May 2007 Exiled in the Suburbs? Return to Civilization

COMMENTARY

LYLE E. BRENNAN Publisher Legislative Watch Website Can Be Your Security Camera

In a few weeks, the 74th regular session of the Nevada Legislature will be over, for better or worse. The official date for adjournment is June 4th. Anyone familiar with the state’s government knows that most bills get passed in the last few days, as lawmakers engage in marathon sessions of deal-making and arm-twisting.

lthough many bills have left side of the main page, and you complete list of all bills, sorted in sev- already been passed, any can pull up information about your eral different ways. If you want to be A bill labeled “exempt” senator or assemblyman, including a informed when a particular bill is can be held until the last hyperlink to their email address. coming up before a committee or minute. That’s when the legislature There are several ways to find out when it will be voted on, you can also puts in an extra shift so it can grind which bills are currently being con- sign up for “Personalized Bill Track- out all the bills under the cover of sidered. Under “Session Info” on the ing” on the main page. For a fee of darkness. main page, you can choose “2007 $50, this function allows you to track How can Nevada taxpayers keep Session” and then “Bill Info” for a up to 25 Bill Draft Requests or bills track of what’s going on in Carson and receive two daily emails: one is a City so they can have some input? list of all legislation passed that day, One great source of information is the and the second is a status report of official Website for the legislature, each bill on your list. More expensive www.leg.state.nv.us. It would be well options allow you to track more bills worth your time to spend a few min- and have announcements sent to more utes investigating its online resources than one email account. to see what’s happening at the legisla- What if the bill you’re tracking will ture and send feedback to your repre- be discussed in a committee meeting sentatives before it is too late. today? You can find a “Calendar of You can find your representatives’ Meetings” on the main page, or go di- information on the site under the rectly to “Live Meetings-Listen or heading “Who’s My Legislator?” View.” This function allows you to re- Once you know who to write or call, ceive live streaming video or audio of go to “Assembly” and “Senate” on the Continued on Page 8

4 May 2007 Exiled in the suburbs? Return to civilization.

Building a city. Block by block. Sullivan Square takes the best of iconic cities— turn-of-the-century inspired brownstones, Live|Work spaces, lofts, high-rise condominiums, a Market Street filled with local merchants—and puts it right in the heart of Las Vegas. Actually, what we’re building is a city within the city.

Residences are now available ranging from 500 to 2,000 square feet. Priced from the low 300s to 1.7 million. To get in on the ground floor, call 702.733.1108, or visit our Sales Center at 8930 Spanish Ridge Avenue. Just two miles north of the site, on the corner of West Hacienda Avenue and the 215 Frontage Road. sullivansquare.net

,03257$17/(*$/127,&(7KHVHPDWHULDOVVKDOOQRWFRQVWLWXWHDQRIIHUWRVHOOLQDQ\VWDWHZKHUHSULRUUHJLVWUDWLRQLVUHTXLUHG9RLGZKHUHSURKLELWHGE\ODZ$OOVLWHSODQVÁRRUSODQV renderings, and maps are artists’ conception and are not intended to be exact depictions. The plans for Sullivan Square are under development and developer reserves the right to make changes in the plans, renderings, maps and prices without notice. No guarantee is made that the improvements shown herein will be constructed, or that if constructed, they will be of the number, type, or design described. The photos shown are not of Sullivan Square. Sullivan Square is a Nevada condominium common interest community. The actual terms and conditions of purchasing a unit at Sullivan Square are available through the Sullivan Square Sales Center. Obtain the Property Report required by Federal law and read it before signing anything. No Federal agency has judged the merits or value, if any, of this property. ©2007 Glen, Smith and Glen Development. May 2007 • Volume 22 • No. 5

A division of BUSINESS LINK, LLC PUBLISHER Lyle E. Brennan • [email protected]

PUBLISHER / CEO Connie Brennan • [email protected] ASSOCIATE EDITOR April McCoy • [email protected] ART DIRECTOR Joe Thomasula COVER: CIRCULATION DIRECTOR How is the banking industry dealing Mark Keays • [email protected] with the state’s growth and competi- RESEARCH / RANKING NEVADA tion? (L to R) John Guedry, CEO of [email protected] Business Bank of Nevada; Bill WEB EDITOR Martin, CEO of Nevada State Bank; McKensie Keever • [email protected] and Mark Daigle, CEO of Colonial ONLINE MARKETING DIRECTOR Bank were among the industry Harry Benson • [email protected] leaders interviewed for this report. CONTRIBUTING WRITERS Doresa Banning • Susan Botich • Diane Glazman Photo: Opulence Studios Mark Keays • Tim Rubald • Robert Payne • Ted Schlazer R. Keith Schwer • Carla Sloan • Michael Sullivan Rebecca Wagner • Jeanne Lauf Walpole ADVERTISING / SALES Sheri Lautherboren • [email protected] Dawn Perkins • [email protected] Tarah Richardson • [email protected] EXEC. ASSISTANT TO PUBLISHER BUILDING NEVADA: Hollie Howard • [email protected] The engineering industry is facing CORPORATE OFFICE many challenges. (L to R) Wayne 375 N. Stephanie St., Suite 2311 • Henderson, NV 89014 Horlacher, vice president of PBS&J; (702) 735-7003 • FAX (702) 733-5953 Jeff Codega, CEO of Jeff Codega [email protected] Planning and Design; and Michael NORTHERN NEVADA ADVISORY BOARD Chuck Alvey • EDAWN Holloway, managing principle of Krys T. Bart • Reno Tahoe Airport Authority Poggeymeyer Design Group were Tom Clark • Tom Clark Consulting Company some of the executives who discussed Connie Fent • Community Representative those changes and trends. Valerie Glenn • Rose Glenn Group Rick Gray • Fallon Convention and Tourism Authority Photo: Opulence Studios

Web Site: nbj.com • nevadabusiness.com TopRank Nevada: topranknevada.com

Nevada Business Journal is a division of Business Link, LLC. 375 N. Stephanie St.,Bldg. 23, Suite 2311, Henderson, NV 89014. It is listed in Standard Rates and Data, #20A-Business-Metro, State and Regional. TopRank Nevada Ð Annual Statewide Book of Lists is a publication of Nevada Business Journal. Advertisers should contact Sales at (702) 735-7003, or write to: Nevada Business Journal, 375 N. Stephanie St., Bldg. 23, Suite 2311, Henderson, NV 89014. Demo- graphic information available upon request. Month-to-month circulation may vary. Nevada Business Journal is published monthly with one additional issue each year. Subscription rate is $44.00 per year. Special order single-copy price is $7.50. TopRank Nevada Ð Annual Statewide Book of Lists,a compilation of lists which have ap- SPECIAL REPORT: peared in Nevada Business Journal over the past 12 months, is published on an annual basis. The City of Reno is experiencing a All contents ©2007 copyright, and reproduction of material appearing in Nevada Business Journal and TopRank Nevada Ð Annual Statewide Book of Lists is pro- renovation of its downtown, hibited unless so authorized by the publisher. CHANGE OF ADDRESS: POSTMASTER: Send address changes to Nevada Business attracting residents and businesses Journal, 375 N. Stephanie St., Bldg. 23, Suite 2311, Henderson, NV 89014. Sub- scribers please include previous address or mailing label. Allow six weeks. to the area. This comprehensive EDITORIAL SUBMISSIONS: Address all submissions to the attention of Kathleen Foley. Unsolicited manuscripts must be accompanied by a SASE. Nevada Business report on the City of Reno Journal assumes no responsibility for unsolicited materials. DISCLAIMER: Editorial views expressed in this magazine, as well as those provides an in depth look at the appearing in area focus and industry focus supplements are not necessarily those of the publisher or its boards. area’s progress.

6 May 2007 CONTENTS

FEATURES DEPARTMENTS

12 Behind The Vault Door 4 Commentary A Look Inside Nevada’s Banking Industry LYLE BRENNAN Legislative Watch DORESA BANNING Website Can Be Your Security Camera 22 Business ABC’s: 10 Business Up Front Private Education in Nevada • Business Leaders Struggle to Find Good Talent DIANE GLAZMAN • Younger Americans Planning for Retirement 29 Industry Focus: Public Utilities • State and Local Business Taxes Jump 10 percent in Fiscal 2006 The Challenges of Dependable and Affordable Resources 11 Face to Face W. Michael Beardslee, IT Strategies International Chet Nichols, Amland Development Inc./Amland Properties LLC 22 80 Nevada Briefs • Nevada’s Infrastructure Hurting Quality of Life • TREC Investment Realty Unveils New Whole Property Program • Nevada State College Increasing Southern Nevada’s Nursing Workforce • The Shops in Desert Passage Become Miracle Mile Shops • Western Alliance and First Independent Merger Complete 82 Speaking For Nevada What is being done to ensure Nevada has renewable energy resources? REBECCA WAGNER, PUBLIC UTILITIES COMMISSIONER 83 Inside Politics MICHAEL SULLIVAN The Game of Politics Which Party Will Win? 84 Compassionate Capitalism Horses for Heroes, Inc. Befriending Children of War 85 Tech Page ROBERT PAYNE B UILDING NEVADA Blogging for Business Why should businesses care about blogs? 71 It’s Hip to Be Square 86 Expert Advice The Changing Face of Nevada’s Engineers TIM RUBALD Here’s to You Mrs. Robinson: JEANNE LAUF WALPOLE Global Trade is the New “Plastics” 78 Building Nevada News in Brief 87 Vital Signs • Summerlin Hospital Undergoes $100 Million Expansion CARLA SLOAN Rising Healthcare Costs • KB Home Opens First Luxury Estates Hurting Pockets of Businesses and Individuals • Carson River Aquatic Trail Moves Forward 88 Money Management • New Office/Retail Center Scheduled for Mesquite TED SCHLAZER • Juhl Tops Off First Building in Downtown Las Vegas Choosing a Private Wealth Manager: Where to Start • McCarran Rent-A-Car Center Creates Easy Airport Access 89 People First MARK KEAYS 79 Commercial Real Estate Are You Developing Your Employees Market Report Or Hoping for the Best? Fourth Quarter 2006 – Industrial Market 90 NAIOP Spotlight Award Winners Announced 79 Sansone Companies 92 Summit Award Winners Announced Building People-Friendly Communities 94 Business Indicators SUSAN BOTICH R. KEITH SCHWER

May 2007 7 WELL ROUNDED Continued From Page 4 the meeting through Windows Media BANKING Player. You can follow along with the CLEARR CUT ANALLYSIS • INTEGRAATED SOLUTIONS discussion, and if you want to send a comment to your representative or to

1ST NAATIONAL BANKK OF NEVADA DELIVERS WE ARE A FULL SERVICE BANK a committee member, you can open • Pinpoint analysis offering one of the most comprehensive another window on your computer packages of deposit and loan products for • Innovative solutions business or personal needs. and send an email. Many lawmakers • In-depth services have their laptops on during meetings. • Entrepreneurial business knowledge Our IMAGE Your email might say, “Ask the • Dedicated customer service DEPOSIT SERVICE • Bottom line banking expertise speeds the deposit Senator what this is going to cost the o your 1st Bank of average homeowner?” Or, “This ccount might work for people in large cities, We provide cally. RATE PRO but how will it affect rural communi- SERVICES ties?” This is your chance to affect the to offset changing legislative process. It’s the next best interest rat thing to being there in person. The main page of the Web site also has a function called “Share Your Opinion/Opinion Poll.” This gives you an opportunity to choose a bill and give a quick “For” or “Against.” Entering your address will make sure your opinion goes to the correct legislator. It only takes a minute. The Web site also contains a wealth of miscellaneous information. Its We provid “FYI-New and Notable Information” variety of C AND REAL section contains links to the gover- with experts to help you nor’s official budget, the 2007 Nevada choose the best fit for your We specialize in COMMERCIAL INSURANCE business. Education Data Book, a list of om- services to businesses including budsmen and advocates for special contractors, developers, 1st National Bank of Nevada BUSINESS INSTALLMENT LOANS manufacturers, retail, distributors causes, a list of public information of- help your and professional organizations. business with affordable funding for any of ficers at major state agencies and a your business needs. 1st National Bank of Nevada has many complete Legislative Manual, among • Purchase equipment BUSINESS BANKING account options other things. • Finance other assets including a free small business checking • Purchase business vehicles account– no monthly maintenance fees, The session will be over in a few • Expand your building or office space no minimum balance requirements, no weeks, but there’s still time this month transaction fees. to participate in the political process to We are CUSTOMER FOCUSED, FAMILY OWWNED, WE CAN HELP YOU maximize let your voice be heard. Log on to LOCALLY OPERATED, PRIVAATELY HELD and we will your business profits. Call us today www.leg.state.nv.us today and see how work with you to grow your business. 702.889.2038 it can help you take an active part. Your involvement in the process is crit- We can help you grow ical, so let your voice be heard. your business. Call Todayy 702.889.2038 www.fnbnonline.com

Commercial Banking Treasury Management and Owner-Occupied SBA Loans Depository Services Commercial Real Estate COMMENTS Gaming Financing Non-Profit Services Acquisition, Development Fixed Rate Financing email: [email protected] Lines of Credit & and Construction Options Wealth Management Term Loans Loans for Residential and Commercial Projects Insurance Services

MEMBER FDIC EQUAL OPPORTUNITY LENDER

8 May 2007

BUSINESS UP FRONT

Business Leaders Struggle Younger Americans Planning State and Local Business Taxes Jump to Find Good Talent for Retirement 10 percent in Fiscal 2006

any of today’s top CEOs usinesses paid $554 billion describe the quest to find in state and local taxes in fis- Mquality talent like search- Bcal year 2006, representing ing for a needle in a haystack. Re- 45 percent of total taxes collected by cruiting and training staff is such a all state and local governments, ac- plight for businesses that they re- cording the annual study prepared cently selected it as the No. 1 chal- ccording to the 2007 Amer- by Ernst & Young LLP in conjuction lenge in today’s workplace, accord- ican Retirement Study by with the Council On State Taxation ing to the 2007 Management Action AScottrade, 89 percent of 18- (COST). The share of taxes paid is Programs (MAP) Quarterly CEO to 24-year-olds plan to save for re- determined by a state’s overall tax Survey. Despite feeling confident in tirement in 2007. Young people are system, the structure of its economy, their companies’ future performance just as concerned as their older the types of business taxes levied, as and growth, more than 20 percent of counterparts about having enough well as business tax features that the executives report that hiring tal- money for retirement and a surpris- may provide a competitive advan- ented employees is their biggest ing number are planning for their re- tage or disadvantage in attracting business-development roadblock. tirement on their own without the and retaining business employment Some say it’s because the best em- help of a financial professional to do and investment. Key findings of the ployees already work for someone it. Nearly 40 percent of 18-to 24- study include: else. But others fall prey to reactive, year-olds and 60 percent of 25- to ¥ State and local business taxes to- rather than proactive, recruitment 34-year-olds are concerned about talled $554 billion in FY2006, up 10.2 tactics, leaving them scrambling to having enough money for retire- percent for the prior year. find great hires. The survey unveiled ment. Of this younger set, 36 per- ¥ Property taxes were the largest state that CEOs stay current with world cent of 18- to 24-year-olds and 49 and local business tax, accounting for events and are wary regarding how percent of 25- to 34-year-olds are $205 billion in 2006, representing 37 those events affect business. Top actively planning on their own with- percent of total state and local busi- concerns are: out the help of a professional finan- ness taxes. ¥ Recently weaker residential hous- cial advisor. Younger Americans are ¥ Sales taxes on business inputs were ing market focused on opening an IRA that has the second largest state and local busi- ¥ Rising interest rates “no fees” attached to it. Sixty-two ness, accounting for $125 billion in ¥ Iraq war and uneasiness surrounding percent of adults under age 35 said a 2006, or 23 percent of total state and terrorism and homeland security no-fee IRA was very or extremely local business taxes. CEOs planning for business growth important. Both twenty- and thirty- ¥ Corporate income tax totalled $52 feel external factors will not greatly im- somethings are much more apt to do billion in 2006, representing only 9 pact their ability to achieve their goals. their own financial planning online. percent of total state and local taxes.

10 May 2007 FACE TO FACE

Type of business: Best Business Advice: Computer Consulting and Placement Always be ethical and honest and provide goods or services that are needed Biggest business challenge: and wanted at a fair price (I think that is Finding clients with computer technology called basic capitalism). needs for project work, specialized skills requirements, or supplemental personnel so If you could start over and choose a we can place our appropriate talent. different profession, what would it be? Probably an attorney, like we really need What do you enjoy most about your job? more attorneys. I like working with our clients, which range from casinos to utilities companies What area of your industry do you find most to government agencies. I also enjoy interesting? working with our consultants and especial- Growth and unbelievable change with the ly the internal staff that make the business use of computers. I also find it interesting W. Michael Beardslee grow and prosper. that corporations and casinos are smart President about keeping up with the changes and How do you spend your time when IT Strategies International implementing technological advances. you’re not working? Las Vegas I have a passion for golf. I am fortunate How do you keep up with the constant that my wife is also passionate about golf. changes in technology?

Years in Nevada: 10 We offer company paid training so our Little-known fact about yourself: employees can stay ahead of the curve. Years with Firm: 10 I used to do magic tricks and eat fire with my father.

Years in Nevada: 17 How do you spend your time when you’re not working? Years with Firm: 14 I spend time traveling with my two children, ages 4 and 6, and wife. I also Type of business: enjoy tennis, golf, skiing and biking. Real Estate Development, Sales and Mar- keting Little-known fact about yourself: I am a philosopher and want-to-be psy- Biggest Business Challenge: chologist and astronomer. Escalating cost and labor shortages. Best Business Advice: What do you enjoy most about your job? Accept the reality that knowledge and Its an entrepreneurial adventure that is hard work are only going to take you so never boring. I may spend a week focus- far. If you want to go farther it will either Chet Nichols ing on planning a new project, selling and be greed, luck, dedication or a combina- marketing an existing product and meet- tion of these that get you there. Executive Vice President / Broker, ing with partners, lenders and investors Manager, Principal from around the country. What area of your industry do you find most AmLand Development Inc / Amland interesting? Properties LLC What would you like your legacy to be? The traits, tendencies, influences and A positive contribution to the world, its motivations affecting all people includ- Las Vegas and Phoenix culture, and future. A revelation to ing consumers, bankers, investors, man- change the way we think about life and agers and entrepreneurs. about each other.

May 2007 11

Cover Story: A Look Inside Nevada’s Banking Industry

A Look Inside Nevada’s Banking Industry

evada is a ripe environment merger-and-acquisition cycle, as former chief executive officer of for the banking industry. most of the banks available for sale Business Bank and now executive With its rapidly growing have changed hands, said John vice president of City National. Npopulation, active develop- Dedolph, chief executive officer of “We didn’t actively go out and so- ment sector and strong economy, the Service1st Bank of Nevada, a com- licit offers, but were approached by Silver State has developed into a ro- mercial and real estate bank in Las City National.” bust growth market. While the econo- Vegas. In a typical cycle, small At the time of the merger, Business my, in terms of housing, has slowed, banks form over a period of five to Bank was in its 11th year of operation the overall market remains strong. 10 years. When they sell to larger in- with seven branches. City National “Nevada continues to be a very dy- stitutions for either greater efficien- Bank, on the other hand, lacked a namic market as far as growth oppor- cy or for profit gain, a new group of Nevada presence. The merger adds a tunities,” said Jackie DeLaney, presi- banks springs up. Six new banks Ð number of new features to Business dent and chief executive officer of Bank of George, Caliper Bank, First Banks’ offerings, including 56 Las Vegas-based Sun West Bank, a Asian Bank, Paramount Bank, Prime branches (55 in California, one in locally owned and independent fi- Bank and First International Bank Ð New York), and provides a larger nancial institution. In response to were proposed for Nevada by lending limit and new products and these opportunities, banks are ex- March’s end, according to Nevada’s services. The bank’s clients can now panding throughout the state, all the Division of Financial Services. take advantage of wealth management while grappling with a handful of is- Since the start of 2005, five and investment services, private bank- sues, from a diluted work force to in- Nevada banks have merged. Busi- ing and products geared to profes- tense competition. ness Bank of Nevada, a primarily sional, designated businesses. Busi- business-focused entity, was ac- ness Bank plans to begin operating as Formations, Mergers quired by City National Corp. in a City National Bank on June 1 once its and Acquisitions $167 million transaction that system has been converted to City closed on Feb. 28. “It was one of National’s, Guedry said. Nevada’s banking industry is fin- those cases where the offer was too In the late 1990s, Colonial Bank ishing a consolidation phase, or good to refuse,” said John Guedry, entered the Southern Nevada

May 2007 13 Cover Story: A Look Inside Nevada’s Banking Industry

market by acquiring Commercial acquired bank cutting new staff, we’re Bank of Nevada. A few months actually hiring personnel to fill these FREE later it penetrated Northern Nevada departments and new branch loca- COMPANY with its purchase of Interwest Bank tions,” Guedry said. and Interwest Mortgage. In 2000, Some banks struggle to keep pace LISTING Nevada State Bank, which was with the state’s geographic growth. Promote your Company Today! more of a retail entity, merged with “Branches are very expensive, land is Pioneer Citizens Bank of Nevada, a very expensive,” said Bill Martin, commercial institution. president and chief executive officer In Our Book of Lists of this 73-branch statewide bank. Expansions “You don’t dare fall behind, because in five to seven years, land won’t be Go to: While the cycle is playing out, available in the places where branch- Nevada banks are adding branches es are needed.” www.NBJ.com aggressively throughout the state, Nevada State Bank is making con- with plans to continue expanding certed efforts to stay ahead of Neva- over the next few years, at least. da’s growth. It has acquired land in Colonial Bank which serves com- areas mostly around Las Vegas and, as mercial and consumer clients in 15 budget allows, will commence con- IT’S EASY Nevada locations, has about 10 sites struction there. Plans are to add two to in varying degrees of negotiation in three freestanding branches a year in SUBSCRIBE NOW! both Northern and Southern Neva- both the north and south. Earlier this da, and plans to open five branches year, the bank opened its newest next year. It most recently added a branch in Las Vegas. The next is slat- branch in late 2006 in Southern ed to come online in midsummer in Nevada’s Montecito community. Mesquite, followed by a relocation of “We’re going to want to commit the the Carson City branch. resources to expanding our franchise in the growth markets,” said Labor Market Mark Daigle, chief executive officer of Colonial Bank. The explosion of new banks and Sun West Bank, which opened a branches has led to difficulty finding branch in North Las Vegas in the fall and retaining qualified employees. of 2006, continues to scout the right The labor market is tight, and the locations and opportunities for new larger banks no longer offer broad- branches in the state’s northern and based training as in the past. “It’s a southern regions. “We’re here for the constant challenge to make sure we long term,” DeLaney said. “We want have good, quality staff,” Daigle to continue to grow our bank.” said. “You invest the development of Service1st Bank, which opened in your employees, and once they are January in Henderson, plans to estab- accomplished and successful, com- lish two additional branches, one in petitors want to talk to them about Reno and one in Las Vegas, by its other opportunities.” third year of operation, Dedolph said. Nevada State Bank employees re- Business Bank of Nevada an- ceive phone calls from other banks nounced a new corporate location in wanting to poach them “literally Summerlin, which will open in the every day,” Martin said. Lending po- latter part of summer, and it already sitions are particularly hard to fill, and has sights set on another branch. “Un- have been for the last several years, like some mergers where you have the because it takes a while for those em-

14 May 2007 Cover Story: A Look Inside Nevada’s Banking Industry

ployees to acquire a level of expertise porate training capabilities to help to do the job well, Guedry said. “As “It’s a constant challenge keep up with growth. “It’s very im- far as recruiting from within the in- portant to promote from within,” said dustry, it’s become very cutthroat out to make sure we have Hendricks. “We always try to look there,” he added. “There has been a within our organization before hiring lot of back and forth movement with- good, quality staff.” out,” he said. in the industry between companies.” Some banks, such as Sun West and Competition Business Bank of Nevada, are “home-growing” employees. In other Banks also are vying for cus- words, they’re bringing in young- are available to fill needs, but we tomers, and the fight is intense. sters from local colleges and univer- have had some success with it, so Nevada’s banks compete with the 50- sities for internships, hiring, training we’ll continue to do that.” plus other banks operating in the and then, promoting them from with- Bank of Nevada is offering incen- state, along with credit unions, inter- in. Business Bank has had success tive plans to employees, as well as national banks and non-bank retaining several of the people ownership opportunities through providers, such as leasing compa- they’ve helped cultivate. In one case, 401(k) programs to help retain em- nies, brokerage firms, loan produc- an individual served an internship ployees. “We are proactive in hiring,” tion business and insurance compa- and in about five years, worked up to said Bruce Hendricks, president of nies, all of which offer some a loan officer position, Guedry said. Bank of Nevada. “We anticipate our competitive products and services. “It’s a little slower process to go that needs and are always out looking for “While bank officers typically view route,” he added. “It takes us longer, bankers that will help us grow,” he competition as positive, they believe and not as many available candidates said. The bank has increased its cor- the credit unions compete with an un-

May 2007 15 fair advantage because of their tax- free status,” Martin said. “Congress never intended for there to be two financial institutions, one that pays taxes and one that doesn’t,” he added. Further frustrating bankers is a loos- ening of restrictions on Nevada credit unions in terms of size, membership makeup and services offered. Once only offering basic financial services, they’ve now moved into areas such as a title company and insurance brokerage work. “They originally were intended to be finite in terms of commonality,” Daigle said. “But with the advent of community credit unions, now everybody can belong. If you breathe oxygen, you can be in a credit union. If that’s not a bank, I don’t know what is. If you’re going to be a bank, you need to be regulat- ed and pay taxes like a bank. I don’t mind competition. I just don’t think it should be tax subsidized.” However, credit unions disagree. Congress granted credit unions a federal tax exemption because they are non-profit, member-owned co- operatives whose earnings are re- turned to their members by higher interest rates on savings and lower fees. “Service to the member within a credit union reigns priority,” said Bruce Rodela, president and chief executive officer of Frontier Finan- cial Credit Union. Rodela also noted that credit unions do pay property taxes and payroll taxes, and their member-owners pay federal income tax on the interest they receive. Ac- cording to Dan Paulson, president of Weststar Credit Union, credit unions have a non-profit status because they have a different structure than banks. “A credit union can’t offer stock Ð a bank can offer stock and immediately open a branch,” Paulson said. Credit unions are lim- ited in their ability to expand and have a volunteer board of directors.

16 May 2007 Cover Story: A Look Inside Nevada’s Banking Industry

To stand out above the competi- $50 million in capital, 215 share- million lending limit. Since opening, tion, banks are taking any of a num- holders and 36 employees. In less Service1st has formed alliances with ber of approaches. Colonial Bank is than three months of operation, it ac- some out-of-area banks allowing it to relying on a community bank-style crued an additional $40 million in offer loans in excess of $20 million. philosophy, trying to earn business deposits. Its financial position upon It also contracted with a major na- on its ability to evaluate and re- opening allowed it to develop busi- tional bank to allow clients in the spond to a customer’s request rather ness more intensely, as it had more Reno area to make deposits at its than fit it into an existing specific employees to solicit new customers, branches. By year’s end, Service1st service. It also regularly reviews Dedolph said. It also provided the Bank plans to provide a service that and, as is possible, enhances its of- ability to immediately offer a $12.5 allows clients, without leaving their ferings. A recent branding campaign revolves around the concept of “You’ll like it here.” “It’s a continual evaluation of trying to make sure we’re providing a com- The elementary petitive level of service and pricing, and staying on top of what’s happening and what the competition is offer- way to bigger ing,” Daigle said. Similarly, Sun West Bank customizes its products and services to meet customers’ needs. It, business. too, advertises via billboards, radio, print Ð primarily in business publica- tions Ð and in some targeted markets, such as Summerlin, DeLaney said. “It’s really about service and speaking to a live person,” she added. “Our phones are answered. We make that a top priority.” As Business Bank of Nevada moves into its conversion to City National Bank, it plans to execute an aggressive, 30-day name-change campaign, said Paul Stowell, senior vice president. Subsequently, advertising will highlight new products and services, Business Bank’s Enhanced Accelerated Loan is the such as remote deposit Ð the ability to deposit checks electronically from a faster, more flexible equation to business growth. remote location, such as a company’s Our new Enhanced Accelerated Loan is a new and more flexible way to take your company office. “Our primary focus on all of to the next level. Now, business owners can use the equity in their primary residences as collateral for a business revolving line of credit — up to $250,000. And because it’s these campaigns will still be the fact an Accelerated Loan — our streamlined application and approval process can fund that people bank with people and that your account within two business days.* So if you’re looking for a way to turn your home our personnel have stayed with us into big business, look to Business Bank — where your equation for growth could be as simple as 1+2=3. through this transition,” Guedry said. Service1st Bank employed an alto- gether different strategy, from the get- In Northern Nevada, contact Jerry Gregory at 775-885-1220. go. “We started on a different In Southern Nevada, contact Paul Workman at 702-952-4440. premise,” Dedolph said. “It’s a new concept for Nevada Ð super startup or Equal Housing Lender. Member FDIC. | www.bbnv.com super community banks.” *Loan decision for Business Bank of Nevada (BBNV) Accelerated Loan is 48-hours (two business days), and is based on qualified borrowers submitting a completed loan application package. Funding on approved loans may also take two business days. Purpose of the Accelerated Loan includes Demand Deposit Lines, Revolving Lines of Service1st Bank launched with Credit, and Term Loans. Interest rate is variable based on BBNV prime lending rate. Loan fees vary based on size of credit request. Other terms and conditions may apply. Contact us for more details.

May 2007 17 Cover Story: A Look Inside Nevada’s Banking Industry

offices, to open accounts and apply fraud is so great that prosecutors for and secure loans, all during one don’t have time to make minor cases on-site visit from a loan officer. a priority. “Instead of competing with credit “They’re just overwhelmed,” Mar- unions, we’re competing with Bank tin said. “They’ll just interview the of America, CitiCorp and Wells perpetrators, give them probation, and Fargo,” Dedolph said. order them to pay restitution to get the case resolved. They deal with the Protecting Customers criminals but won’t pursue them all the way through court.” Preventing and dealing with fraud To protect their clients, banks are continues to be expensive, time- educating and training their employ- consuming endeavors for all banks. Bank of Nevada’s ees and customers. They’re using “I would say in terms of attempts at Rainbow Regional Office fraud detection software, encryption fraud, there’s no abatement,” Martin systems, two-tier security systems, said. “It’s a constant attack, for us, probe account numbers, open ac- auditing and other internal security for everybody.” counts with the idea of withdrawing measures. For increased safety, Neva- Credit card fraud and counterfeit money from them on insufficient da State Bank has begun installing in checks are frequent. Banks also see funds later on. Sometimes situations all its branches “bandit barriers,” phishing schemes, identity theft and arise in which customers’ data has large, steel-reinforced Plexiglas walls doctored loan applications. They ex- been compromised elsewhere, say at at the teller stations, which span from perience people trying to hack into a big retailer. Robberies also are the counters to the ceiling. their systems, run programs that common. The volume of attempted “It’s a balancing act between being customer-friendly and protecting our customers,” Guedry said. “It’s a big challenge. I think the long-term solution is going to be consumer education.” Legislative Issues

Also weighing heavily on bankers’ minds are the lopsided branch and payroll taxes that the Nevada Legislature imposed on banks in 2003. This year, banking lobbyists are working in Carson City to repeal the $7,000 branch tax (for a $3 million a year reduction), said Bill Uffelman, president and chief executive officer of the Nevada Bankers Association. In addition, they aim to reduce the 2 percent financial institutions payroll tax to the amount other employers pay (for an $18 million a year reduction). “We are approaching it strictly on the basis that it’s inequitable and unfair, and we need to right that wrong,” Martin said.

18 May 2007 See the difference a Wells Fargo Business Banker can make.

A Wells Fargo Business Banker will dig deep to really know your business and industry. So you’ll have a reliable financial consultant to help you quickly resolve financial issues and take advantage of new opportunities. And because our bankers are so involved in the local business community, they can even help you with networking and business referrals. It’s the type of local, personal attention you’d expect from a small bank, but with the technology, expertise and resources only a large bank can provide. Why wait for someday? Call a Wells Fargo Business Banker today.

Northern Nevada Reno | Sparks • 775-689-6140 Carson City | Lake Tahoe | Carson Valley • 775-885-1131 Southern Nevada Downtown • 702-952-7381 | Warm Springs • 702-868-3400 Sahara Speciality Business Banking Group • 702-737-2907

Bankers argue that the tax is not Legislators have expressed some Future Outlook only unjust, but it also puts all types willingness to eliminate the fran- of businesses at risk, increasing the chise tax, the smaller of the two Nevada’s financial institutions will potential for legislators to impose tax levies being protested, said continue to do well over the next five taxes on any one industry at any time Guedry, chairman of the Nevada years, bankers predict, and will con- to counteract a budget shortfall. “It’s Bankers Association. What might tinue to see more of the same. It’s a dangerous path when you start to happen, he added, is that legisla- likely a few additional acquisitions talk about segregating any business tors will remove the franchise tax will occur, as some banks are orga- independently for disparate treatment this year and agree to repeal the nizing right now to be sold, Guedry from a tax standpoint,” Daigle said. payroll tax in 2009. said. Internal consolidations may also take place. In addition, new small banks will be formed despite the fact it’s harder now for them to succeed because of market saturation and the decreasing multiples buyers are paying to acquire them. The process of getting to the point where a small bank becomes attractive to potential buyers will now take 10 to 20 years versus the five to 10 years it used to take, he added. Even the addition of three to four new banks represents a significant market increase. Along with its resident corporate banking institutions Ð Bank of Amer- Stated Commercial Loans ica, Wells Fargo, CitiBank and US Bank Ð Nevada will see at least one TM Introducing:The Smart Loan Program or two more major national or super- — Small Balance Commercial Real Estate Loans — regional banks operating in the state, Martin predicted. No Appraisal Fee Floating Rate Available Undoubtedly, new and improved • • * • No EDR Fee at Prime + 1/2% electronic services will be delivered • No Tax Returns to the market. Furthermore, short • No Prepayment term rates might start to decline, Penalty Available • 30-day Closing Guedry said. He also predicted the • 6.75% Minimum Rate • $250,000 to $1,500,000 current slowdown in housing market for 3-year Fixed* Loan Balance values and sales won’t worsen but will remain somewhat flat over the ™ SMARTER MONEY next 18 months. All in all, however, Nevada’s banking industry is expected to remain healthy. “I think we’re going to see good, solid growth in Nevada, particularly in the Las Vegas and Reno markets,” DeLaney said. “We’re seeing nothing that says that’s going to stop.” DON SONSMA – 888.634.6174 [email protected] Doresa Banning is a freelance writer CHRISTINA LAREZ – 310.614.1133 FDIC based in Northern Nevada. [email protected] *rates subject to change

20 May 2007 Banks in Nevada

BANK NEVADA BRANCHES DEPOSITS ($000) Armed Forces Bank 2 45,891 Bank of America, National Association 84 9,389,544 Bank of Las Vegas 1 54,958 Bank of Nevada 16 2,320,807 Bank of North Las Vegas 1 31,365 Bank of the West 9 386,805 Beal Savings Bank 1 75,724 Black Mountain Community Bank 1 97,107 Business Bank of Nevada 7 386,004 Charles Schwab Bank 1 8,519,125 CitiBank Nevada 1 6,715,202 CitiBank West 21 1,360,676 Colonial Bank 14 753,130 Community Bank of Nevada 9 799,132 Credit One Bank 1 17,798 Desert Community Ban 1 65,586 Eaglemark Savings Bank 1 3,779 El Dorado Savings Bank 2 36,531 First Independent Bank of Nevada 4 326,060 First National Bank of Ely 1 41,792 First National Bank of Nevada 9 1,141,331 First Republic Bank 1 120,788 First Savings Bank 1 45,778 Great Basin Bank of Nevada 4 166,577 Heritage Bank of Nevada 4 228,082 HSBC 1 2,749 Imperial Capital Bank 2 183,806 Irwin Union Bank 2 540,766 M&I Bank 1 904,357 Marine Bank 1 14,432 Nevada Bank and Trust 7 79,367 Nevada Commerce Bank 1 111,449 Nevada Security Bank 4 320,954 Nevada State Bank 72 3,357,431 Northern Nevada Bank 2 124,167 Northern Trust Bank 1 28,899 Red Rock Community Bank 1 88,866 Security Savings Bank 1 121,382 Silver State Bank 9 781,132 SouthwestUSA Bank 1 152,937 Sun West Bank 6 320,178 Town & Country Bank 3 152,951 Town North Bank 1 500 Toyota Financial Savings Bank 1 20,984 US Bank 53 2,409,844 USAA Savings Bank 1 248,355 Valley Bank 5 378,069 Washington Federal Savings & Loan 3 126,772 Washington Mutual 35 73,151,621 Wells Fargo 114 8,468,807 Wells Fargo Financial 1 1,343 World Savings Bank 5 959,886

NEW BANKS DATE ESTABLISHED 1st Commerce Bank 0/18/06 Carson River Community Bank 10/16/06 Service1st Bank of Nevada 01/16/07

Data are as of 6/30/06 and updated annually. Source: Federal Deposit Insurance Corp.

May 2007 21 Business ABC’s: PRIVATE EDUCATION IN NEVADA

magine running a business where school consultant for the Nevada De- teachers as public schools, while ex- your main competitor not only partment of Education, there are 170 empt schools are not. As the term im- Icontrols 95 percent of the market private schools in the state, with ap- plies, exempt schools do not have to and provides its services for free, but proximately 20,862 students enrolled meet these criteria. They are exempt federal law makes use of this product for the 2006-2007 academic year. Of due to their affiliation with a church, mandatory. Sounds like a recipe for those schools, 67 are dedicated to mosque, synagogue or other reli- disaster, doesn’t it? Yet, this is the preschool-aged children, with 103 gious institution. marketplace for Nevada’s private providing elementary, middle and Although the state only designates schools. It is a marketplace that high school education. While the ac- two types of private schools, within forces them to constantly evaluate tual number of students enrolled has the private school community there their product and prove their value to increased, rising by 5.8 percent over are additional points of differentia- their customer base over and over last year, so has the population of the tion. According to Paul Schiffman, again. Unlike public schools, where state. The percentage of total students head of school for the Milton I. students are required by law to at- enrolled in private schools has re- Schwartz Hebrew Academy, the term tend, year after year, enrolling in pri- mained steady at just under 5 percent private school encompasses several vate school is a choice that compels over the past 15 years. Nutting also different types of institutions. each school to constantly market its said that Nevada has one of the lowest Parochial, for-profit, religious, inde- advantages in order to keep the stu- percentages of students in private pendent and charter schools can all dents returning and their parents schools in the country. fall under this umbrella term. writing tuition checks. And, although There are two types of private Private schools in Nevada run the the population of Nevada’s school- schools in the eyes of the state, ac- gamut from a small religious school aged children has continued its trend cording to Nutting: private licensed with a handful of students to for- of record growth Ð currently hover- schools and exempt schools. The profit schools with 250 students to a ing at just under half a million stu- main difference between them is that Job Corps training school attended dents Ð growth in private school en- private licensed schools are subject by approximately 570 young people rollment remains flat. to the same financial review, employ- to an independent school with just According to Orval Nutting, private ee verification and licensing of under 1,000 students. There is no

22 May 2007 Feature Story: Private Education in Nevada

single profile that can describe a values instilled during the early years the available donor base of parents, typical Nevada private school. The of education,” he said. Bohs added alumni and other benefactors. largest single-location private that parents also recognize the bene- Bishop Gorman High School and school in Nevada is Faith Lutheran fits of the smaller classes offered in the Milton I. Schwartz Hebrew Junior-Senior High School in Las most private schools. While public Academy have been fortunate Vegas with 1,300 students. The Dio- schools must make room for all stu- enough to receive support from the cese of Las Vegas Elementary dents, private schools can limit their community and alumni to fund new Schools have the largest private enrollment, making smaller student- buildings. Bishop Gorman is com- school enrollment, according to to-teacher ratios possible. “With the pleting construction on a completely state records with just under 3,000 competitiveness of the world today, new campus located in the Summer- students. According to Nutting, the parents understand the long-term ben- lin area that will allow the school to state is experiencing a slight growth efits of a premium education, and increase enrollment to 1,200 students trend in the number of private they are willing to pay for it and go and provide playing fields, a theater schools, as well as seeing existing outside of the classic public school and expanded academic space. Ac- schools expand to accommodate the system,” he said. cording to Dr. Paul Sullivan, head of state’s growing population. As with Making the choice for private school for Bishop Gorman, the facil- most things in the West, many of the school also means putting a real ity is more like a small college cam- state’s private schools can count world value in dollars on the educa- pus than a high school. “It’s unlike their age in decades, with a only a tion a child receives. Every child at- any other school facility that Las few, including Bishop Gorman High tending private school is there be- Vegas might see over the next 10 to School in Las Vegas, passing the cause his or her parents have paid the 20 years,” he said. half century mark. fees required by the school. While Milton I. Schwartz Hebrew Acade- When electing to enroll their chil- many schools offer scholarships to my, which has been providing instruc- dren in private school, parents base enable children from lower income tion for preschool through eighth their decision on a number of factors. families to attend, the majority of the grade for 19 years, will be opening Religion is one of the primary reasons students come from families with the the doors on the Dr. Miriam and Shel- parents send their kids to private means to pay anywhere from a few don G. Adelson School for the 2007- school. This category represents the thousand dollars a year to more than 2008 school year. The school came largest group of private schools in $10,000, depending on the school and about through a $25 million gift from Nevada, with roughly 58 percent clas- age of the student. Private schools the Adelsons to provide the Las Vegas sified as exempt schools associated rely on tuition revenue to cover their area with a Jewish high school. In ad- with a religious institution. In total, operating costs, including teachers’ dition to academic spaces, the new fa- almost 70 percent of the state’s pri- and administrative staff salaries, as cility will offer students a competi- vate schools have a religious-based well as the mortgage, utilities and tion-sized swimming pool, a prayer curriculum. According to Nutting, al- other overhead expenses. Expansion and study center and a theater for per- most every major religion is repre- comes only when, and if, the capital forming arts. Schiffman said the drive sented in Nevada’s private schools. can be raised through fundraising ef- for expansion came directly from the Lee Bohs, senior vice president of forts that rely first and foremost on demand of the community and the de- corporate development for Nobel Learning Communities, Inc., noted that parents chose private schools primarily based on their own values and the desire to see those values integrated into their children’s education. Nobel Learning Communities operates the for-profit Merryhill Schools at Summerlin and Spanish Trails in Las Vegas, as well as for-profit schools throughout the country. “It comes down to the values and philosophy of the parents … seeing the

May 2007 23 Feature Story: Private Education in Nevada

sire to have a choice where they send break ground on an $11 million area at the request of developers who their child. As an independent school, chapel/performing arts center featur- wished to include a non-public school the Academy is not affiliated with any ing additional classrooms and office in the master-planned community. In particular synagogue or group, and space. Kevin Dunning, executive di- 2000, the school added a gym and 11 Schiffman said that he sees a need in rector of Faith Lutheran, said this is classrooms, and, in 2003, it added a the rapidly growing Las Vegas com- the latest addition the school is mak- cafeteria, student center and four munity for more private and indepen- ing in an attempt to keep up with de- more classrooms. Even as one of the dent schools to meet the demand. mand. The school began to grow in largest private schools in the state, the In addition, Faith Lutheran, which 1992 as the Las Vegas population demand for space is intense. “We will has expanded several times through- boom hit its stride. In 1998, Faith have a waiting list for every grade by out its 28 year history, is about to Lutheran moved to the Summerlin the time enrollment is over,” Dunning said, adding that the community is very supportive of the school and its capital campaigns to raise money for the new buildings. Calvary Chapel Christian School in Las Vegas is expanding its campus and when completed, the school will total 44,000 square feet. “We are doubling our classrooms,” said John Weaver, administrator for Calvary Chapel The rendering shows the completed expansion of Calvary Chapel Christian School. Christian School. “Currently, we have 22 classrooms and are adding 23 classrooms with the new building.” When the school opened in 1994, it Number of Private Schools by County Total was kindergarten through eighth grade with a total of 133 students. Today, the Clark 65 school is kindergarten through 12th Washoe 22 grade, totaling 530 students. “We have Douglas 4 steadily been increasing since we Carson 3 opened,” said Weaver. “Next year, we Churchill 3 will have 560 students.” Nye 3 Which brings the topic back to the Elko 1 original question: How do you compete when your main competitor does Lyon 1 what you do for free? It comes down Mineral 1 to basic market principles: offer something they don’t, be more responsive to customer needs, and Number of Schools Statewide by Grade Level Total find a niche you can make your own. One thing public schools cannot Elementary School 9 offer is religious instruction. This is Elementary and Middle School 40 one of the reasons the majority of pri- Junior and Senior High School 7 vate schools have a religious affiliation. Thurban Warrick, superintendent K-12 33 of schools at Trinity Christian Schools High School 4 in Las Vegas, said that religious schools give parents a choice. “There Exempt Schools 60 are parents out there who want to in- Total Students 19,251 still more Christian values in their Source: Nevada Department of Education children. We can talk about Jesus

24 May 2007

Feature Story: Private Education in Nevada

Christ and prayer, areas that public for more than a decade, even though schools are unable to explore,” he said. the school does not offer tenure. Calvary does not offer open enroll- Not all of Nevada’s private schools ment. Parents are required to attend are about high test scores and Ivy the school’s affiliated church, Calvary League admissions, though. Unique Chapel, or another Evangelical among the state’s private schools is church. “It is important that the fami- Sierra Nevada High School in Reno. ly has the same belief system as the The school, operated by the federal school,” said Weaver. At Calvary, all government, is one of the few remain- subjects are taught from a Biblical ders of President Lyndon Johnson’s standpoint. “We believe and teach stu- Students work in the computer lab at Job Corps program that targeted disad- dents that all truth is God’s truth,” Sierra Nevada High School. vantaged youth and people living said Weaver. below the poverty line, and offers them Gregory Root, administrator for mandated by a church or diocese and the opportunity to earn a high school Legacy Christian School in Sparks, is centered around traditional core diploma and receive valuable voca- said that teaching Christian values is academia and is college preparatory. tional training. Currently, the school part of the school’s mission and Bible “Our goal is to prepare students for serves approximately 570 young men study is as much a part of the curricu- selective colleges,” said Bill Heim, and women, providing technical train- lum as reading, writing and arith- principal of Sage Ridge School. “We ing in 16 different programs such as metic. The school uses the Bible as the are a laptop school,” said Heim. “Stu- construction, healthcare, culinary arts model for conduct and behavior, and dents can work anywhere Ð outside or and business office tech. According to teaches the students how to integrate sitting in the hallway.” Laptops are Dr. Joseph Reading, academic manag- biblical lessons into their everyday mandatory and are purchased by the er and principal for Sierra Nevada lives. He said that even though public parents. The school does however, High School, the school operates schools try to teach children to be offer a laptop plan. Sage Ridge offers under an open-entry and -exit policy, good people, it comes from a different financial aid for students who fit their with new students arriving weekly and philosophical base that may conflict criteria but can not afford to attend the current students leaving, either be- with what the parents are teaching at school. “We want kids that want to cause they have finished their training home. “We come from the standpoint excel and get in to good colleges,” or because they have decided to opt out that the Bible should guide the princi- said Heim. “We don’t turn them away before finishing the program. “It takes ples of a person’s life,” he said. because they can’t afford it.” a lot of courage for these kids to leave This is not to say that religious With an average school size of 200 home, travel to a strange place, and schools scrimp on the academics. Far students (based on Nevada Depart- make the commitment to turn their from it. At the Martin I. Schwartz He- ment of Education data) and a board lives around. Most of them have not brew Academy, Hebrew study takes of directors responsible only to the been successful in a traditional school place alongside algebra and Shake- school and the enrolled students’ par- environment, public or private. Not all speare. As Schiffman said, “Our parents, private schools are often more of them make it, but they’re great kids ents come to us for our strong secular agile at redefining themselves and and they work hard. For the most part, program, as well as Judaic study. He- changing course, if necessary. In this they are very grateful for the opportu- brew is taught to all our students. respect, especially, they operate more nities available to them through this That’s why they’re here. They’re here along the lines of private business than program, and they make the most of it. because we have small class sizes. public schools. In many instances, They leave here, return to their com- They’re here because this is our mis- they hire teachers for one-year con- munities and make a difference.” sion. We’re different from a public tracts and do not offer tenure. Carolyn Which is what education is all about school because our parents can easily G. Goodman, head of school for The in the first place Ð achieving results. vote with their feet and leave. We are Meadows School, said, “Our invest- As Paul Schiffman said, “It’s not hopefully a quality alternative and we ment is in our faculty. We believe that about being better, it’s about being a have to prove ourselves every day.” buildings don’t teach, the faculty better fit for a particular student.” Sage Ridge School, located in does.” Over half the school’s instruc- Reno, is an independent, non-sectari- tors have advanced degrees, and most Diane Glazman is a freelance writer an day school. The curriculum is not have been teaching at The Meadows based in California.

26 May 2007 Got Water Savings?

Water Conservation Coalition member Station Casinos recently converted 127,000 square feet of grass to water-smart landscaping at its Sante Fe Hotel and Casino property. The converted areas are located near parking structures and parking lots. The conversion saves an estimated seven million gallons of water every year.

an your business increase its water-efficient, urban, desert living within a water efficiency and reduce its business community.” C overhead costs? It’s a question The WCC will announce its first public business owners in Southern Nevada may project and business challenge later this soon be asked by their peers. The Water year. The public project will include water- Conservation Coalition, a public-private conserving upgrades at a property that partnership comprised of business and needs outside help. community leaders who support water The business challenge will include a conservation, recently expanded its mem- water conservation goal set by the WCC for bership and is asking the Southern Neva- the business community. The business da business community to join in its re-en- community will then be asked to perma- ergized efforts. nently reduce water use to meet that goal. “We started the coalition to support “The purpose of these initiatives is to water conservation,” Bill Martin, president make lasting changes to the way the busi- and CEO of Nevada State Bank and presi- ness community uses water. We’re not look- dent of the WCC. “Now the coalition is taking for temporary solutions,” said Johnson. ing a more active role. We have new initia- The WCC works with the Southern Neva- tives that reach out to the business da Water Authority to help businesses community and this time, instead of asking make water-efficient changes. The SNWA for support, we’re asking for action.” offers businesses several incentive pro- The WCC’s initiatives include a speakers grams and together, with the WCC, offers Tom Warden, vice president of community bureau, public projects, business communi- partnership programs that enhance water and government relations for ty challenges, educational information for conservation within the community. The Howard Hughes Corporation distribution to employees and customers “The incentive programs help offset the discusses current water issues with and a public relations and marketing plan cost of newly installed, water-efficient tech- Bill Martin, CEO and president of aimed at drawing attention to the efforts nology and landscape conversions,” said Nevada State Bank and and successes of the business community. Doug Bennett, SNWA conservation manager. Pat Mulroy, general manager “It’s time for the business community to The SNWA’s Water Smart Landscapes pro- of the Southern Nevada Water Authority, come together and get aggressive with gram offers property owners $2 for every at the April meeting of the water conservation,” said Peggy Maze square foot of grass converted to water- Water Conservation Coalition. Johnson, executive director of Citizen Alert smart landscaping for the first 1,500 square Warden serves as the secretary of the WCC and vice president of the WCC. “The WCC feet, and then $1 per additional square foot and Martin serves as president will serve as the vehicle to organize and thereafter. The average commercial conver- of the organization. motivate businesses to make a difference. sion is estimated to save around 825,000 Our ultimate goal is to become the leader of gallons and nearly $2,000 per year.

NEVADA BUSINESS JOURNAL ADVERTORIAL WCC member Station Casinos replaced grassy areas near its parking structures at the Santa Fe Station with functional, water-smart landscaping. This area (pictured above) includes a walking path and plenty of shade.

WCC member Station Casinos recently Technology that reduces non-consumptive Smart Home may save as much as 75,000 converted 127,000 square feet of turf at its use earns $2.50 per 1,000 gallons of water gallons of water each year compared to Santa Fe Station Hotel and Casino property. saved annually. These technologies include homes built a decade ago. The water savings for that conversion alone high-efficiency toilets, waterless urinals The Water Smart Car Wash program enlists is estimated at nearly seven million gallons and low flow showerheads. The maximum the support of commercial car wash facilities. of water every year. But the water savings incentive is $150,000 per property. Participating car washes save water over don’t stop there for Station Casinos. The “It’s a great way to help businesses in home car washing, because commercials fa- company is also saving water, an additional southern Nevada stay on the cutting edge of cilities recapture and reuse water. Partners in two million gallons each year, through its water-efficient technology,” said Martin. the program offer coupons to consumers on participation in the SNWA’s Water Efficient An example of a company using cutting the SNWA Web site at snwa.com. Technologies (W.E.T.) program. edge technology approved by the W.E.T. Southern Nevada restaurants are also The W.E.T. program provides property program is the Ocean Spray Cranberry fac- joining forces with the SNWA and WCC as owners financial incentives to purchase and tory in Henderson. The company recently part of the Water Upon Request program. install new technologies that save a mini- changed the way it sanitizes bottles. It up- Participating restaurants save water by only mum of 500,000 gallons of water annually. graded from a water-based to a water-less serving ice water to those patrons who re- Station Casinos upgraded cooling towers at system. The new technology uses ionized quest it. According to the SNWA, it can take its Sunset Station property. air and saves an estimated eight-million several gallons of water to produce one “Several technologies, such as upgraded gallons of water a year. That’s about 20 gal- glass of water in a restaurant. cooling towers, are pre-approved with pre- lons each minute. Southern Nevada hotels and resorts have determined water-saving values,” said Other incentive programs include re- a chance to help the SNWA and WCC launch Doug Bennett, SNWA conservation manag- bates for landscape irrigation upgrades in- their newest partnership: the Linen Ex- er.“But the real advantage of the W.E.T. pro- cluding smart controller technology and change program. Partners in the program gram is that it allows the customer the flex- water sensors. agree to offer bed linen and towel replace- ibility to bring technology to us. Property The WCC’s partnership programs don’t ment to guests only upon their request. owners are encouraged to find new water- offer financial incentives – instead they help “There are many ways for businesses to saving technologies. If a technology meets businesses offer water saving opportunities save water in Southern Nevada,” said Mar- the program conditions they too can benefit to their customers. tin. “It’s just a matter of the business com- from our incentives.” The Water Smart Home program is a munity taking advantage of the opportuni- Technology that reduces consumptive partnership with the home building indus- ties. And the WCC is here to help.” use earns $10 for every 1,000 gallons of try. The program promotes water efficiency water saved annually. Consumptive-use by requiring homes built through the pro- To find out more information about technologies include synthetic turf in sports gram to include water-smart landscaping the WCC, visit snwa.com. fields and cooling tower improvements. and water-efficient appliances. A Water

NEVADA BUSINESS JOURNAL ADVERTORIAL INDUSTRY FOCUS

Public Utilities: The Challenges of Dependable and Affordable Resources

ecently, industry experts in reasonable and that sounds relatively public utilities sat down to dis- simple. The public looks to us to be BACK ROW: L TO R cuss the challenges facing the watchdog over the utilities. Yet, at RNevada’s utilities, such as the same time, the industry and the fi- Mark Foree Truckee Meadows Water Authority recruitment, climate change, growth nancial markets look to us to be some- Serves the Reno-Sparks area and and conservation efforts. Connie Bren- what of an internal partner with the some of Washoe County. nan, publisher of Nevada Business industry in the state. So we kind of Jeff Shaw Journal, served as the moderator for wear two hats in that respect. With Southwest Gas Serves Southern Nevada, most of Arizona and the event as part of the magazine’s those two charges working, we try to all the way to the Mexican border. monthly Industry Focus series, which get to a point where the rates are just Tom Husted brings industry leaders together to dis- and reasonable, in light of what is Valley Electric Located in Pahrump, serves some of Clark County, cuss issues pertinent to their profes- being paid around the country. Nye County and Esmeralda County. sions. Following is a condensed version Pat Mulroy: For Southern Nevada FRONT ROW: L TO R of the roundtable discussion. Warter Authority, the most com- pelling challenges we face are the Don Soderberg Public Utilities Commission (PUC) Industry Challenges consequences of warm climate Agency that regulates utility companies. change and what that does to water re- Pat Mulroy Donald Soderberg: The Public Utili- sources in the entire American West, Southern Nevada Water Authority (SNWA) ties Commission is an agency of which will make our job even more Serves all of Southern Nevada. about 90 people whose primary pur- difficult then, and force an even high- Michael Yackira Sierra Pacific Power/Nevada Power pose is to regulate the rates of public er level of creativity. Serves Northern and Southern Nevada. utilities in Nevada. Our charge is to Mark Foree: Our major source of sup- make sure that all rates are just and ply is the Truckee River and Lake

May 2007 29 Industry Focus: Public Utilities

Tahoe. The river is going to be suffi- area to provide for growth. There’s al gas prices more than triple in the cient to provide water for the majority only one project that’s currently being last decade, on a consistent basis. of the growth that’s anticipated in the built right now, and that’s in the north That’s problematic. The second chal- Truckee Meadows area. And sufficient valley. It’s bringing water into the lenge is price volatility affects cus- water rights are available to make that Lemon Valley area. But obviously, tomer growth. Customers usually call happen. What happens is, these water growth is going to be one of our chal- when they see increases in their bills. rights are personal property rights. lenges going forward. And that’s a concern. Another con- They were agriculture rights, original- Jeff Shaw: As a gas distribution utility, cern, still, for the industry is that we ly. They need to be converted to mu- we have two major challenges. The have seen declining usage on an aver- nicipal and industrial use, so that’s a first is the volatility of the commodity age basis. With large cities like process that takes place in the Reno in terms of price. We have seen natur- Phoenix, Las Vegas, Tuscon, you get what we call a heat island, and so the ambient temperature increases, and that causes people to use less gas. Plus, every appliance that gets replaced is usually picking up significant efficiency, and, therefore, natural gas is used less and less, which is a good thing. We believe that using less energy is always the goal that we should shoot for. Our challenge, then, is what type of rates do you need in order to have utilities remain healthy so that it can attract capital? Tom Husted: One of the challenges that we see within Nevada, and really within the Southwest, is a lack of ad- equate transmission in generation facilities. We really have an island down here. But all public utilities need to work together to address the issues, whether it be power supply, transmission supply, helping formulate legislation and changes within the legislative environment, and conservation or renewables. Michael Yackira: Following the significant growth in this state is a major challenge. We are one of the fastest growing states in the nation. Las Vegas, up until last year, had been the fastest growing city in the nation. We also have to face the price changes that our customers hate, quite frankly. The fact of the matter is the price of the commodity that creates electricity, mainly natural gas in this region, has had a tendency to increase in price. Anytime there is a price change, it is very difficult for customers to understand and to accept. We need to have a

30 May 2007 Industry Focus: Public Utilities

very strong, financially healthy, elec- survive if recipients don’t change their tric utility in order to accomplish what usage habits. The notion that going to we need to support the infrastructure. the ocean for water will solve all the problems is fallacious. First of all, Increased Demand coastal property isn’t that easily accessible. It’s either a part of California, Soderberg: I think Nevada utilities which is the most expensive real estate that supply the product, whether ener- in the United States, or it’s in Mexico. gy or water, are always going to be There is an ever-increasing population chasing two tails. They have to build and ever-decreasing amount of supply. the infrastructure to serve the commu- The drought that is hurting the Col- nity, but then they have to find the orado River is not short-term by any product, whether it’s water, natural Conservation stretch of the imagination. We don’t gas, or electricity, to put into that in- expect to be out of this for some time. frastructure. So it creates sometimes Mulroy: We have gotten extremely ag- It took us this many years to get into untenable demands on a company. We gressive in our conservation efforts. it and get runoffs again. It’s going to have been very fortunate. To my Water that is used outside is lost. It’s a take us at least seven to 10 years Ð if knowledge, nobody in Nevada has one-time use, whereas anything that everything were to turn around tomor- gone without water. Nobody has gone hits the sewer system is recycled and row Ð to get that water back again. without gas or has gone without reused. And we have an aggressive The only thing this community can do power, regardless of what shortages agenda to drive Southern Nevada’s to assure the supply is conserve, and or shake-ups occur in the market, usage down even further. The entire diversify consumption. such as the one energy crisis a few Colorado River which serves the West- Foree: In Northern Nevada, it’s sort of years ago. ern United States as a whole, cannot complicated. The Truckee River is the

Small Bank Personal Attention with Big Bank Capabilities. From cash management tools to comprehensive financing solutions, we’re here to serve all your business banking needs. Full Service Business and Personal Banking SBA/ Commercial Lending Real Estate Lending Cash Management Services Merchant Services Equipment Leasing Courier Service Relationship Banking at its Best.

Las Vegas Henderson North Las Vegas Mesquite Reno 702.248.4200 Subsidiary of Western Alliance Bancorporation www.BankofNevada.com

May 2007 31 Industry Focus: Public Utilities

main source of supply for the Truckee grow faster than any utility in the Meadows (Reno/Sparks) area. Con- United States. I would like to see us in tinued conversion of Truckee River the forefront throughout the United agriculture water rights to municipal States, quite frankly. I think we need and industrial (M & I) use will be suf- to do a better job of espousing conser- ficient to supply anticipated develop- vation as an alternative, similar to es- ment of nearly all available land in the pousing reusable energy as an alterna- Truckee Meadows over the next 20 tive, and not just saying we’re going years. As the cities of Reno and to wait for people to build wind power Sparks expand their service areas out- projects and solar power projects, but side of the Truckee Meadows, other re- to co-invest with them so that we are sources will have to be developed to truly part of the solution and not just supply water for that anticipated usage has continued to go down, or waiting for something to happen. growth. There are currently several pri- remain at that level. We are continu- Mulroy: To that end, Sierra Pacific vate water supply projects in various ing to replace turf with desert land- Water Authority has been partnering stages of progress that are planning to scaping, and the restrictions dictating with us in a lot of projects. It has been meet the water needs of those expand- when you can water are now perma- a very productive partnership to both ed service areas and other areas, in- nent. You will never ever again water of us. Since we’re the city industry cluding Fernley (Lyon County). five to seven days a week in Southern first and foremost affected by such Mulroy: The most poignant number is Nevada during the fall, winter and change, we have to lead the way to what happened over a two-year period spring. We have seen our customer help solve the problem, as well. where we saw the largest decline. We use go from what used to be an acre- Husted: Quite frankly, Nevada is be- went from a consumptive use of foot per family of four in a given year hind the eight ball. I have never seen 325,000 acres to 265,000 acres. And down to a half an acre-foot for a fam- in my life so many inefficient con- ily of five. sumers in one area. It’s amazing. You Yackira: We can’t do it like Southern can’t have conservation until you Nevada Warter Authority. We must have energy efficiency. For one, it’s expand our conservation measures so an educational process. We’re not that our customers see that we offer going to get there until we reach a programs that will reduce their bill. price point where people say, “We Residential customers don’t under- have got to do something.” That stand rates. What they understand is brings us back to my original state- their bills. So if there are things we ment. We are separate autonomous can do, whether it’s to promote ener- units, but we have to work together on gy audits that show customers to see these common goals. We must change how they are wasting energy, or the shape of how people utilize their through the PUC providing rebates to utility resources within the state. customers that change their air conditioning units to higher efficiency air Brennan: What types of restrictions for conditioning units. There’s a series of water conservation are implemented in things we have been able to do to con- the Northern part of the state? vince our customers that, yes, we really do want you to use less of the Foree: We have had twice a week wa- product. tering for a long time, probably 15 years now. That’s worked well for us. Brennan: It stands to reason that if Our total annual water consumption consumers use less, the utilities will has been fairly flat over the last sever- make less? al years, even with substantial growth due in part to customers switching to Yackira: We do, but the growth that we the metered rate and changing their see in this state is sufficient for us to water usage habits.

Continued on Page 65 32 May 2007 Industry Focus: Public Utilities

Continued From Page 32 and equipment out of Sweden and intake, but we will also have serious Aging Infrastructure France because we’re bordering the water quality problems. mountain and Lake Mead in eleva- Yackira: As a franchise electric utility, tion. If you can figure out what the Staffing Issues as a franchise gas utility, we have to static pressure is, we’re going down to serve everybody who comes into our the elevation of 60 feet, going through Yackira: Our average workforce age in area. We don’t have a choice. That the floor of Lake Mead and coming Nevada is 48 years. We have about means, we have to build assets to sup- up through intake. Lake Mead will be 3,200 employees throughout the state port growth. Whether it be installing a challenge and as the water level and recruiting people becomes more the distribution lines and setting the sinks, not only will we lose our first difficult, especially in Southern Nevada, meters for new housing tracts, or building long-distance transmission assets to import electricity, either from power plants we own or other power plants Ð it’s constant. For Nevada Power and Sierra Pacific Power combined, in order to hook-up customers, it costs nearly $350 million and that does not include any projects we have, like major transmission lines or major generation power plants. This year alone, we will spend about $1.3 billion. Shaw: Our goal is significant. We will experience capital expenditures in the next three years of $875 million in our state, which is substantial. We don’t have the situation which is similar to setting power plant transmission lines, but it’s much more gradual. We go into a subdivision that’s continu- ous to another subdivision, and you will extend a main out to that new subdivision. And we have models that determine how much we’re allowed to spend and put in the rate base. Any- thing above that, we are actually asking builders to contribute. Mulroy: We’re in the same position as Nevada Power. Virtually most of our systems blend. We have invested significant dollars over the years replac- ing all the old lines in downtown Las Vegas, and we did it over a period of eight to 10 years so we have very few old lines left. Traditionally around the country, water loss from the system lies between 10 to 15 percent. For us, it’s 3 to 5 percent Ð our water loss is negligible. I’m worried about the new infrastructure we have to build. In fact, we’re bringing in the expertise

May 2007 65 Industry Focus: Public Utilities

with so many similarly skilled em- when our skilled workforce retires. Climate Changes ployees needed for the growth we are Mulroy: I think part of the problem is experiencing. The cost of that labor that the universities and colleges aren’t Mulroy: We must work under the as- force has gone up, as well. We have producing students with those skill sets sumption that the climate is changing also seen an expectation for higher when they graduate. It is so difficult to Ð just to stay ahead in our industry. wages as we get more generation Y find someone in the sciences willing to Let’s assume we were wrong. We at employees into the workforce, and move to Southern Nevada. We’ve be- least have all the strategies in place. they demonstrate less of a desire to come very active with youth to try to You can’t assume that it’s not going to stay with a company for life and to encourage kids to start pursuing these happen. You have to assume that it is move up in the company. degrees. We have extensive summer going to happen. We have been fight- Shaw: We are always looking for en- programs and winter break programs, ing over water rights in the gineers and people with experience in both for high school students and uni- Shaw: Well, depending what you be- technology. They are just becoming versity students to see if we can spark lieve, I think you have to pay attention more of a scarce commodity. You that interest. to what’s happening. The fact of the don’t have as many graduates in these Yackira: We are starting a curriculum matter is that, whenever you have big fields. The increased cost of living has in Northern Nevada at UNR to devel- metropolitan areas, it is going to cre- also made it difficult for us to recruit op course work on renewable energy ate heat. So from my perspective, we people from out-of-state. to train renewable electrical engi- have to be mindful of that and of our Foree: Nearly 80 percent of our tech- neers. It’s been a very well received customers because, depending on nicians are going to be retiring within thought that is developing into a cur- how your rates are structured, your the next five years. We’re going to be riculum and will be starting by sum- uses go down. Based on this use, and faced with overstaffing for a few years mer of 2007. We’re hoping to con- if you have a new customer, it gets so that we can have people who will, vince UNLV to create something warmer. I agree we must prepare for hopefully, know what they are doing similar down here. any eventuality. We can’t react Ð we

MONTH COVER STORY FEATURE STORY BUILDING NEVADA INDUSTRY ROUNDTABLE

July RETAIL IN NEVADA Caring for Industrial Market Commercial Develop- Aging Parents ers Space: 05/25/07 What new trends are changing Materials: 06/01/07 the shopping scene? Special Report: SIOR Largest MOST RESPECTED CEOS High-Rise Lifestyles Telecommunications August Commercial Projects Find out which executives are Space: 06/26/07 considered the best in the state, Materials: 07/03/07 as ranked by their peers. Special Report: Healthcare Heroes

September EDUCATION OUTLOOK The Hispanic Market Tenant Improvements Bankers Space: 07/27/07 How are Nevada’s educational Materials: 08/03/07 institutions facing up to challenges? Special Report: Northern Nevada NAIOP

For more information or to reserve your ad space, call: 702-735-7003 ext. 6333 or download a media kit from www.nbj.com

66 May 2007 Industry Focus: Public Utilities

must be proactive. I’m all for con- future changes, and take them in power plants to replace the outdated serving every resource Ð whatever it stride. I mean, I don’t see why any of inefficient facilities. For the immedi- is. We shouldn’t consume any re- us would be so selfish as to cause fur- ate short-term, we need to maximize source without staying aware that all ther environmental damage just to efficiency. We can’t afford to wait for our resources are naturally finite. We save a couple of bucks. the politicians and special interest are all affected by a number of issues, Soderberg: The technology and sci- groups to finish their debates Ð we and climate is just one of them. ence are making leaps and bounds must set these actions in motion now, Yackira: Nobody would say that and renewable energy is on the hori- or we’re never going to get down the more carbon emissions are good. zon. However, until then, we need to road in 15 years and say, “We have But at present, that doesn’t mean we invest in modern fossil-fuel-burning accomplished this.” can shut down all the power plants in the U.S. or in Nevada because they use fossil fuels in order to produce electricity. However, one example of the progress we are making is the planned major coal-fired power plant in Eastern Nevada. At a cost of about $4 billion, the most daunting energy project that Nevada has undertaken since the building of Hoover Dam. There are things that we are doing to ensure that building that power plant makes it the clean- est, environmentally-friendly coal plant in the West. Renewable Energy

Shaw: Sometimes we hear the term renewable and the general customer may say, “Gee, that’s something that could be done for free or relatively inexpensive.” Well, that just isn’t the case. Renewable doesn’t necessarily mean inexpensive. As we move in that direction, it will require a huge investment to make the transition. We must find ways to educate and prepare the public for this eventual- ly Ð even if they don’t have the time or interest. Mulroy: It becomes a rate issue. Let’s be frank. When you look at utility rates in other nations, you’ll see that Americans are spoiled. As utility bills rise, if customers can learn to conserve and reduce consumption, the increases will have less impact. And if the utility companies educate the public and raise awareness, customers can learn to anticipate and plan for

May 2007 67 -AYVPDF0- Nevada Economic Development Advisory Board 4AKING#ARE/F"USINESS6ERSION-ARKSPDF0-

IT’S HIP TO BE SQUARE THE CHANGING FACE OF NEVADA’S ENGINEERS Wayne Horlacher, vice president of PBS&J; Jeff Codega, CEO of Jeff Codega Planning and Design; and Michael Holloway, managing principle of Poggeymeyer Design Group are some of the engineers facing the challenges of the changing industry. Building Nevada: The Changing Face of Nevada’s Engineers

t may not be sexy and it may not be glamorous, but a degree in engi- I neering is one of the most sought after entries into today’s job market. With fewer university students gradu- ating in the engineering disciplines, engineering firms are scrambling to fill their ranks with qualified personnel. “Our biggest issue is a shortage of talent,” explained Jeff Codega, president and CEO of Jeff Codega Plan- ning & Design Incorporated in Reno. Engineers from Las Vegas and Reno expressed their concerns about the manpower shortage more than a year ago during an Industry Focus Roundtable sponsored by Nevada Business Journal. “Everyone is strug- gling across this industry to find qualified staff because we have a shrinking supply of new talent,” said Dennis Walbel, while attending the Poggeymeyer Design Group added ground-mounted landscape gathering. Walbel is the managing to enhance the downtown entry corridor in Las Vegas. principal of the Las Vegas office of Carter & Burgess. Now, more than a year later, engineering firms continue to struggle with employment issues. While most engineers acknowledge that computer sci- ence degrees and MBAs attract many of the best and brightest engineering prospects, they admit that their profession can do a lot more to compete with the glitzy dotcom job market. Most firms aggressively recruit not only at the University of Nevada, Las Vegas (UNLV) and the University of Nevada, Reno (UNR), which both offer degrees in a variety of engineering disciplines, but at campuses all over the country. Nevada may be an attractive place to live for new graduates, but the rising cost of housing coupled with moderate starting salaries makes it increasingly tough to sell. “It’s complicated in Las Vegas because of the cost of living,” said Wayne Horlacher, vice-president of PBS&J in Las Vegas. “It’s a lot more difficult to recruit entry-level engineers.” One obvious solution to this particular issue would be to raise

72 May 2007 Building Nevada: The Changing Face of Nevada’s Engineers

salaries, but with overall construction within, similar to the method used by Toss That Slide Rule costs already on the rise, increasing most legal firms. He also believes that employee compensation is not easily an integrated, but efficient work envi- Aside from employment woes, like accomplished. ronment helps employee morale. The many other professionals, engineers Engineers also confess that their company is soon moving to a 14,000- have learned to embrace the whirl- somewhat geeky reputation doesn’t square-foot office facility in South wind of new technologies which has help to attract bright young people to Reno which will allow for expansion substantially changed the ways they the profession. To polish the engi- as well as improved functionality. “If perform their work over the past neer’s image, industry leaders are tak- you’ve earned a degree you merit an decade or so. “The biggest challenge ing advantage of outreach programs, office,” he said. has been updating and integrating the such as Clark County School Dis- trict’s Payback Program, to talk to young people about the attractiveness of a career in engineering. Most students are unaware, for example, of the diverse and immense impact that engineers have on our everyday lives. “Everybody knows what architects do, but nobody knows what engineers do,” said Brent Wright, CEO of Wright En- gineers. “Engineers are responsible for the buildings where we live and work, the transportation systems on which we travel and the delivery systems for the utilities we usually take for granted.” The profession offers a wide variety of specialties to choose from, such as architectural, chemical, civil, electrical, environmental, min- ing and transportation, to mention a few. With its profound influence on all levels of society, a career in engineering presents a stable and rewarding choice for today’s students. Attracting new talent is just part of the problem, however, according to Horlacher, whose firm was ranked as the second best U.S. engineering company to work for by CE News magazine a few years ago. Equally important is retaining employees after they are hired. PBS&J builds worker morale with monthly luncheons and social activities. “We’re a very closely- knit office,” Horlacher explained. The company also prides itself on being completely employee-owned. “We’ve created opportunities for all employees to purchase stock,” he adds. Codega builds cohesiveness in his 45-person company by developing partners from

May 2007 73 sophisticated technological advances Rules, Rules, Rules in the equipment now used to create our designs,” said Michael Holloway, Other challenges facing engineers Las Vegas-based managing principal include additional regulations that of the western region for Poggemeyer have piled up over the years, creating Design Group. “We used to use ink on review processes that can take linen, but now, the industry utilizes months, depending upon the project. CAD (Computer Aided Design).” Getting approval, however, requires Considering that technology enables more than just jumping through all engineers to produce a more accurate the appropriate design hoops. “We design with fewer man hours, the ad- spend less time designing and more vance is especially valuable in today’s time dealing with process issues, such tight employment market. “Each pro- as meeting with neighborhood ject is designed and drafted simulta- groups,” Codega said. “It’s a lot more neously which results in a better prod- work, and you have to be very politi- uct,” Horlacher said. Young people cally aware.” Engineers, along with entering the profession have little or architects and developers, must be no use for a slide rule now, but they much more sensitive with regard to must be comfortable with technology. how a project will fit into a master “Employees must continually in- plan and whether it will be accepted crease their technological savvy,” by the neighborhood. Everyone Horlacher said. “They have to design knows of controversial projects, such rather than just be drafters.” as the Lazy 8 Casino in Sparks, that While the tools of the engineering have caused vitriolic public meetings trade have changed with the advent and threats of litigation. Codega of computer technology, the overall agrees that for the most part, the review of projects in Nevada may also view processes are valuable, but be shifting, according to Codega. As laments the fact that they don’t al- the price of buildable land increases ways operate efficiently. “The and the availability of it decreases in processes are designed to make sure the state’s most populated areas, de- bad things don’t happen, but they velopers may turn to new urbanism should be designed to make sure good as an efficient way to utilize premi- things happen, as well,” he explained. um space. “It’s from the turn-of-the- To better educate the public about century where you lived on your current projects many design firms front porch with the car parked in maintain websites with updated infor- back and focus on the front,” Code- mation on them. ga explained. Used for urban infill As a specialist in water treatment as well as the creation of new neigh- and storage, Holloway has had to borhoods and villages, new urban- adapt to new regulations imposed ism emphasized walkability, since 9/11. “Homeland Security has connectivity and mixed-use appli- new rules on protecting water and cations. It promotes the use of trains wastewater treatment plants,” he said. and light-rail transportation rather To prevent unauthorized access to fa- than building more roads. With cilities, security gates have been housing, shops, entertainment and changed from those that swing to essential services in close proximity, those that slide. Security fencing and a sense of community is created cameras are also standard. Poggemey- rather than suburban sprawl. er recently completed work on the

74 May 2007 Water Pollution Control Facility in Las Vegas, a $100-million project that included expansion of the sludge de- watering building, filtration, di- gesters, laboratory and chlorina- tion/dechlorination facilities. Other regulations come into play as engineers design sustainable projects. “The big thing now is green,” Hol- loway said. Green or sustainable projects are designed to reduce the consumption of resources and/or to provide healthier more comfortable spaces where people can live, work and play. Resource conscious designs use native landscaping, reduce waste products, employ storm water filtration, optimize the use land, and promote the efficient consumption of renewable energy sources. Healthy design enhances indoor air quality, improves acoustics and utilizes natural light. Most leading design firms are LEED (Leadership in Energy and En- vironmental Design) certified or have people on staff who are. Certification is promoted by the U.S. Green Build- ing Council (USGBC). The Las Vegas Springs Preserve, a 180-acre parkland owned by the Las Vegas Valley Water District, is a quin- tessential example of environmentally sensitive development. Perpetuating and enhancing the native desert envi- rons, visitors to the preserve will enjoy gardens, museums and trails through the wetland habitat when it opens in June. The development also showcases sustainable design with photovoltaic cells that generate power for the preserve while also function- ing as shade structures. The Clark County Sport Shooting Park, now under construction north of Las Vegas, is another development planned around environmental impact concerns. The 2,900-acre park will be the largest of its kind in the country, providing a safe place for the public

May 2007 75 Building Nevada: The Changing Face of Nevada’s Engineers to practice the sport, as well as a long-range effects it might have on world-class site for international gun U.S. engineering firms. “There’s such shows. “Safety is a major concern,” a shortage (of employees) that some said Holloway whose firm is working people are resorting to outsourcing to on the project. “All the ranges will get the work done,” Codega said. With face north into the mountains and be engineers in other countries some- away from houses.” Great care is times working for as little as 10 per- being taken to protect archeological cent of the salaries that Americans sites that are on the property. earn, it’s also about the bottom line. Although some new regulations fre- Company managers can save as much quently give engineers headaches, the as 70 percent in net costs by using for- lack of others can also be a source of Poggeymeyer Design Group provided eign workers, which is difficult to ig- extreme angst. “The increased re- engineering services for the Water nore in an era of rising construction Pollution Control Facility in Las Vegas. quirements are a concern particularly costs. Along with the economic im- in the patterns of litigation,” Horlach- creative ways of financing projects, pact of lost jobs, however, is the fear er said. Engineers can be dragged into some are dipping their toes into pub- that this country will somehow lose its what many consider frivolous law- lic-private partnerships (PPPs) which creative competitive edge. The reality, suits when attorneys for homeowner pave the way for various types of col- according to Holloway, is that most associations cast a wide net to find laborations between public and pri- firms are sending repetitive drafting fault for design and construction mis- vate sectors. In some PPPs, the gov- jobs overseas while the creative design takes, for example. Engineers say it’s ernment provides investment capital work is still handled in-house. become a particularly thorny issue through tax revenues, and then runs “Among the things at which Ameri- with the proliferation of high-rise operations jointly with the private cans excel is their ability to innovate condominiums in Las Vegas. Large sector. In others, the private sector new ideas,” he said. “We’re still strong settlements have been awarded when makes the capital investment and in thinking outside the box.” Although defects in a single unit are multiplied agrees to provide the certain services. he said he’s just now considering out- by all the units in a project. “What’s The University of Nevada, Reno Re- sourcing for repetitive kinds of work, needed is residential defect legisla- newable Energy Center (UNR REC) Codega said his firm hasn’t used it in tion,” Horlacher said. Engineers sup- is being developed as a PPP with part- the past because their projects are so port legislation that would reduce the ners that include Truckee Meadows unique. He doesn’t believe that in the likelihood of baseless lawsuits, and Community College, the Desert Re- final analysis it’s a threat to U.S. engi- thus, decrease the liability and risk search Institute, the Regional Trans- neers because of the global economy. faced in many projects. portation Commission, Sierra Pacific “Ultimately things will even out, but it Power Company and Ormat Nevada will take some time,” he said. Follow the Money along with UNR. When completed at the Redfield Campus near the Steam- The Role of Education As a transportation expert, much of boat Springs geothermal area in South Horlacher’s frustration boils down to Reno, it will provide research, educa- While today’s engineers must be one word: money. “Our biggest chal- tion and outreach for renewable ener- nimble to be successful in our rapidly lenges are working with the sharp in- gy sources in Nevada. The $650 mil- changing world, the future of their crease in construction costs plus the lion Las Vegas Monorail, opened in profession will also depend to some funding shortfalls,” he explained. The 2004, is PPP financed by bonds issued degree on how educators decide stu- disparity between the two has caused a through the Nevada Department of dents should be trained. As a former reduction in the number of projects Business and Industry. The construc- university professor, Holloway ex- that can be developed, according to tion, management and operation have pressed concern about how some col- him. “The industry as a whole, and been contracted to Transit Systems leges have changed the number of particularly transportation, is looking Management LLC, a private entity credits required for a bachelor’s de- at different ways to finance,” he added. composed of Granite Construction gree from as many as 165 to as few as This is especially important in view of Company and Bombardier Transit. 115. “Education has been watered the fact that Gov. Gibbons has taken a Although outsourcing work to coun- down a bit over the years,” he said. strong stand against raising taxes. tries such as India is a hotly debated Some educators reason, however, that As developers explore more topic, the jury is still out regarding the because technology has made some

76 May 2007 Building Nevada: The Changing Face of Nevada’s Engineers

Public officials break ground last October on the Clark County Sport Shooting Park . From left to right, County Commissioner Tom Collins, City Councilman Steve Ross, Senator Harry Reid, Congresswoman Shelley Berkley, County Commissioner Rory Reid and County Manager Virginia Valentine. college courses obsolete, perhaps the creative and difficult to respond to the enthusiastic, he said he’s very selec- additional credits aren’t necessary in ever-changing challenges if you don’t tive in trying to recruit the best of the today’s world of work. On the flip love what you do. After 30 years in the best. The most important quality is a side, several engineering organiza- profession (which he said must add up devotion to the profession. “We’re tions, including the American Society to 60 because of all his 80-hour looking for people who have a passion of Civil Engineers, are pushing for weeks), Codega said he still loves his for what we do,” he emphasized. more education, specifically to require work. “I enjoy 99 percent of what I a master’s degree in order to be li- do,” he said. In the hopes that every- Jeanne Lauf Walpole is a freelance censed as an engineer. Although it one else in his firm will be just as writer based in Northern Nevada. would add prestige to the profession, many question the wisdom of such an action considering there’s already such a shortage of qualified personnel. Quick, Easy, Convenient & FREE “The more technologically advanced BUSINESS ADVANTAGE CHECKING we get, the higher the demand for qualified engineers is,” said Wright. FREE 300 processed items per month with no minimum balance requirement* Holloway worries that students Colonial Bank provides the right aren’t educated in the practical side of tools for business success with FREE Colonial Online Banking their profession, because many engi- with FREE Bill Pay neering professors lack experience in Business Advantage Checking the business world. “Professors un- FREE Business Check Card** derstand the academic end, but WE HAVE GREAT LOAN OPTIONS***, TOO they’ve turned into scientists or equa- Southern Nevada Northern Nevada tion pushers,” he explained. Holloway Las Vegas Reno/Sparks said one of the reasons he left acade- 2820 W. Charleston Blvd. (702) 258-9990 4999 Longley Lane (775) 823-7440 4640 South Fort Apache (702) 304-3770 2330 S. Virginia St. (775) 827-7200 mia was to experience the real world 7451 W. Lake Mead Blvd. (702) 254-3147 690 E. Prater Way (775) 355-6100 7000 North Durango Dr. (702) 258-5355 of engineering. To provide opportuni- 2555 South Rainbow Blvd. (702) 248-4141 Carson City 3625 W. Russell Road (702) 740-5666 ties for students to get valuable on- 901 N. Stewart St. (775) 687-2700 Henderson the-job involvement before heading 4299 E. Sunset Road (702) 435-9902 Fallon 200 S. Maine St. (775) 423-7081 out to their first full-time engineering 10565 S. Eastern Ave. (702) 263-5170 North Las Vegas Stateline positions, most engineering firms 2805 W. Centennial Parkway (702) 645-8480 229 Kingsbury Grade (775) 588-5124 support internship programs. Where the rubber undoubtedly meets the road, however, is instilling an enthusiasm and respect for the en- www.colonialbank.com • Member FDIC gineering profession. It’s hard to be *Processed items include checks paid,deposits,and deposited items.A charge of $0.20 per item over 300 is assessed.**No annual fee.Transactions at non-Colonial ATMs subject to activity fees.Additional charges may be imposed by non-Colonial financial institutions or ATM operators.***Some restrictions may apply.All loans products subject to credit approval.

May 2007 77 B UILDING NEVADA BRIEFS

Summerlin Hospital Undergoes Carson River Aquatic Trail $100 Million Expansion Moves Forward Summerlin Hospital recently an- The Carson River Aquatic Trail Mas- nounced plans for a $100 million ex- ter Plan recently received approval to pansion which will mark the largest proceed by the Carson City Board of expansion project to date in the hospi- Supervisors. The plan will improve tal’s history. In its 10 years of exis- areas of the Carson River, making it tence, the facility has grown from a safer and more accessible for white- Juhl, a mixed-use project located in downtown Las Vegas, will consist of six towers. 147-bed community hospital to a 281- water rafting, kayaking and fishing. bed medical center offering services “Whitewater river recreation is a ranging from pediatric intensive care rapidly growing activity in Northern Juhl Tops Off First Building in to open heart surgery. The tower ex- Nevada that attracts visitors and en- Downtown Las Vegas pansion includes a six-story patient hances the community’s quality of Juhl, a downtown Las Vegas mixed- tower that will house 170 additional life,” said Director Tim Maland of use development located at the private patient rooms, bringing the the Nevada Commission on Tourism. southeast corner of Bonneville Ave. total number of rooms to 450. The The Aquatic Trail plan calls for im- and Third St., recently announced project includes additional labor, de- provements along 13.7 miles of the the topping off of its mid-rise resi- livery and recovery (LDR) suites, an- Carson River in Carson City and dential building. The milestone tepartum and postpartum suites and Lyon County. The next step will be marks the first topping off for the new beds. In addition, the expansion to seek funding for the project, six-building condominium and retail will more than double the size of the which is expected to come from a project. The mixed-use development hospital’s busy ER, where it will add $200 million statewide voter-passed will consist of six towers, ranging 30 more beds and treatment areas. bond that earmarked $2.5 million for from six to 15 stories and 24,000 Groundbreaking for the tower expan- Carson River improvements in Car- square feet of dedicated retail space. sion is scheduled for winter 2007 and son City. The Aquatic Trail plan is Juhl residences range in size from the ER expansion is scheduled to estimated to cost nearly $878,000. 600 square feet to 2,500 square feet break ground in late spring 2007. and offer studios, as well as street- New Office/Retail Center level shopkeeper units. The $180 KB Home Opens First Scheduled for Mesquite million project is being developed Luxury Estates Town and Country Village Plaza, a by CityMark Development, a San La Vita at Seven Hills, KB Home’s first new office/retail center located in Diego-based firm. luxury estates in the nation, recently Mesquite, was recently awarded to opened at the Henderson master- TWC Construction, Inc. The new McCarran Rent-A-Car Center planned community. The development center will be comprised of two Creates Easy Airport Access offers six floor plans ranging in size wood-framed buildings, one is one- The $166.8 million McCarran Rent- from 4,000 square feet to 8,500 square story and the other is three-story, to- A-Car Center, located at the corner feet, price, from $1.4 million to more taling 86,617 square feet. It will be of Warm Springs Rd. and Gilespie than $2 million. With 33 home sites located on Pioneer Blvd. “Escalating St., recently opened to the public. spanning across 20 acres, homebuyers land prices in Las Vegas have The 68-acre site is near the Strip, In- will choose from lots that vary in size prompted many of our clients to con- terstate 15 and the Las Vegas Belt- from one-quarter acre to more than sider development out of town, espe- way. McCarren Rent-A-Car Center’s one-half acre. La Vita at Seven Hills cially in a high growth area as consolidated location eliminates the will also have scenic parks and trail Mesquite,” said Matthew Ryba, CEO need for each rental car company to systems, as well as athletic facilities, of TWC Construction, Inc. The pro- operate its own fleet of shuttles. In- including tennis, volleyball and basket- ject is scheduled for completion in stead, travelers will be carried to and ball courts. fourth quarter of 2007. from terminals by a shuttle.

78 May 2007 AT THE TOP

Commercial Real Estate Report

INDUSTRIAL– 4th Quarter 2006 Sansone Companies TOTALMARKET Las Vegas Reno Building People-Friendly Communities Total Square Feet 19,509,660 62,675,335 Vacant Square Feet 446,137 3,402,676 Percent Vacant 2.3% 5.4% ansone Companies, located Sansone Companies supports the New Construction 0 383,002 in Las Vegas, specializes in concept of co-tenancy Ð leasing to the Net Absorption -28,837 413,199 the development of profes- upper-floor office space to a quality S Average Lease sf/mo (nnn) $0.88 $0.33 sional office, retail, indus- professional tenant, while the space Under Construction 1,208,828 1,468,000 trial and multi-family properties, as well below is leased to a high-end retailer, Planned 888,072 5,847,769 as their property management services. according to Sansone. “We are utiliz- DISTRIBUTION One factor that distinguishes Sansone ing co-tenancy in our developments,” Total Square Feet 56,037,237 na Companies from other development Sansone said, “And in our condos, as Vacant Square Feet 1,709,680 na companies is its commitment to long- well. We build condos with grocery Percent Vacant 3.1% na term tenancy through practical and aes- shopping, banking, eateries, etc., New Construction 647,221 na thetic values, according to Sansone conveniently located within easy Companies’ president, Roland Sansone. walking distance for condominium Net Absorption 931,857 na sf/mo (nnn) “We have won the Economic Devel- residents. These developments are Average Lease $0.66 na opment Award three years in a row,” kind of like small communities. This Under Construction 5,317,410 na Sansone said. “The city council likes allows people to pursue a lifestyle re- Planned 4,580,744 na what we do. Our properties enhance moved from the stresses of traffic FLEX their neighborhoods.” The company jams and skyrocketing fuel prices. It Total Square Feet 11,878,166 na prides itself on architecture, lighting and makes for a better quality of life.” Vacant Square Feet 583,776 na the fact that all aspects of their designs According to Sansone, the surviv- Percent Vacant 4.9% na create an aesthetic balance. “Aesthetics ability of tenants is very important. New Construction 0 na are important to us,” Sansone said. Keeping tenants happy is a key fac- Net Absorption 31,725 na The company, founded in 1978 by tor in the company’s success. Taking Average Lease sf/mo (nnn) $1.05 na Roland Sansone, utilizes the diverse into consideration parking, visibili- Under Construction 248,651 na skills of several family members at ty, access and location all are critical Planned 192,165 na its core structure, according to San- to keeping tenants satisfied and R&D

sone. Among these key corporate of- maintaining occupancy over the Total Square Feet 476,018 na ficers are Sansone’s two sons, long term. Vacant Square Feet 0 na Devon and Miles, who are in charge More mixed-use developments are Percent Vacant 0.0% na of construction and development, as on the horizon for Sansone Compa- New Construction 0 na well as his sister, Yvonne, who nies. “Today, people’s lives are very Net Absorption 4,583 na works in the leasing department. busy and complicated. We don’t Average Lease sf/mo (nnn) n/a na Another aspect of the company that have a lot of time. We jealously Under Construction 51,040 na allows it to price competitively while guard our free time with our loved 0 na maintaining high standards of quality is ones and don’t want to waste time Planned the fact that Sansone Companies hires getting to the grocery store,” San- Next Month: OFFICE its contractors and subcontractors in- sone said. “In fact, our mixed-use ABBREVIATION KEY stead of keeping their own in-house. projects have been so well-received, MGFS: Modified Gross Full-Service “We hire the contractors to afford us we plan to continue building this SF/MO: Square Foot Per Month the flexibility to ensure, if something’s type of development.” NNN: Net Net Net not working, we can change it,” Southern Nevada statistics compiled by Sansone said. “We hire the best, quali- Susan Botich is a freelance writer Applied Analysis. fied contractors for the job.” based in Northern Nevada Northern Nevada statistics compiled by Alliance Commercial Real Estate Brokerage.

May 2007 79 NEVADA BRIEFS

Nevada’s Infrastructure Nevada State College Hurting Quality of Life Increasing Southern Nevada’s The American Society of Civil Engi- Nursing Workforce neers (ASCE) Nevada Section recent- To combat Nevada’s nursing shortage, ly released the 2007 Nevada Infra- the Nevada System of Higher Educa- structure Report Card assigning a tion (NSHE) has made it its mission cumulative grade of C to the state’s to increase Southern Nevada’s nurs- roads, airports, drinking water sys- ing enrollment. Nevada State College Western Alliance and First tems and other essential public already enrolls 550 pre-nursing and Independent Merger Complete works. The 2007 Nevada Infrastruc- nursing students in its undergraduate Western Alliance Bancorporation re- ture Report Card assesses eight infra- program. As of March 2004, Nevada cently announced the completion of structure categories. The grades employed 604 nurses for every its merger with First Independent range from a high of B-plus for 100,000 residents – only California’s Capital of Nevada. Privately held wastewater systems to a low of D- ratio was worse at 590 nurses per First Independent Capital owns First minus for drinking water supply. To every 100,000 people Ð according to Independent Bank of Nevada. The remedy the state’s current looming the U.S. Department of Health and Bank, which is headquartered in problems, ASCE estimates an invest- Human Services. If this trend contin- Reno, will retain its current name, ment in excess of $5 billion will be ues, the United States’ nursing short- management and board of directors. needed over a five-year period from age is expected to grow to a 36 per- First Independent had assets of $428 all levels of government and the pri- cent demand shortfall by 2020. NSHE million, deposits of $386 million, vate sector. From 1990 to 2003, officials are already implementing loans of $285 million and equity Nevada experienced a 92 percent strategies to combat those projections capital of $31.8 million as of De- growth rate, distinguishing it as the and have seen a 176 percent increase cember 31, 2006. To consummate fastest growing state in the nation. in enrollment in its undergraduate the merger, Western Alliance issued nursing programs since its base year approximately 2.5 million shares of TREC Investment Realty Unveils in 2000-2001. its common stock and paid approxi- New Whole Property Program mately $21.9 million in cash to First TREC Investment Realty, providers The Shops in Desert Passage Independent shareholders. of commercial real estate invest- Become Miracle Mile Shops ment opportunities, recently an- The Shops in Desert Passage at the Silver State Bancorp Files nounced a new option for investors Aladdin recently began operating as Registration for Public Offering called the Whole Property program. Miracle Mile Shops. The designa- Silver State Bancorp recently an- The program was created in re- tion, assigned in part to promote the nounced that it has filed a registration sponse to a growing market demand 1.2 miles of retail space the mall statement with the Securities and Ex- for turn-key, sole-ownership proper- covers, signals the center’s transfor- change Commission relating to the ty investments. It offers an alterna- mation to a more urbanized space. proposed initial offering of its com- tive to TREC’s 1031 exchange solu- The renovation and re-branding of mon stock. All shares of the common tions for tenant in common (TIC) or the Aladdin Resort & Casino to the stock are to be sold in the offering co-ownership programs, which pro- Planet Hollywood Resort & Casino and will be offered by Silver State vides investors with a convenient will cost more than $1 billion. Bancorp. The company is seeking to method to own institutional grade Gensler of Nevada, the Friedmutter raise net proceeds of approximately commercial properties. The pro- Group and Studio B Design are the $80 million. Sandler O’Neill & Part- gram is ideal for real estate in- architecture firms. Flagship Con- ners, L.P. will act as lead underwriter vestors and exchange buyers in struction Co. is the general contrac- for the offering and Howe Barnes search of well-located properties tor. The renovation is scheduled for Hoefer & Arnett, will act as co-un- with stable cash flow. completion in 2008. derwriter for the offering.

80 May 2007 Law Firm Takes On High-Stakes, High-Litigation Cases with Extensive Experience, Knowledge and Resources Grant Sawyer State Office Building

s Nevada, and Las Vegas in further strengthened Armstrong Teasdale’s scheduled to begin. While resolving the case particular, has grown so rapidly commitment to serving the Nevada market. through an out-of-court settlement is the over the previous two decades, “While Senn Meulemans already had goal, the case will proceed to trial in January A so has its legal climate. With a Reno office, Armstrong Teasdale wanted 2008 if a settlement is not reached. that comes high-stakes, high-litigation to solidify its presence in Nevada by With multiple offices and hundreds matters. Armstrong Teasdale, a law firm adding to its team of attorneys based in of attorneys, Armstrong Teasdale offers headquartered in St. Louis, Missouri, saw the state. In addition, Armstrong Teasdale services in more than three-dozen the legal climate changing and felt confi- wanted to bring its experience, knowledge practice areas. While the firm has the dent they had the attorneys and the and resources especially as it relates to resources and expertise in virtually any resources to meet the ever-growing legal high-stakes, high-litigation cases,” business legal matter, there is nothing challenges Nevada is facing with this explained Richard G. Campbell, Jr., firm like having a presence locally when continued growth. What is the story behind partner in the Reno office. “Both Arm- performing client work. the firm that is handling high-stakes, high- strong Teasdale and Senn Meulemans litigation cases that impact Nevadan already had strong construction defect businesses and citizens’ tax dollars? departments, but the joining of the two For more than a century, Armstrong firms bolstered their ability to serve clients Teasdale has offered sophisticated legal in Nevada. The Grant Sawyer State Office For more information about advice to clients. The firm’s focus has Building is a great example. It’s a case Armstrong Teasdale visit: always been providing legal solutions at the involving over $10 million in damages.” www.armstrongteasdale.com local level. To maintain this promise to For nearly three years, Campbell and clients, the firm has grown to include more his team have worked on the construction LAS VEGAS OFFICE than 265 attorneys, and eleven national and defect case for the Grant Sawyer State Of- O. Kirby Colson, III international offices, each one servicing fice Building in Las Vegas. The building 1635 Village Center Circle, Suite 170 clients locally. Armstrong Teasdale serves allegedly has defective tile covering the Las Vegas, NV 89134 Nevada clients through its attorneys working building’s exterior, creating life safety 702-678-5070 locally in its Las Vegas and Reno offices. issues. Though the building is less than ten The firm established a Nevada presence years old, a number of tiles have fallen off. RENO OFFICE in 2005. Last year, the firm was joined by the The building has been covered with Richard G. Campbell, Jr. attorneys of Senn Meulemans, a San Francis- scaffolding while repairs have been made 50 West Liberty, Suite 590 co-based law firm with a reputation for while workers within the building have been Reno, NV 89501 handling significant construction defect able to continue to work. Work is scheduled 775-322-7400 cases on the West Coast. The “marriage” to end this summer, right when mediation is

NEVADA BUSINESS JOURNAL ADVERTORIAL SPEAKING FOR NEVADA

What is being done to ensure Nevada has renewable energy resources? Renewable Portfolio Standard Rebecca Wagner, Public Utilities Commissioner

evada is blessed with The Nevada Solar One facility is Net metering is a system that al- abundant renewable ener- located in Boulder City. When com- lows those who contribute electricity N gy resources Ð particularly pleted, it will be the third largest to the grid from small generation solar and geothermal. Rec- solar power plant in the world. systems to have their monthly power ognizing the potential for the devel- Nevada Solar One will be capable of bills reduced according to their con- opment of these indigenous re- generating 64 megawatts of electric- tributions to the grid. This system sources, state lawmakers enacted the ity by heating tubes of liquid which has been implemented by the Neva- first Renewable Portfolio Standard run atop parabolic troughs. This da Legislature in order to encourage (RPS) a decade ago. After several project will produce enough elec- the development of renewable gen- years of modifying and improving the tricity to power approximately eration systems on a small scale so RPS, Nevada now has one of the most 40,000 homes. that the financial benefits of clean aggressive standards in the nation. The Solar Star Nellis Air Force energy generation can be had by Under the RPS, Nevada Power Base project also represents an im- those who directly contribute to the Company and Sierra Pacific Power pressive achievement in solar power power grid. Company are required to purchase or generation for Nevada. The project The Green Power Program is a acquire a certain percentage of renew- consists of a single-axis-tracking partnership between the Desert Re- able resources out of the total amount photovoltaic array which will be ca- search Institute and the utilities of energy supplied to their customers. pable of generating up to 18 funded by utility customers who vol- Additionally, the RPS contains a pro- megawatts of peak electricity. untarily add a few dollars to their vision that 5 percent of the require- In addition to utility-scale devel- utility bills each month. The pro- ment must come from solar energy. In opment of renewable resources, a gram focuses on education as a vehi- 2005, the RPS was further modified number of programs have been de- cle for the development of renew- to allow the utilities to utilize energy signed to encourage individual ables. This is accomplished by efficiency measures to help meet a customers to invest in renewable pairing the installation of photo- portion of their portfolio. The utilities energy systems for their homes, voltaic solar systems on K-12 must achieve 20 percent of their total businesses, public buildings and schools throughout Nevada with the sales from renewable energy and en- schools. education of the children who attend ergy efficiency measures by 2015. SolarGenerations is a project spon- those schools about the systems. Prior to the creation of the RPS, sored by the Nevada utilities which With these projects and programs, there were approximately 80 encourages the installation of photo- it is clear that the shrewd foresight megawatts of geothermal power plants voltaic systems on a small but broad of Nevada’s citizens to aggressively were operating in Northern Nevada. scale. The program is designed for invest in clean, renewable energy By 2009, that number is expected to homes, businesses, public buildings early is paying off in terms of the more than double. While a large por- and schools. Through a rebate pro- benefits of renewable energy sys- tion of renewable development is at- gram, customers are able to harness tems. With continued emphasis and tributed to geothermal power plants, solar energy to reduce both the cost investment in power generation Nevada has two new utility-scale solar of electricity seen on monthly bills using the clean resources at our dis- facilities that will begin commercial and the consumption of fossil fuels posal, Nevada’s future will indeed operations this year. by the utilities. be bright and clean.

82 May 2007 INSIDE POLITICS

The Game of Politics Which Party Will Win?

n sports, a team is really who could fill important political posi- date’s name is in the paper daily be- only as good as it’s bench tions, including the seat a heartbeat cause he or she broke ethics laws, that I – the players who don’t away from the governor’s office Ð the kind of negative name identity will not start, but come in to fill lieutenant governor. However, Repub- be helpful in a political campaign. key roles at crunch time, or who even- licans might have to move up another So while Democrats appear to have tually become starters when veteran step to be as well-positioned as their a distinct advantage as we look to fu- players retire or move on. Democratic counterparts. ture statewide races, the Republicans The same is true in politics. A po- Winning a statewide race and hav- will have to be smarter and more ag- litical party, in any state, is only as ing your name in front of the entire gressive in order to win back seats or strong as the quality of the members voting population in Nevada creates make a significant political statement it has in down-ballot positions Ð of- an important advantage. Descent in Nevada politics. fices that aren’t the most important, name identification means that candi- but give a young or inexperienced dates don’t have to spend as much of Michael Sullivan is president of politician time to learn the ropes and their political war chest to gain recog- Knight Consulting, a Nevada govern- get prepared for higher, more presti- nition. They can concentrate on the ment affairs firm. gious offices. message Ð the reason voters should The Democrats in Nevada took a choose them over their competition. huge step towards developing an ef- For example, a state senator who fective farm team this past election typically represents a district of per- year, when they nabbed the attorney haps 50,000 voters, might have a Fearless? general, secretary of state, treasurer harder time challenging an attorney ©2007 HUTCHISON & STEFFEN and controller’s offices. Any one of general, whose name is already famil- these offices could be an effective iar to Nevada voters. A significant stepping stone in the future for any amount of the senator’s early cam- office, from governor to U.S. Con- paign funds will have to be spent edu- gress to U.S. Senate. cating voters and letting them know In addition, the Nevada assembly the senator’s name and record. The at- speaker and majority leader positions torney general will not have to waste are held by younger Democrats who that initial money, and can go right to ...check. could easily vie for statewide offices the issues. in the future. In local government, the Obviously other factors can change head of the powerful Clark County that dynamic, including scandals, eth- Commission is also a Democrat and ical transgressions or any negative fac- has a very influential father, who hap- tors that can give the candidate with pens to be one of the most powerful less name identification a fighting men in the entire country. chance. And that chance might be fur- Does this mean the Republican ther improved if the opponent receives Party in Nevada should close shop and negative press from the free media concede the future to the more power- (television, newspapers and radio). ful Democratic leaders? Of course not. The saying, “any PR is good PR,” is The GOP has many bright young stars not always true in politics. If candi-

May 2007 83 by Michelle Danks COMPASSIONATE CAPITALISM

Horses for Heroes, Inc. Allison Knott, founder of Horses for Heroes, carries the flag during its kick-off in November. Befriending Children of War

ounded by Southern their kids because they are so worried work at the barn, without sacrificing Nevada teen Allison about getting killed or if they are their time and love for their horses. F Knott, an equestrian, being taken care of. For the parents Student volunteers help by brushing Horses for Heroes, Inc. in- that worry about their kids, this orga- and saddling the horses, warming troduces the wonder and love of hors- nization may help. They will know them up, assisting with lessons, cool- es and horseback riding to the children that their kids are enjoying themselves ing down and unsaddling. of the men and women in our commu- and maybe aren’t thinking about the Since its founding Horses for Heroes nity who do so much for us every day war and the welfare of their parents. has worked with Southern Nevada po- … police officers, firemen, active duty Since they are worrying less about lice forces, firefighters, school district military, special needs teachers, hos- their kids it will help them fight better and Nellis AFB toward the goal of of- pice nurses and other heroes within and give them a better chance at stay- fering discounted lessons. In addition, our communities. ing alive. Now, Horses for Heroes is Horses for Heroes continues to meet With the help of family and friends, helping protect our country.” with barns, trainers and riding stables Allison began laying the groundwork By agreeing to participate in Horses in Las Vegas to create a network of for Horses for Heroes by encouraging for Heroes, barn owners, trainers or participating equestrian facilities. friends in the horse community to riding instructors, agree to offer pri- While the program was launched in offer deeply discounted lessons, day- vate, semi-private or group lessons at a Las Vegas, Horses for Heroes plans to long horse camps and clinics for the price well below the cost of a begin- expand its network to include barns children of these heroes. Children ner’s lesson. and equestrian training facilities ages five to 15 are welcomed into the To introduce new Horses for Heroes across the country. The organization program regardless of their parents’ riders, member barns are asked to hold will work closely with AQHA, APHA, ability to pay. Fees and scheduling for a play day or mini-camp as an orienta- PtHA, and other national horse associ- lessons, clinics and camps can differ tion session. Lessons Ð private, semi- ations and their youth groups. from barn to barn. private or group Ð can be arranged As a not-for-profit organization Recently, Horses for Heroes re- from those who attend a session and Horses for Heroes, Inc. can accept do- ceived an anonymous email. The expressed sufficient interest in taking nations of feed, tack, helmets and hors- sender writes: “Children that have par- lessons. Sponsors may underwrite the es, as well as cash donations. Eventu- ents deployed might need a friend. costs of these camps. ally, the organization hopes to be in a There are some good friends and there As an additional community service, position to accept the donation of are bad friends, but the best friend in Horses for Heroes recommends that “school” horses for its programs. the world is a horse. Horses can listen the barn owner and/or trainer use expe- to you and really make you happy if rienced teenage volunteers, when prac- For more information on Horses you are down. Some kids may have a tical, to assist with the program. Many for Heroes call The Diamond K hole in their heart where the parents school programs, churches, clubs and Ranch, which has donated office are and the horse could fill that hole colleges encourage and/or require space, or The PR Group, a Las with the horse’s love.” community service hours. Horses for Vegas-based public relations firm, “For those parents who are de- Heroes provides an avenue for young which is donating its services to the ployed, they might not worry about riders to do their community service organization at 702-646-8470.

84 May 2007 by Michelle Danks T ECH PAGE

Blogging for Business Why should businesses care about blogs?

here has been a lot of talk value through their capacity to link. from competitors, they also offer a about blogs lately. Politi- Companies will find online conversa- way for companies to better under- T cians and businesses alike tions based around what their company stand their customers. Blogs are a are entering the blogos- has to offer. One blogger links to anoth- chance to establish ongoing dialogues phere at a surprising rate. Why? Cur- er blogger because he or she finds value with customers, and receive useful rently, more than 57 million American in what the other has to say. This feedback that empowers a business to adults read blogs. For many years, the progress continues until multiple blog- continually improve. blog Ð a term coined by contracting gers and websites are linked back to the Blogging requires a time commit- “web log” Ð was conduit for personal original creator of that content. ment, and is not for everyone. Blog- expression by individuals who opened ging offers a powerful tool for attract- on a wide range of topics. Blogs did not Differentiation and ing new business, creating loyal appear to offer real application for busi- Demonstration of Expertise customers, and developing a deeper ness. This popular misconception has Consider for a moment that a poten- understanding of what can make your since been discredited. Blogs are in tial customer is shopping online for a company even more successful. fact, websites. They are hosted on a particular product or service. The cus- server, built on the same programming tomer types in specific keywords and Robert Payne is the marketing manag- languages, and most importantly, in- several competitors appear in the er for Twelve Horses, a marketing and dexed by major search engines like search results. By clicking through the messaging company in Reno. Google and Yahoo. The significant dif- websites, potential customers can ana- ference is that blogs give businesses a lyze products and services offered, as personal voice, and can be built and well as price, benefits and presentation. launched for far less money than it They repeatedly return to the search re- takes to build a website. sults to compare one competitor’s products against the others listed. After Experienced? The Power of Search a few more click-throughs, the poten- ©2007 HUTCHISON & STEFFEN Internet penetration has now reached tial customer has likely been unable to 73 percent of all American adults, ac- find any distinguishing differences. cording to Pew Internet, which is an au- But then, they find your company’s thoritative source on the evolution of blog, which demonstrates a personali- the Internet. Internet users search for ty with a voice and a willingness to products and services by entering spe- share information to further empower cific keywords into search engines. customers to make the right decision ...yup. These keywords produce immediate re- about what they want to buy. Instead of sults that introduce users to many dif- representing an impenetrable and im- ferent companies vying for business. personal corporation with no direct connection with its customers, your Search Engine Optimization company is viewed as a personable Search engines place a significant and interactive business that actively amount of importance upon fresh, key- seeks to engage customers. word-rich content, and the more rele- vant the content that businesses put on- Bringing Businesses and line, the better. Blogging software helps Customers Together publish this information easily and fre- Blogs not only help with search en- quently. Search engines also create gine optimization and differentiation

May 2007 85 EXPERT ADVICE

Here’s to You Mrs. Robinson: Global Trade is the New “Plastics”

have one word for you Ð spectively, Japan and Mexico round FDI is an under-utilized business plastics,” was the advice out Nevada’s top five export markets. development tool. People immedi- I given young Benjamin The agency has an innovative Inter- ately think of investing overseas for Braddock in the classic national Trade Representative Pro- the cost-efficient production of a film The Graduate. Some forty gram available to consult with busi- product. We like to think in terms of years later, the advice should be ness owners considering branching reversing the revenue flow by di- “global trade.” into global trade. Trade representa- recting foreign investment to the The Nevada Commission on Eco- tives help locate new markets for the U.S, and more specifically, Nevada, nomic Development (NCED) is your products of resident companies and to grow and diversify the state’s global trade partner. The agency’s advise Nevadans of business opportu- business opportunities. Global Trade and Investment Office nities in other countries. Their goal is NCED also houses the Office of assists Nevada businesses to begin or to match interested parties with Diplomatic Relations and Protocol expand trade activities in internation- promising pportunities. to help Nevada businesses gain an al markets and attracts foreign direct This award-winning program pro- edge in the global marketplace by investment (FDI) to the state. vides international representation for providing an awareness of the so- According to data just released by Nevada without incurring the associ- cial, political and cultural aspects of the U.S. Department of Commerce, ated major expenses of traditional doing business in a foreign country. exports from Nevada in 2006 reached trade offices. Presently, Nevada has Nevada has one of the fastest grow- a record $5.49 billion, marking the representation in the following na- ing Consular Corps with 19 coun- fifth consecutive year of record ex- tions and/or areas: Italy, Great tries appointing Honorary Consuls port growth for the Silver State. Britain, Mexico, Japan, China Ð Bei- to Nevada. Like the trade representa- NCED’s Global Trade Office pro- jing, China Ð Hong Kong and Singa- tives, the Honorary Consuls lead vides export readiness seminars and pore. NCED conducts extensive back- trade delegations and facilitate busi- conducts trade missions to assist ground investigations for the best ness meetings between local compa- Nevada’s companies to expand their assurances possible that, in each case, nies and foreign dignitaries. marketplace. the trade representatives are credible. Companies or individuals looking The largest category of export prod- During the week of May 23, 2007, for information or assistance attract- ucts for Nevada is precious metals, several of NCED’s trade representa- ing FDI or doing business abroad primarily gold. The next six largest tives will be holding meetings in Las should contact the Nevada Commis- product categories are: electric ma- Vegas and Reno to discuss ways sion on Economic Development at chinery, toys, games, sporting equip- make their efforts more productive. (800) 336-1600 or visit the website ment, industrial machinery and ores. The timing of this series of meetings www.expand2Nevada.com. The state’s top three export mar- will also provide an opportunity for kets, Switzerland, Canada and Nevada businesses to meet with these Tim Rubald is the executive director of Greater China (including Hong Kong representatives and gather insights the Nevada Commission on Economic and Macau), showed increases of 46 and information related to FDI and Development, a state agency. percent, 24 percent and 58 percent re- international trade.

86 May 2007 VITAL SIGNS

Rising Healthcare Costs Hurting Pockets of Businesses and Individuals he business community is Today, an alarming number of Amer- sure on candidates to make health and up against the wall. Predic- icans are unable to afford health insur- financial security the top domestic is- T tions are that the average ance Ð not just the poor, but the middle- sues in 2008. To achieve this, AARP Fortune 500 Company will class is increasingly affected, as well as has joined forces with businesses and spend as much on employee healthcare premiums, deductibles and co-pays labor unions, and will add a broad spec- benefits as it makes in profits by 2008. continue to climb, so too, swell the trum of other groups to see this through. General Motors (GM) already spends ranks of the uninsured. Too many have Americans have an enormous oppor- more on healthcare than it spends on trouble paying their medical bills; too tunity to compel the nation’s leaders to steel. We’re losing our edge to global many have gone bankrupt trying; and, work out commonsense, bipartisan so- competitors in countries with lower consequently, too many skip needed lutions so that everyone has access to costs and universal healthcare services. treatment, tests or prescriptions. affordable quality healthcare. GM’s story is instructive. In testimo- The American Association of Retired For more information about AARP’s ny before the U.S. Senate Special Com- Persons (AARP) believes that afford- lobbying efforts on this and other is- mittee on Aging this past July, Richard able, high-quality healthcare should be sues, visit www.dividedwefail.org. Wagoner, chairman and CEO of Gener- available to all Americans. Our nation al Motors, stated that GM spent $5.3 must find a way to improve the quality Carla Sloan is the Nevada State Direc- billion for employee healthcare cover- of care, excise wasteful practices, and tor of AARP. age in 2005. And it’s not just GM. In a focus its resources where they are most business roundtable survey of member effective in order to provide value for CEOs, 58 percent cited rising health- each healthcare dollar. care costs as the greatest pressure point America is reaching its tipping for their businesses. point. Businesses, workers and retirees Tenacious?

Small businesses are also feeling the are worried about the growing cost of ©2007 HUTCHISON & STEFFEN pinch. While premiums rose 7 percent healthcare. People are concerned about between 2005 and 2006 in firms with the future for their children and grand- more than 200 employees, they jumped children. It’s not too late to turn the 8.8 percent across firms with fewer than tide, if we begin addressing these is- 200 workers. The share of small em- sues now. AARP has launched the ployers offering health insurance to most ambitious campaign in the orga- their workers fell to 60 percent from 68 nization’s history called, “Divided We percent between 2000 and 2006. Fail,” because accomplishing the goal ...oh yeah. Among the smallest employers, the of affordable quality healthcare and fi- offer rate is even lower, 48 percent in nancial security for all will require the firms with three to nine workers. efforts of everyone. Americans spent nearly $2 trillion on AARP is building a strong network healthcare last year Ð more than $6,000 of coalitions to help spread the word for every man, woman and child. That’s and reach unprecedented numbers of far more than any other industrialized people. Getting there is going to take country, and costs continue to grow at the concerted efforts of every sector Ð more than twice the general inflation health, business, government and indi- rate. Yet, we rank well behind other ad- viduals, too. AARP will be engaging its vanced societies in life expectancy and members and the public to press for infant mortality. change. The organization will put pres-

May 2007 87 by Michelle Danks MONEY MANAGEMENT

Choosing a Private Wealth Manager: Where to Start

n an economy such as the managers are generally those who This philosophical investment out- one Nevada has enjoyed have already accumulated their capi- look should also agree with your own, I for more than two tal, such as successful business owners as you must be comfortable with and decades, local individuals and individuals with large inheri- trust your manager’s abilities. have accumulated large amounts of tances. The minimum requirement personal wealth and continue to accu- when hiring a wealth manager is often Formal Education mulate even more. Now, Nevadans are $1 million, because the main goal is Not all private wealth managers looking to professionals to help them not to make someone rich but to plan have the same educational back- preserve and cultivate that wealth. for the future. ground. Some have master’s degrees The process of selecting an individ- In Nevada, only a handful of com- in business administration and some ual to manage your wealth should be panies specialize in private wealth are chartered financial analysts given careful thought and considera- management. Once you are in the and/or certified public accountants. tion. Your wealth manager will be as- market for a private wealth manager, sisting you in making decisions that not thoroughly examine and weigh all as- Talk to the Decision-Maker only affect you, but your family, your pects of any potential manager to en- Be aware that the person with future generations and any philanthrop- sure you meet your best match Ð the whom you initially speak may be a ic measures you wish to carry on. company and/or individual who best salesperson. Ask whether this indi- Therefore, it is important to know what understands your situation and is able vidual will be making key deci- to look for when hiring someone to to meet your financial goals. Here are sions on your behalf. Before choos- manage your wealth. some tips to keep in mind when hiring ing a company to manage your A common misconception is that a private wealth manager. capital, make sure you have face private wealth managers handle the time with the final decision-maker same responsibilities as financial ad- Track Record for your account. visors. In reality, private wealth man- The person you choose to manage agers provide more comprehensive your personal wealth must possess an Payment Setup and highly customized services to extensive education and employment A legitimate private wealth manage- high-net-worth individuals. background in this type of work. Fur- ment company only earns revenue Private wealth managers do not thermore, the company he/she works for from fees, not products, and does not focus solely on one aspect of the fi- must be specialized in private wealth outsource services. nancial scope, such as mutual funds, management, preferably over a lengthy The most important thing to re- but look at clients’ visions as a whole period of time. Make sure the private member when hiring a private and create a process that takes into ac- wealth manager you ultimately choose wealth manager is to find an individ- count the entire financial picture and has a long and reputable track record, ual in whose ability, integrity and how best to meet those goals. These and can prove his/her capabilities. clarity you can trust to keep your fi- practices may encapsulate a variety of nancial goals in focus. measures including asset allocation Compliant with Company Philosophy and diversification, tax efficiency, es- The individual who will handle Ted Schlazer is first vice president and tate planning, family offices and char- your account should agree with managing director for Mellon’s Pri- itable gift-giving. his/her company’s overall investment vate Wealth Management group in People who hire private wealth performance and philosophy. Southern Nevada.

88 May 2007 P EOPLE FIRST

Are You Developing Your Employees … … or Hoping for the Best?

he older baby boomers are gives the individual and the organiza- promoted, or the organization contin- retiring and the younger tion an overview of the rate of pro- ues to hire from outside the firm when T ones are next in line. gression for each employee. This pro- internal candidates are perceived to Many organizations have gression allows the organization to be qualified, the career-track process found they aren’t prepared for the ac- project a group of individuals’ readi- will likely lose credibility. companying loss of technical knowl- ness to move into their next position. edge, job skills and abilities. In many This readiness report allows the orga- Mark Keays is president of Desert cases, the reasons why many deci- nization to make more logical trans- Management Services, a Las Vegas- sions were made the way they were, fers and work assignments as part of based management consulting firm may only be found between the ears an employee’s development. and a faculty member of the Universi- of these departing, or soon-to-be-de- Career-track plans play a significant ty of Phoenix. parting employees. Organizations are role in boosting morale, and aid in re- also finding that a significant number ducing turnover as it shows which in- of their leaders and key employees dividual employees have a future with are baby boomers who could retire the organization. The career-track plan now or within the next five years. also can create a win-win relationship

The challenge facing employers is in that it places a large part of individ- ©2007 HUTCHISON & STEFFEN to create and implement a process by ual development in the hands of the which knowledge and job skills are employee. The organization should developed in employees on an ongo- recognize its part in providing growth Th e perfect balance ing basis to ensure that the existing opportunities to meet an individual’s for what comes next. staff is always capable of performing career plan by allowing job transfers or the organization’s critical tasks. The rotation as needed, and to provide em- answer to this dilemma is to create a ployees the opportunity to gain the staffing plan which allows an organi- knowledge, skills and abilities re- zation to identify career-track plans. quired to accomplish career needs. These career-track plans can help the One caveat in the development of organization and its employees identi- career-track plans is that the leader- fy the knowledge, skills and abilities ship of the organization must provide that need to be mastered to be consid- honest and timely feedback to em- ered for a specific position. A good ca- ployees regarding their progress and reer track identifies the technical skills the ultimate likelihood of promotion. a full-service, av-rated law ﬁ rm and knowledge an individual lacks, as If employees see others who are pur- peccole professional park well as the educational requirements suing their career-track plans and 10080 west alta drive, suite 200 las vegas, nevada 89145 and people skills that the individual being promoted, the process will typ- 702-385-2500 • fax 702-385-2086 must develop to be successful. Like a ically be considered viable. If, howev- 877-HSNVLAW hutchlegal.com good road map, the career-track plan er, people not in the career track are las vegas reno salt lake city phoenix

May 2007 89 NAIOP Spotlight Award Winners Announced

The Southern Nevada Chapter of • Office Building of the Year: Marnell Corpo- • Industrial Building Incubator/Flex: South- rate Center – MCC-4, developed by Marnell east Loft District, developed by Familian of NAIOP held its 10th annual Properties, designed by Marnell Architecture and Nevada, Inc., designed by C2G Architecture De- built by Carson Taylor Construction Company. sign Construction and built by Familian Devel- Spotlight Awards on Saturday, opment Group. • Industrial Building of the Year: Southeast March 24th at Red Rock Resort – Loft District, developed by Familian of Neva- • Industrial Building Mid Bay/Distribution: da, Inc., designed by C2G Architecture De- Decatur Crossing, Phase II, Building 3, devel- Spa – Casino. Chapter President sign Construction and built by Familian De- oped by LaPour, designed by HFTA/KKE Archi- velopment Group. tects and built by TWC Construction. Tony Dazzio joined Gov. Jim Gib- • Special Purpose Industrial: G&K Services, • Common Area Design: Corporate Gateway bons in hosting the event, which developed by Larry Baker, designed by Lee & II, Beltway Business Park, developed by Thomas Sakahara Architects AIA, Inc. and built by Mar- & Mack Development Group, designed by Cleo brought together 800 professionals tin - Harris Construction. Design and built by Martin - Harris Construction. from the commercial real estate • Special Purpose Office: The Stanley P. Jones • Office Interiors: Burrwhip Place, developed Building, Southern Nevada Regional Headquar- by GRG Inc., designed by Parker Scaggiari and industry to celebrate the best com- ters for the Department of Employment, Training built by GRG Inc. & Rehabilitation, developed by the State of mercial real estate projects and Nevada Department of Employment, Training & • Office/Warehouse Interiors: Konami Gam- Rehabilitation, designed by Dekker Perich Saba- ing, developed by Stoltz Management, de- industry professionals of 2006 tini and built by Roche Constructors, Inc. signed by JMA and built by Martin – Harris including: Construction.

Corporate Gateway II Southeast Loft District Decatur Crossing

Sunset Parkway Business Center Center for Maternal Fetal Medicine Northport Business Center

The Park at Spanish Ridge The Park at Spanish Ridge Building 10 2550 Nature Park Drive at Aliante Corporate Center • Medical Office Building: Center for Mater- • Large Industrial Business Park: Sunset Lifetime Achievement: Tim Snow and Rick nal Fetal Medicine, developed by Dr. Iriye, de- Parkway Business Center, developed by Majes- Myers, Thomas & Mack Development Group signed by Carpenter Sellers Architects and built tic Realty Co., designed by Commerce Con- by Breslin Builders. struction and built by Commerce Construction. Office Broker of the Year: Charles W. Witters, SIOR, Lee & Associates • Office Building – Single Story: The Park at • Master Planned Office/Flex Park: Northport Spanish Ridge Building 10, developed by Business Center, developed designed and built Industrial Broker of the Year: Dan Doherty, Glen, Smith & Glen Development, designed by by the Jackson-Shaw Company. SIOR, Colliers International – Las Vegas Perkowitz & Ruth Architects and built by SR Construction. • Small Building Office Park: Oquendo Busi- Brokerage Office Team of the Year: LaGrange ness Park, developed by S&S Unlimited, de- Partners, Colliers International – Las Vegas • Office Building – Two Story: 2550 Nature signed by Perlman Design Group and built by Park Drive at Aliante Corporate Center, devel- Desert West Development. Brokerage Industrial Team of the Year: Hig- oped by American Nevada Company, designed gins Team, Voit Commercial Brokerage by JMA and built by The Korte Company. • Multiple Use Business Park: The Park at Spanish Ridge, developed by Glen, Smith & INDUSTRY AWARDS • Office Building – Three Story-plus: Marnell Glen Development, designed by Perkowitz & Corporate Center – MCC-4, developed by Mar- Ruth Architects and built by SR Construction. Trendsetter Firm of the Year: The Molasky nell Properties, designed by Marnell Architec- Group of Companies ture and built by Carson Taylor Construction INDIVIDUAL AWARDS Company. Firm of the Year: Beltway Business Park, LLC, Principal Member of the Year: Ralph Murphy, JMA, Martin-Harris Construction, WRG Design, • Small Industrial Building Park: Northeast Jackson-Shaw Company Associate Member of Inc. and Colliers International – Las Vegas Crossing Commerce Center – Phase 1, developed the Year: Kyle Nagy, CommCap Advisors re- by Jackson-Shaw Company, designed by DHA Ar- ceived the chitects and built by LM Construction Company.

Marnell Corporate Center Burrwhip Place Konami Gaming

Oquendo Business Park Northeast Crossing Commerce Center G&K Services

The Stanley P. Jones Building Summit Award Winners Announced

Hosted by Certified Commercial Invest- • Best Retail Project (anchored): McQueen • Generalist Broker of the Year: Frank Gal- ment Members (CCIM), Commercial Real Crossing, developed by Wall Street Properties lagher, NAI Gallagher Commerical Estate Women (CREW), and the National Company. • Apartment Broker of the Year: Leonard Association of Industrial and Office Prop- • Best Retail Project (non-anchored): Virginia Ramos, CB Richard Ellis erties (NAIOP), the 2ndAnnual Summit Street Plaza, developed by Fite Development • Rookie Broker of the Year: Dylan Mattole, Awards was held April 14th at the Pepper- Company Marcus & Millichap mill Hotel Casino in Reno. More than 300 • Best Renovation/Remodel: The Atrium, de- • Lifetime Achievement: Preston Q. Hale, real estate professionals gathered to honor veloped by Atrium Partners, LLC, designed by Hale, Day, Gallagher distinguished commercial agents, brokers, • Extra Mile: Kendra Kolvet, Alliance Commer- property managers, developers and projects Ken Bartlett and built by Shaver Construction. cial Real Estate Services in Northern Nevada. INDIVIDUAL AWARDS • Property Manager of the Year: Cheryl Evans, Coldwell Banker Commercial Premier Brokers • Best Industrial Building (more than 100,000 • Office Broker of the Year: Tim R. Ruffin, • Crew Ambassador of the Year: Deborah square feet): Lear 200 in the Lear Industrial Colliers International Partnership Center, developed by Panattoni Development • Retail Broker of the Year: Chris Waizmann, Sasz-Vonarx. Company, designed by BJG | Architecture + En- CB Richard Ellis received Investment Broker of • Largest Sale Transaction Broker of the Year: gineering and built by Panattoni Construction. Year: Aiman Noursoultanova, CB Richard Ellis Bruce Robertson, advisor, Sperry Van Ness. • Best Industrial Building Flex (less than • Industrial Broker of the Year: Paul Perkins, • Lifetime Achievement: Preston Q. Hale, 100,000 square feet): Glendale Properties, J. Michael Hoeck and Dave Simonsen, Alliance founder & partner, Hale, Day, Gallagher LLC – 2205 Glendale Ave., developed by Glen- Commercial Real Estate • Extra Mile Award: Kendra Kolvet, marketing dale Properties, LLC and built by Pinecrest • Largest Lease Transaction Broker of the specialist, Alliance Commercial Real Estate Construction. Services • Best One-Story Office Building: - Vineyards Year: Matt Riecken, Trammell Crow; Don • Property Manager of the Year: Cheryl Professional Campus, developed by Tanamera Welsh, Grubb & Ellis; Annemarie Huisman, CB Evans, CPM, Coldwell Banker Commercial Pre- Commercial Development, designed by Lee & Richard Ellis mier Brokers Sakahara Architects and built by Tanamera. • Largest Sale Transaction Broker of the • Best Multi-Story Office Building: Mt. Adams Year: Bruce Robertson, Sperry Van Ness • CREW Ambassador of the Year: Deborah Building, developed by Trammell Crow Company • Land Broker of the Year: Mark Krueger, Sasz-Vonarx and built by Trammell Crow Construction. Grubb & Ellis

McQueen Crossing

The Atrium Mt. Adams Building

Virginia Street Plaza

2205 Glendale Ave Lear Industrial Center, Vineyards Professional Campus

BUSINESS INDICATORS

DATA GROWTH units dates latest previous year ago recent year ago comments ome softening is apparent NEVADA (%) (%)

for Las Vegas and Reno in Employment 1,000 employees 01/07 1,285.9 1,307.4 1,239.7 -1.6 3.7 Down Recent the recent indicators, S Unemployment Rate %, nsa 01/07 4.9 4.2 4.1 16.7 19.5 Favorable though overall conditions Taxable Sales $ billion 12/06 4.698 3.892 4.656 20.7 0.9 Up Slightly remain favorable. The number of jobs is Gaming Revenue $ million 01/07 1,117.05 1,062.75 1,140.82 5.1 -2.1 Down Slightly down for January 2007 in both Las Vegas Passengers passengers 4.099 4.223 3.928 -2.9 4.4 Up, Year Ago and Reno, 1.3 and 2.8 percents, respec- 01/07 tively. Job growth for January 2007 is up Gasoline Sales million gallons 12/06 98.16 93.47 87.83 5.0 11.8 Good December by more than 3 percent, however. Visitor Volume million visitors 01/07 4.095 3.939 4.158 4.0 -1.5 Down Slightly Still unemployment rates remain CLARK COUNTY (%) (%) below 5 percent. These rates are 4.7 Employment 1,000 employees 01/07 924.9 937.1 891.4 -1.3 3.8 Down Recent for Las Vegas and 5.0 for Reno. In com- Unemployment Rate %, nsa 01/07 4.7 4.2 3.9 11.9 20.5 Favorable parison, the U.S. unemployment rate Taxable Sales $ billion 12/06 3.406 2.811 3.434 21.2 -0.8 Down Slightly holds at 4.5 percent. Since Nevada Gaming Revenue $ million 01/07 967.78 908.63 987.36 6.5 -2.0 Down Slightly rates have been below the U.S. rate for Residential Permits Housing Rebalance sometime, it remains too early to con- units permitted 02/07 1,324 1,356 3,015 -2.4 -56.1 clude that there is a structural shift un- Commercial Permits permits 02/07 91 75 113 21.3 -19.5 Down derway--it is simply too early. Anecdo- Passengers million persons 01/07 3.698 3.823 3.508 -3.3 5.4 Good January tal evidence, however, suggests Gasoline Sales million gallons 12/06 67.41 65.35 58.44 3.2 15.3 Good December otherwise, as overall conditions remain Visitor Volume million visitors 01/07 3.546 3.380 3.585 4.9 -1.1 Down Slightly favorable in the Silver State. WASHOE COUNTY (%) (%) Most likely, the recent shift to slower Employment 1,000 employees 01/07 222.4 228.8 214.8 -2.8 3.5 Down Recent job growth in Nevada can be largely at- Unemployment Rate %, nsa 01/07 5.0 3.9 4.5 28.2 11.1 Favorable tributed to marked declines in new- Taxable Sales Up Slightly home construction. New-home per- $ billion 12/06 0.719 0.550 0.712 30.6 0.9 mitting is down sharply since midyear Gaming Revenue $ million 01/07 72.85 83.10 77.77 -12.3 -6.3 Down 2006. Permitting was down 56.1 per- Residential Permits units permitted 02/07 179 97 340 84.5 -47.4 Housing Rebalance cent for Las Vegas and 47.4 percent for Commercial Permits permits 02/07 15 30 38 -50.0 -60.5 Down

Reno, measured for February on a sea- Passengers million persons 01/07 0.396 0.395 0.410 0.1 -3.4 Down sonally adjusted basis. Clearly, hous- Gasoline Sales million gallons 12/06 16.20 14.19 16.00 14.2 1.2 Up Slightly ing imbalances in the Silver State are Visitor Volume million visitors 01/07 0.355 0.372 0.375 -4.7 -5.3 Down being corrected. UNITED STATES (%) (%) Spending activity continues in Neva- Employment Growth da at a high level, though month-to- million, sa 02/07 137.410 137.313 135.410 0.1 1.5 month changes remain small. Gaming Unemployment Rate %, sa 02/07 4.5 4.6 4.8 -2.2 -6.3 Favorable revenue is off slightly and taxable sales Consumer Price Index 82-84=100, nsa 02/07 203.5 202.4 198.7 0.5 2.4 Okay are up slightly. The substantial adjust- Core CPI 82-84=100, nsa 02/07 209.1 208.0 203.6 0.5 2.7 Okay ments underway in the Nevada residen- Employment Cost Index 89.06=100, sa 4q06 103.2 102.5 100.1 0.7 3.1 Up tial-construction market have not been Productivity Index 92=100, sa 4q06 138.0 137.6 136.1 0.2 1.4 Okay a big drag on other sectors of the econ- Retail Sales Growth $ billion, sa 02/07 370.495 370.169 358.675 0.1 3.3 Up omy. Similar adjustments are underway Auto and Truck Sales million, sa 02/07 16.57 16.68 16.57 -0.7 0.0 Flat elsewhere in the U.S. In some regions, however, conditions are decidedly Housing Starts million, sa 01/07 1.408 1.642 2.265 -14.3 -37.8 Housing Rebalance weaker than in Nevada, for example, in GDP Growth $ billion, sa 4q06 11,506.5 11,443.5 11,163.8 0.5 3.1 Growing states where housing and manufactur- U.S. Dollar 97.01=100 02/07 107.230 107.590 110.260 -0.3 -2.7 Down ing are both down. Still, the likelihood Trade Balance $ billion, sa 01/07 -59.118 -61.453 -66.470 -3.8 -11.1 Weak of a national downturn remains S&P 500 monthly close 02/07 1,406.82 1,438.24 1,280.66 -2.2 9.9 Up, Year Ago markedly less than the likelihood of Real Short-Term Rates %, nsa 02/07 4.49 4.67 4.23 -3.9 6.1 Up, Year Ago continued growth, even if at slower Treasury Yield Spread %, nsa 02/07 -0.44 -0.35 0.03 25.7 -1566.7 Remains Negative rates than recently experienced. SOURCES: Nevada Department of Taxation; Nevada Department of Employment, Training and Rehabilitation; UNR Bureau of R. Keith Schwer Business and Economic Research; UNLV Center for Business and Economic Research; McCarran International Airport; Reno/Tahoe UNLV Center for Business and International Airport; Las Vegas Convention and Visitors Authority; Reno-Sparks Convention and Visitors Authority; U.S. Depart- Economic Research ment of Commerce, U.S. Bureau of Labor Statistics, U.S. Census Bureau; U.S. Federal Reserve Bank.

94 May 2007