Krolicki’s task force is latest shot at business diversity

By Richard N. Velotta

Thursday, June 24, 2010 | 2 a.m.

Even in the heyday of Las Vegas growth, driven by the hottest job market in the nation thanks to burgeoning casino resorts, the concern was whispered in board rooms and government offices: Can Nevada continue riding a one-trick pony or does it need to diversify?

What if the gaming industry takes a hit? What will sustain the state, its workers and their families? Does the state have a fallback?

The question gained volume as Indian gaming casinos surfaced in California, threatening to retain many West Coast gamblers who otherwise might come to Nevada.

And the Great Recession hammered the point conclusively: Nevada lacks the kind of economic diversity found in other states that have better weathered the economic turmoil. With tourism down and new construction stalled, Nevada’s unemployment rate has climbed to 14 percent, highest in the nation.

It’s against that backdrop that Lt. Gov. Brian Krolicki today will announce the formation of a task force assigned to tackle a long-elusive goal: bring new business and industry to Nevada to strengthen and diversify the state’s economy.

He said the New Nevada Task Force, a coalition of 27 Nevada business leaders, will hold its first meeting July 13 with hopes of crafting recommendations in advance of the 2011 Legislature.

“We all agree that we need diversification, but the great debate is on how we do this,” Krolicki, who heads the state’s Commission on Economic Development, said Wednesday. “We need to determine what tools are in the box today and what tools should be in the box tomorrow.”

Not that Nevada doesn’t have its share of organizations to recruit business — Krolicki’s commission; the Nevada Department for Employment, Training and Rehabilitation; the Nevada Institute for Renewable Energy Commercialization; the governor’s energy office, and the Nevada Development Authority.

The question is how successful have they been? The biggest initiative — to attract alternative energy developers to Nevada — is maturing out of its infancy and showing promise. But other goals, including developing a medical research complex, have not found traction.

Among those applauding the formation of the new working group is a frustrated Jan Jones, who raised the issue of economic diversification in the 1990s when she was mayor of Las Vegas.

“It’s a wonderful idea, but I guess better late than never,” said Jones, a senior vice president for Harrah’s Entertainment. “How long have we been talking about this?”

Jones said accomplishments only can be measured if the state acts to solve some of the problems that keep companies from locating their operations in Nevada — and those problems include an inferior education system and substandard delivery of social services.

“They (companies) should be fleeing California in droves,” she said. “Do you think the reason they aren’t has to do with us being 50th in the nation in education?”

Jones said the problem is that the state government fails to execute when solutions are found.

“We can fix Nevada,” Jones said. “The fact that we don’t is appalling.”

Krolicki said the New Nevada Task Force’s goals include:

• Analyzing the competition facing Nevada, including what strategies are employed by other states to attract business.

• Identifying the types of businesses that should be recruited to Nevada, targeting the technology clusters that hold the greatest potential for new jobs, and exploiting the state’s best assets.

• Lending a hand to the other organizations in Nevada trying to promote technology and expand business, and explore how they can be better funded.

• Promoting a properly skilled workforce.

The diversity task force, Krolicki said, will conduct its meetings in public.

The very success of the tourism and hospitality industry, he said, may have chilled efforts to diversify the state’s economy by serving “as a durable and generous provider for the needs of our citizens over many decades, unintentionally diminishing both the vigor and necessity to deliberately expand the nonhospitality sectors of our economy.”

Frank Woodbeck, director of Las Vegas operations and workforce initiatives for the Economic Development Commission, said Nevada’s diversification efforts have paled in comparison to the addition of new megaresorts, including Wynn Las Vegas, Las Vegas Sands’ Palazzo or CityCenter.

“Where we’ve failed is in emphasis and investment,” said Woodbeck, who will get the task force rolling next month before handing that responsibility off to one of the appointees.

“A number of companies on the East Coast have established West Coast operations, but we don’t have a campaign to describe the qualities of the state of Nevada,” Woodbeck said. “A number of agencies advertise on an ongoing basis, but we have not had any kind of an outreach. The only one we’ve had is when the (Nevada Development Authority) advertises in California.”

Krolicki said the biggest difference between the approach of the New Nevada Task Force and economic diversification efforts of the past is a broad array of high-powered participants at the table.

“It’s truly a global effort,” Krolicki said. “I think the efforts of the development authorities, chambers of commerce, labor and the academic organizations have been great. But I believe to have all of these parties at the same table at the same time is unique.”

Krolicki said the diverse makeup of the group may lead to disagreements, but he has directed task force members to leave their political agendas at the door.

“Please be assured that this effort is not about politics or geographic locations — the affiliations and philosophies of the members comprising this task force deliberately cover a diverse range of views and constituent groups on a statewide basis,” Krolicki’s letter to members said. “It is about creating good jobs and a vibrant economy for the benefit of our entire state — particularly important since approximately 200,000 of our fellow Nevadans are unemployed.”