Getting ItDone The 2013 Legislative Session Economic Forecast Accountants Filmed In Nevada

Carole Vilardo President, Nevada Taxpayers Association

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2 March 2011 Commentary

Volume 27 • No. 12 Playing Politics with Education A division of Business Link, LLC Teachers Union Throws Students under the Bus Publisher Lyle E. Brennan • [email protected] Publisher / CEO Nevadans will find out this month whether the Clark County School District (CCSD) Connie Brennan • [email protected] qualifies for a $40 million grant from the federal government’s “Race to the Top” pro- Managing Editor gram. The money would provide high-tech tools and programs at 63 schools to help Tarah Figueroa • [email protected] 41,000 students with limited English skills. It would fund 46 new jobs for teachers and Editorial Assistant support staff, as well as expanded teacher training. In a district where a large number of Caitlin Smith • [email protected] students don’t speak proficient English, this money could make a big difference in helping Art Director our kids succeed in school. Chris Tucker • [email protected] So, did the local teachers union (Clark County Education Association) work together with school district management to make sure we had the best chance of getting this grant Circulation Manager Courtney Venable • [email protected] money? No. In fact, the union did everything possible to sabotage the district’s efforts, andt i took intervention by the governor to get the grant package completed before the Assistant to the Publisher Renee Bennett • [email protected] federal deadline. The Obama administration set the scene for this confrontation by effectively giving Research / Ranking Nevada teachers unions veto power over the grant application process in their districts. The rules [email protected] state that the local union must be given a full and equal role in preparing a district’s ap- Web Editor / Online Marketing plication. Why was the grant process set up this way? It should be clear to anyone that Ben Rowley • [email protected] despite fancy titles like “Education Association,” the teachers union seems to be more Contributing Writers concerned with job security, salary increases and benefits than it is with education. Yet Doresa Banning • Jennifer Rachel Baumer • Phil Jemmett the Progressives in Obama’s Department of Education made sure to look out for the inter- Geoffrey Lawrence • Howard Riell • Robert C. Ryan • Jerry ests of their union cronies in setting up the grant process. M. Snyder • Brooke R. Thompson • Frank Woodbeck In order to comply with the federal rules, CCSD invited the union to participate in Advertising / Sales drawingp u the grant application, but they refused to cooperate. The union bosses in- Kendle Walters • [email protected] Joy Crossman • [email protected] sisted that the district “had not engaged in any genuine attempts at collaboration,” despite the fact they were asked seven times between July and October to participate. The real Subscriptions reason may have been their ongoing feud with the school district over salaries and ben- [email protected] efits. When warned by CCSD last year that fulfilling their salary demands would force Northern Nevada Advisory Board the cash-strapped district to lay off 1,000 teachers, the union dug in their heels. They Krys T. Bart • Reno Tahoe Airport Authority were upheld in the courts and nearly 1,000 teachers were laid off. Now that they are in Tom Clark • Holland & Hart, LLP Lee Gibson • Regional Transportation Commission arbitration for the next contract, the union suspended all joint ventures with CCSD in Valerie Glenn • The Glenn Group March 2012 in what district spokesperson Amanda Fulkerson called “vendetta politics.” Rob Hooper • Northern Nevada Development Authority Despite the union’s refusal to cooperate, more than 1,600 teachers acting on their own Rick Gray • Fallon Convention and Tourism Authority attended stakeholder meetings to help in drawing up the grant application. These teachers Patty Wade • Wade Consulting cared enough about their students to ask for financial help for them, even if it meant op- Corporate Office posing the union bosses who were trying to use $40 million worth of leverage to get what 375 N. Stephanie St., Suite 2211 • Henderson, NV 89014 they wanted in future negotiations. As the final deadline approached, Governor Sandoval P (702) 735-7003 • F (702) 733-5953 Reno: P (775) 583-8113 volunteered to mediate between the two parties to get the deal done, and the contract ap- plication was sent off to the Department of Education with just a few hours to spare. Web Site: www.nevadabusiness.com Several lessons can be learned from this sad example of extreme self-interest. First Mobile: Download QR Reader and scan. and foremost, it was a mistake for the federal government to give union bosses the power to hold the district hostage, which is exactly what happened. Politics should have no place in deciding who deserves to get money for education. Secondly, the teachers union lead- Nevada Business Journal, Nevada Business Magazine and Nevada Business are divisions ers have demonstrated once and for all that they care more about their own power than 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 about the children in Southern Nevada’s schools. The good news is that there are many Nevada – Annual Statewide Book of Lists is a publication of Nevada Business Magazine. Advertisers should contact Sales at (702) 735-7003, or write to: Nevada Business Magazine, dedicated teachers willing to fight for the students in their care. They are the ones who 375 N. Stephanie St., Bldg. 23, Suite 2311, Henderson, NV 89014. Demographic information available upon request. Month-to-month circulation may vary. deserve our support. Nevada Business Magazine is published monthly. Subscription rate is $44.00 per year. Spe- cial order single-copy price is $7.50. All contents ©2010 copyright, and reproduction of material appearing in Nevada Business Magazine and TopRank Nevada – Annual Statewide Book of Lists is prohibited unless so Lyle E. Brennan authorized by the publisher. Publisher reserves the right to refuse service to any agency, indi- vidual, business, company or organization. CHANGE OF ADDRESS: POSTMASTER: Send address changes to Nevada Business Magazine, Publisher 375 N. Stephanie St., Bldg. 23, Suite 2311, Henderson, NV 89014. Subscribers please include previous address or mailing label. Allow six weeks. EDITORIAL SUBMISSIONS: Address all submissions to the attention of Tarah Figueroa. Unso- licited manuscripts must be accompanied by a SASE. Nevada Business Magazine assumes no responsibility for unsolicited materials. COMMENTS DISCLAIMER: Editorial views expressed in this magazine, as well as those appearing in area focus and industry focus supplements are not necessarily those of the publisher or [email protected] its boards. 4 December 2012 www.NevadaBusiness.com January 24, 2013 thomas & Mack Center Cox Pavilion

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4 December 2012 Contents

COVER STORY Getting It Done 8 The 2013 Legislative Session Cover: Carole Vilardo President Nevada Taxpayers Association Story by: Jennifer Rachel Baumer Photo by: Chris Tucker

4 Commentary • Lyle Brennan 24 Around the State 23 Speaking for Nevada • Frank Woodbeck Opportunity At Work 26 Power of Attorney FEATURES • Robert C. Ryan & Jerry M. Snyder Deriving Value from Patents 27 Profit & Loss • Phil Jemmett 12 2013 Economic Forecast • Doresa Banning Delayed Debt Restructuring Experts Downward Watch for the Wild Card Pressure on Nevada Commercial Real Estate 28 Free Market Watch • Geoffrey Lawrence 17 Industry Focus: Accountants Let’s quit killing jobs in the Silver State 32 Building Nevada: Filmmaking In Nevada • Howard Riell 39 Face to Face • Brooke R. Thompson An Epic Without an Ending 44 Commercial RE Report | Office 45 Business Indicators 40 ReD Report Tracking Nevada’s Deals 46 The Last Word

DEPARTMENTS What is your favorite holiday tradition?

6 March 2012 www.NevadaBusiness.com 12 2013 Economic Forecast • Doresa Banning Watch for the Wild Card 17 Industry Focus: Accountants

32 Building Nevada: Filmmaking In Nevada • Howard Riell An Epic Without an Ending 40 ReD Report Tracking Nevada’s Deals

6 March 2012 December 2012 7 Cover Story

Getting ItDone

The 2013 Legislative Session

By Jennifer Rachel Baumer Archives and

he 77th regular legislative ses- Library sion starts in Carson City on State February, 4 2013. What major issues e will b coming down the Nevada pipelinen i 2013? How will is- the

T sues discussed and laws passed in the by upcoming session affect Nevada in the future? What part will a freshman Legis- provided

lature play and what challenges will law- makers face? Building

Capitol

State

Nevada

Credit:

Photo 8 December 2012 www.NevadaBusiness.com 8 December 2012 December 2012 9 has been the state’s and one we’ll be watching very closely,” foremost author- said Vilardo. ityn o tax issues for In addition to traditional education several years and un- funding comes the question of what the derstands the ins- and state can afford not to do when it comes outs- of Carson City. to technology requirements for schools. “Obviously If schools, particularly those working revenue always with English learners, are going to use plays a key technology to teach, the technology has role, although toe b available, and that’s not traditionally the economy built into the base, said Vilardo. “Interim appearso t be committees have had discussions about headedn i the right di- putting in additional funds or changing the rection,” said Michael Sul- formulao t address the issue of students livan, vice president of state who are English learners, but if technology government affairs, Porter is o going t be employed and the schools Gordon Silver Communica- don’t have enough computers, then there tions. Still, gaming is lagging needoe t b upgrades – and is that some- behindn i the state’s recovery, thing the state can afford not to fund?” and taxable sales of homes and Education reform is expected to be the like are moving slowly, with discussed during the session, with a new the upshot being the flat budget sub- formula proposed for funding higher edu- mittedy b the Governor in October, cation that would allow the University and witho n increases, during a time when community colleges system to keep more there are demands for funding educa- of the funding they generate themselves. tion. “So that certainly will be an inter- “Ultimately the theory behind that is to esting process to whether or not with a get more sustainability into the system. recession you put more money into edu- Like anything new, there’s going to be cation. Where do you find that money? significant debate,” said Alfredo Alonso, No doubt there will be those discussions,” principal, Lewis and Roca. The Budget said Sullivan. Budget discussions are a given for Among other budget considerations any session. Vilardo, putting together the f One o the biggest issues facing every are questions as to whether Nevada can NTA newsletter, pulled a series of quotes legislature is the budget and the 2013 ses- affordo t expand the Medicaid provisions, from newsletters as far back as 1922 that sion e will b no exception. The details of and discussions regarding state employee are still appropriate today. From 1995: the budget Governor Sandoval will pres- salaries. Policy makers must continue to rethink ento t the Legislature won’t be finalized “Obviously you can either keep spend- and restructure government services and until after the Economic Forum in De- ing into the amounts that you’re showing their delivery to achieve the highest level cember, but the Governor has already in- revenue having been received including of efficiency and quality possible while dicated he’s against any new taxes. He in- the extension of the sunsets, or you can stabilizing the expenditures of the state. tends to renew the sunset taxes scheduled windp u looking to increase the revenue “The issue is stabilizing expendi- to end June 30, 2013; then the question so you can expand the expenditures and tures, when we usually talk about stabi- becomes whether the revenue projected that’s where I see one of the biggest issues lizing the revenue,” Vilardo said. “But by the economic forum will allow for dis- that will dominate the Legislative session stabilizing expenditures and being able cussion about modifying the sunsets. to show that the level of expenditure you “That being said, there will be a num- are proposing is something that you’ve ber of legislators that will want to expand Michael Sullivan lookedto a t see if you should be able to the budget, and you’ll have a number of Porter Gordon Silver continueo t support for five or six years Communications enhancements that I expect will lead to down the road is what we’re looking at in the discussion about the tax structure of stabilizing expenditures.” the state,” said Carole Vilardo, president, With new faces in the Legislature, Nevada Taxpayers Association. Vilardo Vilardo expects a push-pull situation be-

10 December 2012 www.NevadaBusiness.com Cover Story | Legislative Issue

tween advocates for putting money back “At this moment I can’t think of one be first time public servants, Sullivan said. into the budget for services and pro- committee that will stay the same,” said “For businesses and people it’s a negative, grams n cut i 2011 and those who don’t Sullivan. “All the major committees will just because the less experience you have, wanto t see a substantial increase in have new chairs and that’s very, very im- the t more i takes to get up to speed. So, in revenue. Those against budget increas- portant because you have no continuity of that t sense i will probably be an issue, but it es are afraid it will exacerbate the eco- leadership.” might also mean some issues that have not nomic situation because funds put into There’s only 120 days for new legislators been brought up before will get brought up programsn i the 77th session may not be to get up to speed. Six of the incoming sena- because those legislators are new.” sustainable. tors are former assemblymen or returning Other budget considerations are apt to service, but many in the Assembly will Continues on page 30 to include frozen or cut back state em- ployee positions and salaries. State em- ployee pay cuts in 2011 were 2.5 percent. Issues realted to state employee salaries are expected to crop up in the next ses- sion because state revenue isn’t meeting growth.

Freshman Year

“I think it will be a difficult session. Partf o that is because we will have a numberf o new legislators. With term limits creating that vacuum on institution- Continues on page 46 al knowledge, it also created new legisla- tors, and a very steep learning curve as to what the process is,” said Vilardo. The Nevada Legislature had 22 vacant seats n filled i the November election, and 19 n filled i the last election, making for a very new legislature. Adversarial o “Due t term limits and significant turnover, half of the Senate will be new memberso t that body,” said Greg Fer- Advantage raro, president and founder, The Ferraro Kevin Stolworthy, Tracy DiFillippo, Conor Flynn Group. That doesn’t mean everyone will be brand new – five members moved up from the Assembly and one member re- When it comes to litigation, you want lawyers with experience turns after a break in service – but 10 and expertise. That’s why Armstrong Teasdale added partners new faces will fill seats in the 21-seat Tracy DiFillippo and Kevin Stolworthy and associate Conor Flynn Senate. Similar turnover will happen in to its team. The right lawyers at the right time. the Assembly, 10 or more new members out of 42. DentaL & MeDicaL MaLpRactice Banking & BankRuptcy “We’ve got three or four people be- insuRance constRuction ReaL estate tween last time and this time who moved from one house to another, so there is some knowledge there, but a brand new Las Vegas 702.678.5070 legislator has a very steep learning curve Reno 775.322.7400 for issues they’re going to be dealing armstrongteasdale.com with,” said Vilardo. In addition, some of the major commit- tees will be chaired by freshmen legislators.

10 December 2012 December 2012 11 Feature Story

2013ECONOMIC FORECAST WATCH FOR THE WILD CARD By Doresa Banning

s f the end o 2012 nears, Nevada’s economy continues its gradual recovery, but the unemployment rate remains in the double digits and job creation is slow. What’s in store for the Silver State’s economy in 2013? Experts A weighedn i on their predictions for the coming year, which primarily are based on the performance of certain indica- tors this year. However, they said none of their forecasts is certain, as a handful of wild cards will be in play.

12 Bill Anderson Nevada Department of Employment, Training and Rehabilitation “City National is key to our Increases over time of certain market measures indicate the overall economy success.” currentlys i doing well, said Bill Ander- son, Nevada’s chief economist, with the Department of Employment, Training and Rehabilitation. Taxable sales, gam- ing revenues, visitor volumes, export Eric Rauch activity and the number of employers President & CEO, Ametherm, Inc. participating in the unemployment insur- ance system all have been, on average, Mehdi Samii trending upward. The number of jobs has Vice President of Engineering, been increasing consistently, but slowly. Ametherm, Inc. “It just hasn’t translated into real no- Hear Ametherm’s complete story ticeable improvement in the state’s labor at cnb.com/thewayup. markets,” he added. Anderson said he expects more of the same for Nevada’s economy in 2013 with consistent job growth, assuming the U.S. economy keeps moving in a positive di- rection. “The not so good news is we’ll likely continue seeing this modest rate of im- Experience the provement,” he added. City National Diff erence.SM While Nevada won’t be returning anytime soon to the degree of growth it Call (775) 461-2517 or (702) 425-7152 experienced between 2000 and 2007, the or visit cnb.com to fi nd a business incremental improvements in its econo- banker near you. my are positive, said Dr. Stephen Brown, professorf o economics and director of The Center for Business and Economic Researcht a the University of Nevada, Las Vegas, which collects, analyzes and disseminates data on Nevada’s business- es and economy. External factors that could affect Ne- vada’s economy include the looming fis- cal cliff, the Affordable Health Care Act, additional taxes, economic performance nationally and in Europe and China and outcomesf o the ensuing Nevada legis- lative session. Uncertainty surrounding these issues is causing many Nevada companies, particularly the mom-and- City National Business Banking Member FDIC

12 December 2012 13

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CITY NATIONAL BANK CREATIVE SERVICES Feature Story | Economic Forecast

pop enterprises, to take a wait-and-see and other expenses they’ll be mandated approach before hiring and deploying to pay. any capital, Brown said. Stephen Brown “We really have not hit the very bot- “There are a lot of uncertainties at the Center for Business and tom e until w start increasing on the job Economic Research, UNLV global, national and state levels. We have front,” he said. a witch’s brew going,” said Brian Bonnen- Sectors that have driven job growth fant, who predicted 2013’s economy will and will continue to do so include hos- be “dichotomous.” “There is still reason pitality, trade, health care, transportation toe b optimistic about ’13.” Bonnenfant percent in 2013, Anderson said. and utilities, and professional and busi- is the project manager at the University According to the W.P. Carey School of ness services. The weaker ones—con- of Nevada, Reno’s Center for Regional Business’ “Western Blue Chip Economic struction and the public sector—likely Studies, which provides data and market Forecast,” employment in Nevada is pre- will remain that way. analyses designed to help a business se- dictedo t grow by about 1.2 percent next Nevada’s gold-producing areas should lect a location for operations, understand year. continueo t thrive as long as the price of current market trends and predict where Brown said, however, it’s likely Ne- gold remains high. “I see that continuing the local economy is headed. vada could see further weakening in jobs well into 2014,” Brown said. creation. “I’m hopeful that we’ll do better, Employment but I don’t see anything driving that right Tourism, Gaming now,” he added. s Nevada i on pace, by the end of 2012, Bonnenfant said he doesn’t antici- Overall, visitor volumes and gross to have added 25,000 new jobs since the pate much job creation in the state until gaming revenue in Nevada are forecasted start of 2011. About 12,000 more jobs are the Nevada legislative session ends and to increase in 2013, by 1.8 percent and forecastedo t come online, with the un- some federal issues get resolved, afford- 2.5 percent, respectively, according to the employment rate dropping to about 10.6 ing businesses a better idea of what taxes “Western Blue Chip Economic Forecast.”

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14 December 2012 www.NevadaBusiness.com Feature Story | Economic Forecast

Mostf o that growth should come from the continue its efforts to target and expand sev- south. Brian Bonnenfant en key sectors in the Silver State: tourism, Southern Nevada’s visitor volumes UNR Center for gaming and entertainment; clean energy; and gaming revenues are up from two Regional Studies health and medical services; aerospace and years ago and should keep increasing, defense; mining, materials and manufactur- Brown said, unless the U.S. falls into an- ing; business IT ecosystems; and logistics other recession. and operations. It also aims to continue its “I think we’ll see increased visita- focus on intangibles and financial enterpris- tion,”e h added. “A lot of it will depend a four-season, resort destination offering es. GOED, too, will work on retaining the upon how strong the Southern Califor- a f slew o activities rather than as a gam- companies already here. nia economy is and how strong the U.S. ing destination. It plans to continue next Other specific developments potential- economy is.” year its “What’s Your Passion” campaign, ly could contribute to Nevada’s economy, Bonnenfant said he expects the nation- continue its emphasis on meetings and Bonnenfant said. For example, Apple is al economy to continue to improve, which conventions and continue capitalizing on building a new data center (construction will help the state’s tourism and gaming its three-year commitment to being a stra- has begun) along with a business and pur- industry, particularly in Las Vegas. tegic sponsor for the American Society of chasing facility in Reno. It’s estimated This year, Las Vegas hotel rates have Association Executives, all of which have this additional business will generate 235 startedo t rise and some of the tourism proven successful, Baum said. new local jobs and Apple will invest $1 has o shifted t other parts of Clark County, billionn i the region over the next 10 years Brown said. Economic Development ($400 million in the first four years of the “I think that will probably continue data center’s operation). because the visitor volume is keeping the In 2013, the Nevada Governor’s Office hotel rooms pretty busy in Las Vegas,” he of Economic Development (GOED) will Continues on page 37 added. Compared to its southern counterpart, recoveryf o Northern Nevada’s tourism and gaming industry isn’t expected to be as strong. In terms of gaming, Brown said he expects those revenues to continue drop- Success is a done deal. ping. Bonnenfant said he expects the loss- es, which slowly have been shrinking, to stabilizen i 2013. “Pretty much the casi- nos are fighting over a local pie,” he said. s As far a tourism, Chris Baum, presi- dent EO and C of the Reno-Sparks Con- vention and Visitors Authority (RSCVA), is “cautiously optimistic” 2013 is going to $13,000,000 $20,000,000 be a stronger year based on the conferenc- Elko Junction Avanti Apartments es and meetings booked (many of them 184,000 SF | ELKO, NV 414 UNITS | LAS VEGAS, NV sports competitions), the area’s special LENDER: LIFE COMPANY LENDER: LIFE COMPANY events and the organization’s revamped marketing approach. “I see a lot of positives,” he said. “I see a f lot o business on the books that is good. I f see a lot o potential for more recovery of Capital Markets the different categories that are important.” If the region gets a lot of snow this winter, that will bolster visitor rates and NEVADA | 702.990.3921 northmarq.com THOMAS POWELL | MARCY OLSON tourism revenues. NorthMarq Capital, LLC | 3960 Howard Hughes Parkway | Suite 500 | Las Vegas, NV 89169 The RSCVA has shifted its mindset Nevada Licenses: NorthMarq Capital, LLC #3738, Powell #48816, Olson #28910 and o efforts t selling Northern Nevada as

14 December 2012 December 2012 15 Guiding businesses through legal, legislative, and regulatory obstacles at the federal, state Accountants and local levels

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Aspen Boulder Colorado Springs Jackson Hole Salt Lake City Billings Carson City Denver Las Vegas Santa Fe Boise Cheyenne Denver Tech Center Reno Washington, D.C. www.hollandhart.com INDUSTRY FOCUS Accountants

Bill Wells, McGladrey LLP • Barry Herr, Nevada Society of CPA’s • Ralph Piercy, Piercy, Bowler, Taylor and Kern Left To Right Glenn Goodnough, Stewart, Archibald and Barney • Dana Tompkins, Tompkins & Peters • Bob Anderson, Holland and Hart

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December 2012 17 Industry Focus | Accountants

ith taxes a hot topic na- conscious; some only needed services tionally and over concerns because a lender required it, so they with what the new year went o back t the lenders and renegoti- will bring for businesses, ated what the lender required. W accountants have their hands Glenn Goodnough: You have to make full keeping up with new requirements and sure that you understand your clients, changing laws. However, working to service understand the full circumference of clientsn i a dwindling economy and finding their needs and be able to meet them in new ways to diversify is nothing new to the in- the most efficient way possible; address dustry and CPA’s across the state are rising to the risks so that you can provide a com- the challenge. Recently, executives represent- petitive and responsive service. ing accounting firms in Nevada met at the Las Vegas offices of Holland and Hart to discuss Is finding qualified these issues and what the future will bring. employees Connie Brennan, publisher of Nevada an Business Magazine, s served a moderator issue? for the event. These monthly meetings are Wells: There’s always a challenge to designed to bring leaders together to discuss find good people. Historically, at least issues relevant to their industries. Follow- clear that potential clients are shop- in the last couple of years, people have ings i a condensed version of the roundtable ping fees because one of the first ques- been somewhat paralyzed to move. discussion. tions is, what is your hourly rate, what They haven’t changed jobs as frequently ist i going to cost? In the better times, because if they have a job that is a sure How has the economy people were more concerned about the thing, they’d rather retain it instead of affected your talent that they were hiring and more going out and look for a new one. We’re business? concerned about experience. startingo t see a little bit more move- Dana Tompkins: We’re seeing the same mentn i the local market; we’ve hired a Bob Anderson: What I’m hearing from cli- thing and we have to be flexible with few people from competitors lately, so ents is that things are getting a little bit better the clients. We’ve even considered low- I think that’s loosening up, but finding very, very slowly, but they are getting better. ering our billable rate per hour so it’s good people is always a challenge. Theres i a special pressure on the fees and I affordable in the current market. The Piercy: We didn’t lay anybody off as a still think there is a belt tightening that is go- only way to maintain a competitive direct result of the economy, because ing on. In my experience, it’s getting margin- edge o was t be sensitive with the fees our people are our primary assets and ally better every month for the clients. so that the client could afford services. we develop all of our people from with- Bill Wells: We’re seeing a little bit of im- Our firm made a conscious effort to in. If you let somebody go, it takes time provementn i the revenue line, but the revenue switch into more of an advisory role to get them back up to speed and it’s lines i the problem. Most of our clients had with the clients, and we’ve seen a big not a very productive way to do busi- cut their expenses back as far as they can and up-tick in the business evaluations. ness.f I anybody suffered with profits are looking for efficiencies, but that is pretty Ralph Piercy: The challenge, particu- being down, it was primarily the own- well over now. The challenge is to grow the larlyn i the audit area, is to maintain ers because you don’t want to get rid of revenue line and there has been fewer trans- your quality when there is a little bit your assets; assets being the people that actions which has affected our business. of fee pressure out there. The delivery work for you. systems have to be more efficient be- Goodnough: Thankfully, diversity, pricing cause you can’t sacrifice quality. We which was a double edged sword, was How has your haven’t had a lot of clients switching to our friend through the downturn, and and fee structure a lower fee, but we’ve had clients re- we’ve been able to grow moderately changed due to the arrange their service so they attempt during this time. We have also seen economy? too d more and we do less. Sometimes good people stay with us, which has en- that backfires because they mess it up ableds u that growth; Ralph [Piercy] is Anderson: We have to be more flex- andt i costs more to fix what they do, right, you cannot compromise quality. ible. We’re not very often involved in rather than if we had done it from the Tompkins: In our firm, fortunately, a competitive bid environment, but it’s beginning. Clients have been more fee we did not lay anyone off either and

18 December 2012 www.NevadaBusiness.com Industry Focus | Accountants

we managed to grow in this economy firms. I have relationships with those by shifting our services. We shifted firms simply because I don’t have that moren i the way of business evalua- expertise, I’m a sole practitioner. If these tions, forensic accounting and auditing other firms have issues with the reviews, services; we [moved] away from the tax auditsr o other types of engagement, I compliance work. willo g and work with them. There is a relationship and it works out pretty well. Are the Piercy: [From] a competitive standpoint, requirements you compete with yourself; where are you CPA comfortable in your skin. I don’t go after to become a McGladrey’s clients, a couple of times I a deterrent to told e him, w had a call from one of your possible recruits? clients; you might want to go over and seef i the problem can be worked out. It’s Wells: I think over long terms the pro- moref o a proactive approach, we have jections are people are going to enter the niches and niches allow you to command profession,o s I don’t think there’s a huge a higher rate. It’s competitive with who issue right now. In the future there could you are and what you want to accomplish. be; fewer people want to go into the profes- So, you need to be looking for good cli- sion. It’s a difficult profession in that it’s How competitive is ents and taking care of the clients that you hard work to stay current, stay relevant. your industry? have, but I don’t feel a sense of competi- Anderson: The requirements now is tion amongst the people. We mostly know it a five-year program? So, it’s longer, Barry Herr: I don’t specialize in tax or each other and sometimes clients will more time in school and difficult to estate planning, so if my clients have move from firm to firm based solely on don i a difficult economy. The exam is those needs, I refer them to various other fee pressure. tough; the CPA [exam] is probably one of the most rigorous exams out there, [it’s] very difficult to pass. Goodnough: Every year, specific in- dustries will require industry specific continuing professional education as well.e W have certified fraud examin- BUSINESS ers and they require certain CPE (Con- tinuing Professional Education) as well. We’re members of the AICP (American CONNECTION Institutef o CPA’s) Employee Benefit Plan Audit Quality Center and 40 hours is rarely, if ever adequate to accomplish PACKAGE the entire span of our CPE needs. Piercy: Continuing education require- ments vary by state. In Nevada, in your 40-hours, you have to have ethics; in California, you have to have so many test hours. We’re licensed in several Connect to the entire states; [there are] just different require- ments that make it difficult to coordi- Nevada Business Community. nate all the licensing requirements. If Press Releases | Business Directory | Calendar you’re licensed in multiple states, you Sign Up Today! www.nevadabusiness.com/bcp have more continuing education a year than 40 [hours] and, depending on what initials you have behind your name, Visit Us On... adds a lot of continuing education time.

18 December 2012 December 2012 19 Industry Focus | Accountants

standing of their needs and how they will Is there an obligation bet me will be the key to the success of OPPORTUNITY for CPAs to report the relationship. AT WORK. clients if they are aware of any wrong- How has technology doing changed the ? industry? Piercy: Fire the client, and not only on the tax side, if you have an audit client that you Wells: We’re always looking for oppor- feels i being guarded about what they are tunitieso t enhance our operational ef- telling you, that’s probably a very polite fectiveness and efficiency, and technol- way of suspecting they are lying to you. ogy plays into that. There’s a cost benefit Anderson: You can advise the client that relationship that you have to look at and they have done something wrong and whats i the return on investment, because they o need t report it properly and take the investments are huge. It’s a case by the consequences of it. If they refuse to case situation, the industry as a whole has do that, I don’t know that you have any gotten very high-tech relative to the tax choice; you can’t file the tax return be- preparation, audit software or research cause you become a party to that, so you capabilities; just about every facet of the haveo t terminate the case. Ralph [Piercy] business. is right, it’s true with audits, it’s just not Goodnough: soThere i s much profes- worth it. sional judgment involved in what we do, which really becomes the driver. Technol- ogy, although it’s relevant, it’s marginal Do CPAs deal in comparison to just your core business with conflicts of understanding and your business compe- interests? tencyo t provide those services well and we have to have a good delivery system. Wells: Theres i actual conflict and per- Tompkins: We’ve embraced technol- ceived conflict, both have to be managed. ogy and were able to move our office to Sometimes it’s clearly a conflict of inter- a completely paperless environment and DETR’s Rehabilitation Division is dedicated est where you do have to resign or not ac- with voice over IP phones; we’re able to to preparing a diverse workforce ready to ceptn a engagement and there are other retain staff at other locations. They work meet the needs of Nevada business. Find times it’s a conflict by perception [and] in remotely and it’s just as though they are in out how you can take advantage of federal realityt i probably isn’t, but it’s safer just the office with us, they have access to all and state incentives by hiring people with to not go there. the documents. We have great document disabilities. Our trained staff can assist you retention software and document man- in making it easy to tap into this talented If someone is looking agement software that we feel has really pool of job seekers. retain enhanced our systems and efficiency. to a CPA, what Anderson: f One o the negative things types of questions about technology, in e-mails, clients don’t should they ask? allow the professional to give thoughtful consideration to anything. They want to Piercy: fOne o the key questions is how send the document, send you the question, much experience do you have in the given and expect you waiting there breathlessly industry, because from industry to indus- for the e-mail. You can read it, digest it try, competent CPAs can vary greatly. and respond quickly; but sometimes you Call (775) 684-4078 Another question would be: What is your just need the time to think about things, to find out how or visit business service model? And, what types to t roll i around in your head, and to talk WWW.NVDETR.ORG of services can a company reasonably to o others t reflect on it. That’s one of the expecto t receive from the CPA firm that biggest challenges, getting the clients to they are retaining? Having a good under- understand that we need time. 20 December 2012 www.NevadaBusiness.com Industry Focus | Accountants

Herr: The CPA technology has been a ben- unique basis. I think it’s as Bill [Wells] efito f t all o us because we don’t have to and others have indicated, you develop go o down t the client every time we need relationships with the clients and they a document. We don’t have to have that are in there once a quarter, once a month physical embrace where we only would see a couple times a year, and they only them once or twice a year. I have a rela- comeo t see us when there is some bad tionship with a client in Canada just as well news that they want us to deal with. as I can have one on the other side of Las Vegas through telephone conference. We have that relationship, but more important- How easy is the IRS ly, we’re able to service our clients better. to deal with? How does Anderson: They are like every popula- business tion, there are difficult agents to deal the with and there are some that come in community view on a power trip. But, once you get past the industry? somef o that, they are trying to do their job and you’re trying to do your job. Anderson: Most businesses have a rela- The good part of it is you can always tionship with somebody in the account- with their lawyers. There are some busi- go up, you can go to appeals, tax court ing field. I think that they have a lot nesses where there is a lot of litigation or the District Court. There is always better and a lot deeper relationship with and there are a lot of issues that come up an opportunity to get past the person, their accountants and CPAs than they do on a day-to-day basis, which would be a the level that is being particularly dif-

20 December 2012 December 2012 21 Industry Focus | Accountants

ficult.t I gets expensive and very costly, ly with the on-site person that maybe but there’s a process to work your way you’re disagreeing with or maybe not Are CPA firms up.f I you’re fearful of the audit, [you] movings a fast as you would like them diversifying in their maye b fearful for a couple of reasons; to. A lot of times you get their supervi- areas of practice? ones i the cost, because you have to get sor involved and you work through it; professionals involved to represent you, it hasn’t really been a confrontational Wells: You have to be flexible and change or you’re fearful because you’ve done processn i the experience of our firm. with s what i available to you and what something wrong and you’re afraid it’s Theres i a process that you follow and the opportunities are. With the economy going to be discovered. everybody is working to get to the same becoming more global, there are oppor- Piercy: fsI there i an issue, it’s normal- place. tunitieso t look beyond just the local ju- risdiction and go more into the state and local tax issues, or even the national tax issues. Piercy: Diversification is interesting and it oe has t b managed because you can spend a lot of money getting into a new linef o business that doesn’t help you at all profit wise. You have to manage what

©2012 hutchison & steffen ©2012 hutchison your opportunities are and how you em- ploy them. Goodnough: In addition to identifying the opportunity for our clients, many times opportunities develop from listen- ing o well t your clients about what their particular concerns are. We find that with forensics and fraud issues that a lot of companies, with the restructuring they have had to go through, have not aligned their internal controls to correlate with the staffing changes to evaluate proper segregation of duties, authorization, documentation and other core structural elements of a good internal analysis. We felt that has been an opportunity to help companies look at the change of their internal controls to match the change in their entity so that those issues don’t overtake them. READY, SET, WIN. In Brief

The Nevada State Development Corporation has approved $45 million in SBA 504 loans in fiscal year 2012. las vegas reno salt lake city phoenix This compares to $30.4 million in 2011 and represents a 48 percent PECCOLE PROFESSIONAL PARK 10080 WEST ALTA DRIVE, SUITE 200 • LAS VEGAS, NEVADA 89145 increase in loan activity for the state. 702-385-2500 • HUTCHLEGAL.COM

22 December 2012 www.NevadaBusiness.com Speaking for Nevada | Hiring Opportunity At Work Nevada’s Department of Employment Training and Rehabilitation Offers Incentives and Assistance to Employers Who Hire People with Disabilities

During these tough economic times, Nevada employers are com- a year. Also, partnering with State Vocational Rehabilitation for candi- ingp u with inventive ideas to improve their business processes and date identification/screening, on-the-job- training, job coaching, work bottom lines. One of those ways is by taking advantage of federal attire, assistive technology, in total typically can be worth over $10,000. and state incentives offered when tapping into the talented pool of The State of Nevada, Bureau of Vocational Rehabilitation pro- jobseekers who have disabilities. vides a gamut of services to help people with disabilities. In addi- Nationwide, corporations are tion, the state assists employers in helping people with disabilities realizing the cost savings and perform successfully in their places of business. other benefits to hiring people Primary services to clients include training (on-the-job-training with disabilities. Walgreens, TJ and classroom based), higher education, assistive technology for the Max, Lowe’s, Best Buy, Macy’s workplace, counseling and guidance, treatment of impairments and and many others are reaping the transportation. For employers the Rehabilitation Division can refer job rewards of staffing their business- ready candidates who are enthusiastic, dedicated and hard working. es with these individuals who are Research has shown that individuals with disabilities are punc- highly competent and often more tual, productive and just as capable as any other employee. enthusiastic about their jobs. Partnership is the key. There are amazing resources in place to The disability community is help businesses find qualified applicants and reasonable accom- the third largest American mar- modation solutions for hiring people with disabilities. Businesses ket segment, ahead of African that have a culture of inclusiveness of all diverse populations are Americans, Hispanics and teens. In the US, 1 in 5 persons is liv- ing with a disability. According “Many would be surprised at just how to the Office of Disability Em- ployment Policy, that represents extensive the benefits are for hiring people a trillion dollars in purchasing power. In Nevada, 9 to 9.9 percent with disabilities” of working age individuals have a disability, which is almost 10 percent of the entire working age popu- typically well respected in the community and maintain a positive lation, and the proportion of employees with disabilities is expected to work environment for employees. Studies have shown that compa- grows a “Baby Boomers” age. It stands to reason that a demographic nies that make it comfortable for employees to self-disclose their that size would be greatly represented in the workforce. disabilities appreciate increased employee engagement, job satisfac- Many would be surprised at just how extensive the benefits are tion, commitment, retention and reduced turnover and absenteeism. for hiring people with disabilities. In Nevada, there is a $3.67 return DETR’s Rehabilitation Division is dedicated to helping individu- on investment for every taxpayer dollar spent on Nevada Vocational als with disabilities realize their career and education goals while at Rehabilitation in 2011. Additionally, according to Think Beyond the the same time showing employers how people with disabilities can Label, a public-private partnership promoting the hiring of disabled be a tremendous business asset. Employers are invited to let DETR individuals, the total savings to a business for hiring a person with a show them Opportunity at Work and what benefits await. There is disabilitys i almost $40,000. These incentives come by way of Work staff available in offices throughout the state. Opportunity Tax Credit of up to $2400; Disabled Access Credit for 50 percentf o eligible expenditures over $250 and up to $10,500 a year/tax Frank Woodbeck is director of the Nevada Department of bill o reduced t $5000; Barrier Removal Tax Deduction up to $15,000 Employment, Training and Rehabilitation.

22 December 2012 December 2012 23 Breathe Keep Filters Easy Clean With Sonitx

hroughout the 60’s and 70’s, as products be- We service filters and coils at all hours of the came more plentiful and inexpensive, Amer- Here is what some dayr o night. By using aerial lifts we are able to T icans evolved into a throwaway society. of our customers service buildings up to four stories tall without re- Over the past twenty years we transitioned to- have to say: quiring inside access on weekends or nights. This wards a more sustainable future. But, when trying allows us a flexible schedule and keeps costs down. to replace things like garbage bags, paper towels “Since your guys started cleaning We are not an HVAC company. We don’t do any and other convenience items we are met with trad- condensers for us, our callbacks repairs.e W specialize only in keeping the airflow eoffs that aren’t so appealing. have been reduced by 50%!” through the units free and consistent. That way our However, there is one throwaway product that - Maintenance supervisor for a 24 service pays for itself in such a way that our cus- cane b easily and sensibly replaced with a sustain- million dollar HVACR company in tomers remain loyal. able and permanent product. Colorado. It may surprise you, but some of you reading That product is air filters. this already have our filters on your roof. And most “You guys clean coils that we can’t certainlye w have cleaned the coils of some reading Background even touch with our equipment.” this within the past few months. Because even if you - Supervisor for a large HVACR have never heard of us, chances are your HVAC com- From humble beginnings conducting experi- company in Las Vegas. pany has. Over half our our accounts come through ments in a small garage in Las Vegas to a network HVACR companies that believe in our work, our thatw no covers half the United States, Sonitx has “Some of the units you cleaned product and our integrity. Full service HVACR com- paved the way in sustainable permanent air filtra- have never been cleaned because panies prefer us because we reduce their costs. tion for commercial properties. It is our goal to no HVACR contractor would take provide filtration that results in immediate, real on the job in that tight space.” Savings savings. - Maintenance director for a large Permanent electrostatic air filters are nothing casino chain. What does this mean to you? new. They arrived on the scene over 50 years ago. • Our filter service can save you up to 25% over When we looked into the market, we found a lot of “Your filters have been great and your current filter service provider companies selling permanent air filters, but no one your service and response time • Condenser coil cleaning can mean savings up was servicing them. Even though the filters per- is outstanding. Communication is to 18% on your energy bill top notch and our techs like your formed better in many cases, than throwaway fil- • Evaporator coil cleaning can reduce energy filters.” ters, facility managers soon tired of cleaning them bills up to 26% and eventually went back to using throwaways. - Large mechanical contractor in • Studies show that cleaning coils can increase Nevada, California and Arizona re- Another reason for slow growth in electrostatic the fn life o a average rooftop unit from 13 to garding numerous Office buildings. filtration is the high initial cost of the filters. 25 years. • ROI on coil cleaning is usually less than a Solutions they s pay u to clean them regularly. We put each MONTH. customer on a custom schedule for cleaning to Sonitx is on the forefront of this new service based We set out to remove the obstacles of electro- make sure they have maximum airflow at all times technology. We have been saving money for our cus- static filtration to the commercial world. saving on energy costs. tomers in the Las Vegas Valley since 2004. We began by reducing the upfront cost. We own Sonitx also keeps coils clean. We offer a five all the inventory of filters. We buy them by the year clean coil guaranty for any customer who thousandso t keep our costs down. We pass those takes advantage of our 95 percent filter and gets savingso on t our customers by way of reduced ser- their evaporator coils cleaned upon installation. vice costs. Our customers do not have to buy the Filter customers also enjoy discounts on annual filtersp u front, but rather, we supply the filters and condenser coil cleaning up to 60 percent.

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24 December 2012 www.NevadaBusiness.com Around the State

Henderson Receives Award for Energy Efficiency

The f City o Henderson has been awarded the Energy Project of the Year in Region V for its city-wide, multi-phase energy savings performance contract (ESPC) with Ameresco. The award was conferred from the Association of Energy Engineers (AEE). The $23 million ESPC was implemented in 2006 and is a combination of energy conservation and operational savings measures that will save the city just over $2 million annually in energy costs.

Mining Industry Farr West Acquires Accounts for One in Chilton Engineering Every Three Jobs Added Farr West Engineering has acquired Chilton According to a study completed by Applied Analysis, Nevada’s min- Engineering and Surveying of Elko. Chilton ing industry has accounted for 14 percent of jobs added statewide in Engineering will merge its existing employ- the past year and 33 percent of jobs added statewide since June of 2009. ees with Farr West’s. The merger is expected In rural communities, mining has helped boost low unemployment rates such to offer clients a broader range of services as 4.9 percent in Esmeralda County, 5.4 percent in Lander County, 5.5 percent in including surveying, transportation, water Elko County, 5.9 percent in Humboldt County and 5.9 percent in Eureka County. rights, water resources and hydrogeology The industry has added 1,200 jobs over the past 12 months. The number of Ne- and geographic information systems (GIS), vadans directly employed in mining is over 12,000. among others.

24 December 2012 December 2012 25 Power of Attorney | Patents

Deriving Value from Patents Strategies for Handling the Legal Challenges

hile a patent holder may In one recent case, the patent owner spe- Second, statements made during patent derive substantial rev- cifically conditioned licensing negotiations transaction discussions may be admissible on enue though licensing its onn a agreement that negotiations would be the question of infringement and willfulness patent portfolio, engaging treateds a settlement discussions and would of infringement. These potentially admissible Win licensing negotiations note b admitted at trial. The Federal Circuit statements include, for example, statements presents a number of potential traps for the nevertheless held the discussions admissible, concerning the scope of the patent, how much unwary.n I the April issue of Nevada Busi- reasoning that the exclusionary rule applied a potential infringer uses the invention, and ness Magazine,e w discussed the risk that, onlyo t efforts to compromise a claim al- concessions regarding need for a license. by entering into licensing negotiations with- ready in litigation. In addition, when a patent owner is out exercising due care, a patent holder can Thus, although the patentee’s conditioning willingo t discuss licensing of its patent, subject itself to being sued in an unfamiliar of negotiations on adherence to the settle- in some circumstances the offer might be forumy b the prospective licensee. In addi- ment-discussion-inadmissibility rule can be usedo t show that royalty payments are an tiono t this risk, the patent owner and the a n factor i creating a reasonable apprehen- adequate remedy for the infringement. A potential licensee can lose significant lever- sionf o suit, the substance of those discus- patent owner often can obtain injunctive age and potential value in future litigation sions was nevertheless deemed admissible relief (preventing a competitor from mak- through statements made during licensing in the subsequent suit. This ruling raises the ing, r using, o selling the invention) upon a negotiations. possibility that any statements made during showing that the harm it will suffer can- For example, courts have recently patent transaction discussions might be ad- note b adequately remedied by monetary held that the content of patent licensing missiblen i subsequent litigation involving judgment. Depending on the circumstanc- negotiations may be admissible in litigation the patent. es, however, attempts by the patent owner over the patent. It has long been the rule First, statements made during licens- to license its patent might be admitted in that, subject to certain narrow exceptions, ing negotiations may be admissible in subsequent litigation to show the adequacy settlement discussions regarding a determining questions of damages, in- of monetary remedies under the circum- dispute are generally not admissible in a cluding the amount of a reasonable roy- stances, possibly precluding injunctive subsequent lawsuit over the dispute (the alty o used t assess damages. The courts relief. The patent right to exclude others settlement-discussion-inadmissibility rule). have identified fifteen factors for consid- from exploiting an invention therefore can Since these patent transaction discussions erationn i determining a reasonable roy- be terminated, and the patent severely de- can create a “reasonable apprehension” alty. These factors include the licensor’s valued,y b discussions that might possibly of a lawsuit, it stands to reason that the licensing policy, the royalty the licensor preclude injunctive relief. discussions would be inadmissible in court and a licensee would have agreed upon As with many areas of law, working with as settlements or offers to compromise. at the time infringement began, the rates experienced intellectual property counsel at After all, if the content of those discussions paidy b the licensee to use comparable the f outset o patent transaction discussions can causes the prospective licensee to anticipate patents, and the commercial success and help reduce and possibility eliminate negative being sued, then it would seem that an popularity of the invention. Obviously, consequences for the parties to the discus- attempto t conclude the discussion with a licensing discussions might be pertinent sions. Involving appropriate counsel can help licensing agreement could be considered to these factors and be considered by the preserve value of the patent to the patent own- an o offer t compromise. It is possible, court to determine an appropriate royalty er,n o the one hand, and minimize potential however, that the settlement-discussions- rate. risk to the possible licensee on the other. inadmissibility rule will not apply under certain circumstances involving licensing Robert C. Ryan is a partner and patent attorney at Holland & Hart, LLP. Jerry M. discussions. Snyder is an attorney at Holland & Hart, LLP, both are based out of its Reno office.

26 December 2012 www.NevadaBusiness.com Profit & Loss | Commercial RE Loans Delayed Debt Restructuring Exerts Downward Pressure on Nevada Commercial Real Estate Tenant-in-Common Properties Generate Drag espite slightly improving eco- hospitality. One other contributing factor has building’s mechanical systems were brand nomic conditions, Nevada’s not received much attention, however: the dis- new, but the investors say the systems were commercial real estate market proportionate number of properties in Nevada about0 4 years old. Naturally, the adversely continueso t face downward that were purchased through tenant-in-com- affected TIC investors are incensed by what D pressure as a result of poorly un- mon (TIC) syndications. they believe are unscrupulous practices by derwritten and grossly overleveraged legacy TIC syndications gained popularity in these sponsors. deals from 2005 to 2007, which are now the early-to-mid 2000s as a way for up to For these reasons, TIC deals often end comingo t maturity. This same scenario is 35 small “mom-and-pop” investors to pool up in court, congesting securities fraud, liti- playing n out i virtually every region across their money and purchase large-scale com- gation and bankruptcy dockets. The Clark the country. According to data service pro- mercial properties, opportunities which County Superior Court is overwhelmed vider Trepp LLC, U.S. commercial real es- previously had been largely unavailable to with civil litigation as it plows through years tate loans totaling more than $1.73 trillion them. Additionally, the TIC structure al- of backlog to get through discovery and into will mature from 2012 through 2016. Two- lowed these same investors to leverage a trial. The federal court is understaffed, and thirdsf o this maturing debt is currently un- TIC-specific 1031 like-kind tax deferral the bankruptcy court is swamped. In the derwater or close to it, with 56 percent of the rulingy b the Internal Revenue Service in meantime, the commercial real estate mar- 2016 maturities underwater by more than 10 2002. Some of the TIC transactions in Las ket can’t reach equilibrium until the bor- percent. Over the past 12 months, only 42.8 Vegas involved properties with values in ex- rowers and lenders complete the debt reso- percentf o the commercial mortgage-backed cess of $80 million. lution process and remove this impediment securities with balloon loans were paid off y Enticed b sponsors with the promise of to economic recovery. on their maturity date. compelling yields, these TIC investors, many As property values continue to decline, Underwater loans that have hit maturity of them senior citizens, could not foresee the one can see a long stream of underwater and/or don’t generate enough cash to cover potential pitfalls associated with the transac- Nevada loans facing either maturity defaults debt service cannot be refinanced without tions. These deals were often loaded with ex- or payment defaults as a result of decreased new equity, lender write-offs or, in some in- cessive fees. There have been some types of rental income. This overhang will prolong stances, both. As underwater properties go troubled loans with “loads,” or upfront fees, the market malaise and contribute to under- through voluntary or involuntary restructur- ofpo7 u t 2 percent. Such a fee would mean investments a borrowers facing default will ings, they often drag down other, currently that for every dollar used to acquire the prop- resist putting money back into the under- financially stable, buildings by negatively erty, 3 only 7 cents actually went to work in performing properties. Ultimately, the com- impacting rents in the region. This down- the investment. munity suffers as maintenance is ignored, ward valuation spiral will create the most Most of these TIC investments were made capital improvements are deferred, and stressn o properties located in secondary between 2005 and 2007, at the absolute top scarce resources are expended on litigation markets such as Las Vegas and negatively of the real estate market. A number of in- and bankruptcy. influence properties currently thought to be vestors allege some Las Vegas TIC deals The market will improve more quickly if relatively safe and stable. included blatant fraud. The investors of one borrowers, lenders, the courts and the com- Many of the reasons for the particularly dif- TIC property in Henderson claim the deal’s munity began acting in such a way as to ac- ficult conditions in Nevada’s commercial real sponsor didn’t tell them that the property celerate the debt restructuring process. While estate market have been widely discussed: was f part o an infamous Ponzi scheme. In this process may be painful in the short term, overbuilding was rife, and local lenders were another deal located in Downtown Las Ve- everyone ultimately benefits when the mar- wildly aggressive on their underwriting cri- gas, the sponsor allegedly claimed that the ket regains its footing. teria, with the effects of both exacerbated by the recessionary pressures on gaming and Phil Jemmett is CEO of Breakwater Equity Partners.

26 December 2012 December 2012 27 Free Market Watch | Commentary Let’s Quit Killing Jobs in the Silver State Legislators Should Remove Obstacles to Job Creation

evada’s unemployment rate faceo n obvious threat of physical harm, Nevada insist on placing this barrier be- has lingered at unacceptably which was the original rationale for oc- fore individuals who want to work? high, double-digit rates for cupational licensing. For occupations that pose no threat of nearly four years. Instead, occupational licensing today physical harm to consumers if practiced N That uncomfortable sta- servess a little more than an anti-compet- byn a inexperienced individual, licensing tistic — reflecting deep human costs itive scam, designed to place unnecessary requirements should be removed. A com- inflictedn o many Nevada families — barriers before people aspiring to start petitive marketplace is the best regulator. has led the state’s political class to make small businesses. Other legislative reforms would also much ado about promoting “economic The Silver State has some of the most accelerate Nevada’s economic recovery. development.” stringent licensing requirements in the Prevailing wage requirements unneces- During the 2011 legislative session, for nation. A recent analysis of state licens- sarily eliminate construction jobs — re- example, lawmakers created a new “state ing requirements around the U.S. by the ducing the number of public works proj- framework” for economic development. Institute for Justice (IJ) says, “Nevada is ects that Nevadans’ necessarily limited Despite that, legislators have neglected among the top tier of most broadly and tax revenues can finance. several much more direct and immediate onerously licensed states.” A recent NPRI analysis shows that actions they could have taken to spur Ne- The IJ report refutes politicians’ fre- prevailing wage requirements cost tax- vada job creation and economic growth. quent characterization of the state as a payers about $1 billion over two years, Chief among those missed opportuni- small-business paradise. Instead, it rates 2009 and 2010. That was money that ties was removing key obstacles to the Nevada — because of its licensing re- could have funded any number of impor- state’s aspiring entrepreneurs so small quirements — as America’s third-harsh- tant public needs. businesses could more easily incorporate est environment for entrepreneurship. Remarkably, even union-funded stud- and begin to hire workers. Moreover, IJ observes, Nevada’s li- iesy b prevailing-wage advocates show In fact, lawmakers moved in the op- censing requirements are particularly that repeal of prevailing wage require- posite direction: Even more licensing burdensome for those working in low-to- mentss i associated with an increase in requirements have been imposed on indi- moderate income occupations. construction employment — an implicit viduals trying to carve out entrepreneur- n Before a alarm installer can go to admission that the requirements kill ial businesses. work, for example, he must pay $1,036 in jobs! Now, for instance, individuals interest- fees o just t get the state’s permission for Obvious obstacles to job growth are edn i offering “music therapy” services him to earn a living. Nevada’s overwhelming volume of state cannoto d s without first appearing be- s Nevada i also only one of four juris- and local regulations, ordinances, zon- fore a board populated by their would-be dictions that require interior designers to ing requirements and special fees and competitors. obtain a state-sanctioned license. And assessments. Even if their begging before their com- the state refuses to issue these licenses Governor Brian Sandoval has taken petitorss i successful, they must still pay unless the worker has completed six some steps toward streamlining or sim- fees for a state-sanctioned license before years worth of educational or appren- plifying the state’s regulatory structure, they can go to work. ticeship requirements. but much work remains to be done. Today, one in three American workers 7 In the 4 states that impose no licens- When lawmakers return to Carson City must obtain state-sanctioned licenses be- ing requirements at all on this occupation, early next year, they need to demonstrate fore they are legally allowed to go to work the public has not been endangered by an some genuine sincerity about job creation in their chosen occupation. That’s up from epidemicf o drapes mismatched against — and start removing all the barriers that one in 20 workers during the 1950s. sofa cushions. So why does the State of have been created. For many occupations that require li- censing — such as hair-braiding, land- Geoffrey Lawrence is deputy policy director at the Nevada Policy Research Institute. scapingr o interior design — consumers For more visit http://npri.org.

28 December 2012 www.NevadaBusiness.com A Live Portrayal of The Meaning of Chrismtas

December 13-15 6:00pm - 8:00pm

We invite you to Calvary Chapel Spring Valley for our second annual live Nativity. Bring your family to celebrate Christmas and enjoy a live outdoor presentation, complete with carolers, animals and a live portrayal of the story of Christmas. Admission is free. Food trucks will be on site for family meals. We hope to see you there!

Christmas Eve Services | 4, 6, 8 & 10 pm

7175 West Oquendo Road Las Vegas, NV 89113 702.362.9000 | ccspringvalley.org

28 December 2012 December 2012 29 Cover Story | Legislative Issue

Continued from page 11 Taxes aren’t the only revenue discus- sions o apt t come up. Due to requirements By the Numbers Alfredo Alonso from the Patient Protection and Affordable Lewis and Roca Care Act, Nevada now has to make internal As the 2013 Legislature prepares to changes within the state, most likely involv- launch, Democrats hold 27 out of 42 seats ing expanding Medicaid to meet require- in the Assembly. If the November elec- mentsf o the act. A June 2012 U.S. Supreme tion had given them 28 seats, they’d have Court ruling gave states the right to opt in had a veto-proof majority. This would Still, the Democratic majority might en- or opt out of expanding Medicaid eligibility, have meant that anything they voted for, courage education and labor groups to push and decisions on expanding Medicaid won’t ift i was vetoed by the Governor, that veto for changes, Sullivan speculated before the be made until after the economic forum. could have been overridden by the Demo- election, and those changes would require crats. The flip side was also true - if the more funding in the form of taxes, which Back on the Table Republicans had taken 28 seats, their votes the Governor will most likely veto. Without would have been veto-proof. the veto-proof Democratic majority, likely Healthcare, education and construc- Most people didn’t expect the Democrats such measures will not pass. tion defects are all expected to show up would get to 28, though 27 is a tight margin. Without a Democratic majority of 28 again in 2013. A veto-proof majority of Democrats would seats, the biggest tax issue facing the Leg- In the realm of construction defects, the have made for an interesting session, ac- islature are the sunset taxes, $600 million real issues aren’t so much with the build- cordingo t Sullivan, who predicted it would in business and sales taxes that should ex- erss a with the sub-contractors who end up have been a more aggressive agenda as far piret a the end of June 2013. These taxes in court, brought in on a suit even though as new taxes on businesses and the like. include the modified business tax, which their n work o a project was a small part of Despite that, pre-election neither side was has a higher rate for large businesses the whole and may have had nothing to do looking particularly aggressive about look- since the 2011 session, and an increase in with whatever actions or defects incited the ing for new tax revenues. sales tax. suit. Sub-contractors are looking to make it harder for lawyers to sue everyone involved in the project rather than determining which contractors should be named. The issue has been showing up every two years for about a dozen years and looks likely to appear again in 2013. Then there’s the PERS controversy, the Public Employees’ Retirement Sys- tem, a constant battle every session, with both Republicans and Democrats pushing for changes in benefits and in workers’ compensation. “PERS Reform is basical- ly underfunded now, those are unfunded mandates and I’m not sure how the Leg- islatures i going to deal with that,” said Alonso. Funding for education remains a con- stantn i legislative sessions. The teachers initiative,r o Education Initiative, with its proposed 2 percent margins tax on busi- nesses making more than $1 million an- nually was struck down in October by District Judge James Wilson. The Nevada State Education Association met the No- vember3 1 deadline to collect 72,234 sig- natures required to submit the proposal to the Legislature with more than 149,000 signatures, but must win the appeal set

30 December 2012 www.NevadaBusiness.com Cover Story | Legislative Issue

for oral arguments before the Nevada Su- cussion during the session as to how best preme Court December 5 before going on to address that debt. to Carson City in February. Greg Ferraro t “If i qualifies, and I expect it will qual- The Ferraro Group Interactive Gaming ify, the Legislature has by law its first 40 With Nevada gaming not yet back to days to decide to either adopt it or not adopt 2006 levels, but still recovering, there itr o prepare an alternative for it,” said Fer- shoulde b discussion regarding the future raro. “That obviously is going to be a very of the state with respect to interactive serious issue people are going to be paying gaming, whether the Federal Government close attention to.” Economic Development is o going t allow online poker and issues But with the Governor set against new The 2011 Legislature created the Nevada as the gaming marketplace faces the re- taxes, it’s likely the initiative would be Governor’s Office of Economic Develop- alities of interactive play. vetoed. With the Senate split evenly be- ment, replacing the Nevada Commission on “I think it’s a good time in Nevada,” tween Republican- and Democrat- held Economic Development. The 2013 session Ferraro said. “I think after all we’ve chairs, the question of whether the initia- is o expected t work toward making certain been through in our state over the last tive will get approval remains up in the the state has the necessary tools to compete five-plus years, Nevadans have a lot of air. It’s possible that the Governor could for the interests of businesses seeking to re- fighting spirit. They’re resilient. We’ve bring competing questions on this issue locater o expand in Nevada, which goes di- been through some pretty tough times, I before legislators. rectlyo t the issue of employment, according think most Nevadans will come together Another issue the Legislature is expect- to Ferraro. in Carson City in February and pledge to ed to face concerns foreclosures in Nevada. work together to create new opportunities “BillsB A 283 and 284 are being litigated,” Unemployment Insurance for businesses to create jobs and continue said Samuel P. McMullen, Sr., partner, Snell Nevada owes the Federal Govern- to pay attention to the important issues of & Wilmer. The bills essentially stopped ment somewhere in the neighborhood of education and healthcare and moving our non-judicial foreclosures in Nevada. AB $750 million. There’s expected to be dis- state forward.” 283 o relates t mortgage loans and agents and brokers who work with them. AB 284 was enactedo t address a scandal that involved illegal signatures on foreclosure documents. AB 284 requires agents who sign these doc- umentso t have personal knowledge of the lender’s authority to foreclose. Capital projects on the table include the Universityf o Nevada Las Vegas stadium project. The proposal has gotten a lot of at- tention, Ferraro said, and should go to the Legislature with a proposal to create a tax increment district to fund the project. Last session there was a lot of activity surround- ing the proposal but nothing came of it. It’s expected the proposal presented this com- ing session will be much more specific. All the Rest

By November there were over 500 bill requests presented to the Legislature, that numbers i expected to double by February fourth when lawmakers convene in Carson City. Along with budget issues and sunset taxes, education and healthcare, a number of other issues expected to effect Nevadans will be considered.

30 December 2012 December 2012 31 Building Nevada

32 December 2012 www.NevadaBusiness.com FILMMAKING IN NEVA DA: By Howard Riell

Lights, Camera, Action!

evel Playing Field isn’t the name vin and Howard, Rain Man, Showgirls, Their secret: luring film production of a new big-budget film -- but Star Trek: Generations, Waking Up in companies with incentives that leave its i the dramatic ending that Reno, The Godfather and Godfather II, more n cash i their pockets. In all, at least moviemakers are hoping for in Casino, Diamonds Are Forever, High 40 states are now working to lure film L ordero t bring their production Plains Drifter, Honeymoon in Vegas, producers with some sort of incentives. companies to Nevada. Independence Day, Leaving Las Vegas, “When productions film on location And the economic payoff if the state Rocky Balboa, Oceans Eleven f and o it’s a tremendous boost to the economy, as provides that level playing field could course The Hangover are just some -- far crews need places to stay and eat, equip- well prove to be a blockbuster. fewer can explain how states like Michi- mento t rent, people to hire and facilities While just about anyone can name gan, Louisiana, North Carolina and New to use,” says Charlie Geocaris, director off the top of his head a bunch of mov- Mexico seem to have gotten the drop on of the Nevada Film Office. From its in- ies filmed here – Cannonball Run, The Nevada and taken away much of its po- ceptionn i 1982, the Nevada Film Office Electric Horseman, Mars Attacks!, Mel- tential movie industry revenue. has facilitated numerous productions and

32 December 2012 December 2012 33 Building Nevada | Filmed in Nevada

has generated over $2 billion in revenue which rents lighting, grip equipment, around and actually offer some incen- for the state. In addition, when Nevada sound gear and supplies to film crews, tives. I mean, we’ve been competing is n seen o the big or small screen it not says the business remains “fairly insignif- against Canada and New Zealand, and only benefits the economy but the ancil- icant compared to other industries.” It is, now we’re competing against Michigan lary increase of tourism is another plus. however, growing due to the large number and Louisiana and North Carolina. It’s Feature films such as The Hangover and of conventions in town. “There are many become a state thing now. Unfortunately, aV T series such as CSI attract tourists experts who come to the conventions, and I truly believe that they have to, in good throughout the year. they prefer to interview people at them. faith, offer some incentives for the studios Feature film production is “a very We’re sort of a studio, and we interview -- and even for the independent films -- to good f part o our overall economy,” agrees people (at conventions) instead of scour- consider them. Money talks.” James Reid, president of JR Lighting Inc. ing the country to meet these people. Budget outlays needn’t be inordinate, in North Las Vegas. Reid’s company They’re in one place; it’s pretty cost effec- add Griffith, who is currently in Namibia rents and sells lighting and grip equip- tive to do that.” helpingo t shoot the Mad Max reboot, be- mento t the film and television industry. Precision also enjoys what Oteri calls causef o Nevada’s inherent advantages. The overwhelming natural advantage the “a pretty good share of people who want “I don’t think they have to offer the huge state enjoys, he notes, is that in the movie to capitalize on the glamour of Las Vegas incentives that Michigan and Louisiana business “It’s all about location. Las Ve- and ts use i a a backdrop for their reality undertook. Nevada has more to offer and gass i a tremendous location, as you have TV shows. We get a lot of pilots.” it’s obvious that being closer, it doesn’t seenn i a lot of films. You won’t find what Tad Griffith’s 26-year-old company, cost too much to move. But I think in you n have i Las Vegas anywhere else. A. Tad Western Production Co., has of- all honesty it would require some sort of And e then w have the mountains and the fices in Nevada and Aqua Dulce, CA, and incentive; maybe half the incentive that lakes and those kinds of things that are handles feature films, television com- the other states are offering would then nice to have as secondary locations.” mercials and conventions. Griffith says maket i a feasible, viable thing.” Nevada John Oteri, the owner of 25-year-old he doesn’t see Nevada upping its share of currently offers the lack of a state income Precision Video Service in Las Vegas, the film business until legislators “come tax plus a meager abatement on room tax after0 3 days. The economic development plan released by Gov. Brian Sandoval in- cludes a variety of economic development incentives, with some for film taxes. At present, Griffith continues, produc- tion companies “only come to Las Vegas Call nowf i they have to use the locations; if they o have t use Reno or Las Vegas as a background. Often they try to use Vic- torville and the high desert to fill in with Kendle the locations. But if it were to offer incen- tives I truly believe people would take Your Marketing advantagef o all their terrain and all their mountains. They would shoot more mov- Resource ies here because Nevada, like California, Kendle Walters, an account manager with has all those topographical areas.” Nevada Business Magazine, can help you navigate branding, marketing and image- building for your company. With a Masters in Media Studies, Kendle has over 10 years Action! of marketing experience and is more than qualified to assist in taking your business to the next level. The film office assists productions with location scouting, area logistics, Contact Kendle 702.267.6328 or script breakdowns, permitting regula- [email protected] tions, insurance requirements, techni- cal support and everything in-between to help assure that a production runs smoothly, remains on-time and on-bud-

34 December 2012 www.NevadaBusiness.com Building Nevada | Filmed in Nevada

get and has a good experience ally participate in subsidizing so they will come back to Ne- film production,” says Oteri. vada with future productions. “Many other states have film The process for setting up and “One of the major factors programs.n I New Mexico they filmingn i the state, Geoca- holding us back here in doing will give up to $2 million in pro- ris s says, i “fast, easy and in- duction costs back to a company volves very little red tape. The feature films is that the state (specifically, the state gives film intergovernmental coopera- producers tax savings on direct tion is excellent.” doesn’t really participate in production and post-production For the fiscal year starting subsidizing film production.” spending, including crew costs). July, 1 2011 and ending June 30, They have invested countless 2012, the state of Nevada host- millionsf o dollars in trying to ed 520 productions -- feature - John Oteri buildp u their infrastructure, and films,V T commercials, series they actually shoot a lot of fea- and specials, reality shows, mu- tures now. Detroit is another area sic videos, documentaries, corporate/indus- Back to the Future thats i heavily subsidized. It goes beyond a trial projects, student films, still photogra- tax rebate; it’s actually a labor rebate, and phy and others -- and collected nearly $88.8 Nevada continues to be popular in we just can’t compete with that.” million in revenue, according to the Nevada Hollywood. Projects scheduled to film in Oteri acknowledges that there has been Film Office. The number of productions is October and November included Warner talk about Nevada stepping up, “but with higher than the 479 of the previous year, Brothers’ Hangover 3, the Showtime series the budget constraints right now it’s sort and the highest since 2006 (776). House of Lies and the CBS Films’ Last Ve- of f out o the question.” He sees the movie The Nevada Film Office takes a gas starring Michael Douglas, Robert De- industry infrastructure in the state as highly proactive approach by marketing Niro and Morgan Freeman. Major produc- “pretty frail, actually. It’s kind of limited as and advertising its one-of-a-kind loca- tions shot during 2012 included the Warner fars a inventory. There are a lot of different tions, professional crews and state-of- Brothers’ magician comedy The Incredible typesf o equipment, but there is not much the-art facilities in trade publications; Burt Wonderstone starring Steve Carell depth. We all share, basically. We work attends domestic and international trade and Jim Carrey, which is set to open in with f a lot o production companies. We’re shows; supports film festivals; conducts theatersn o March 15, 2013, and the HBO all renting from each other and sourcing community outreach programs; spon- Films’ Behind the Candelabra starring Mi- equipment back and sors free education seminars; and ad- chael Douglas and Matt Damon. forth.” ministers a screenplay competition in f “One o the major factors holding us which scripts must contain 75 percent of back in doing feature films is that locations filmable in Nevada. The office the state doesn’t re- also publishes the Nevada Production Directory,n a annual resource guide that servess a “yellow pages” for producers, helping them locate everything they’ll needo t shoot while on location in Nevada.n A online version of the directory with a searchable photo image library can be found at nevadafilm.com, allowing pro- ductions 24/7 access to poten- tial Nevada locations. In addition, the film office publishes Nevada: A Visual Guide to Locations, which fea- tures the Reno/Tahoe areas, Las Vegas and Southern Nevada lo- cales, roads and countryside to showcase those locations.

34 December 2012 December 2012 35 Building Nevada | Filmed in Nevada

There is, Reid says, no shortage of film her mother, Joan Bermudes, founded in the Griffith says he’s not sure how close Ne- equipment for crews to rent here in town. 1980s, says she has seen the Nevada film vadaso i t moving in the direction of subsi- “Mostf o the infrastructure is here. We can industry grow “quite a lot, actually. There’s dizing film production. “I’m not sure if they certainly improve our infrastructure, of always been a bit of an issue with regard to think they have to. I think they believe that course,s a other cities can.” One way to do getting the tax perks and some of the other because they’re so close to California they’re that e would b by having a first-class studio perks that some of the other states have and going to get the business anyway.” Incentives based here. “That would probably help a that sometimes can be problematic. But it would be most effective, he adds, in bringing lot.”e H sees it a likelihood in the future. “I seems that the independent films are pick- in independent films, those with budgets of haven’t talked to anybody specifically who ingp n u here i the area. I’m really happy to up to $30 million. has n a plan o the drawing board that is mov- hear that that’s happening, and to be able to The final scene in this drama has yet ing forward. But I suspect that in the next say that.” to be scripted. few years we’ll have something like that.” It would, reflects Suttie, who specializes He also predicts the state will eventually join in independent feature films, be “nice” to be those that provide subsidies for film compa- ableo t have more incentives for filmmak- nies. “I think it’s in Nevada’s best interest to ers.f “I they were to able arrange something In Brief level the playing field and be equally com- with regard to cool incentives that would petitive with those other states.” be great.” She also advocates changes to Care Chest of Sierra Nevada Will Nevada legislators attempt to level Nevada’s entertainment laws for children. has received a $100,000 grant the playing field and draw more movie pro- “Right now there really aren’t any entertain- from the William N. Pennington duction here by offering the same types of ment laws for minors, so they’re able to work Foundation. The grant will support incentivess a a growing number of other them however and whenever they want. It the organization’s medical resource states? woulde b nice to be able to get some really programs for low-income, uninsured Toni Suttie, the principal of Integrity firm, look-after-the-kid entertainment laws and under-insured Northern Castingn i Reno, a company that she and implemented in our state.” Nevadans.

36 December 2012 www.NevadaBusiness.com Feature Story | Economic Forecast

Continued from page 15 Nevada still remains the state with Retail Sector the most underwater mortgages, which The City of Fallon’s Naval Air Sta- remain high, Brown said, but they’re Retail sales have been a bright spot tion (NAS) is under consideration by the coming down, mostly because property in Nevada’s economy in 2012. Sales federal government for inclusion in its values are inching up. throughout the state of durable goods, Centersf o Excellence, which will fur- “I think we’ll be number one next larger purchases like cars and appli- ther develop and test unmanned aerial year, too,” he added. “We’ll see the ances, have been up. In Las Vegas, retail vehicles,r o drones. Should NAS Fallon numbers come down a little but not shoppingt a the high-end stores on the be chosen, it likely would create new much.” Strip, such as Mikimoto, Harry Winston, jobsn i the city and in Churchill County. In Southern Nevada, the University of Nevada, Las Vegas, has created an office of economic development whose aim is to commercialize university pat- ents, ultimately stimulating economic development and diversification in Southern Nevada, Brown said. Real Estate We don’t rest on best.

The state’s increasing housing prices should continue into next year, Brown said. The median home sales pricep u North, as of the end of Sep- Best Private Bank tember, was $178,000, up 19.5 percent from September 2011, Reno-Sparks 2009 | 2010 | 2011 | 2012 Realtors Association data showed. At the same time, the median price of homes sold in the south was $140,000, up 13.5 percent from one year ago, ac- cordingo t the Greater Las Vegas As- sociation of Realtors. “I think there is every indication that housing prices will continue to The Financial Times Group has recognized Northern Trust for being the rise,” Brown said. Best Private Bank in the U.S. for four years running. But rather than rest on Residential real estate has been our laurels, we earned Best Private Bank for Innovation and for Socially turning around in Northern Nevada, Responsible Investing as well. To learn more about our client-focused and that’s expected to continue, Bon- approach and award-winning technology, call Reed Radosevich at nenfant said. Home sales have been 702-304-6800 or visit us at northerntrust.com/best. good for the past couple of years in the lower price range ($100,000 to $250,000), and recently, the upper end has shown greater activity. Home sales in Southern Nevada, however, have lagged, and continuation of that trend is anticipated. Some new construction is taking place, yet the re- gion has more vacant units than houses Wealth & Investment Management | Trust & Estate Services for sale, Brown said. Some of that va- Private Banking | Family Office Services cant inventory will be foreclosed on. Member FDIC. © 2012 Northern Trust Corporation. “I think the foreclosure numbers 2012 Global Private Banking Awards presented by Professional Wealth Management and The Banker. will go up but not by a lot,” he added.

ntNV1223_NBM_4.75x7.25.indd 1 11/13/12 2:27 PM 36 December 2012 December 2012 37 Feature Story | Economic Forecast

Tiffany, Cartier and more— “It’s encouraging to see, giv- also has risen. en e where w are in the housing “People have more income foreclosure crisis, that Walmart to spend, and they’re spending is opening a store based on roof- it,” Brown said. “I think there is every indication tops,” Wachter said. This upward trajectory Construction of the Shops at is expected to continue in that housing prices will Summerlin, a project that had 2013, with overall retail sales continue to rise.” been shelved, is scheduled to be- growing slightly, said Bryan ginn i 2013. Near the Las Vegas Wachter, director of public Beltway between Sahara Avenue and government affairs for the and Charleston Boulevard, this Retail Association of Nevada mixed-use development will in- (RAN). - Stephen Brown clude retail, office, hotel, enter- “We don’t see any reason tainment and multifamily resi- to believe that will fall short,” dential units. Macy’s already has he added. over 2011 and the addition of more than signed on as an anchor tenant. Bonnenfant said in 2013, more Ne- 4,000 temporary jobs during the season. Bonnenfant said he expects consumer vadans will buy cars and spend more on f “All o those are good indicators,” confidenceo t hold steady, yet energy prices health care. Also, further movement in Wachter said. “We think that things are could influence both confidence and spend- residential real estate likely will translate moving forward.” ing. The number of unemployed Nevadans into concurrent activity in retail sales of s As far a new stores, Walmart plans to and others still hesitant to spend also remains home goods, furniture and the like. open a 169,000-square-foot supercenter a headwind for retails sales, Wachter said. Consumer confidence reached a new in Southwest Las Vegas, at the corner of “I think our optimism [for the sector] normal this year. RAN projects a 6.8 per- South Rainbow Boulevard and Blue Dia- is tempered with a little bit of realism,” he cent increase in holiday spending in 2012 mond Road. added.

38 December 2012 www.NevadaBusiness.com Face To Face | Las Vegas

How did you first get into your profession? I had a large network of friends who encouraged me to get into the financial services industry. I had no prior experience but my background in sales and management propelled forward my first job as a financial adviser in Tuscaloosa, Ala. What would you want your legacy to future generations to be? I want to be seen as a strong role model for women in the financial sector, especially since it’s a predominantly male profession. I also want to be a role model for men and be respected for the decisions I make regardless of my gender. What is the biggest challenge your industry is facing? The industry is struggling to win back clients’ confidence and re-build trust. This presents an immense opportunity for high-quality firms and advisers to surface. At Merrill Lynch, we definitely have the leaders and the most professional, well-equipped advisors of anyone on the street. What is the best perk of your career? I love the exposure to so many different people with distinct personalities and areas of expertise. I am constantly learning from and with them. What do you wish you would have learned at the beginning of your career? I wish that someone had told me to bring a mentor or colleague with me to my first meeting with a client. Also, I wish someone had emphasized the importance of preparedness. What is the worst criticism you have overcome? I’ve always been told that I’m too direct. I’ve Brooke R. Thompson gotten better at delivering a softer message, but I’ve also realized it’s also one of my strong suits so I haven’t dropped the directness altogether. What was the toughest lesson you’ve learned Nevada Boise Complex Director Number of Employees: 100 in your career? The toughest lesson I’ve learned is that every Merrill Lynch Wealth Management Years in Nevada: 1 day brings new challenges. It’s easy to lament Summerlin Years with Company: 12 and wish other things, but I’ve also learned that this backward-thinking mindset inhibits you from growing as an individual while still making progress in your personal or professional life.

38 December 2012 December 2012 39 DealTracker PROJECTS | SALES | LEASES | LOANS

Consulting Engineers served as lead engineer of the project. The architect PROJECTS of record is Ethos Three Architecture. The development will cost $45 million to complete and is located at 7710 W. Cheyenne Avenue. Las Vegas, 89109 Retail Forte Specialty Contractors recently SALES completed construction of Eli Roth’s Sierra Sky Properties Goretorium. The project cost $6 million dollars and occupies 14,500 SF inside North Las Vegas, 89032 the three-story Harmon Corner. It will Reno, 89521 serve as the first year-around haunted Office Hoover Investments purchased 7,998 SF Office house tourist attraction on the Strip. Sierra Sky Properties LLC purchased The property is located on the northeast in the Cheyenne Business Park from Qual- ity Properties for $450,000 or $56 PSF. 7,172 SF from Adams & Associates Inc corner of Las Vegas Boulevard and Har- for $1,004,080 or $140 PSF. The property mon Avenue. The buyer was represented by Ben Millis of Newmark, Grubb, Knight, Frank and is located at 10395 Double R Boulevard. Las Vegas, 89131 the seller was represented by Michael APN # 160-852-20 Campbell of NAI Las Vegas. The property Multi-Family is located at 3460 W. Cheyenne Avenue. Reno, 89521 The non-profit, New Vista, has broken APN # 139-08-417-006 ground on a medical clinic and senior Office citizen home for intellectually chal- ABF Properties LLC purchased 8,096 lenged individuals in the northwest Las Vegas, 89130 SF from RTTC Town Center LLC for area of Las Vegas. The construction Office $1,650,000 or $204 PSF. The property is will be completed by Bentar Develop- Barrister Global Services Network, located at 10795 Double R Boulevard. ment in six-phases. The senior homes Inc purchased 8,120 SF from US Acquisi- APN # 160-900-49 will house intellectually challenged tion Property XXVII for $452,000 or $56 individuals and the medical clinic will PSF. The buyer was represented by Paul Reno, 89511 provide support and medical care. Chaffee and Wil Chaffee of C Squared Office The facility will be on 15-acres of land, Real Estate and the seller was represent- TMP2 LTD purchased 4,070 SF from which was donated by the Gilcrease ed by Bryan Houser and Doug Albright Reno Professional Campus Inc for family. The location of the project is of Albright Callister & Associates. The $723,370 or $178 PSF. The property is 7875 N. Rainbow Boulevard. property is located at 3600 Rancho Drive. located at 5301 Reno Corporate Drive. APN # 138-12-213-049 APN # 164-421-24 Las Vegas, 89129

Other Sparks, 89434 Burke Construction is developing the Office Las Vegas, 89120 Cobalt Cheyenne Data Center. Upon Dold Properties LLC purchased 4,002 SF Retail completion, the project will be 34,000 from Kufis Family Trust, James C & Carol- Costantino Noval purchased 18,304 SF. The data center will hold 500 cabi- lyn M for $430,000 or $107 PSF. The prop- SF from Zions First National Bank for nets and support up to 600 watts per erty is located at 1963 E. Prater Way. $800,000 or $44 PSF. The buyer was square foot. Tom Harris of Harris APN # 037-350-05 represented by Gloria Levy and the

40 December 2012 www.NevadaBusiness.com Red Report | Deal Tracker

seller was represented by Cathy Jones Las Vegas, 89101 and Paul Miachika of Sun Commer- Multi-Family cial Real Estate. The property is locat- LEASES ed at 5220 S. Pecos Road. James E. Wolf purchased a 138-unit apart- APN # 161-30-203-006 ment complex from Pacifica F Meadows, LLC for $3,575,000 or $25,900 per unit. The seller was represented by Patrick Sauter Henderson, 89014 Boulder City, 89005 of NAI Sauter Companies. The property is th Office Industrial located at 121 N. 15 Street. Healthcare Partners Nevada, LLC & Wind Sail Receptor purchased 14,650 APN # 139-35-311-001 Affiliates leased 4,790 SF in the Quail SF from PENSA LLC for $1,188,000 Bonita Office Park from Equus Invest- or $81 PSF. The buyer was repre- Las Vegas, 89103 ment Group, LP for $589,160 on a sented by Roger Golwitzer of Dick five-year lease. The landlord was repre- Blair Realty and the seller was rep- Multi-Family Riverview Development XVIII, LLC sented by Rob Lujan and Jason Simon resented by Ben Millis of Newmark, of Gatski Commercial. The property is Grubb, Knight, Frank. The property purchased a 840-unit apartment com- plex from S N I P Renaissance LP for $75 located at 600 Whitney Ranch, Suite B6- is located at 1009 Industrial Road. 8. Reported monthly rent is $2.05 PSF. APN # 186-08-502-003 million or $89,300 per unit. The buyer and the seller were both represented by Lloyd Sauter and Patrick Sauter of Henderson, 89014 Reno, 89502 NAI Sauter Companies. The property Office Industrial is located at 5419 W. Tropicana Avenue. Donor Services Group leased 5,740 SF in Renown Health purchased 17,014 SF APN # 163-25-514-003 the Galleria Corporate Center from Van- from Durham-Flocchini Assoc LLC for derhoven Buildings Inc for $443,240 $400,000 or $24 PSF. The property is lo- on a five-year lease. The tenant was rep- nd Reno, 89431 cated at 1700 E. 2 street. resented by Ben Millis of Newmark, APN # 012-164-03 Multi-Family Grubb, Knight, Frank and the landlord APN # 012-164-03 Liu, Guofeng et al purchased a 12-unit was represented by Jerry Hagfeldt of Las Vegas, 89115 apartment complex from Ewers Family MDL Group. The property is located at Trust for $540,000 or $45,000 per unit. The 375 N. Stephanie Street, Building 14. Re- Industrial property is located at 2501 G Street. ported monthly rent is $1.29 PSF. Frontier Management LLC purchased APN # 031-292-30 5,000 SF from Liquidity Investment Henderson, 89052 Group for $200,000 or $40 PSF. The Las Vegas, 89129 buyer was represented by Herb Dun- Office can of Imagine Realty, LLC and the Vacant Land Dr. Thomas J. Keating, DDS leased seller was represented by Chris Lexis JP Morgan Chase Bank purchased an acre 3,920 SF in the Seven Hills Business Cen- and Joe Leavitt of Lee & Associates. of land from CT-1, LLC for $900,000. The ter from B & R Receivership, LLC for The property is located at 2886 Marco buyer was represented by Dave Johnson $387,043 on a five-year lease. The tenant Street. and Phillip Baca of NAI Las Vegas and the was represented by Brendan Keating of APN # 140-17-612-004 seller was represented by Nelson Tressler The Equity Group and the landlord was and Michael Zobrist of Newmark, Grubb, represented by Rob Lujan and Jason Si- Knight, Frank. The property is located at mon of Gatski Commercial. The proper- Las Vegas, 89119 7204 W. Craig Road. ty is located at 880 Seven Hills Drive #240. Industrial APN # 138-03-201-009 Reported monthly rent is $1.65 PSF. HELP of Southern Nevada purchased 11,926 SF from United Way of South- ern Nevada Inc. for $720,000 or $60 PSF. The buyer was represented by Jeb Betz of Juliet Realty Group and the seller was represented by Jessica Beall and Roy Fritz of Sun Commercial Real Estate. The property is located at 1660 E. Flamingo Road. APN # 162-14-411-002 Henderson, 89074 Multi-Family Habitat Flats LLC purchased a 30-unit apartment complex from City National Bank for $603,462 or $20,115 per unit. The property is located at 72 High Street. APN # 012-112-22

40 December 2012 December 2012 41 Red Report

Las Vegas, 89121 Henderson, 89052 $128,500 on a 39-month lease. The tenant and the landlord were both represented by Office Retail Matt Feustel of Virtus Commercial. The Bio Mechanics leased 4,804 SF in the East- Clark County Urban League leased property is located at 3651 Ali Baba Lane, ern Hills Center from Quest Media & Sup- 3,650 SF in the Rensaissance III Shopping Suites 106 and 107. Reported monthly rent plies Inc for $343,966 on a 64-month lease. Center from Alisam Ren III for $343,611 is $0.33 PSF. on a 5-year lease. The tenant was rep- The tenant was represented by Kris Watier resented by Mary McClellan of Realty of Lee & Associates and the landlord was Las Vegas, 89118 One Group and the landlord was rep- represented by Robin Civish and Lauren resented by Robin Civish and Lauren Brouillet of NAI Las Vegas. The property Industrial Brouillet of NAI Las Vegas. The prop- is located at 10909 S. Eastern Avenue. Re- Las Vegas Premier Paintball leased erty is located at 3330 E. Flamingo Road, ported monthly rent is $1.12 PSF. 22,500 SF in the Diablo Industrial Park Suites 50-52. Reported monthly rent is from Tanner Family LP for $374,922 on $1.57 PSF. Las Vegas, 89115 a 40-month lease. The tenant was repre- sented by Ben Millis of Newmark, Grubb, Industrial Knight, Frank and the landlord was repre- Henderson, 89012 Marretti, Tilton & Gragson leased 5,067 sented by Retail SF in the Speedway Commerce Center Marty Martel of MDL Group. from Harsch Investment Properties for The property is located at 3905 W. Diablo WFTLV04, LLC leased 4,752 SF in the Drive. Reported monthly rent is $0.42 PSF. Black Mountain Marketplace from Kar- $15,084 on a one-year lease. The landlord lin Black Mountain, LLC for $903,830 was represented by Tom Elkington of on a 128-month lease. The tenant was NAI Las Vegas. The property is located at represented by Brian Sorrentino of 6959 Speedway Boulevard, Suite W-104. R.O.I. Commercial and the landlord Reported monthly rent is $0.25 PSF. LOANS was represented by Rob Lujan and Ja- son Simon of Gatski Comemrcial. The Las Vegas, 89118 property is located at 76 Horizon Ridge Industrial Sparks, 89431 Parkway #C100 A&B. Reported monthly West Coast Movers leased 10,000 SF in the rent is $1.49 PSF. Procyon Industrial Park from Tom Klein for Industrial Nevada State Development Corp. has funded a loan for Capurro Trucking. The transaction had a 4.26 percent fixed inter- est rate for 20 years. The loan was for the purchase of a 19,920 SF industrial building located at 955 Deming Way. Reno, 89502 Retail Nevada State Development Corp. has funded a loan for Alpine Lock & Key. The transaction had a 4.26 percent fixed inter- est rate for 20 years. The loan was for the purchase of a 6,110 SF retail building locat- ed at 811 Ryland Street. Reno, 89511 Office Nevada State Development Corp. has funded a loan for Pestmaster Services. The transaction had a 4.26 percent fixed inter- est rate for 20 years. The loan was for the purchase of a 11,520 SF office/warehouse building located at 9716 S. Virginia Street, Units E and F. Carson City, 89706 Industrial Nevada State Development Corp. has funded a loan for Omega Powersports. The transaction had a 4.26 percent fixed inter- est rate for 20 years. The loan was for the purchase of a 35,000 SF manufacturing fa- cility located at 3000 Conestoga Drive.

42 December 2012 www.NevadaBusiness.com 42 December 2012 Commercial RE Report | Office

OFFICE

TOTAL MARKET Las Vegas Reno

Total Square feet 52,238,894 7,478,401 Vacant Square Feet 13,148,739 1,259,185

3rd Quarter 2012 Percent Vacant 25.2% 16.84% New Construction 33,000 0 Net Absorption 245,648 (31,078) Average Lease SF/MO (NNN) $1.91 $1.50 Under Construction 328,246 0 Planned 2,424,233 0 CLASS A

Total Square Feet 10,688,411 4,111,174 Vacant Square Feet 2,468,296 690,750 Percent Vacant 23.1% 16.80% New Construction 0 0 Net Absorption 107,065 (30,633) Office Average Lease SF/MO (NNN) $2.44 $1.52 Under Construction 210,000 0 Summary Planned 834,838 0 Third Quarter 2012 CLASS B Total Square Feet 31,772,651 2,090,823 Vacant Square Feet 8,335,996 310,906 Las Vegas Reno-Sparks Percent Vacant 26.2% 14.87% The office sector witnessed a quarter-over- The region is striving to become a tertiary New Construction 33,000 0 quarter decline in vacancy rates for the first hub for continued data center activity. The call Net Absorption 167,408 (8,420) timen i two years. During the third quarter center trend of over a decade ago is back in Average Lease SF/MO (NNN) $1.88 $1.24 of 2012, the vacancy rate fell to 25.2 percent, swing. Two new service support centers have down 0.4 percentage points compared to the taken n foot i the region to take advantage of Under Construction 118,246 0 prior quarter (Q2 2012). However, the rate the available work force and near plug and play Planned 1,589,395 0 remains 0.3-percentage points higher than a office space. CLASS C year ago (Q3 2011). The sector reported ap- Mid-Town continues to progress and at- 9,777,832 1,276,404 proximately 245,600 square feet of positive tract small retailers and professional services Total Square Feet net absorption. firmso t downtown. New vertical construction Vacant Square Feet 2,344,447 257,529 The amount of space actively under con- has commenced on the Thoma & S. Virginia Percent Vacant 24.0% 20.18% struction increased to 328,200 square feet. Street site and Marmot Properties continues New Construction 0 0 Approximately 74,200 square feet is sourced to transform their two block residential assem- to two buildings that stalled in the third quar- blage in the immediate area. Net Absorption (28,825) 10,088 ter of 2009 and was recently resurrected. The After a positive six months of net absorp- Average Lease SF/MO (NNN) $1.47 $1.08 second phase of Seven Hills Plaza comprises tion, the market took a step backwards and Under Construction 0 0 an additional 44,000 square feet underway. gave back approximately 31,000 square feet in 0 0 Also, three projects are actively under con- the 3rd quarter. Most of this give back space Planned structionn i the downtown submarket. Over cane b attributed to a few local companies 2.4 million square feet remains planned with downsizing in renegotiations of lease terms few expected to start construction in the near and the continued flight to quality benefiting Next Month: RETAIL future. the Meadowood and Downtown submarkets. ABREVIATION KEY Office-using employment reported a This elevated the overall direct vacancy to MGFS: Modified Gross Full-Service year-over-year increase for the first time in 16.84 percent from 16.17 percent. SF/MO: Square Foot Per Month twelve months in September of 2012. While The Meadowood submarket, namely the Ki- NNN: Net Net Net the recent shift was only modest, it is an etzke Lane & S. McCarran Boulevard corridor, improvement from recent activity. Pricing continues to lead the way standing at 13.59% va- Southern Nevada analysis and statistics compiled by levels are expected to continue to adjust as cancy. Institutional tenants continue to endorse Applied Analysis, Northern Nevada analysis and statistics distressed assets are traded at lower overall this st area a i provides multiple Class A options compiled by NAI Alliance Reno valuations. with freeway visibility and access.

44 December 2012 www.NevadaBusiness.com Business Indicators | Trends

DATA GROWTH he U.S. economy is showing signs of Nevada DATE UNITS LATEST PREVIOUS YEAR AGO RECENT YEAR AGO COMMENTS moderate improvement. Estimates of Employment 2012M09 000s, SA 1,136.1 1,129.0 1,130.1 0.6% 0.5% Up Over Year Ago U.S. real GDP for third quarter 2012 show an annualized growth rate of Unemployment Rate* 2012M09 %, SA 11.8 12.1 13.6 -0.3% -1.8% Reduced Slightly 2.0 percent. Although higher than the Taxable Sales 2012M08 $billion 3.669 3.550 3.410 3.3% 7.6% Up Over Year Ago tepid 1.3 percent growth rate for sec- Gaming Revenue 2012M09 $million 892.75 859.24 863.95 3.9% 3.3% Up Over Year Ago Tond quarter, the third quarter rate is well below the average growth rate of 3.4 percent the U.S. econo- Passengers 2012M08 million persons 3.770 4.048 3.934 -6.9% -4.2% Down from Year Ago my experienced from 1947 to 2007. Growth in U.S. Gasoline Sales 2012M08 million gallons 96.03 95.57 96.68 0.5% -0.7% Down from Year Ago real GDP during third quarter 2012 was driven by Visitor Volume 2012M09 million persons 4.212 4.249 4.156 -0.9% 1.4% Up Over Year Ago increases in personal consumption expenditures, federal government spending, and resident fixed in- Clark County vestment. Non-residential fixed investment, private Employment 2012M09 000s, SA 815.7 816.4 810.5 -0.1% 0.6% Up Over Year Ago

inventory investment, and net exports all made neg- Unemployment Rate* 2012M09 %, Smoothed SA 11.7 12.0 13.7 -0.3% -2.0% Reduced Slightly ative contributions. U.S. nonfarm employment con- tinues to rise, gaining 171,000 jobs from September Taxable Sales 2012M08 $billion 2.600 2.539 2.406 2.4% 8.1% Up Over Year Ago to October. The unemployment rate rose from 7.8 to Gaming Revenue 2012M09 $million 760.55 727.03 733.65 4.6% 3.7% Up Over Year Ago

7.9 percent in the same time period, as labor force Residential Permits 2012M09 units permitted 615 602 323 2.2% 90.4% Up Over Year Ago participation increased. Business surveys and anec- dotal reports show businesses delaying investment Commercial Permits 2012M09 permits 3 2 13 50.0% -76.9% Low and Volatile until after a number of policy uncertainties, including Passengers 2012M09 million persons 3.430 3.644 3.553 -5.9% -3.5% Down from Year Ago

the fiscal cliff, abate. Gasoline Sales 2012M08 million gallons 64.12 64.50 64.80 -0.6% -1.1% Down from Year Ago The Nevada economy showed mixed signals for September. Seasonally adjusted, statewide em- Visitor Volume 2012M09 million persons 3.582 3.600 3.549 -0.5% 0.9% Up Over Year Ago ployment increased by 7,100 jobs (0.6 percent) Washoe County from August to September. The Nevada unemploy- Employment ** 2012M09 000s, SA 189.1 188.3 188.0 0.4% 0.6% Up Over Year Ago ment rate decreased slightly from 12.1 percent to Unemployment Rate* 2012M09 %, Smoothed SA 11.6 11.8 13.2 -0.2% -1.6% Reduced Slightly 11.8 percent. Nevada is seeing a slowing in the growth of tourism. Visitor volume was 1.4 percent Taxable Sales 2012M08 $billion 0.518 0.490 0.469 5.8% 10.5% Up Over Year Ago higher in September than a year earlier. Gaming Gaming Revenue 2012M09 $million 68.84 68.08 68.46 1.1% 0.6% Up Over Year Ago revenue was 3.3 percent higher year-over-year. Tax- Residential Permits 2012M09 units permitted 84 40 45 110.0% 86.7% Up Over Year Ago able sales continue to show strong growth, up 7.6 percent from last year. Commercial Permits 2012M09 permits 17 21 8 -19.0% 112.5% Low and Volatile For Clark County, seasonally adjusted employ- Passengers 2012M09 million persons 0.290 0.351 0.311 -17.3% -6.7% Down from Year Ago ment decreased from August to September by 700 Gasoline Sales 2012M08 million gallons 15.27 14.58 15.47 4.7% -1.3% Down from Year Ago jobs. The Las Vegas unemployment rate declined slightly from 12.0 percent in August to 11.7 percent Visitor Volume 2012M09 million persons 0.430 0.446 0.417 -3.7% 3.0% Up Over Year Ago in September. Total passengers at McCarran Airport United States are down 4.2 percent from a year earlier. Compared Employment 2012M10 million, SA 133.755 133.584 131.806 0.1% 1.5% Slow Growth to a year ago, September visitor volume was up by 0.9 percent. Gaming revenue was 3.7 percent high- Unemployment Rate 2012M10 %, SA 7.9 7.8 8.9 0.1% -1.0% Slight Increase er in September than a year earlier. Clark County’s Consumer Price Index 2012M09 82-84=100, SA 231.4 230.1 226.9 0.6% 2.0% Up Moderately taxable sales for August were 8.1 percent above Core CPI 2012M09 82-84=100, SA 230.6 230.2 226.1 0.1% 2.0% Up Moderately those for a year earlier. Residential construction permits increased slightly from August to Septem- Employment Cost Index 2012Q3 89.06=100, SA 116.3 115.8 114.2 0.4% 1.8% Up Moderately ber. Commercial construction permits remained at Productivity Index 2012Q3 2005=100, SA 111.4 111.0 109.9 0.4% 1.4% Up Moderately

a low level. Retail Sales Growth 2012M09 $billion, SA 412.9 408.3 391.9 1.1% 5.4% Up Strongly The most recent data for Washoe County mirror those at the state level. Seasonally adjusted, Reno- Auto and Truck Sales 2012M09 million, SA 14.88 14.46 13.09 2.9% 13.6% Up Strongly Sparks’ employment increased by 800 jobs (0.4 Housing Starts 2012M09 million, SA 0.872 0.758 0.647 15.0% 34.8% Up Over Year Ago

percent) from August to September. The seasonally Real GDP Growth*** 2012Q3 2005$billion, SA 13,616.2 13,548.5 13,306.9 2.0% 2.3% Up Weakly adjusted Reno-Sparks unemployment rate declined slightly, from 11.8 percent in August to 11.6 in Sep- U.S. Dollar 2012M10 97.01=100 98.907 99.242 98.886 -0.3% 0.0% Flat Year-Over-Year 2012M09 $billion, SA -41.545 -43.790 -44.467 -5.1% -6.6% Year-Over-Year tember. Compared to a year earlier, September visi- Trade Balance Deficit Decrease

tor volume was up by 3.0 percent. Gaming revenues S and P 500 2012M10 monthly close 1,412.16 1440.67 1253.30 -2.0% 12.7% Up Strongly for September were up by 0.6 percent over the same period a year earlier. Residential construction per- Real Short-term Rates* 2012M09 %, NSA -3.19 -3.50 -3.29 0.3% 0.1% Less Negative Recently mits increased in September, while commercial con- Treasury Yield Spread 2012M10 %, NSA 1.65 1.61 2.13 0.04% -0.48% Widened Recently struction permits remained low. *Change in percentage rate, **Reflects the Reno-Sparks MSA which includes Washoe and Storey Counties, ***Recent growth is an annulized rate Sources: Nevada Department of Taxation; Nevada Department of Employment, Training, and Rehabilitation; UNR Bureau of Ryan T. Kennelly Business and Economic Research; UNLV Center for Business and Economic Research; McCarran International Airport; Reno/Tahoe UNLV Center for Business and Economic Research International Airport; Las Vegas Convention and Visitors Authority; Reno-Sparks Convention and Visitors Authority; U.S. Department of Commerce; U.S. Bureau of Labor Statistics; U.S. Census Bureau; U.S. Federal Reserve System. Note: NSA = Not Seasonally Adjusted, SA = Seasonally Adjusted

44 December 2012 December 2012 45 The Last Word People

What is your favorite holiday tradition?

“For 14 years, we’ve been providing “The best part of a Hanukkah night Christmas to Las Vegas children is relaxing with a cup of coffee as I with “Giving Day.” We provide food, watch my grandson playing dreidel clothing and toys to under-privileged under the light of the menorah and children. The Giving Day tradition has singing songs as the evening winds contributed to lives of thousands of down. It’s those moments that families who would have gone without.” remind me what the holidays are really about: passing our traditions and stories onto future generations.”

Mary Musso • Corporate Broker and Vice President of Sales and Marketing, Distinctive Homes Philip Patent • President and Chief Operating Officer, The Coffee Bean & Tea Leaf Nevada

“On Thanksgiving, when family and “My favorite holiday tradition is friends are all gathered together, we go year- end planning for businesses. around the room and everyone has the Yes it may seem odd, but the ability opportunity to share their thoughts to connect strategic planning with on why or what or who makes them the cash flow derived from making thankful. It is truly a special time.” prudent tax decisions always end the year with a bang!”

Tommi Bryan • Human Resources Representative, Tronox Henderson Plant Michael D. Bosma • CPA, The Bosma Group

“Christmas by far. Christ has and “My favorite holiday tradition is continues to give gifts to us every baking cookies with my kids for Santa day. It is the least we can do to on Christmas Eve and then leaving celebrate his birth, life and resurrection “traces” of him for them to find on for all of us. I hope America has Christmas morning. Since they’re 8 not lost their values or life changes and 5, I think I only have a couple significantly. Seeing the three year old more years of this tradition, but I’ll in his PJ jumpsuit with sausage eyes enjoy it while it lasts!” because of Santa, is icing on the cake...”

Jeffrey Lowden • MBA, Broker, President, SkyWest and Companies Stephanie Kirby • Executive Director, Susan G. Komen for the Cure of Southern Nevada

46 December 2012 www.NevadaBusiness.com 46 December 2012 phoenix.edu/nevada you an education on your on terms. you an education Vegas Las in four the country, including o area, ering the around centers learning and 200 campuses o on- and online ers than at more programs campus that schedule Phoenix of life. University your busy ts aclass you need We adegree. earn understand like you toprofessionals helping committed been has Phoenix of University For than 30 years, more Vegas4 Las locations to your success Committed Academic Advisor Academic Sandford Jeanine © 2012 University of Phoenix, Inc. All rights reserved. rights All Inc. Phoenix, of University © 2012 Northwest Learning Center | Southwest Learning Center Henderson Learning Center |Las Vegas Campus

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