North Las Vegas looks to lure companies to industrial park

By Conor Shine

Tuesday, Oct. 28, 2014 | 2:10 p.m.

North Las Vegas announced today it plans to establish an economic diversification district at its Apex Industrial Center to lure businesses with the same type of tax incentives given to Tesla in Northern Nevada.

Mayor John Lee said the city is in negotiations with three companies to locate in the district, which they project could generate billions of dollars in economic impact and create thousands of jobs.

The city did not name the three companies because negotiations are ongoing.

The district would be established on about 800 acres of the 7,000 acre Apex site, 20 miles north of downtown Las Vegas.

“This will be able to relieve North Las Vegas of some of the financial stress that we’ve had in the last few years,” Lee said. “We’re very excited about fast-forwarding and getting our feet on the ground to get running again...This is the best thing that could have happened to North Las Vegas.”

The Apex site has long been viewed as a potential catalyst for economic development, but a lack of electricity, water and other needed infrastructure has limited business interest in locating there. Fewer than 10 businesses operate at Apex.

Fully developing the infrastructure at Apex would cost about $150 million, Lee said. The city is looking at several options, including bonding for the needed infrastructure, entering a public-private partnership to cover costs or seeking foreign investments.

The city anticipates roads, power lines and water pipes built for the three companies in the economic diversification district will benefit the entire Apex site by making it more attractive and accessible to businesses. Businesses at Apex not located in the diversification district wouldn’t receive the tax incentives but would still be able to take advantage of the new infrastructure.

The incentives for businesses that locate in the diversification district at Apex were made possible by a law passed by the Legislature during a September special session. During that session, lawmakers approved a $1.3 billion package of tax abatements and credits for Tesla’s Northern Nevada gigafactory.

The bill allows qualifying companies to pay no personal or real property taxes for 10 years, no modified business tax for 10 years and no sales tax for 20 years.

Because Nevada law forbids carve-outs for specific companies, legislators had to write Tesla’s incentive bill in such a way that allows any company to qualify if it meets certain requirements. The biggest requirement is $3.5 billion in investment over 10 years.

In a statement, Gov. Brian Sandoval, a key player in bringing Tesla to Nevada, complimented North Las Vegas for its approach to economic development.

“The region offers a workforce that is ready and capable and now will offer space that is viable in the global economic development market,” Sandoval said. “I am pleased the state was able to play a role in this decision by allowing local governments to create tax incentive districts that fit the needs of their changing cities.”