T ABLE OF CONTENTS Nevada Development Authority 8 NDA as an Information Hub 26 NDA Executive Committee 12 NDA Heads East 28 NDA Board of Trustees 14 Member Advantages and Opportunities 30-31 Nevada’s New-Found Businesses 16 *Marnell Corporate Center 32 An NDA Success Story 18 *Friedmutter Group 34 Southern Nevada’s Foreign Trade Zone 19 *Greenberg Traurig Law Firm 35 Nevada’s Business Pros 19 *American Nevada Company 36 *Summerlin Legacy Continues 20 *Kummer Kaempfer Law Firm 37 *Shonkwiler Partners 22 Mission Statement and Goals 38 *Las Vegas Convention and Visitors Authority 23 * Paid Advertiser Photo credits: Vintage photos on cover provided by Las Vegas Convention and Visitors Authority. Large photo on cover, and those on p. 16 and p. 18, courtesy of Dave Smith. To Order Reprints, Contact: Nevada Business Journal 375 N. Stephanie Street, Bldg. 23, Suite 2311 • Henderson, NV 89014 SPECIAL REPORT 702-735-7003 • www.nbj.com 6 NDA 2006 Special Report Nevada Development Authority: Fifty Years of Taking Businesses from “There” to “Here” or 50 years the Nevada Develop- nies to relocate to or start up in the Silver also attribute our successes in the number ment Authority (NDA) has fo- State. Las Vegas and Nevada have no- and types of companies moving to Las Fcused its efforts on encouraging table national rankings for their business Vegas to our progressive marketing ef- the overall growth and diversifi- environment that make relocating to the forts, which have really put us on the map, cation of Southern Nevada’s economy. area an easy choice. specifically in California,” he added. Established in Las Vegas in 1956, NDA • Nevada is ranked No. 2 in the nation as NDA’s ongoing efforts in encouraging is Southern Nevada’s largest economic the best place to grow a business the growth and diversification of South- development agency. Assisting more than according to the Small Business Survival ern Nevada’s economy have produced 60 businesses from other states in fiscal Index 2005. outstanding results, which were demon- year 2005/2006, NDA has helped Neva- • Nevada earned the No. 2 ranking for strated in its 2005/2006 fiscal year-end da’s non-gaming business community business site selection in Expansion Man- reports. NDA’s past fiscal year reveals grow with its recent successes of recruit- agement’s annual Legislative Quotient positive results for Southern Nevada’s ing businesses such as: Advanced Med- ranking of positive state government economy, including 61 new companies ical Imaging and Genetics, a personalized impact on the state’s business climate. relocating or starting up in Southern medicine company in the business of • Nevada ranked in the top five best Nevada and 4 significant existing compa- molecular and imaging diagnostics, ther- places to do business, according to a ny expansions. A total of 1,961 new jobs apeutics and prognostic solutions; Nonin- survey conducted by Development were created, with an average wage of vasive Medical Technologies, a manufac- Counsellors International. $23.25 per hour, which equates to an an- turer of patented, FDA-approved medical • Newsweek International named nual salary of $48,360 per year. The re- devices; and InfoGenesis, a company Las Vegas as No. 1 in its ranking of the sulting annual payroll totaled more than specializing in delivering innovative soft- world’s most dynamic cities. $87 million. NDA estimates this activity ware solutions to the hospitality and food will produce a one-year economic impact service industries for total guest experi- “Las Vegas’ economy and pro-growth of $400 million and a five-year economic ence management. environment prove an excellent place to be impact of over $2 billion. In a five-year NDA leverages the unique qualities of for existing and start-up companies,” said period, the new jobs will create local tax Nevada’s business-friendly economic en- Somer Hollingsworth, president and CEO revenue of $79 million and state tax rev- vironment to entice out-of-state compa- of Nevada Development Authority. “We can enue of $24 million. 8 NDA 2006 Special Report California’s “Business Nut” Taxes California Nevada State Corporate Income Tax 8.84% No Personal Income Tax 1.0 to 9.3% No Payroll Tax 1.5% .63% Property Tax 1.1% 1.0% Franchise Tax Yes No Capital Gains Tax Up to 9.3% No Business Costs California Nevada Workers’ Compensation Costs $6.39/100 $5.00/100 Annual Lease Rates San Jose - $2,250,000 Reno - $870,000 Las Vegas - $1,050,000 Payroll Tax Costs $67,500 $26,933 Property Tax Cost $55,000 $50,000 Utility Costs $58,700 SDG&E $40,100 Nevada Power (Las Vegas) $57,500 PG&E $52,850 Sierra Pacific (Reno) Making Silver Worth Nevada’s reputation for business po- Legislative Quotient ranking of positive More than Gold tential is becoming more significant when state government impact on the state’s Primarily because of geography, Cal- compared to California’s dwindling ap- business climate, whereas California ifornia is Nevada’s largest competitor peal. Chief Executive Magazine recently came in No. 49. Nevada is the fastest- for business, and therefore NDA’s first released the 2006 “Best and Worst States growing state for the 19th consecutive target for recruitment. Of the 61 busi- to Do Business in the U.S.,” and the poll’s year and offers an educated, expanding nesses that moved to Southern Nevada results revealed Nevada as the No. 2 best and cost-effective workforce. Because of during this past year, nearly one third state in which to do business. California the business climate in California, a grow- relocated from California. Substantial was listed as the worst state to do busi- ing number of businesses are changing tax and cost breaks for small to large ness. Nevada also earned the No. 2 rank- their preconception from “California or businesses fuel NDA’s success in the ing for business site selection in Expan- Bust” to “California and Bust”. For them, Golden State. sion Management’s 2005 annual Nevada is their new gold vein. “From around the country, commercial and residential developers are investing in the valley and thriving in this sophisticated oasis in the desert. As part of the economic development team, the City of Las Vegas continues to support the Nevada Development Authority in its efforts to attract and diversify businesses in this fast-paced economy.” Mayor Oscar B. Goodman, City of Las Vegas NDA 2006 Special Report 9 Somer Hollingsworth Perry J. Ursem Jeremy Copeland Chris Zunis NDA’s People 2003 he received the Greater Las Vegas Amherst, obtaining a degree in business Association of Realtors Citizen of the Year with a minor in Spanish. Upon graduation, NDA President and CEO Somer award and in recognition of significant Jeremy moved to Las Vegas and is cur- Hollingsworth has been a resident of the contributions to the advancement of rently pursuing a master’s degree in busi- Las Vegas area for 53 years. He received UNLV, he was awarded the UNLV Presi- ness administration. his bachelor of business administration dent’s Medal. He has been voted one of Before joining the Nevada Develop- from Eastern New Mexico University in the 40 most influential people in Las ment Authority, Jeremy was employed 1967 and his postgraduate degree in Vegas and one of the 50 most influential for several years by Standard Register, a 1979 from the Pacific Coast School of people in the State of Nevada. Fortune 1000 Company, where he Banking, University of Washington. Perry J. Ursem, one of three Vice Pres- served as a sales consultant. Having a Hollingsworth developed a successful ca- idents of Economic Development, focuses background in sales and marketing, he reer in the banking industry within sever- on providing high-tech companies the in- was able to focus his efforts on servic- al local banking institutions. His career formation needed to make Southern ing the healthcare and hospitality indus- path ranged from teller to president and Nevada the location of choice, providing tries. As vice president of economic de- chief executive officer. key information and counsel on important velopment, Jeremy’s duties include In 1995, Hollingsworth opened his own operational decisions to ensure a smooth, recruiting new businesses from out of consulting firm, which led to his involve- well-planned transition. As part of his re- state, with a focus on the biomedical ment with NDA and eventually his accep- sponsibilities with NDA, Ursem negotiates and life science industries. tance as its president and CEO. His re- tax incentives on behalf of the state for Vice President of Economic Develop- sponsibilities include the growth, companies that relocate, expand or start ment Chris Zunis has more than 15 management and direction of NDA. up operations in Southern Nevada. years of experience in corporate sales. Hollingsworth is active on many Ursem, a resident of Las Vegas since Zunis directs his professional focus to boards throughout the Southern Nevada 1996, worked in the construction industry attracting transportation, renewable en- area, including: the Governor's Commis- for seven years as the former business de- ergy and alternative fuel businesses to sion on Medical Education, Research and velopment and marketing director at Best Southern Nevada. Once he has pre-qual- Training; Las Vegas Executive Associa- Water Truck Service. He attended California ified new companies to meet the NDA’s tion; UNLV Career Advisory Council; UNLV Lutheran University and earned a Bachelor specific criteria, he works as a liaison College of Business Advisory Board; and of Arts degree with a double major. with utility and commercial real estate UNLV College of Engineering Advisory Vice President of Economic Develop- companies to provide the businesses Committee.