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Please refer to the Certificate of Coverage for limitations and exclusions. PD0538 ~BUSINESS 6_L J~romthe ~tor by Connie Brennan ~OURNAL WITH the general election just around the corner, residents across the state will soon have the opportunity to voice their opinions and make changes. Perhaps the biggest issue facing southern Nevada voters is the school bond question. Clark County School District (CCSD) Superintendent Dr. Brian Cram is making the rounds and promoting the passage of the school bond question to any group or PUB USHER organization that will listen. Chances are that if you have attended more Lyle E. Brennan than one meeting in the last few months, you have heard Cram discuss the advantages of passage and the dangers of failure. ASSOCIATE PUBLISHER- EDITOR Connie Brennan And, I'm sure you have also heard a lot of criticism involving the ASSOCIATE PUBLISHER- SALES management (or mismanagement) of funds allocated to the CCSD the last time Earl Johnson around. The school district has taken hits for failure to deliver on previous ASSOCIATE PUBLISHER- NORTHERN NEVADA Eklof & Associates promises as well as its inability to provide a comprehensive plan for the ASSOCIATE EDITOR - ART DIRECTOR management of the current bond issue should it pass. Barbara L. Moore We've done to Cram what we regularly do to our elecjed officials: we expect SENIOR ACCOUNT EXECUTIVE Chuck Dandy him to predict what is unpredictable and to control what is beyond his control. If ACCOUNT EXECUTIVE anyone out there can accurately determine how many students will be enrolled Ruth King in Clark County schools next year, I'm sure Cram would love to hear from you. CIRCUlATION/DISTRIBUTION Margaret Cooper The fact is, the CCSD has done an good job of managing its resources in a CONTRIBUTING EDITORS difficult, rapidly-changing environment. But that's not the real issue. What Tom Dye I Kathleen Foley 1 Mike Henle really matters is the education of our children. And that's the issue that will be Lois O'Neill I Kelly Sullivan R. Keith Schwer I Sue Wagner facing Clark County voters in the general. NORTHERN NEVADA SALES REPRESENTATIVE Education is the responsibility of the entire community, not just those with Eklof & Associates 589 California Ave • Reno, NV 89509 school-age children. Likewise, quality education provides benefits to the (702) 323-8013 community as a whole. Seniors may have an easier time rationalizing their "yes" vote if they The Nevada Business Journal is listed in Standard Rates & Data, #20A-Business-Metro, State &Regional. consider what could happen to their neighborhoods when schools are forced Advertisers should contact Chuck Dandy at (702) 735-7003 in southern Nevada, or Eklof & Associates at to go with double sessions if the bond issue fails. Those in business should (702) 323-8013 in northern Nevada, or write to: The Nevada Business Journal, 2127 Paradise Rd., Las consider the negative impact on economic development and diversification Vegas, NV 89104. Demographic information available upon request. Month-to-month circulation may vary. should the issue not pass. The Nevada Business Journal corporate offices are located at2127 Paradise Rd., Las Vegas, Nevada 89104. There's a number of ways to justify a "yes" vote on the school bond issue. NBJ is published bi-monthly, bulk postage paid. Sub­ scription rate is $27.00 per year. But, when education is concerned, do we really need to justify a vote that will All contents 1994 copyright, and reproduction of directly benefit our children? material appearing in NBJ is prohibited unless so au­ thorized by the publisher of NBJ. CHANGE OF ADDRESS: Please send previous ad­ dress or mailing label & new address. Allow six weeks. EDITORIAL SUBMISSIONS: Address all submis­ sions to the attention of Connie Brennan. Unsolicited manuscripts must be accompanied by a self-addressed stamped envelope. NBJ assumes no responsibility for unsolicited materials. DISCLAIMER: Editorial views expressed In this magazine are not necessarily those of the publisher.

September/October 1994 • Nevada Business journal 3 Your new horrie. Jack's new course. There are golf courses. And then there are Jack Nicklaus golf courses. T here are prestigious residential communities. And then there is Lake Las Vegas. For you, there is a unique opportunity to enjoy both. A championship golf course, lake view and mountain view homesites are now available at SouthShore at Lake Las Vegas. Be one of the fortunate few who will live near Nevada' largest private lake and play on Southern evada's only Jack Nicklaus signature golf course. Visit SouthShore at Lake Las Vegas today. Homesites from $185,000. Private Golf C lu b membership included. LAKE LAS VEGAS 17 miles east of the Strip off Lake Mead Drive Sales Office - 564-1600 Ext. 145

(NAV940016) Obtain the Property Report or its equivalent, required by Federal Law or State Law and read it before signing anything. No Federal or State Agency has judged the merits or value, if any , of this propeny. Offered by Lake at Las Vegas ]oint Venture. @ t:-:.."&; September/October 1994 IC 0 NTENT S Volume 9 -No. 5 Features 101 BUILDING ON THE UPSWING And the beat goes on ... and on ... and on .. . both in commercial and residential activity in southern Nevada. m The Art and Science of Zoning Approvals Navigating the mine fields of the zoning approval process has become more difficult and costly than ever. Industry experts provide advice to help smooth the journey. m Howard Hughes Corporation Unveils Plans for New Building The developer recently announced plans to build a 165,000-square-foot speculative Class A office building at the Hughes Center in Las Vegas. m Lake Las Vegas Takes Shape Development at southern Nevada's newest- and most exclusive -master plan progresses as the Jack Nicklaus golf course and future custom homesites take shape. Page 14 m American West Aces ACE Honors Chosen from more than 10,000 builders nationally, the Las Vegas firm was presented with the third annual "Award for Construction Excellence ': EI:J American Nevada Corporation Continues String of Real Estate Activity The southern Nevada developer continues to debut key commercial developments located within its Green Valley master-planned community. m G.C. Wallace Quietly Engineers a Modern Community The engineering and architectural firm has played a major role for the past 25 years in Las Vegas' explosive growth. m CAMPAIGN '94 On a statewide basis the 1994 primary held few surprises. Here's a recap of the Page 20 significant statewide races. EI] The School Bond Issue Accommodating the explosive growth of the Clark County School District hinges on a critical two-part ballot question before voters this November. Departments Eil Speaking for Nevada People on the Move Lt. Governor Sue Wagner explores m Highlighting the movers and shakers. future trends in our growing state. m Construction Briefs Construction begins on first homes at Lake Business Profile: Comstock Bank - Las Vegas • Hughes' vision emerges in new m successfully working with builders. name for Summa • Carson Construction completes one project, begins another • The Executive Profile: Frank Martin Keith Companies offers services on a global m adapts to an evolving industry. scale • Security Capital breaks ground on new facility •JA. Cesare & Associates makes Salary Survey: Construction salaries Frank Martin of m mark at Lake Las Vegas. Martin-Harris among the highest in Las Vegas. Construction Co . Eil Business Indicators & Analysis Page30. EEJ Tax Tips: The tax consequences of evada experienced a strong overall economy selling or renting your home. fueled by double-digit retail sales growth. CONSTRUCTION

in their office is evidence Las Vegas is indeed running at break-neck speed. Dennis Smith of Homebuilders Re­ search, Inc. said there are more than 300 new-home subdivisions in southern Ne­ vada, and more than 16,500 closings are BUILDING ON THE UPSWING expected by the end of the year. Working out of his home, Smith is constantly on the phone with Realtors and builders, an'd And the beat goes on ... and on ... and on probably receives more calls from out-of­ state residents interested in moving to Las Vegas than the Chamber of Commerce. both in commercial and residential activity zn Smith said the closings represent a 40 percent increase over 1993, with Lewis southern Nevada. by Mike Henle Homes leading the charge totaling about 1,500 closings. "It's getting more difficult for the small IN every direction, construction has $510 per thousand board-feet. Since the builder to compete with .larger compa­ blossomed in the desert. From hotels to end of 1993 through August of this year, nies," said Smith, adding firms like Inco residential and commercial, contractors the RLCI was $385. That's a 25 percent Homes and Pulte Homes have entered the and sub-contractors are busier now than drop since the end of last year, and it's Las Vegas market in the past two years. they have been in more than a decade. been sort of a constant downward pres­ "Any builder that can come up with a The southern Nevada real estate and sure for the past eight months. Overall, lot of cash has the inside position on the homebuilding industry exploded in the the market should be flat to downward better land deals," said Smith. "Land is mid-1980s, and no portion of the business through 1994," predicted Ono. getting tougher to find all the time. Even has slowed since. From purchasing and During the past year, land costs have if there is a release of BLM land, the land advertising to securing quality sub-con­ increased, anp the demand on the local is controlled by a few large builders." tractors and materials, homebuilders and infrastructure and economy has sent developers are facing the greatest chal­ everyone from trash collectors to land lenge ever in a city growing at the rate of brokers and homebuilders running 12 to Acording to Michael Kirch, president 3,000 to 5,000 people per month. 15 hours a day in what might be called a of Vegas Valley Mortgage, the larger To complicate matters, prices of ma­ "drag race" of growth. builders will become harder than ever to terials have been volatile, alternately During the past three years, Las Vegas compete with during the next decade. squeezing and inflating construction has been touted in publications all over "The key to success for either large or costs; and the Fed continues to inch in­ the world, including the New York Times small builders in southern Nevada will be terest rates upward - a trend that could (on four occasions) and it has also been access to what is now government land," potentially price some first-time buyers the spotlight of national television cover­ said Kirch, pointing to rising land costs right out of the market. These fluctuating age. People have flocked to southern which could be offset by more availabil­ market conditions make it difficult for Nevada seeking the well-publicized qual­ ity. "Recently, we have seen an undercur­ homebuilders to predict and maintain ity lifestyle, but even with the surge in rent of limited or non-growth philosophies stable price ranges for their products. population, builders are simply having a with some of our local politicians. We all From late 1992 until spring 1993, lum­ tough time keeping up with the growth. can take a lesson from our northern ber prices skyrocketed nearly 75 percent. Bob Ruppert of Hynds Plumbing con­ Nevada neighbors and look at what hap­ Just as quickly, by July, prices had siders this the busiest era of his company's pened to the Reno economy when this dropped 50 percent from peak rates, ac­ 40-year history. Ruppert works from 6 type of stance was taken 10 to 12 years cording to Terry Ono of Desert Lumber. a.m. to well after 6 p.m. five days a week, ago. The no-growth attitude killed them. "From July of 1993 through the end of and he can be seen scurrying around the You reduce the tax base, which reduces 1993 lumber prices went up again 35 per­ valley supervising jobs for US Homes, the ability to expand and upgrade the nec­ cent to 40 percent," explained Ono. Pulte and American West on the week­ essary facilities to support a healthy grow­ "Since the end of last year, the random ends. His son, Bobby, runs just as hard, ing economy." links composite index (RLCI) price was and 15 minutes of hearing the phones ring Dale Puhl, owner and president of

6 Nevada Business journal • September/October 1994 I. DIAMOND RIDGE AT SIL V ERADO Three to six bedrooms I. 700 sq . ft. to 3.544 sq. ft. From the $130,000s (702) 363-0026

I. FIRETHORNE AT SILV E RADO Two to three bedrooms 1,252 sq ft. to 1.620 sq. ft. From the $90,000s (702) 228-5769

I . SADDLEBACK A T SIL V ERADO Two to fou r-bedroo ms 1.264 sq. ft. to 2.226 sq. ft. From the low $100,000s (702) 228-5769

2. CORTINA BY GREEN VALL E Y Four or five bedrooms 2.024 sq . ft. to 3,624 sq . ft . From the $150,000s (702) 361-7060

3. COBBLESTONE BY GREEN VA LLE Y Three to five bedrooms 1,700 sq. ft. to 3.544 sq. ft. From the $130,000s (702) 361-0028

4. LEGACY COLLECTION IN GRE E N VAL LEY 'fwo to six bedrooms - 1,417 sq . ft. to 3,752 sq. ft. From $120,000s to $200,000s (702) 896-1631

5. THE CANYONS AT WHITN E Y RANCH Three to six-bedrooms 1.700 sq . ft. to 3.752 sq. ft. From the $130,000s (702) 458-8684 LOCALLY--BASED, NATIONALLY RECOGNIZED. LAS VEGAS· BASED Over 10,000 builders from across At American West, we don't take AMERICAN WEST America compete for it Only this recognition lightly. Irs an HOMES one wins. Home Warranty acknowledgment of the effort Is CHOSEN AS Corporation 's national ACE (Awa rd it takes to build with quality AMERICA's for Construction Excellence) is standards year after year, home NUMBER ONE the most coveted award in the after home. Most importantl y, ACE 0UALITY home building industry This year, it assures you that when you HOMEBUILDER American West Homes became choose one of ou r homes , the only builder in America to yo u've mad e a decision that win ACE honors for a second time will stand up to the highes Sales Offices Open 10 a.m. to 6 p.m. and the only winner ever from standards of all- Nevada. your fami ly's.

•O,~Amexican West Homes • Southwest Escrow Company, agreed with Merica, Birch and Dickerson said Falcon planned communities are a common tac­ Kirch, and said Las Vegas' growth de­ is running so strong that the company has tic for developers. Green Valley and pends on the availability of land and de­ even purchased one of the largest home­ Summerlin continually make their pres­ velopment funds. builders in Denver, Colo., which will ence known in various forms of the me­ "Funding is still very tough," said Puhl. close 600 to 700 homes this year. Falcon dia. From Green Valley's statues to "Those developers with land banks are will be among the top three local builders Summerlin's Concerts in the Park, the two continuing to be able to hold prices ex­ in the Las Vegas market for 1994. communities boast a quality lifestyle cept in the case of significant increases in Despite the influx of new residents, which includes everything from culture labor and materials costs. I think what is builders cannot count on strong sales to schools and parks. going to be effective in the next two years without a well-planned aggressive mar­ will be builder assistance with borrower­ keting plan, and careful attention to the financing costs or builders which have needs of the customer. Location is another The resale real estate market is in the their own mortgage companies. key factor, with North Las Vegas, Green midst of an interesting era, one which "A good example of this is Falcon Valley and Summerlin attracting the larg­ fmds major franchises gobbling up the Homes and Kaufman and Broad," said est numbers of new-home buyers. independents. Puhl. "Kaufman and Broad recently an­ "One of the most innovative develop­ One long-time businessman and real nounced it was going to offer no-down ments for Falcon has been the introduc­ estate broker decided to join Century 2'1, 30-year adjustables and that's simply un­ tion of all single-story product on large claiming the name-recognition is vital in heard of in this market. This builder is the lots in a neighborhood in the northwest today's economy. -- fourth-largest in the nation, and can af­ area of the Las Vegas Valley," said Merica. "There is no question you get more with ford to provide incentives such as this." "Response has been fabulous so far." a company such as Century 21 ," said Jack Joe Merica of the public relations finn Builder co-ops in the various master- Matthews, formerly of Jack Matthews FREE HVAC PLANS CALL 367•5441

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10 Nevada Business journal • September/October 1994 CONSTRUCTION

businesses and industry can share in the impact of that new growth, through spe­ cial fees, taxes and mitigation plans. THE ART & SCIENCE OF But how much can government extract from business development? It takes a cutting-edge legal team to ZONING APPROVALS track the myriad of court cases affecting land-use development. The most recent by Lois 0 'Neill landmark case, Dolan vs. Tigard, Ore., involved a hardware store owner who wanted to expand her business. In return for the special-use permit, the city wanted her to build a bike path. The U.S. Su­ preme Court found there was no "ration­ al nexus" or relational impact between the hardware store and the bike path. "It seems the process is becoming more discretionary," adds Codega, "You may be charged by the city $5,000 for wetland protection .but are you getting $5,000 worth of protection? Or, like in the Or­ egon case, would the hardware store re­ ally have had an impact on bike traffic?" Though it may appear arduous, there are things developers can do to make get­ ting through the approval process easier. Attorneys Mark Goldstein and Kristin McMillan of the legal firni Lionel Sawyer & Collins Kristin McMillan, a partner with the le­ gal firm of Lionel Sawyer & Collins, spe­ ~ity of life. You hear it in every po­ can be a hot button for neighborhood un­ cializing in land use and development, litical advertisement and read about it in rest. Wetlands, desert tortoises, water re­ offers these suggestions. nearly every chamber of commerce bro­ sources, landscaping, noise, lighting and 1. Have your plans up front. "Take chure. It's a warm and fuzzy phrase that traffic all play into a process where time the time to work with the planning de­ can mean anything to anybody. certainly is money. partment prior to application," says Mc­ What quality of life means to the ex­ This amalgamation of issues caused Millan. "Clark County is now requiring panding or relocating business, land de­ Washoe County officials to redefme their developers to make an appointment to sit velopment company or real estate broker zoning and special use process, creating down with a planner early on in the pro­ is new regulations and standards, count­ a three-inch thick Development Code. cess. It's an opportunity to discuss any less committees, special fees and taxes, "We tried to be encompassing to all give-and-take that may be applicable and and a greater onus on citizen participa­ citizen concerns, yet flexible," said Mike take the necessary action, this way you tion in land-use decisions. Harper, director of the Washoe County avoid that make-or-break scenario many "The hurdles are becoming more Department of Development Review. developers face." costly," said Jeff Codega, president of "We got rid of the older zoning concepts 2. Leave yourself extra time. "Get­ Reno's Jeff Codega Planning & Design. and have based our land use on master ting through the approval process does "They are also riskier and filled with plans and area plans that have been de­ take time. Often developers try to com­ more uncertainty. You almost have to hire veloped by the citizens." press that time frame, and it usually works a consultant to get through it all." Washoe County is trying to "fit" busi­ to their disadvantage," adds McMillan. A zoning change or building permit is nesses and industry into areas where there 3. Select your project team carefully. no longer a simple trip to city hall. Fed­ are adequate natural and public resources "We've found the projects with the least eral, state and local laws overlap, and -and neighborhood acceptance. The De­ problems are those that have experienced politicians are keenly aware that "growth" velopment Code also determines how consultants, engineers and legal advisors

September/October 1994 • Nevada Business Journal 11 on board - people who have worked through the process and can anticipate objections or problems and plan accord­ ingly," counsels McMillan. 4. Take the opportunity to meet with town boards. "Most applications strongly recommend the developer meet with the town board," says McMillan. "They present good questions and bring up local concerns."

Because of the numerous procedures involved in getting commercial project approvals, many developers are looking to the property seller to handle the issue. "More and more local governments are . shifting the costs of infrastructure con­ struction to new development through the approval process," comments Mark Gold­ stein, a partner in Lionef Sawyer & Col­ lins' commercial law department specia1- izing in"real estate financing. "Thus, these costs become a larger consideration in the overall fmancing of the project." While Washoe County's Development Code and master plan were spawned from a regional planning process that lawmak­ ers created in 1989, Clark County takes a different approach toward regional plan­ ning. Rather than create one large master plan for some five-plus million acres, Clark County has elected to adopt anum­ ber of localized community plans to pre­ vent uncontrolled growth. "Having a plan makes it much easier­ you pretty much know up front if you'll get zoning approval. Either you con­ form to the plan or you don't," said Lucy Stewart, planning manager and zoning administrator for Clark County. Good Looking for financing solutions? ... Stewart, and other planners, recognize Things Acquisition of equipment or commercial real estate? there are problems in the current devel­ Capital for a franchise or business acquisition? Come Need business debt consolidation or working capital? opment process and are seeking ways to From streamline it. "Our zoning ordinances, for An SBA loan can help! example, are very archaic and it's easy Small Call ITT Small Business Finance Corp., a lead.in for things to get overlooked. Variances e Business provider of SBA loans. Competitive rates, loan Loans! packaging services available. missed then the developer's held up · getting the permit," says Stewart. ·-v.·~ Call Jim Wilmarth (702)648-1979 want to improve the process and make · ITT Smol Bumess 111111 really work - no band-aid ftxes. We ·~ Rnooce Corp. _.-~•-_._~ Broker and Banker inquiries welcome. looking at the bigger picture. Let's and let's do it right."

12 Nevada Business Journal • September/October 1994 This MayBe In 1982 the U.S. Senate created the Quality & Productivity Institute and Awards Program to encourage business productivity and TheOnlyThing enhance our country's position as a global competitor. This year the Senate's top choice in evada for their 1994 Award is Valley In Healthcare

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[The 1994 U.S. Senate Productivity Award ] CONSTRUCTION

munity to take advantage of this surge in market demand." Charlie McPhee, vice president of com­ mercial marketing and development for the commercial and industrial division of HOWARD HUGHES CORP. the Howard Hughes Corporation added, "The favorable tax structure, affordable housing and quality labor pool found in The developer plans a 165,000-square-foot specu- Las Vegas is attracting many types of companies from other markets. As a re­ sult of the Howard Hughes Corporation's lative building at the Hughes Center in Las Vegas. prudent development philosophy, the firm has the fmancial strength to provide the diversity of commercial and industrial product now being demanded." McPhee said the five-story 3773 Howard Hughes Parkway project is fully designed and building permits have been obtained, with completion expected in: October, 1995. The building's architec­ ture will be in keeping with the superb quality that distinguishes Hughes Center as the premier master-planned business community in Nevada. The exterior will feature a stone-clad and glass facade and an impressive seven-story enclosed atrium that will open onto a landscaped plaza. The project will feature a separate parking structure providing covered park­ ing for more than 550 vehicles, with open parking for 60 visitors. Anchored by the 17 -story First Inter­ Plans were recently unveiled by The 1987." As recently as May, construction state Tower, Hughes Center has been un­ Howard Hughes Corporation for a was underway on another 85,915-square­ der development since 1985. When com­ 165,000-square-foot building in Hughes foot project, now named Hilton Corpo­ pleted, this business and financial center Center. The announcement was made by rate Plaza. The Howard Hughes will include 1.5 million square feet of John L. Goolsby, president and CEO of Corporation's timing was excellent, as prime office space complemented by a The Howard Hughes Corporation. this speculative project is now 57 percent hotel, restaurants, specialty retail and resi­ One of only a handful of developers in pre-leased to Hilton Hotels Corporation dential facilities. The development cur­ the nation still building speculative office and the Phoenix law finn of Broening, rently contains nearly 600,000 square feet facilities, 3773 Howard Hughes Parkway Oberg and Woods . of space in five buildings, including will be the seventh speculative commer­ "The demand for Class A office space Hilton Corporate Plaza which is slated for cial or industrial project of the Howard in Las Vegas is reaching an all-time high," completion in January, 1995. Hughes Company to break ground dur­ explained Goolsby. "With Class A va­ The Howard Hughes Corporation is a ing the past six months and the second cancy rates of less than two percent, it is leading real estate investment and devel­ project to begin construction within the a market that is ripe for development. opment company in the southwestern master-planned Hughes Center develop­ Fortunately, because of The Howard United States, with real estate holdings ment this year. According to Goolsby, "At Hughes Corporation's long-term strategy in Nevada and Southern California that 165,000 square feet, it is also the largest for investment, we have the necessary include 26,000 acres of residential, indus­ project to be built in Hughes Center since capital and ties with the fmancial com- trial and retail projects. •

14 Nevada Business Journal • September/October 1994 OUTDOOR ADVERTISING

Contractor's License # 1 0581 CONSTRUCTION

be defmed as both a residential haven for thousands of families and a resort desti­ nation for visitors from throughout the world. As development has progressed at Lake Las Vegas, today the community's LAKE LAS VEGAS features are many. Foremost are Nevada's first Jack Nicklaus 18-hole signature, championship golf course and Nevada's Southern Nevada's newest - and most exclusive largest, priv~e man-made lake. Jack Nicklaus' golf course has been un­ der construction at Lake Las Vegas since -master plan takes shape in the desert. April 1993. It will be ready for play in early 1995. Development costs of the course and clubhouse exceed $19 million. Nicklaus' expertise in design, the site's dramatic topography and a combination of manicured turf, Berm~da grass, and desert flowers, plants and trees will make the 7 ,070-yard private course one of the most unique desert courses in the world ~ The elevations of the course range from 1,400 to 1,730 feet with a variety of up­ hill and downhill holes. Nicklaus is founder of Nicklaus De­ sign, a professional golf course design firm based in North Palm Beach, Fla. The flrm has earned global recognition for its innovative golf course design. Nicklaus' signature courses are located in 23 coun­ tries, and have hosted more than 150 pro­ fessional golf tournaments. Ten courses are currently listed in Golf Digest's Top 100 Golf Courses in the United States. "Jack makes monthly site visits and In the throes of construction 17 miles nities," said William Foote, president of will continue to do so until the course is east of the famed Las Vegas Strip is south­ Lake Las Vegas. "The company's breadth complete. He has a tremendous amount em Nevada's newest and most exclusive of experience ensures that Lake Las Ve­ of pride in his courses and therefore has master-planned community, Lake Las gas will be unparalleled in luxury, unique­ taken a very active, hands-on approach Vegas. The $3.8 billion, 2,245-acre, ness and quality." in the design and construction process," world-class residential and resort commu­ Lake Las Vegas is surrounded by fed­ said Harry Turner, vice president of re­ nity is being developed by Transcontinen­ erally protected wilderness and recreation sort operations for Lake Las Vegas. tal Properties, Inc., Santa Barbara, Calif., areas, including Lake Mead National a real estate and investment company Recreation Area and Rainbow Gardens with diversified projects throughout the Geological Preserve. While this environ­ The focus of the flrst phase of construc­ United States, including the Waikoloa ment will provide Lake Las Vegas resi­ tion at Lake Las Vegas is the 503-acre Beach Resort in Hawaii, projects at Lake dents and visitors with the atmosphere of SouthShore, the development's premier Arrowhead, Calif., and Las Campanas in a private retreat, a Mediterranean theme residential offering featuring exclusive Santa Fe, N.M. will provide the development with a custom homes, golf club villas, condo­ "Transcontinental has developed many unique ambiance. mirliums, and planned private and public exclusive residential and resort commu- Upon build-out, Lake Las Vegas will recreational amenities.

16 Nevada Business Journal • September/October 1994 If ~hE Penguin a~:Flock More than 980 residential units will be [or, flow to Jrind Personal Cf3anking in cSummerlin] built at the gate-guarded SouthShore, in­ cluding custom homes, golf club villas and condominiums. Several custom homes are now under construction at the community, and home sites ranging from $185,000 to $1 million have been selling since April1993. SouthShore 's first two neighborhoods nee upon a time, a penguin strayed far from his include Monaco with 69 custom home home in Summerlin in search of a better bank. sites and Capri with 39 sites overlooking H e met lots of other penguins just like him, Monaco. Capri homes will appear to be who also searched for a better bank. "nestled" on the hillside - similar to the The penguins slid from bank to bank, but never villas found on the hillsides ofltaly- be­ found the answer they wanted. Some banks promised personal service, but soon left them cold. Others said, cause of the terraced-land design of the we're bigger. But before long, it became crystal clear that neighborhood. Lake Las Vegas began bigger wasn't better. Still other banks started out as selling home sites in Biarritz, South­ neighborly, but were gobbled up by bigger fish from far Shore's third neighborhood, in July. Most away. -. of the 72 homes to be built in Biarritz will All in all, o ur friend the penguin felt like just another surround the golf course. face in the financial flock. In addition to custom home living and Finally he retumed h o me to Summerlin, where at last he found a sign: Nevada's Bank, Pioneer Citizens. Here, spectacular views, an array of private he found a ll the services of larger banks, ~ with amenities will further enhance the friendly personal service from friendly ~ personal lifestyle of SouthShore residents, includ­ people. And he never felt like a ~ ~ face in ing a marina, swim and tennis facilities, the flock again. :==--.. and a clubhouse. Proposed public ameni­ The moral? Bank at Nevada's ~ Bank, ties include equestrian facilities, a resort Pioneer Citizens, now open in t1j Summerlin. village and festival marketplace, an And leave the flock behind. aquarium and a Monte Carlo-style bou­ tique hotel and casino. Nevada's Bank Located on the north shore of the lake PIO.~EER is the project's second major phase of de­ velopment. Encompassing 1,394 acres, CITIZENS ~ Member FDIC planned facilities on the north shore in­ 1..:.I Equal Housing Lender clude up to six hotel/casinos, four addi­ If we were you, we'd bank with us. tionall8-hole championship golf courses ll 8400 Wesr LAke Mead Blvd. a1 Harbor Island Dritli' • 242~1279 and a shopping center. Lake Las Vegas will also become home • GEOTECHNICAL & GEOLOGICAL ENGINEERING to wetlands. A 20-acre park, complete with a bird sanctuary and numerous types • SUBSURFACE INVESTIGATIONS of flora and fauna, is being developed at • CONSTRUCTION MANAGEMENT & INSPECTION Lake Las Vegas in conjunction with the ~SARE Audubon Society. The park will enhance AND ASSOCIATES, INC. • CONSTRUCTION MATERIALS TESTING the environment for native birds, which Geotechnical Engineering Consultants • ENGINEERING FORENS ICS AND include cranes, ducks and herons. The Information Center at Lake Las FAILURE ANALYSES Vegas is open daily from 9 a.m. to 6 p.m. Las Vegas- Henderson, Nevada Denver, Colorado To get there, take U.S. 95 south to Lake (702) 564-3331 (303) 220-0300 Mead Drive and head east for 6.5 miles. John]. Durkin, P.E. Joseph A. Cesare, P.E. Tum left at Lake Las Vegas Parkway.•

September/October 1994 • Nevada Business Journal 17 CERTIFIED BY

"STAIE BOARD OF POST SECONDARY EDUCAIION"

PC & MACINTOSH TRAINING AMERICAN WEST

DOS - EXCEL - WORDPERFECT - dBASE

WINDOWS - WTUS - MS CERTIFIED CLASSES Nevada homebuilder aces ACE honors.

NOVEU CNA, CNE, ENCE TRACTS "OVER 230 SOFTWARE APPUCATIONS" .American West Homes, Inc., has been chosen as the national award-winner in HANDS-ON CLASSES Home Warranty Corporation's (HWC) ON-SITE TRAINING third annual ACE (Award for Construc­ CLUB MEMBERSHIPS tion Excellence) Program. FREE 24-HR TECH SUPPORT The ACE Program is desigrted to rec­ (702) 364-5551 ognize quality construction techniques and practices by its HOW builder mem­ HERMAN PHILLIPS bers. It is awarded to the one builder in ACCOUNT EXECUTIVE the country which best exemplifies the day-to-day commitment to excellence re­ 3100 WEST SAHARA, SUITE 108 quired of all HOW members. More than LAS VEGAS, NV. 89102 10,000 builders nationally- 85 from Las Vegas - were eligible for the award. The 1994 ACE Awards were presented in A True Master Planned Washington D.C. during the National Association of Home Builders spring Community Begins with board of dit:ector's meeting. A True "Master." The Ace is unique in the home build­ American West Homes president, Larry ing industry due to its comprehensiveness Canarelli, is dedicated to quality construction and the fact that nominated builders are in southern Nevada. examined on several different levels of business operations. well as U.S. Corps of Engineers, USGS "ACE awards are unlike other builder and USDA surveys/analyses. awards," said HWC president, H. Ken­ "We are honored to have won the ACE neth Seeber "Builders submit solid evi­ Award," said Larry Canarelli, president dence of the high standards used in site of American West Homes, "And we are selection and testing, foundation/struc­ proud of what this says about our com­ tural design, quality control assurance pany and family of employees. This systems, customer service systems, award is a true testament to the standard record of participation in the HOW Pro­ of quality and level of customer satisfac­ gram, industry involvement, construction tion maintained by both our subcontrac­ management and external business refer­ tors and construction team, as well as ences," notes Seeber. other builders throughout Las Vegas." After the finalists are named, HOW In business for 10 years, American Landscape Architecture, representatives make unannounced visits West Homes, Inc., operates in Clark Urban Design & Land Planning to builders' tracts in all phases of con­ County. The locally-owned company has struction. During these visits, the repre­ built more than 35 neighborhoods, and is Aspen- Denver- Phoenix sentatives also evaluate field personnel. presently offering eight new home com­ Vail- Sao Paulo- 602-966-5881 Builders are also required to submit munities in the Green Valley area, as well geological data, geotechnical studies, as its planned community of Silverado in DESIGN WORKSHOP compaction and water table testing, as the northwest section of the valley. •

18 Nevada Business Journal • September/October 1994 ItS not just a logo. ItS a sign of the times.

Our new look is just one of many such as hydroelectric, natural gas, exciting changes in store for you at geothermal and clean-burning fossil Sierra Pacific Power Company. As fuels. Lower administrative costs you may know; Sierra Pacific and greater access to other 1,1tilities and Washington Water in the West will keep Power Company are Sierra Pacific y;ur rates low; too. proposmg a merger P o w E R c o M P A N Y The Art And to bring you a better Meeting the future with energy Sdence Of Energy. supply of reliable, competitively-priced As always, we're committed to energy for the future. This partnership providing you with top-notch electricity will make us the right size to be flexible and exceptional customer service. and move quickly within the changing At Sierra Pacific, we're still the energy industry. people you've come to know and rely It's A Natural. upon. We're constantly searching for In the not-too-distant future, ways to better serve you. nearly 70% of your energy will come Its not just good business. Its a from environmentally-friendly sources, sign of the times.

© 1994, SPPCo. CONSTRUCTION

ity is designed to encourage parents and children to enjoy free, imaginative play. Mountasia 's new Family Fun center will be spread across flve acres and fea­ ture a 36-hole miniature golf course with mountainous terrain and cascading water­ AMERICAN NEVADA CORP. falls. A 30,000-square-foot building will house game and party rooms and an in­ New developments continue a string of real estate line skating rink- a Mountasia first- with theatrical lighting effects and music pro­ vided by a live disc jockey. Other attrac­ activity for the developer of Green Valley. tions include a go-kart raceway, video and skill game room and a "Banana Boat La­ goon" - complete with bumper boats. Mountasia's president Scott Demerau noted that the latest data from the U.S. government indicates Las Vegas is now the fastest growing metropolitan area in the country, with Henderson the leading growth city in the state. Thus, Mountasia at Green Valley Town Center will focus on the area's thriving residential activity, rather than the tourist trade. The retail project has created a lot of Green Valley Corporate Center excitement for the city of Henderson. Pro­ viding a "hub" for the area, residents can .American Nevada Corporation remains Town Center to build its new $4.5 mil­ indulge in shopping, food, fun and enter­ one of the most active players in the lo­ lion, eight-sc~een theater complex. Eight tainment at one location. "We are creat­ cal real estate market as it continues to auditoriums in the complex will have a ing a family entertainment center that will debut key commercial developments lo­ total capacity to seat over 2,700 patrons. provide recreational activities year-round cated within its Green Valley master­ Marking United Artists re-entry into the for residents of all ages," said Alan Perl­ planned community in Henderson. Las Vegas market, the 40,000-square-foot mutter, American Nevada's senior vice The company's premiere retail devel­ multiplex theater will feature first-run president of commercial development, opment, Green Valley Town Center has movies in Dolby stereo with complete and the one largely responsible for mak­ officially broken ground as it takes shape handicap accessibility and assistive listen­ ing Town Center a reality. "It's a place across 55 acres on Sunset Road between ing devices. It is scheduled for comple­ where people can go to have fun, a real Green Valley Parkway and Mountain tion in the spring of 1995. town center with something to satisfy Vista Avenue. Surrounding the Green Green Valley Town Center has also at­ every taste," Perlmutter added. Valley Athletic Club, the town center will tracted two large family entertainment A food-and-fun specialty center will create an entertainment centerpiece for companies entering the Las Vegas mar­ feature shops and dining. Restaurants will Green Valley, providing a place where the ket for the first time. This past spring, offer unique themes, says Perlmutter. One entire family can enjoy specialty-attrac­ McDonald's Leaps & Bounds opened a such restaurant that has selected the Town tions and multi-themed restaurants. 13,000-square-foot indoor family play Center as part of its major expansion out­ The concept of the Green Valley Town center at the northeastern corner of Olym­ side of Southern California is Crocodile Center has drawn strong national retail pic Avenue and Mountain Vista, while Cafe. The cafe features an eclectic mix interest, supporting the claim that Las Mountasia Entertainment International is of regional California cooking including Vegas is truly becoming one of the under construction nearby for its largest gourmet pizzas, burgers, pastas and sal­ nation's leading hot spots for retail mar­ complex to be built to-date. ads. Crocodile Cafe plans to open next kets. United Artists Theatre Circuit- the Leaps & Bounds provides a safe and summer at Town Center followed by two nation's largest theater chain- recently controlled indoor play environment for more locations to be built in Las Vegas announced its selection of Green Valley children ages one through 12. The facil- in the next two years.

20 Nevada Business Journal • September/October 1994 AMERICA's #1

Creating enjoyable environments and dynamic places isn't new to American Nevada. The award-winning master plan SBA LENDER of its Green Valley project continues to rank among a distinguished handful of THE MONEY STORE INVESTMENT CORPORATION believes that fast successful new master-planned commu­ moving, growth oriented businesses should be supported when nities in the nation. Following in its foot­ expansion requires the aquisition and/or construction of new steps, American Nevada has created the facilities . We provide fully amortized loans to owner-users for first major community to be developed commercial real estate. working capital or equipment. along the planned Southern Beltway, the recently-unveiled Green Valley Ranch. • Loans up to $1,250,000 • Up to 25 year terms Located at the southern perimeter of • High Loan-to-Value • No prepayment penalty Las Vegas, American Nevada's newest master-planned community encompasses • No balloons • Refinance 1,311 acres. Green Valley Ranch calls on the developer's expertise in residential, Reno • Donna Rutherford Las Vegas • Russ Torge commercial and community development (702) 221-1994 as well as property management. Already (702) 333-6727 winning an award for its design, Green Valley Ranch represents American Neva­ da's ongoing commitment for providing today's successful living environments. More recreational opportunities have been added to the fabric of this new com­ munity dedicating over 190 acres of neighborhood parks, cultural facilities and natural open space. In cooperation You Design It. We Build It. with the city of Henderson, design work S ince 1949, landscape architects and has begun on an exciting new recreational developers across America have depended and cultural center that will be a highlight on our vast experience in site development, of Green Valley Ranch. Still in the plan­ landscape and irrigation construction, ning stages, this proposed facility is ex­ as well as accurate pre-job budgeting pected to provide a 900-seat performing and pre-construction services. T hey arts center, an outdoor amphitheater to ac­ rely on our expertise for superior commodate 10,000 people, a 25,000- square-foot city library, a senior center workmanship, on-time performance, and a competition swimming pool with fi nancial stability and quality results. separate diving area and water slides. WESTERN LA1 DSCAPE CONSTRUCTION These recreational elements will be linked is pleased to have worked on the by a network of parks and trails connected landscape construction for to the Paseo, a landscaped parkway that AMERICAN EVAOA CORPORATION at meanders throughout the master plan. GREEN VALLEY and wish them continued Recognizing the resurgence of com­ success in their projects. mercial real estate activity occurring throughout the Las Vegas area evidenced by the ongoing corporate immigration from California, American Nevada has included a 31 0-acre commercial business park at Green Valley Ranch featuring Class A office, office/showroom, retail, 4580 South Polaris Avenue • Las Vegas, Nevada 89103 Phone (702) 739-6201 • Fax (702) 739-6840 medical and research-and-development

September/October 1994 • Nevada Business Journal 21 We Don't Do It All space. The strategic location of this new community with three full interchanges But We Con1e . along the proposed Southern Beltway, provides a unique "front door" identity Powerfully z for the business park that's ideal for a • corporate or retail user. American Nevada has selected Green Valley Ranch's business park for its new corporate headquarters. This fall, con­ struction will start on the Green Valley Corporate Center, a two-story, 250,000- square-foot Class A complex comprised of five buildings. Church Engineering of Las Vegas will join American Nevada in the first 50,000-square-foot facility. A variety of notable homebuilders have purchased all sites available for sale in the first phase of development at Green Val­ ley Ranch. Major homebu1lders such as U.S. Home, Kaufman and Broad, Cole-• man Homes, Pacific Homes, Woodside' Homes, Pulte, Beazer Homes and Spec­ trum Development will create the resi­ dential product, ranging from entry-level single-family homes to luxury homes. American Nevada Corp. is currently pursuing new development opportunities within the state and throughout the west, eyeing properties that range from 500 to several thousand acres. Ultimately, it may be a commercial project, a large residen­ tial development, property management services, or even another master-planned community of grand-scale proportions added to its portfolio. The roots run deep at American Nevada as the company also derives strength from other members of Greenspun, Inc., its par­ ent organization. Greenspun additionally G owns The Las Vegas Sun, Prime Cable of Las Vegas and Hospitality Network, the Western Technologies Inc. largest in-room video entertainment com­ The Quality People pany serving hotels throughout the U.S. American Nevada has recently reposi­ Since 1955 tioned itself to more accurately bring an ENGINEERING, CONSULTING & TESTING OF array of services to the complex real es­ ENVIRONMENTAL, GEOTECHNICAL & CONSTRUCTION MATERIALS tate market. Whether its expansion is in Nevada or a neighboring state, American TEL 702-798-8050 3611 W. TOMPKINS AVE . R.E. BRANNEN, P.E. Nevada will continue to diversify its role FAX 702-798-7664 LAS VEGAS NV 89103 DIRECTOR as a commercial, residential and master­ planned community developer. •

22 Nevada Business Journal • September/October 1994 CONSTRUCTION PAID POLITICAL ADVERTISEMENT

Lonnie Hammargren Giving G.C. WALLACE back to the community Quietly engineering a modern southern Nevada Tagged by local columnists as a "dark by Tom Dye horse" and "maverick", University Regent Lonnie Hammargren beat out three other The engineering and architectural firm The company surveys land, conducts candidates vying for Lieutenant Governor of G.C. Wallace has played a major role traffic studies and makes sure projects in the primary by a convincing margin of for a quarter of century in Las Vegas ' meet the specifications of local codes and 37 percent. The primary victory earned explosive growth that has seen the com­ building regulations. About 60 percent of Hammargren the right to run against munity triple in size to a population of the firm 's work is in the private sector and former Las Vegas Mayor Bill Briare in the nearly one million people. 40 percent is for public-sector clients. The general election. The firm has built a prosperous busi­ finn's projects in the public sector are also Hammargren, a prominent Las Vegas ness around designing the infrastructure varied. They range from designing a low­ neurosurgeon, has owned and operated - roadways, sewer, water and drainage ered roadbed for Desert Inn Road so it a small business for more than 20 years. systems -needed by the many new com­ can be bridged to allow improved pedes­ "As a long-time Nevada businessman, I munities springing up in Las Vegas. trian access to the Las Vegas Convention understand the issues that small busi­ The firm was started in 1969 by G.C. Center to figuring out a system of road­ nesses must deal with every day," stated "Scott" Wallace, a University of Illinois ways to connect McCarran Airport's new Hammargren. He voiced his concern graduate with a degree in civil engineer­ parking garage with other facilities. about rising costs, taxes and government ing, who worked for two structural engi­ G.C. Wallace has an architectural divi­ intervention in business. neering firms in Las Vegas after arriving sion which has designed fire stations for The Lt. Governor chairs the Commis­ here in 1961. the city of Las Vegas, as well as both sions of Economic Deve lopment and Wallace won a contract with Pardee multi-family and single-family structures. Tourism. Hammargren believes a detailed Construction Company to help design Water-related projects have also kept plan is vital for all parts of the state. He Spring Valley, Las Vegas' first master­ the firm busy. G.C. Wallace has designed endorses a Nevada Economic Develop­ planned community. The contract enabled water and wastewater treatment facilities ment Network that will work with colleges the firm to get off to a strong start. It has and several drainage channels. to attract, retain and expand business. grown from a one-man operation to a finn G.C. Wallace also has several major Hammargren has also studied the Ne­ that now employs 190 people. The April resort clients and is currently doing site vada Motion Picture Division, which falls issue of Engineering News-Record shows preparation work for ITT Sheraton's $750 under the jurisdiction of the Nevada Com­ the firm has become the 294th largest en­ million Desert Kingdom resort. mission on Economic Development. He gineering design firm in the nation after The firm is using its expertise as a had developed a program called the Star ranking 100 places lower in 1992. subconsultant to help the Nevada Depart­ Plan which he feels will help attract more As a result of the firm's success, Wal­ ment of Transportation improve the "Spa­ film productions to the state. lace was named Nevada's Small Busi­ ghetti Bowl" - a nightmare freeway in­ Hammargren does not seek the Lt. nessman of the Year for 1986 by the U.S. terchange that has caused many accidents. Governorship for money (the position only Small Business Administration. According to G.C. Wallace President pays $20,000 annually). Rather, his moti­ The firm also won the contract to help James Duddlesten, the company is con­ vation is to serve Nevadans and help design the infrastructure for the Summer­ fident that Las Vegas will cope with the shape our state as Nevada undergoes lin master-planned community. It has also problems that come with explosive unprecedented growth. "As a long-time engineered the infrastructure for such growth and will continue to expand. Nevadan, I feel that it is my obligation to major Pardee communities as Eldorado "We think Las Vegas is poised to con­ give back to the community, " he said. and Rancho Las Palmas. The firm's cli­ tinue its growth," Duddlesten said. "We Paid for by the Committee to ent list includes such residential builders have a positive business climate and will Elect Lonnie Hammargren as Lewis Homes, Pacific Properties, Plas­ benefit from the arrival of new businesses Bob McCaffery, 3196 Maryland Pkwy Las Vegas, NV 89109 • (702) 242-6627 ter Development and others. and expansion of existing businesses:·•

September/October 1994 • Nevada Business Journal 23 ON a statewide basis, the 1994 primary held few surprises. Money was tight, but the candidates who spent the most weren't always the ones who fmished in the pole position. The following is a recap of the significant statewide races and a couple of local Clark County surprises. by Kelly Sullivan

U.S. Senate-Despite an onslaught gren would run well in this contest, but and no surprises. The Republicans hope of television from millionaire Charles most political observers believed that en­ to keep their majority alive, although the Woods, Hal Furman won the race to face tertainment lawyer John Mason and Las Democrats are hoping to knock off a few incumbent Senator Richard Bryan. Some Vegas insurance executive Bruce Layne incumbents to change the balance of politicos are speculating Bryan's ads at­ would spend the cash needed to fmish in power in the upper house. In the Assem­ tacking Furman in the primary may have the money. Instead, Mason and Layne bly, Democrats are preparing to mount a helped the former Washington, D.C. lob­ spent fortunes but were unable to over­ vigorous campaign to keep their major­ byist pass perennial candidate Woods. come Hammargren's home-spun cam­ ity, although the Republicans are bound Furman will have to raise more money paign. The eccentric doctor will now face to gain aJfew more seats. to put on a race against Bryan, who has former Las Vegas Mayor Bill Briare in collected an impressive war chest. the general election. Clark County Commission - Some of the biggest surprises of the Governor-The Democratic primary Secretary of State- Republi­ election season happened in these races. didn't live up the advanced billing. Ev­ can Dean Heller faced only token oppo­ In Commission District E, Assembly­ eryone in Nevada politics had expected sition in the primary, and easily defeated woman Myrna Williams mounted a grass­ Las Vegas Mayor Jan Jones to give Gov­ perennial candidate Pat Fitzpatrick. roots, door-to-door campaign, knocking ernor Bob Miller a run for his money. But The Democratic side of this primary off Commissioner Thalia Dondero. Al­ Jones was never able io mount an effec­ race, however, was much more interest­ though the 20-year incumbent outspent tive campaign against the governor, who ing. Despite a traditional anti-incumbent Williams four-to-one, Williams effec­ won easily. Early polls showed her nega­ attack from Karen Korcheck, Senator tively pounded the anti-incumbency mes­ tives to be very high. Jones spent the last Tom Hickey squeaked by and will go on sage to erode Dondero's support. three weeks of the primary rebuilding her to face Heller in the general. Hickey's In Commission District F, incumbent image, most believe, so she could run ef­ name recognition and years of being on Karen Hayes survived an onslaught from fectively in the mayoral race. a ballot appeared to play a significant part millionaire George Hardie and commu­ The Republican primary was much in this race, where money was tight and nity planner Dick Bonar. Hardie spent more interesting. Secretary of State neither candidate was able to do much in nearly $400,000 and hammered Hayes on Cheryl Lau, who most believed to be the the way of advertising. television and in the mail box. But Hayes favorite in this contest, faced an onslaught struck back early and was able to hang from Assemblyman Jim Gibbons. His Controller- Reno Mayor Pete on in the three-way race. populist message and anti-tax initiative Sferrazza, a veteran of Nevada politics, Commission District G also provided proved to be too much for Lau, who was survived a formidable campaign from a shocking upset. Commissioner Don unable to effectively exploit Gibbons' newcbmer Mary Sanada, who currently Schlesinger, formerly considered to be negatives, such as voting for a 300 per­ works in the controller's office. The Re­ invulnerable, was upset by Assembly­ cent pension increase. publican incumbent Darryl Daines had woman Erin Kenney, who continued to no primary, and will be ready to face batter Schlesinger with the help of the Lt. Governor- One of the biggest Sferrazza in this low-profile contest Clark County firefighters. The latter cam­ surprises on election night occurred in paigned door-to-door for Kenney and this race. Early polls in Clark County State Senate & Assembly effectively sold the message that the were showing that Dr. Lonnie Hammar- -There were only a few primary contests incumbent was soft on safety issues. •

24 Nevada Business Journal • September/October 1994 WHENITCoMES

GOVERNOR BOB MILLER To LEADING

MEANS BUSINESS. NEVADA

evada's economy is thriving. The he means business by stepping in tO business climate looks bright. More help reform our state workers' and more companies are choosing ro insurance compensation system, relocate their operations to Nevada, reorganizing and streamlining our while existing businesses continue to state government tO run more expand. Jobs are being created, efficiently, successfully managing our business investment is up and state's fiscal budget and helping tO consumer confidence is strong. And foster Nevada's healthy business the reasons are clear. .. Bob Miller is climate. good for business. During his administration, Governor Today, under Governor Miller's Miller has helped levada attract economic leadership, Nevada ranks hundreds of new companies, creating near the top in the nation in job over 167,000 new jobs. All this, while growth. Our per-capita income is keeping Nevadans' taxes the 3rd well above the national average, lowest in the nation. while unemployment is well below the average. Of course, it couldn't have happened without the business people who've Part of leading the state also means put their trust in evada's future. having to make rough decisions along And that means better business the way. Governor Miller has shown success for all of us.

Paid for by levadans for Miller, Mike Kern Treasurer. 3256 South Maryland Parkway, Las Vegas, 89109 731-1994 THE SCHOOL BOND QUESTION The future of education in southern Nevada

Growth in all areas of Southern Nevada ing more than 100 older schools, and 60 ance with program goals in addition to - population, schools, gaming, crime, percent will be dedicated to new school several other related responsibilities. The housing - continues to create issues im­ construction of up to 38.5 schools. Reno­ 19-member committee is comprised of pacting residents. But for many residents, vation and new construction projects will individuals with expertise in architecture/ the most important issue is education and occur simultaneously during a five-year engineering, land development, construc­ the future of their children. period to be completed in 1999. tion, public and educational administra­ This November, voters have the chance According to CCSD Superintendent tion, public works admi~istration and to direct the course of education with a Dr. Brian Cram, neither amount will com­ construction law. $905-million ballot question for much pletely fulfill southern Nevada's educa­ Questions have been raised regarding' needed construction of new schools and tional needs for the future. various alternative school scheduling and' renovation of existing older schools. However, it is imperative that new use programs that are being facilitated to The Clark County School District school construction and renovation of accommodate existing overcrowding situ­ (CCSD) operates the 11th largest, and one older schools begin now to provide a top­ ations, and which have been considered of the fastest growing, school districts in rate education program to local children. as future solutions. the nation. In the past 10 years, the CCSD Passage of the $605-million portion of To date, five middle schools are on has grown by more than 50,000 students. the question will not result in an increased double sessions. Also, two elementary By 1998, enrollment is expected to be property tax rate. If both parts of the ques­ schools have fourth and fifth grade 205,000 students. Current enrollment is tion pass, property taxes are expected to classes on double sessions. While double more than 150,000 students in 127 increase by about $39 (just under $3.25 sessions enable the district to double elementary schools, 27 middle schools, per month) per year for the owner of a occupancy rates, they are not recom­ 23 high schools and six special schools. $100,000 home. If the bond fails, prop­ mended as a permanent solution due to It's easy to understand the school erty owners may see a small reduction in several undesirable effects on students: district's rapid growth imd need for new taxes within the next several years as pre­ • Loss of as much as 30 minutes of schools and renovation as Las Vegas is vious bonds are retired. instructional class time per day; the one of the fastest growing cities in the Cram said while there may be a mirti­ • Students traveling to and from school nation with more than 5,000 people mov­ mal property tax reduction, it would oc­ in the dark; ing to Clark County each month. cur at the expense of local children by • Large blocks of time when children There is no legislative mechanism for negatively impacting the quality of their of working parents are unsupervised; the school district to pay for capital im­ lives and education. • No time for teacher assistance; provement projects, thus forcing the No­ "The entire community will pay the • Limited time for after-school and vember school bond ballot question. price for allowing substandard services community activities; The question has two parts. Part A re­ for local children," he said. "Overcrowd­ Other solutions to overcrowding in­ quests approval for a $605 million bond ing and increased number of schools on clude using year-round schools to a sale; and Part B, contingent upon passage alternative schedules, particularly double greater extent and expanding the student of Part A, requests approval for the sale sessions, is inevitable." capacity at existing schools. of an additional $300 million in bonds. A bond oversight committee has been The CCSD operates the seventh larg­ Under either scenario, $30 million dol­ formed to advise the Clark County Board est year-round education program in the lars will be used for land acquisition for of School Trustees on the development country with 27 elementary and two new schools. Of the remaining amount, and assessment of capital bond fund con­ middle schools on year-round sessions. 40 percent will be dedicated to renovat- struction programs and monitor compli- "To effectively use year-round sched-

26 Nevada Business Journal • September/October 1994 Paid Political Advertisement Lonnie Hammargren: Courage, Compassion, Commitment

Lonnie Hammargren began his medical practice as an army flight surgeon and M.A.S.H. doctor in Vietnam. Those early days forged in him the courage to fight for what is right and an understanding of the meaning of integrity. As a doctor, he practices what he believes by donating at least a third of his uling at new and existing schools, mas­ sive rezoning will have to occur, assign­ services, because in critical situations the last thing you should worry about is money. ing students to schools with vacant seats," As an educator, on the board of regents and state board of education, he has Cram said. "While many parents oppose made a stand for courage, integrity, and open government. year-round schedules, the alternative of Lonnie will do that for you as Lieutenant Governor. double sessions may result in less resis­ tance to year-round schools." He will fight for Nevada tort reform, for Nevada health reform, for Nevada eco­ Even if all elementary schools and nomic development (not taxation development) that will benefit you. middle schools were year-round, the dis­ trict still will not be able to accommodate Remember to vote for the number of students projected to ar­ rive within the next several years. Lonnie Hantntargren, Research has shown there are opti­ mum sizes for schools. Schools over ideal Lieutenant Governor capacity create a loss of individuality among children and make them feel as if NovemberS they're in a warehouse, which has a nega­ Paid for by the Committee to Elect Lonnie Hammargren, tive impact on the quality of instruction. Bob McCaffery, 3196 Maryland Parkway, Las Vegas, Nevada 89109 • (702)242-6627 Additionally, larger schools require ex­ panded attendance zones, defeating the purpose of having neighborhood schools. On the other hand, schools that are too small lose the benefits of economy of scale with regard to essential facilities Need a loan? We're flexible. such as a fully-stocked library, cafeteria, gymnasium and playground space and No other bank is as flexible administrative and support staff. Cur­ for construction rently, the CCSD attempts to keep school size within optimal ranges. financing as Equally as important as new school Comstock. construction is the renovation and upgrad­ We're based in ing of existing schools. With the passage Nevada and all loan of both parts of the school bond, more decisions are made here. than 100 older schools will receive im­ provements bringing them up to the edu­ Which means faster turnaround time and a cational standards of new schools. wider variety of construction loan packages Proposed renovations will upgrade the that are more responsive to local needs. So if entire infrastructure including libraries, you need money for lumber, we're limber. computer and technology labs, multi-pur­ pose rooms and activity areas, restrooms, health rooms, offices, air conditioning, Reno 827-6598 lighting, roofmg, and blacktop, parking Camstiaak Carson City 687-2708 and playground areas. Additional up­ Las Vegas 631-1515 grades will include communications and ••nkMEMBER F.D.I.C. Minden 782-23 11 emergency systems, administrative equip­ ment, and science, technology and other specialty class equipment. •

September/October 1994 • Nevada Business Journal 27 SPEAKING . FOR NEVADA

Building Nevada's Future by Lt. Governor Sue Wagner added" jobs and businesses that require more education. As someone once wrote, "I have a For those who are employed, the great deal of interest in the future amount of time they spend at work will because that's where I'm going to spend increase. The average worker now the rest of my life." spends six hours more per week on the As an elected official and policy job than he or she did 20 years ago. And maker for nearly 20 years, I share the this has happened at the same time the author's sentiments. I know to be number of part-time workers has tripled. successful, one must look to the future These are defmed as people who want and plan accordingly. full-time jobs, but can't fmd them. The same is true for business. The These workforce trends and their successful companies are the ones impact on our society cannot be under­ that pay attention to trends they see estimated. These trends mean families developing and devise strategies to will have less and less time together and capitalize upon them. face greater economic pressures than So it was with interest that I read those of a generation or two ago. recently a series of predictions made by Vegas or Reno metro areas. But even Home ownership may become an Dr. Rob Melnick, a futurist with the as we live closer together, our social unattainable dream for many. If Morrison Institute for Public Policy, isolation is likely to increase due in part Melnick's predications are true, in less School of Public Affairs at Arizona to information technology. than a decade, two out of three individu­ State University. As chair of the With the purchase of a computer, als and families may not be able to Commission on Economic Develop­ printer, modem, fax and phone you can afford a median-priced home. ment, it was obvious to me that many set up shop in your home. Many of us Where people live, the kinds of jobs of the social and economic trends already have, and more of us will. By the they have, the amount of money they he points out, will impact the construc­ next century it is estimated that 15 to 20 make, how they spend their leisure time, tion industry. percent of the U.S. workforce, or one out how large or small their households are, It's no secret that the average life of five of us, will operate from home. all have consequences for the construc­ span in the U.S. is increasing and will Such a trend is likely to affect both tion industry. continue to increase. As our population commercial and residential construction. In Nevada, the industry also must take ages, these seniors will shape a larger Our workforce is changing in other into account additional factors such as percentage of the residential market ways as well. Manufacturing jobs are water availability and the likely imposi­ with their preferences, and in some disappearing and service sector jobs are tion of impact fees to help pay for cases need for certain types of housing. increasing as our economy is restruc­ growth. These factors and more, will Their relative wealth will also be a key tured. What this means is there won't be play a key role in determining such factor in determining the direction of as many "high wage/low skill" jobs in things as housing affordability, the this market segment. Many of the baby the future. It means that it will be future cost of business expansions and boomers, who will begin retiring in the increasingly difficult for the unskilled relocations, and the pace at which first decade of the next century, will and uneducated members of our society community development occurs. have less than half the net worth their to fmd jobs that pay enough to support The construction industry, along with parents did when they retired. them and their families. other sectors of Nevada's economy, has Our population is also becoming A government report released this enjoyed phenomenal growth over the more urban. More than half of all summer notes there is a growing last several years. Our current economic Americans now live in the 39 largest "underclass of low-paid labor." And that success affords both government and metro areas in the United States. the pay gap between Americans with less business a great opportunity to plan Nevada is already one of the most urban education and those with more is intelligently and effectively for the states in the country, with 83 percent of widening. This gap is likely to grow as future. It's an opportunity we must, if our population living in either the Las more emphasis is placed on "high value- you '11 pardon the pun, "build" upon.•

28 Nevada Business Journal • September/October 1994 BUSINESS PROFILE

COMSTOCK BANK builds successful business by working with builders

cations "in the pipeline", Platz said he expects those figures to increase during the third and fourth quarters of 1994. Comstock's earnings have also become a source of pride. For instance, the bank's net income during the second quarter of this year was $255,000, or 15 cents per share, Barone said. Today, Comstock has about $85 mil­ lion in assets, nearly a 20 percent in­ crease from the $71 million in assets the bank listed one year ago and a far cry from the $10.7 million in assets it had when Platz and Barone took the helm. Barone believes Comstock also profits Comstock Bank's new corporate headquarters in Reno is scheduled for completion in May, 1995. from being based in Nevada, where he said about 90 percent of all bank assets WHEN Comstock Bank's current man­ success making loans to home builders are controlled from outside the state. Be• agement team took over the Nevada­ and developers. cause Comstock is based in Nevada and based bank a decade ago, business wasn't "We've come to specialize in real es­ run by Nevadans, the bank knows more exactly booming. tate loans from the ground up," Platz about the state's banking needs and busi­ The bank, which is breaking ground said. "We make loans that help builders ness conditions than banks based in other this month on a new corporate headquar­ develop lots and help individual Neva­ states. Basically, he said, Comstock is ters and bank branch building in Reno, dans build their dream homes." better equipped to make good loans. lost $681,000 in 1983, the year before In northern Nevada, where the bank is "The advantage is the community bank current Comstock President Larry Platz based, Platz said Comstock consistently lends back to the community," he said. and Chairman and CEO Bob Barone took ranks first or second among all fmancial As president of the bank, Platz said he over its operation. institutions in mortgage lending and is often visits developers at the site of their But by 1986, Barone and Platz had led now involved in 35 different subdivi­ projects so he can see for himself how the community bank to the first annual sions. After 13 years in business, Com­ viable the venture might be. profit in its history. stock is well established in northern "Actually getting to know the devel­ Now, 10 years after the two execu­ Nevada, where it made 728 loans worth opers and their projects has been a big tives came over from another Nevada $111 million through the first seven part of our success," he added. bank, Comstock is one of the banking months of 1994. Comstock's stock is listed on the industry's biggest success stories. In Within the next three to five years, NASDAQ exchange under the symbol 1993, the bank listed a profit of $1.6 Platz said he expects Comstock to be in LODE. The bank operates full-service million, the sixth consecutive year it a similar position in Las Vegas, where branches in Reno and Carson City and turned a profit. And earlier this year, the bank opened a mortgage lending of­ has additional lending centers in Min­ Banking Week magazine named Com­ fice last year at 333 North Rancho Drive. den/Gardnerville and Las Vegas. stock as one of the nation's 100 most "We're as committed to Las Vegas and On September 8, Comstock broke profitable community banks and ranked southern Nevada as much as we are to ground on a new corporate headquarters it fifth nationally in asset growth. Reno and northern Nevada," Platz said. and bank branch building at South Vir­ Platz and Barone attribute the turn­ In fact, the Las Vegas office is already ginia Street and Neil Road in Reno. The around to a combination of factors, in­ paying dividends. Through July of 1994, $2.5 million, three-story building is cluding their efforts to cut costs, expand Comstock funded 156 loans, totaling scheduled to be completed in May 1995 its lending activity and carve out a niche more than $26 million, in southern Neva­ and is expected to house about 100 em­ for the bank - which has found great da. Given the number of new loan appli- ployees when it opens for business. •

September/October 1994 • Nevada Business Journal 29

------~ - -- -- ~ EXECUTIVE PROFILE

Frank Martin: Successfully adapting to mac Printing-1§ an evolving industry 7350 Prairie Falcon Road by Kathleen Foley • Las Vegas, NV 89128 • 702·255-1211 Fax 702·255-4381 MARTIN-HARRIS Con­ Late that year, he asked We're Just Uke Every Other Printer struction Company of Las a national consulting firm Vegas was recently named specializing in construction ONLY DIFFERENT! a 1994 Blue Chip Enter­ to give him a complete We are a full service printer prise for "creative use of management audit. With with state of the art equipment resources and innovation the consultant' s• recom­ in our Graphics, Web, Sheetfed to meet challenges and mendations, as well as and Bindery Departments. emerge stronger': The Blue some of his own, he started MAC CAN DELIVER Chip Enterprise Initiative is making changes. In just Come by or call one of our a collaborative effort of one seven-day period, he account representatives and find Connecticut Mutual Life Insurance Com­ reduced the company's annual cost of out why we are pany, the U.S. Chamber of Commerce doing business by $500,000. Martin one of the largest printers and Nation's Business magazine. created a business and marketing plan in the southwest, printing over A general contractor specializing in that became the company' s strategic 1 billion pieces per year. commercial and industrial projects, Mar­ handbook, purchased new·computers to MemberNAPL tin-Harris is listed in the Las Vegas Top streamline paper flow, and developed an • WMBE 100 Companies, with estimated gross intensive' employee training program.· CPUC sales of $33 million this year. Current After making top-to-bottom changes, set­ projects include a 66,000-square-foot ting up strict accountability, and educat­ addition to the Santa Fe Hotel and a ing key staff members, the firm quickly • • 52,000-square-foot facility for Howard turned around. It made a substantial profit Hughes Properties in the Crossings Cen­ in October, 1989, and has made money RELIEVE ter at Summerlin. Martin-Harris also re­ every month since. cently contracted to build a nightclub/ According to Martin, "The impact of restaurant to be called "Drink'; located the award will be to show clients how just off the Las Vegas Strip. resilient we are. To be a viable and suc­ STRESS The Blue Chip A ward was based on cessful firm in today's construction in­ the company's response to a crisis in dustry, you must be willing to adapt to Accupressure 1989: Martin-Harris Construction, estab­ changing conditions. This adaptability, lished in 1977, enjoyed steady growth as well as our ongoing relationships with until 1984, when business volume took clients, are the keys to our success." He Healing Therapy a sharp upturn. Between 1984 and estimates 70 to 7 5 percent of his revenue 1989, the firm's annual revenues rose is generated through repeat business. Ease tension, arthritis pain, from $3.5 million to $37.2 million. How­ Frank Martin, a Las Vegas resident back and neck pain ever, according to CEO Frank Martin, since 1961, graduated from Rancho High the company was growing faster than in 1965 and began working as a carpen­ management's ability to handle it; in ter. However, Martin says founding his • • • 1989, Martin-Harris landed a large own company in 1977 was actually the A Academy Kenpo Karate contract with a tight completion time beginning of a continuing education pro­ involving a type of construction in which gram. "I'm still working on my advanced Self Defense ., Fitness the firm had limited experience. Martin degree from MHCU (Martin-Harris Con­ Therapy says he focused so closely on this project struction University)," he laughs. "It's that he neglected normal controls on other definitely an ongoing process, since busi­ (702) 733-7788 projects. During the fiscal year ending ness conditions are always changing." 3025 E. Desert Inn Rd. Suite 7 September 30, 1989, the company lost Martin, 4 7, is married, and has two • Las Vegas, NV 89121 • more than $1.1 million. sons who work for his company. •

30 Nevada Business Journal • September/October 1994 Arecent survey of southern Construction industry salaries among the highest in Las Vegas Nevada companies indicates that salaries for construction A total of 44 of the 156 companies par­ Traditional office support positions - ticipating in the Sixth Annual Las Vegas clerical and secretarial employ~~s, recep­ Salary Survey were involved in the fast­ tionists, messengers - reported steady growing construction industry. The sur­ gains from last year. Within this classifi­ industry employees were vey was prepared by The Eastridge cation, office managers, executive assis­ Group, Las Vegas' largest independent tants, legal secretaries and word process­ temporary and full-time staffmg firm. ing operators earned the most with "Given this region' s tremendous average monthly salaries ranging from a among the highest reported. growth and the soaring demand for new low of $2,058 for word processors to a homes, it's not surprising that salaries in high of $2,529 for office managers. construction were .among the highest in In Las Vegas since 1974, The Eastridge our survey," explained Robert Svet, presi­ Group is Las Vegas' largest independent dent of The Eastridge Group. temporary and full-time staffmg firm. • Constmction industry salaries ranged from an average of $3,339 per month for a foreman/forewoman to $5,370 per AVERAGE MONTHLY SALARY 1993 AND 1994 month for a general superintendent. Av­ erage monthly salaries for project man­ HUMAN RESOURCES Admin Assistant agers were $4,809, up from $4,390, while Human Resources Mgrs 1993 $1;934 salaries for general superintendents rose 1993 $3,340 1994 $2,030 1994 $4,033 from $4,530 to $5,370 per month. CONSTRUCTION Training Specialist Other high-paying jobs were in fmance General Super 1993 $3,156 and accounting, human resources and 1993 $4,530 1994 $3,730 technical support positions such as qual­ 1994 $5,370 ity control and production managers. INFO SYSTEMS Director of Info Systems Project Manager For example, the average monthly sal­ 1993 $4,217 1993 $4,390 ary for a human resources manager was 1994 $5,236 1994 $4,809 $4,033, up from $3,340 in the 1992-1993 Data Processing Mgrs Job Superintendent report. Similarly, the average monthly 1993 $3,641 1993 $4,047 salary for a director of information sys­ 1994 $4,129 1994 $4,295 tems was $5,236, over $1,000 more than SECRETARIAL & OFC last year's $4,217. Salaries for data pro­ Office Manager Purchasing Agent cessing managers jumped from $3,641 1993 $2,162 1993 $2,575 to $4,219 per month. 1994 $2,529 1994 $4,066

September/October 1994 • Nevada Business Journal 31 With forethought and careful Tax consequences of selling planning, homeowners can or renting your home

avert potential tax or financial

disaster when determining Homeowners planning to relocate are the past five years may exclude from often faced with the question of whether their income a gain of up to $125,000 to sell or rent the current residence. Care­ ($62,500 for a married individual filing whether to sell or rent their ful consideration must be given to any separately). This tax break is especially potential impact this decision may have advantageous to individuals who choose on tax liability and personal finances. to trade down to a less expensive resi­ dence and plan to rely on the profits from previous residence. Why Sell? the home sale to support their retirement lifestyle or other special needs. Selling a principal residence is the best - and often tl;1e only - option for home­ Renting a home temporarily owners who need the equity in their cur­ rent home for a down payment on a new A homeowner who puts his or her one. Homeowners who realize profits on former principal residence on the market the sale of their primary residence may and then encounters difficulty in selling qualify for a special tax break that can it, may be able to rent the residence for help to put their next home within fman­ a temporary period and still defer gain cial reach: The tax law allows home­ on the sale. However, the homeowner owners to defer taxes on real estate gains must demonstrate that the rental is in if they purchase or construct another resi­ contemplation of the sale. Otherwise, the dence of equal or greater value within personal residence is deemed to have two years before or two years after the been converted to a rental property, in sale date of their principal residence. which case the deferral of taxes on the So, for example, if you realize $50,000 gain is not allowed. profit on the sale of your home which is For example, a homeowner relocates taxed at the 28 percent tax rate, you'll be as a result of a job change, puts his or her able to defer $14,000 in taxes by pur­ residence on the market, and buys a new chasing another home of equal or greater home in another city. After several value within the specified time period. months, the old residence doesn't sell. Older homeowners may qualify for an Preferring to have the house occupied even greater tax break. Generally, indi­ rather than empty during the sales pe­ viduals who are age 55 or older before riod, the owner then decides to rent the the date of the sale of their residence and residence while continuing efforts to sell have occupied the residence for three of it. Under conditions like these, the IRS

32 Nevada Business Journal • September/October 1994 typically views the owner's rental action losses (generally up to $25,000) can then as a temporary measure and is likely to Net losses (generally up to $25,000) be subtracted from the owner's gross in­ allow the gain on the sale of the resi­ come. Losses that cannot be deducted in dence to be deferred. can be subtracted from the owner's the year incurred can be carried over into On the other hand, if the homeowner future tax years. rents out the former residence without gross income. losses that cannot be Since special tax rules apply in the ever trying to sell it, the former resi­ year a property is converted to a rental, dence will most likely be treated as a deducted in the year incurred can be an owner may want to consult with a tax rental property for tax purposes. professional, such as a CPA, before mak­ carried over into future tax years. ing the conversion. Converting a personal property to a Finally, CPAs recommend you con­ rental property of a rental property, they are entitled to a vert your former residence to a rental wide range of tax deductions that can property only if you're prepared to For some individuals, converting a sharply reduce their tax bill. Mortgage become a landlord and are certain the former residence into a rental property interest, property taxes, and costs associ­ conversion will not be detrimental to your may offer greater financial rewards. It ated with operating and maintaining the fmancial well-being. • gives owners the opportunity to generate rental property, including insurance pre­ steady income. What's more, although miums, repairs, and depreciation, may Money Management is prepared by the Ne- , owners cannot defer the gain on the sale be deducted from rental income. Net vada Society•ofCertified Public Accountants.

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September/October 1994 • Nevada Business journal 33

------~ ------~ -- - r People on the Move

Consolidated Mort­ gage, southern Nevada's oldest brokerage firm , recently announced the promotion of Susan Valade and Laura Lychock to assistant vice presidents. The company also an­ nounced Jeffrey B. Guinn has joined the firm as senior vice president/lending.

Internationally known gaming executive Shan- · non L. Bybee has joined the faculty of the Will­ iam F. ijarrah College of Hotel Administration and the UNLV Intermi­ tional Gaming Institute at the Univer ­ sity of Nevada, Las Vegas.

Daniel R. Rainey, P.E., has been appointed vice president of development Looking Ahead! for Lake Las Vegas, a master-planned commu­ Our focus for ... nity under development Daniel R. Rainey in Henderson. The com- pany also announced the appointment of JANUARY Tax/Insurance - NB] will examine recent Sherri Langley as director of marketing. developments in tax laws as well as happenings in the insurance Bally Systems, a division of Bally industry. Expect comprehensive advice from experts in both fields. Gaming, Inc. has announced three ma­ jor promotions from within the com­ FEBRUARY Residential Real Estate- We'll provide an pany. Mike Lestrange has been named in-depth look at the new housing market, and the construction, senior vice president of research and marketing; Marc Comella was pro­ development, design and real estate firms involved in the industry. moted to vice president/marketing sup­ port; and Don Hinkle moved up to vice To place your space reservations, call731-9194. president fmance and administration.

Tom Cameron, award­ winning creative consult­ )BUSINESS ant, will be working as a consultant to Joyce Ad­ vertising, Inc., a full­ service advertising and ~Q!IJi~M ~~--~ public relations firm Tom Cameron based in Las Vegas. •

34 Nevad a Business Journal • September/October 1994 sculptor who did work for The Mirage buildings, Carson has also completed and we are bringing in European artisans tenant improvements and turned over and craftsmen to work on the home." occupancy to Franklin Machine and Layton and Jones are building the sec­ Lassen Publishing. ond home at Lake Las Vegas as well. A few miles east of the Hughes Air­ These first two homes are located side­ port Center, Carson Construction will Construction by-side in the Capri neighborhood, and begin work on a new 23,000-square-foot are currently listed for $1.6 and $1.8 mil­ building containing 18,000 square feet lion. A third home, located in Monaco, is of medical facilities for Sierra Health Ser­ Briefs listed for $1.45 million. vices at the Civic Center site in Green Valley. The project will cost approxi­ Hughes' vision emerges mately $3.2 million and is scheduled for First homes take shape in new name for Summa completion in March 1995. at Lake Las Vegas Overseeing the project are Dan Eighty-five years ago, the senior Bailey, vice president of Carson Con­ Someone had to be the first to begin Howard R. Hughes patented the "rock struction and Bruce Barton, director of construction on a custom home at Lake eater" drill bit, which revolutionized the commercial development division, Las Vegas ... and that first builder is Don oil industry and provided the cornerstone American Nevada Corpora.!_ion. Layton, chief executive officer/owner of for his son's empire. . Structure Control, Inc. Layton and Archi­ "This September," announced Chief Firm oJfers services on a . tect Jim Jones, president of JHJ Archi­ Executive Officer John L. Goolsby, "the tects, teamed-up to break ground on the business empire which Hughes created global scale 6,800-square-foot first home last April. is embarking on a new beginning with a With today's changing times and "We believe Lake Las Vegas will be the new corporate name - The Howard economies of the world, government of­ most exclusive place to live in southern Hughes Corporation. ficials in Third World countries are tak­ Nevada," Layton said. "We plan to build "The new corporate name is intended ing a closer look at environmental and many more homes at the development." to convey not only the innovative tradi­ regulatory laws, and infrastructure de­ The highlight of the two-story, Medi­ tion of the company's past but, to focus velopment and improvement. This has terranean-themed home will be the views on the company's future," Goolsby said. enabled The Keith Companies to take its of the 320-acre lake and the Jack Nicklaus When Hughes died in 1976, he left local expertise to Third World countries. 18-hole, signature golf course. All of the behind an incredibly vast organization. The Keith Companies' global experience major living spaces in the home will have In the ensuing years of transition, and ranges from environmental services in expansive glass facing northeast toward following the timely disposition of busi­ Costa Rica and Brazil, to Global Posi­ the lake, including a two-story glass wall nesses unrelated to real estate, Summa tioning System (GPS) surveying and off the 30-foot living/dining room. has concentrated on developing more mapping in the Philippines and Russia. "Our design for the home includes a than 23,000 acres of southern Califor­ In Costa Rica, The Keith Companies myriad of architectural extras such as nia's and southern Nevada's most desir­ performed a review of the country's en­ stone inlays, an interior clustered colon­ able real estate. The company's focus on vironmental and legal framework to nade, ornamental iron and leaded glass," real estate is the reason it has become strengthen the environmental regulatory Jones said. "The outdoors will be heavily­ one of the leading real estate investment process. In Brazil, the firm's environ­ landscaped with irrigated Italian clay and development firms in the Southwest. mental division has been retained for a planters and pots, and mature trees such study to identify sustainable development as Canary and Hurricane Palms to round strategies for a key watershed. out the Mediterranean theme," he added. Builder completes one The Keith Companies also has GPS "On the outside we used stone, custom project, begins another and Land Information System experience ornamental wrought-iron, a stucco-type Carson Construction completed con­ abroad. One project in the Philippines exterior and a clay tile roof. The inside struction on the last of a four-building required the company to provide aerial will have Italian tile, marble, granite and project in the Hughes Airport Center. The photography, analytical aerial triangula­ a native Nevada stone called Neanderthal four-plex industrial project, totaling tion and related GPS control survey for which is quarried in Beatty," Layton said. 200,000 square feet, cost $4.7 million. digital mapping of the 4,000-square-mile "We have plans to use the same metal In addition to constructing the four Mount Pinatubo volcano impact area.

September/October 1994 • Nevada Business journal 35 You Deserve Sunrise Country Oub!

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Security Capital breaks ground on new facility Security Capital Industrial Trust (SCI) recently broke ground on two industrial buildings in the Pacific Industrial Park in Sparks. The two buildings are sched­ uled for completion by March, 1995. "We're pleased to be a part of the eco­ nomic development efforts of northern Nevada," said SCI Vice President and Market Officer Steve Spaulding. Each of the new buildings will pro­ vide more than 100,000 square feet of The Center for Business and Economic Research industrial space. Features include: 24-foot · 4505 Maryland Parkway • Box 456002 Las Vegas, Nevada 89154-6002 clear height; rear-load truck docks; of­ (702) 895-3191 • FAX: (702) 895-3606 fices to suit; 40-foot by 40-foot bay spac­ ing; and six-inch reinforced slabs. New Releases Sparks-based Krump Construction !s the general contractor for the project. • The Southern Nevada Business Directory: 1994 provides information on firms located in Southern Engineering firm makes Nevada. Businesses are listed by Standard Industrial mark at Lake Las Vegas Classification (SIC) and alphabetically. Price: $75.00 plus $5.00 for shipping and hanclling Since 1989, the engineering staff at Joseph A. Cesare and Associates has pro­ vided professional expertise and support The Historical Perspective of Southem Nevada: for numerous projects in the Las Vegas 1969-1993 includes historical data on the Las Vegas Valley. Based in Englewood, Colo., the economy. Data include characteristics of Southern company established a western regional Nevada's population, building permits, gaming office in Henderson offering geotechnical revenue, visitor volume, and other key economic and geological engineering, subsurface indicators. investigations, material testing, construc­ Price: $15.00 plus $3.00 for shipping and handling tion management and inspection services, as well as forensics and failure analyses. The firm was drawn to the area as a result of its involvement with the Lake Las Vegas project. "We handled the geotechnical and geo­ logical work, and provided construction management, inspection and quality con­ trol testing during construction of the by­ pass system, the dam and five associated structures," said Joseph A. Cesare. Other projects for the company include We'll meet your needs quickly, professionally, and confidentially. completion of foundation designs and Serving Southern Nevadans for almost 20 years. construction services for the gypsum ore Call Jeff Guinn, Laura Lychock or Kathy Gilbert conveyor belt at Blue Diamond, and con­ C:i 739-9090 struction inspection and materials test­ COnSOLID.iTED mORTG.iGE "Working to secure your future. " ing for several facets of the McCarran Jerilyn Clayton, President • 2381 Renaissance Dr., Suite C, Renaissance Park (Eastern & Tropicana) Las Vegas, NV 89119 2000 Airport Connector Project. •

36 Nevada Business journal • September/October 1994 From the White House to Members can choose one of every hous~, health care is a FOR three benefit options-HMO primary concern. That's why Option, PPO Option, and it's so important to learn A Managed Care Indemnity about Sierra Choice from Option-at the time they need Health Plan of Nevada, Inc. HIGHER medical care. (HPN). Freedom of choice at Sierra Choice. No other LEVEL the time of medical care, health plan offers your quality of care, plus cost employees greater freedom OF control make Sierra Choice to choose their level of an excellent choice for you benefits, out-of-pocket and your employees. expenses, and health care HEALTH CARE, Sierra Choice. A higher providers. level of health care. Call Sierra Choice helps COME your broker or Health .._ you control your company's Plan of Nevada today at premmm expenses. TO THE 871-0999. SIERRAS.

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nly a year ago unemployment rates hovered around 7 percent. Nevada Taxable Sales Corporate restructuring swelled national unemployment. And, Quarterly, 1985 - 1994 sagging consumer sentiments cut into spending directly tied 0 to the Nevada economy. Unemployment rates improved mea­ Billions surably during the past year, declining to 6.0 percent nationally and 5.3 percent in Nevada. At midyear, favorable economic conditions prevailed in Nevada and in the U.S., at least in terms of unemployment. One may also measure the strength of overall economic conditions by S4 movement in retail sales. Nationally, retail sales measures showed strong gains for the first half of 1994. For June, retail sales stood at a strong 6.6 $3 percent above a year ago. Nevada, however, experienced even better

growth, up by 14.04 percent for May. The southern Nevada economic S2 boom, fueled by a strong investment and construction upswing, in­

creased retail sales at the. boom rate of 17.27 percent. Also, Washoe $1 County, hidden below Nevada's double-digit growth rate, grew at a solid 7.18 percent rate. Thus, the languishing conditions of the past few so .. ' '' .. years have fmally been replaced with economic prosperity. 1~1-~71-1~1~1~ 1~-31~ Gaming, one of Nevada's key economic sectors, continues to grow, up 9.03 percent above year-ago levels. Clark County, which now is the Nevada Gross Gaming Revenue site of nine of the 10 largest hotels in the world, continues to offer Quarterly, 1985 - 1994 "must-see" resorts. The three big casinos which opened in 1993 con­

tinue to attract attention as examples of the new family-friendly resort Millions concept. With a large number of visitors to southern Nevada, passenger traffic at McCarran Airport increased by 20.9 percent. S2.000 An economic boom has captured the attention of persons seeking new investment opportunity. As a consequence, others, having heard the announcements of a number of new and large projects, seem poised to $1 ,500 follow with more investments to take advantage of the anticipated future

business. To be sure, there is a large step between announcements and $1 ,000 the completion of projects. Nonetheless, the region seems poised to experience yet another boom in the future. The level of gaming activity in the Reno area (Washoe County) held $500 to last year's level, down slightly by 0.3 percent. But, major construction projects underway should contribute to increased future activity. In the so I I I 0 I 0 I I I II o I II I I II 1 I I II II I I I competitive gaming market, new attractions often prove important. 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Nationally, the Fed continues to push short-term interest rates upward. The Fed has taken a strong preemptive position on holding inflation in Air Passengers check, although we have seen few signs of impending price increases. Quarterly, 1985 - 1994 Indeed, the CPI continues to grow at a modest 2.56 percent rate. None­ theless, many believe that the Fed will further tighten monetary markets, Millio ns accepting slower growth and risking economic recession. Although few foresee a reversal in current monetary conditions, the swift action of the Fed has some economists, especially those watching Wall Street, believing that we may enter a longer than usual downtrend after this year's economic recovery. Others, less tied to fmancial mar­ kets and more closely tied to local business activity, notice that higher interest rates have already cut into the spending rates for homes and autos. Moreover, they are concerned for the spending declines. They fear reversals in spending could accelerate, making it difficult for the Fed to keep the private sector moving along the Fed's desired path.

R. Keith Schwer, UNLV Center for Business & Economic Research 0 I I I I 0 I I I 1 I I I I I I I I I I I I I I I 1 I I I I I I I o o I I I I

38 Nevada Business Journal • September/October 1994 LATEST PREVIOUS YEAR CHANGE DATE UNITS PERIOD PERIOD AGO YRAGO UNEMPLOYMENT Nevada May, 1994 % 5.3 5.3 7.2 -26.39% las Vegas May, 1994 % 5 .2 5.3 6.9 -24.64% Reno May, 1994 % 4 .4 4 .6 6 .2 -29.03% u.s. May, 1994 seasonally adj. 6.0 6.4 6.9 -13 .04% RETAIL ACTIVITY Nevada Taxable Sales May, 1994 $thousand 1,538,922 1,511,537 1,349,437 14.04% Clark County May, 1994 $thousand 939,075 932,969 800,755 17.27% Washoe County May, 1994 $thousand 272,138 259,364 253,900 7.18% U.S. Retail Sales June, 1994 $million 183,814 182,705 172,434 6.60% GROSS GAMING REVENUE Nevada June, 1994 $thousand 525,301 581,067 481,789 9.03% Clark County June, 1994 $thousand 394,106 449,740 353,260 11 .56% Washoe County June, 1994 $thousand 76,651 79,240 76,894 -0.32% CONSTRUCTION ACTIVITY las Vegas Area New Residences 2nd qtr 1994 #permits 5,437 4,860 4,247 28.02% New Commercial Permits 2nd qtr 1994 #permits 149 128 169 -11.83% Reno Area New Residences 2nd Half 1993 #permits 1,469 962 684 114.77% New Commercial Permits 2nd Half 1993 #permits 53 40 40 32.50% U.S. Housing Starts June, 1994 thousand 1,351 1,497 1,238 9.13% Total Construction June, 1994 $billion 508.0 507.2 461.0 10.20% HOUSING SALES las Vegas Area Average Sales Price 111 2nd qtr 1994 $ 124,738 144,984 148,811 -16.18% Average Cost/Square Foot 2nd qtr 1994 $ per sq. ft . 76.7 79.31 74.63 2.77% Average Mortgage Rate 121 2nd qtr 1994 % 7 .47 7.19 6 .98 7.02% Washoe County Average Sales Price PI 2nd Half 1993 $ 170,325 157,825 151,403 12.50% Average Cost/Square Foot 2nd Half 1993 $ per sq. ft. 96.88 92.42 90.18 7.43% Average Mortgage Rote 12! 2nd Half 1993 % 7.20 7.70 8.30 -13.25% U.S. Home Sales June, 1994 thousand 591 688 641 -7.80% TRANSPORTATION Totol Passengers 131 McCarron Airport, LV 2nd qtr 1994 passengers 6,757,355 6,322,338 5,587,767 20.93% Connon Airport, Reno 2nd qtr 1994 passengers 1,240,035 1,296,464 1,147,345 8.08% Stole Toxoble Gasoline Soles May, 1994 thousand gal. 61 ,176 59,445 59,656 2.55% POPULATION ESTIMATES Nevada July, 1993 people 1,398,400 1,343,930 4 .05% Clark County July, 1993 people 898,020 854,780 5 .06% Washoe County July, 1993 people 271 ,770 266,500 1.98% NATIONAL ECONOMY

Consumer Price Index 14! June, 1994 1982-84= 100 148.1 147.7 144.4 2.56% Money Supply- M 1 June, 1994 $billion 1,146.9 1, 143.2 1076.6 6.53% Prime Rate July, 1994 % 7.25 7.25 6.00 20.83% Three-Month U.S. T-Bill July, 1994 % 4 .39 4.18 3.05 43.93% Gross Notional Product 2nd qtr 1994 $billion 6,683.6 6,574.7 6,299.9 6.09%

NOTES: (1) houses, condos, townhouses; (2) 30 yr. FHA; {3) enplaned/deplaned passengers; {4) all urban consumers SOURCES: Nevada Dept. of Taxation; Nevada Employment Security Dept.; UNLV, Center for Business and Economic Research; UNR, Bureau of Business and Economic Research; US Dept. of Commerce; US Federal Reserve. COMPILED BY: UNLV, Center for Business and Economic Research

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