functionality, with plug loads at workstations reduced by 26 percent, even though advanced computer power management was already in place. Plug loads were reduced by nearly 50 percent in printer rooms and kitchens.

GSA also announced that 12 new technologies have been selected for evaluation as part of GSA’s Green Proving Ground this year. The FY2012 technology assessments are under five categories – Building Envelope; HVAC/Energy Management; Lighting; On-site Power Generation; and Water.

The GPG program is currently evaluating 16 technologies from a pool of approximately 140 projects across GSA’s national real estate portfolio. Many of the technologies are being installed as part of building modernization projects, funded by the American Recovery and Reinvestment Act of 2009.

CEI Publishes Study for Abolishing EDA

The Competitive Enterprise Institute (CEI), a conservative non-profit public policy think tank based in Washington D.C., has come out with an in-depth study titled “The Case for Abolishing the Economic Development Administration.”

CEI study on EDA - UNLV tech park

CEI study on EDA – UNLV tech park (Photo – cei.org)

Much of the 18-page study is devoted to outlining cases which the EDA will admittedly find hard to explain.

For example, it highlights a $2 million grant to Visalia, California which then used the funds to provide incentives for a medical supplies manufacturer to relocate a warehouse from Brisbane, California.

Another example that is highlighted is the $2 million UNLV Harry Reid Research and Technology Park project in Nevada, which got grants from the EDA in 2008. They ran out of funds in 2009 and the site is now empty.

But there’s nothing much new in all this, and such cases have been discussed quite often by others such as Rep. Mike Pompeo (R-KS) who has taken quite a few shots at eliminating the EDA.

Secondly, the study’s author David Bier proposes no alternative mechanism for providing incentives, loans and grants for projects that really would help add wealth and jobs to the community. They just want to eliminate the EDA and be done with it. That’s not going to happen any time soon.

One thing that is interesting in the study is the claim that the way the EDA measures the success of a funded project is flawed. Bier says that instead of counting the number of jobs created, they should look at the value the project brings to the community. Bier says that profitability and not job creation should be the test for a successful project.

He adds that the size of a project and the matching public and private funds it attracts is actually harmful to the community. When they get EDA funding for huge projects like stadiums or convention centers, communities raise the matching funds by hiking taxes.

If you agree with Bier, economic development would be akin to venture capital funding made available only to projects which can guarantee profitability, regardless of the number of jobs created (or not).

The Case for Abolishing the Economic Development Administration – Download (pdf)

FHL Bank Awards $1M ED Grants in Three States

The Federal Home Loan Bank of San Francisco announced that it has awarded $1 million in grants for economic development and housing in California, Arizona and Nevada.

FHL Bank

Photo – FHL Bank

The million dollars in grants are being awarded to non-profits in the three states under the bank’s Access to Housing and Economic Assistance for Development (AHEAD) program.

The community development projects and programs were chosen for these grants based on whether they will:-

-         create or preserve jobs;

-         facilitate public or private infrastructure projects; or

-         produce housing, social services, or other benefits for low to moderate income households.

The bank reviewed 184 applications requesting more than $8 million in AHEAD funding before selecting 30 grant winners. The grants will actually be distributed to the winners through FHL Bank’s local member financial institutions.

For example, Open Table, Inc. in Phoenix is getting a $30,000 grant via the Western Alliance Bank. Open Table organizes volunteer faith congregation teams, known as a “Table,” that meet regularly for a year with individuals and families in poverty. The volunteers help participants develop and implement personal and family economic plans that build financial stability.

The $30,000 grant will enable Open Table’s part-time staff to develop and print training materials and produce a promotional video designed to reach out to and invite the faith community to launch more Tables.

Another recipient is CAMEO (California Association for Micro Enterprise Opportunity), which is getting $35,000 through First Republic Bank. CAMEO wants to run a pilot program where its microlenders will be selected to participate in a pilot program in a test of three web-based platforms designed to significantly increase microlending in California.

You can see the full list of this year’s 30 grant winners and what they intend to do here. Since the program began in 2004, FHL Bank has awarded more than $5 million in AHEAD funds to support 192 projects and programs in California, Arizona and Nevada.

“The AHEAD Program allows us to strengthen relationships between bank members and nonprofit groups that have special expertise in economic and community development,” said Stephen P. Traynor, senior vice president, Financial Services and Community Investment at FHL Bank. “We are pleased that our grants will help get these projects off the ground.”

1 2 3  Scroll to top