Two companies eye move to Las Vegas Valley, bringing 300 jobs
http://www.vegasinc.com/news/2012/oct/11/two-companies-eye-move-las-vegas-valley-bringing-3/
Two companies eye move to Las Vegas Valley, bringing 300 jobs
Thursday
11 October 2012
10:30 p.m.
11 October 2012
10:30 p.m.
Two companies that would offer more than 300 jobs combined say they're moving to Southern Nevada and could open their doors by the end of the year.
Niyato Industries, a Charlotte, N.C., company that would relocate to North Las Vegas, converts gasoline-powered cars to all-electric or alternative fuel vehicles. The company plans to create 290 jobs with an average wage of $25 an hour and invest $3.5 million in equipment here.
Separately, V5 Technologies LLC plans to develop a data center at a facility at West Cheyenne Avenue and Buffalo Road in Las Vegas that once housed the PurchasePro.com headquarters and call center. The company's Cobalt Cheyenne Data Center initially would create 16 jobs, but the company has plans to open two more facilities in Southern Nevada. The company will offer an average wage of $30 an hour and is making a $2.9 million capital investment.
The prospective facility openings were disclosed in a public hearing conducted Thursday by the Governor's Office of Economic Development. Both companies are seeking tax abatements and deferrals, and presentations were made by the Nevada Development Authority, which is assisting the companies to locate here.
The Office of Economic Development's board of directors, chaired by Gov. Brian Sandoval, will review the incentive requests Oct. 18, and the office will determine whether the companies are eligible for state incentives.
It was the first time companies have requested incentives through the revamped state economic development system. In the past, a seven-member citizen board chaired by the lieutenant governor approved or denied incentive requests. Under the new two-tiered process, proposals were first summarized by one of 11 approved economic development authorities in the state and reviewed by Economic Development Director Steve Hill in the public hearing.
Company representatives will appear before the governor's board next week and the board will offer its recommendations.
While incentives have yet to be approved — and the relocation or startup of the companies may depend on them — several details of the Niyato and V5 Technologies business plans were revealed.
Niyato plans to sell its converted cars to fleets across the United States through a distribution network of more than 500 dealers. The all-electric cars will be sold to the federal government to help fulfill its quota of fleet conversions to alternative fuels by 2015.
Niyato's request is for sales tax abatements of $213,253 and modified business tax abatements of $331,186. It's also seeking a sales tax deferral of $69,919 and is requesting federal training grants administered through the state of $500,000. The company also is among the first seeking funding from the state's new $10 million catalyst fund, requesting $240,000 over five years.
State officials say Niyato's presence would generate $10.3 million in new tax revenue over 10 years and have an economic impact on the community of $1 billion over 10 years. They say it's a return of $1,851 for every dollar abated and the deferrals and abatements would pay for themselves in less than six months.
In a letter to the state, Niyato CEO Leslie Stencil said the company's goal is to become a dominant force in American-made green transportation. The company is planning a 150,000-square-foot facility to build its N-150, EEV, Rain and Earth alternative-fuel vehicles in the next few months. Stencil said the company is projecting a need for additional space by mid-2013.
V5 Technologies envisions a secure, high-density computer network collocation center with next-generation environmental systems, security, redundant power systems and a fiber network that can host data for major companies.
The company is seeking $175,436 in sales tax abatements and $16,555 in modified business tax abatements as well as sales tax deferrals of $7,520.
State officials estimate the company would produce $753,186 in net new taxes over 10 years, produce an economic impact of $43.6 million over 10 years returning $227 for every abatement dollar.
The state's analysis shows that the abatements would pay for themselves in about seven months.
The company's 34,000-square-foot 5.5-megawatt Cheyenne center would be among the largest in the state and would support more than 400 units.
Major companies would store data offsite at the center, either accessible by Internet or as a disaster avoidance backup center.
In the company's executive summary, it said it would expect companies to move in by December. If the operation grows as expected, the company said it would build more centers, one on 2.4 acres at Sahara Avenue and Lamb Boulevard, and another 12.5-acre development off St. Rose Parkway in Henderson.
