It’s Southern Nevada’s turn to build business swagger

Sunday, Sept. 6, 2015 | 2 a.m.

Assuming state legislators meet in special session to discuss whether, and to what degree, they should offer tax perks to attract an electric-car manufacturer to North Las Vegas, the debate should be straightforward: Is it worth offering financial enticements to trigger another economic bonanza for Nevada? And the answer is yes, of course, because the payoffs for both the state and local economies will far overshadow the amount of tax breaks and other subsidies the company will receive.

This deal will favor Southern Nevada just as the much-applauded one last year, breathlessly embraced by legislators, favored Northern Nevada by getting electric-car maker Tesla to build its battery factory outside Reno. But we worry — needlessly, we hope — that some Northern lawmakers may gripe that they’ve already gone down this road. What if they say Nevada can’t afford to make another enticement deal, even if it’s smaller in scale?

In fact, every bit of logic argues that we can’t afford not to make a similar offer to get Faraday Future, an automotive startup with roots in China, to select North Las Vegas as the home of its assembly line. There really is nothing to lose and everything to gain — including some far-reaching benefits you may not have considered.

These tax abatements are triggered by the company’s performance. And if it does perform as expected, the ripple economics will blow away the state’s investment going into it.

Analysts say a Faraday Future assembly plant will generate $85.6 billion for the economy over the next 20 years, in part by creating more than 13,000 direct, support and ripple-effect jobs that will earn workers nearly $700 million in wages a year.

But there’s another argument to be made for embracing this opportunity, and on that point let us introduce you to John Petkus, Poland’s honorary consul in Nevada.

What’s Poland got to do with this, and a fellow who you might assume spends most of his time at snooty cocktail functions rubbing shoulders with high government muckety-mucks?

Well, Petkus, who lives in Las Vegas, is something of an expert in international business and how companies expand or relocate to other countries for various reasons. His particular focus is in introducing Polish companies, especially those involved in technology, software and logistics, to the benefits of locating in Nevada. A handful of Polish technology startups already have branch offices in Northern Nevada, so they can have access to business contacts in Silicon Valley. Reno, it turns out, is a more affordable place to open an office and buy or rent a home than is the Bay Area, and is still within easy driving distance.

In fact, there is a much larger Polish population in Clark County than up North, but not as many businesses. One reason? Foreign-based companies are apprehensive about moving unless someone big and noteworthy already has moved there to prove the area is business-friendly. Everyone knows Las Vegas is friendly to gaming. It’s native to the region. But what about outside companies relocating to Southern Nevada? Are we on the map for nongaming ventures — the very companies we are seeking to diversify our economy?

This is what Petkus says about the effect of Faraday Future coming to North Las Vegas: “You have no idea how much credibility that will bring to this region. It’s huge.”

Petkus is continuously talking to the 27 other consulates in Nevada, and to trade organizations from other countries, and the consensus is that, thanks initially to the Tesla deal, “people are going, ‘Whoa! Nevada!’ and Faraday Future will have the same effect, getting the attention of companies that wouldn’t have otherwise known where to look.” In short, he said: Faraday will put Clark County on the international business map.

Thank you in advance, legislators, for helping Nevada grow still more. We hope you won’t rain on our New Nevada.