Dr. Walt Rulffes, new superintendent of the Clark County School District

COMMENTARY

LYLE E. BRENNAN Want Your Voice to Be Heard? Publisher Get Rid of Activist Judges

The Nevada Supreme Court has been in the news again recently, with its decisions regarding two ballot initiatives that were supposed to go before the voters on the November ballot. The justices ruled that sections of Question 2, The Peoples’ Initiative to Stop Taking of Our Land (PISTOL) had to be removed. It’s now doubtful whether the shortened version of Question 2 will make it to the ballot. They then threw out Question 3, Tax and Spending Control for Nevada (TASC), in its entirety, depriving voters of their chance to vote on reining in government spending. Maybe it’s a coincidence that both these measures would have given more power to private citizens and less power to government officials. However, I’m not much of a believer in coincidences.

n the other hand, the ijuana. So, maybe it wasn’t much of Democrat presidents) serve for life. justices didn’t throw a coincidence that the only ballot However, Nevada Supreme Court O out Questions 1, 6 or 7. questions attacked were the ones op- justices must stand for re-election, Question 1 would re- posed by liberals and unions. which does give Nevada voters an quire the Legislature to approve The situation isn’t unique to Neva- opportunity to effect change. spending for public schools before da. Activist liberal judges have been Three Supreme Court seats are on any other part of the state budget. imposing their beliefs on citizens the November ballot: Seat C is cur- Ask any liberal politician: it’s all throughout the U.S. The Ninth Cir- rently occupied by Retiring Chief about “the children.” Question 6, a cuit Court of Appeals, which unfor- Justice Robert Rose. District Judge measure sponsored by the AFL-CIO, tunately rules over our region, has a Michael Cherry is running unop- aims not only to increase the mini- reputation for issuing outrageous posed to fill that vacancy. mum wage, but also to ensure that it judgments. A good example is the Justice Michael Douglas was ap- increases every year. Economists court’s decision agreeing with an pointed in April 2004 after the death have noted that this would hurt the atheist parent who felt the daily of Justice Myron Leavitt to fill his very people it’s intended to help, as recitation of the Pledge of Alle- unexpired term. He is now up for it would mean fewer jobs for entry- giance in his daughter’s school vio- election in Seat F, facing Cynthia level workers. In addition, it would lated her First Amendment rights be- “Dianne” Steel, who is currently hurt the small business people who cause the Pledge contains the words serving as a district judge. Justice hire them. The justices haven’t “under God.” Douglas can’t be blamed for the touched Question 7, which would We can’t do much about the Ninth 2003 Supreme Court ruling allowing change state law and legalize the Circuit because its appointed judges the Legislature to pass a tax hike possession of 1 ounce or less of mar- (16 out of the 24 were appointed by Continued on Page 8

4 October 2006

October 2006 • Volume 21 • No. 10

A division of BUSINESS LINK, LLC

PUBLISHER Lyle E. Brennan • [email protected]

PUBLISHER / CEO Connie Brennan • [email protected] EDITOR-IN-CHIEF Kathleen Foley • [email protected] ART DIRECTOR Joe Thomasula CIRCULATION DIRECTOR Mark Keays • [email protected] These four senior executives were chosen by RESEARCH / RANKING NEVADA their peers as this year’s Most Respected [email protected] CEOs. Find out what makes them tick and ADMINISTRATIVE RESEARCH get their viewpoints on management in our McKensie Keever • [email protected] cover story. ONLINE MARKETING DIRECTOR Harry Benson • [email protected] INTERNET / WEB SITE DIRECTOR J.R. Fent CONTRIBUTING EDITORS Jennifer Rachel Baumer • Tom Dye • Liz Gamble Cindie Geddes • Stephanie Herrera • Terry Johnson Shanna J. Kehoe • Jonathan LaRossa Annelle Lerner • Steven J. Oshins • Amber Schutz R. Keith Schwer • Mike Sullivan • Jeff Tino ADVERTISING / SALES Connie Brennan • [email protected] Sheri Lautherboren • [email protected] Harvey Whittemore is developing a town- Dawn Jenkins • [email protected] Lucy Cox • [email protected] sized master plan called Coyote Springs, one of Tarah Richardson • [email protected] the many bedroom communities blossoming SALES ASSISTANT all over Nevada. Hollie Howard • [email protected] CORPORATE OFFICE 375 N. Stephanie St., Suite 2311 • Henderson, NV 89014 (702) 735-7003 • FAX (702) 733-5953 [email protected] NORTHERN NEVADA ADVISORY BOARD Chuck Alvey • EDAWN Krys T. Bart • Reno Tahoe Airport Authority Tom Clark • Tom Clark Consulting Company Connie Fent • Community Representative Valerie Glenn • Rose Glenn Group Rick Gray • Fallon Convention and Tourism Authority Harry York • Reno-Sparks Chamber of Commerce Web Site: nbj.com • nevadabusiness.com The Nevada Development Authority celebrates TopRank Nevada: topranknevada.com its 50th anniversary with this Special Report on BPA the organization and its accomplishments. APPLIED May 2005

Nevada Business Journal is a division of Business Link, LLC. 375 N. Stephanie St.,Bldg. 23, Suite 2311, Henderson, NV 89014. It is listed in Standard Rates and Data, #20A-Business-Metro, State and Regional. TopRank Nevada Ð Annual Statewide Book of Lists is a publication of Nevada Business Journal. Advertisers should contact Sales at (702) 735-7003, or write to: Nevada Business Journal, 375 N. Stephanie St., Bldg. 23, Suite 2311, Henderson, NV 89014. Demo- graphic information available upon request. Month-to-month circulation may vary. Nevada Business Journal is published monthly with one additional issue each year. Subscription rate is $44.00 per year. Special order single-copy price is $7.50. TopRank Nevada Ð Annual Statewide Book of Lists,a compilation of lists which have ap- peared in Nevada Business Journal over the past 12 months, is published on an an- nual basis. All contents ©2006 copyright, and reproduction of material appearing in Nevada Business Journal and TopRank Nevada Ð Annual Statewide Book of Lists is pro- hibited unless so authorized by the publisher. CHANGE OF ADDRESS: POSTMASTER: Send address changes to Nevada Business Journal, 375 N. Stephanie St., Bldg. 23, Suite 2311, Henderson, NV 89014. Sub- scribers please include previous address or mailing label. Allow six weeks. EDITORIAL SUBMISSIONS: Address all submissions to the attention of Kathleen Foley. Unsolicited manuscripts must be accompanied by a SASE. Nevada Business Journal assumes no responsibility for unsolicited materials. DISCLAIMER: Editorial views expressed in this magazine, as well as those appearing in area focus and industry focus supplements are not necessarily those of the publisher or its boards.

6 October 2006 CONTENTS

FEATURES DEPARTMENTS

12 Nevada’s Most Respected CEOs 4 Commentary LYLE BRENNAN This Year’s Fantastic Four Oil Independence DORESA BANNING The Key to U.S. Survival 21 Industry Focus: Bankers 10 Business Up Front Facing Challenges in a Dynamic Market Best of Both Worlds Cutting Health Insurance Costs 79 Nevada’s Energy Future Productivity and Planning Earth, Wind, Water and Sun DIANE GLAZMAN 30 Tech Page MIKE MARRIOTT Interfacing Multiple IT Systems 79 A Must for Smart Business Practices 93 Nevada Briefs • Henderson Executive Airport Expanded • Venture Capital Conference to Convene • Sierra Pacific Launches GRID • Cox Announces New Headquarters • Mineral County Receives Federal Funding 94 Face to Face Erick C. Sanchez, General Design & Construction Co. Don DelGiorno, KB Home Nevada Inc. 95 Speaking for Nevada Five Nevada mayors predict future headlines 96 Inside Politics MIKE SULLIVAN Nevada Governor’s Race A Look at the Players 97 Vital Signs B UILDING NEVADA Las Vegas Recovery Center Help for Those with Addictions 85 Wide Awake 100 People First Nevada’s Bedroom Communities MARK KEAYS JESSICA SANTINA Dealing with Difficult People - 92 Harsch Investment Properties Including Your Boss Bullish on Southern Nevada Market 102 Expert Advice KATHLEEN FOLEY DOUGLAS BECKLEY Customer Centering 92 Commercial Real Estate The Key to Success Market Report 104 Money Management Second Quarter 2006 – Office Market NEVADA SOCIETY OF CPAS 91 Building Nevada News in Brief Creating an Ethical Culture A Must for Every Business • Montecito Breaks Ground for Retail Project 105 Compassionate Capitalism • Third Tower Planned for World Market Center KATHLEEN FOLEY • Largest Multi-Family Deal Announced HELP of Southern Nevada • Contractors Board Offers Information Assisting Nevadans in Need • New Mixed-Use Plan in Centennial Hills 106 Business Indicators R. KEITH SCHWER

October 2006 7 Continued From Page 4 without a two-thirds majority vote. Luckily for him, he was still serving in District Court when that disaster occurred. However, just this month he wrote the majority opinion that gutted the PISTOL initiative. Justice Nancy Becker, the incum- bent in Seat G, is the first of the jus- tices involved in the 2003 legislative fiasco to run for re-election. Al- though she made it through the pri- mary, she faces a tough race in the general election because voters re- member her part in the Supreme Court’s decision to set aside the Constitution so the state government could spend money over the objec- tions of its elected representatives. I’m sure she doesn’t see herself as an “activist judge.” In answering questions posed by the Reno Gazette Journal, she said, “We need experi- enced, honest jurists who are not afraid to make tough calls.” Yes, we do, but maybe some calls are “tough” because they involve bend- ing the rules to promote a particular ideology. Bob Beers, one of the principal supporters of the TASC measure, in- sists his group will bring it up again at the next opportunity. I hope they do, and maybe they will learn a les- son from this experience and make sure they don’t get tripped up by the courts and their liberal supporters next time. Nevada voters can do their part, as well. Although voters have lost their chance to speak out on TASC, and possibly on PISTOL, they do still have an opportunity to be heard on November 7th. They can vote against the incumbent Supreme Court justices who played a part in silencing them.

COMMENTS email: [email protected]

8 October 2006

BUSINESS UP FRONT

Tips for Running a Successful Business 10. Be Passionate about Self-Im- lenge, trust and teach provement: Create and promote an ¥ Communicate Ð listen and select environment that engenders the con- best communications medium im Flowers, a Las Vegas resi- tinuous pursuit of excellence in the ¥ Simplify Ð focus on critical issues Kdent who is the first African individual and in the organization. ¥ Create Ownership Ð participation in American woman to run a John 11. Celebrate Your Victories, Big planning, understanding why Robert Powers franchise, shares these and Small: Acknowledge a job well ¥ Provide Clarity Ð clear vision, in- tips for running a successful busi- done, give your team well-deserved struction and goals ness: relief from hard work, and check off ¥ Reward Success Ð acknowledge pos- 1. Divine Vision: Be very clear about milestones towards your organiza- itives your vision. Without it your team will tion’s ultimate goal. lack direction. Small Business Confidence 2. Dream Big: Dreams and passion Strong Leadership Combats Continues to Slide are the engine. Inspire your team to Slacker Syndrome dream big. onfidence among small businesses 3. Be the Eternal Optimist: Opti- negative attitude, stirs up trouble, Cin the United States has decreased mists have an unrealistic expectation Ablames others, lacks initiative and sharply as the economic cycle moved of success. As a result, they’re willing is incompetent” Ð these are all traits of past the halfway mark for 2006, accord- to try far more things without becom- the classic slacker. According to Rich ing to a new study from the Internal Prof- ing discouraged. Fredricksen, principal of the consulting it Associates Small Business Research 4. Develop a Business Plan and Let firm Paiva-Fredricksen Group, “Strong Board (IPA SBRB). The IPA Small Busi- it Drive Your Team’s Activities: leaders with a focus on execution will ness Confidence Index (IPA SBCI), Keep it simple to get your point identify Ð and either engage or eliminate which measures expectations about rev- across. Rein in your prose, keep it Ð low performers and the slacker syn- enue growth, the general economy and short, use business charts, and polish drome they permeate.” hiring for the next 12 months, currently the overall look and feel. Slackers alone are bad enough Ð 23 stands at 39.9, declining nearly 20 per- 5. Trust Your Instincts: Make the million “actively disengaged” workers cent from 47.3 in April 2006 and from 52 best decisions you can with the infor- cost the national economy $370 billion at the beginning of the year. By compari- mation you currently possess. a year in lost productivity, according to son, the IPA SBCI stood at 55 at the be- 6. Maintain or Upgrade Your Ac- Gallup Ð but their effect on good em- ginning of 2005. counting Systems: Lack of financial ployees is just as damaging. A recent Only 46 percent of small businesses controls is the No. 1 reason small Leadership IQ study showed 93 per- in the current survey believe their rev- businesses fail. cent of employees felt that working enue will increase during the next year. 7. Hold Regular Meetings with with low performers decreased their This compares to 59 percent in April Your Sales Staff: Meet regularly productivity, with 87 percent of those and 67 percent at the beginning of with sales staff to review lead quality, wanting to change jobs. 2006. Confidence in hiring has also de- win/loss records and customer rela- “If low performers are allowed to clined. Thirty percent of owners plan to tions. dictate a company culture, productiv- increase hiring during the next 12 8. Measure Everything You Do: ity, quality, and service are certain to months, compared with 39 percent in Pursue SMART goals (Specific, deteriorate,” said Fredricksen’s. Keys April and 40 percent in January. Measurable, Achievable, Result-Ori- to combating slacker syndrome in- Faith in the general economy for the ented and Time-Framed). clude: coming 12 months is wavering, with 42 9. Excite Your Sales Staff About ¥ Set the Example Ð values, attitude percent of small business owners and Each Lead: The more information and climate of integrity managers saying the general economy you have about a prospect, the more ¥ Measure Ð metrics drive perfor- will be better, compared to 44 percent in excited your salespeople will be mance April and 49 percent at the beginning of about the lead. ¥ Develop Leaders Ð support, chal- the year.

10 October 2006 FACE TO FACE

Type of business when everything is finally resolved, the Real estate development, brokerage, prop- end product is something I am proud to erty management, civil engineering say I developed.

Biggest business challenge How do you spend your time Developing a project in general is a chal- when you’re not working? lenge. It takes years because the elements On Friday nights, I bartend for fun at one of involved are constantly changing, which is my developments, The Cauldron Tavern. I also why I love it. Because nothing is set in also take a kickboxing class twice a week. stone, it is inevitable that just when I think I They are both great ways to relieve stress. have something set and understood, a com- ponent changes. And because the parameters What would you like your legacy to be? are moving targets, it is a challenge finding ? I would like to be remembered for creat- cohesiveness in the different elements and ing visually stimulating developments and fitting them together like puzzle pieces, completing them in a moral and upright Jaimee Yoshizawa which is ultimately the formula for a suc- manner, by doing what’s right with perse- President cessful project. verance and passion. Pacific Concepts What do you like best about your job? Best Business Advice Las Vegas As a developer, my mind is constantly on Always do what is right, and do it with my projects, from start to finish. I love co- passion. When left with two choices, Years in Nevada: 9 ordinating different elements so they come choose the high road Ð it may not always together seamlessly. Every day is about be the easiest way, but it is always worth Years with Firm: 9 solving various problems that arise. And, it in the end.

Years in Nevada: 40 ous goals of each client and troubleshoot- ing the challenges that may arise with any Years with Firm: 12 number of variables. It is extremely re- warding when I am able to use my creativi- Type of business ty to come up with a design that turns a Architecture firm client’s vision into reality and see my de- sign go from blueprint to finished project. Biggest Business Challenge: Building our firm in a self-contained man- How do you spend your time when you’re ner, without riding the coattails of other not working? companies during the recent real estate That I helped my wife and sons smile and boom. We are conscious and deliberate laugh. about controlling our company’s growth to ensure we are able to continue giving Favorite Business Book: our clients high-quality, personalized ser- Architecture in Details,by Carlo Scarpa vice and take care of our team members as well. Best Business Advice: Keep integrity and honesty in the busi- Roy Burson, AIA What do you like best about your job? ness. Always keep learning and trying to The creativity. Every project is unique be- do the right thing. Architect cause every client’s vision is different. I JVC Architects enjoy designing projects that fulfill the vari- Las Vegas

October 2006 11

Cover Story: Nevada Education Outlook

Nevada’s image of educational mediocrity is changing. But State

Senator Sandra Tiffany said changing the perception is a challenge in itself. Not all schools are experiencing the same problems or meeting with the same success. “There are definite pockets of problems,” she said. “Some schools are exceeding expectations, while others are failing.”

Schools Receive Ratings as “In Need of Improvement.” It then While three schools moved into takes two consecutive years at AYP the High Achieving ranks, 14 schools The Nevada Department of Educa- for that designation to be lifted. To be have remained In Need of Improve- tion recently released its school ratings considered “Exemplary” or “High ment for four years, and the districts for 2006. The ratings, part of the state’s Achieving” the school must also ex- in which the schools are located must Adequate Yearly Progress (AYP) ceed current-year expectations. now prepare plans for restructuring model, are based on school perfor- Out of Nevada’s 613 public those schools. mance on standards-based reading, schools/programs, 17 schools have Tiffany would like to see the entire writing and math assessments. The goal been designated as Exemplary, 79 as Clark County School District (CCSD) is for all schools to make the AYP. If the High Achieving, 55 are on Watch and restructured. She said the largest school as a whole or any of its identifi- 233 are In Need of Improvement. school district in the state is too big able student groups doesn’t meet annu- Dr. Keith Rheault, superintendent of and too bureaucratic, with too many al proficiency goals, participation re- public instruction for the Nevada De- administrative layers between parents quirements, attendance requirements or partment of Education, said, “Schools and anyone who can make a decision graduation requirements, that school is performed quite well overall, and as a on behalf of the school. She supports listed as not having made AYP for that result, fewer schools are In Need of breaking up the district into a com- year. In fact, there are 37 ways in which Improvement than anticipated, based munity-based school system. Howev- a school can fail to make AYP. on results from the 2005 school year.” er, a lot of questions need to be an- If a school doesn’t meet AYP for Indeed, 74 schools showed a year of swered before anything so radical one year, it is placed on the “Watch” improvement. One more year of im- could be accomplished. How would list. If it fails to meet AYP two or provement and they move into the assets be divided? Who would draw more consecutive years in the same Watch category (until then, they are the lines? What would be done with subject area, the school is identified considered on hold). existing contracts?

October 2006 13 Cover Story: Nevada Education Outlook

Dr. Walt Rulffes, the newly elected To change that would require legisla- Rheault said, “When we look at superintendent of the CCSD, is famil- tive action or the people’s action state averages, we are in the lower iar with this question of splitting up the through a ballot initiative. Tiffany has quarter, but when you consider the district and agrees that more work chosen the latter. “I’m choosing to get students we are working with, I think needs to be done. He said he would the tough answers and let the people we do pretty well overall.” He pointed probably support a split, but a three- vote on it,” she said. out the increasing number of children pronged test must first be conducted. whose native language is not English. “First, there must be clear evidence Bottom of the List In addition, Nevada’s transiency rates through extensive scientifically-based (percentage of children who do not research that a split would improve Nevada has spent a lot of time on finish the school year at the same student achievement,” he said. “Sec- the bottom end of the Morgan Quitno school they started) are a challenge ond, major economic differences be- Press’s “Smartest States” lists and across the state. Esmeralda County is tween areas and racial imbalances came in 47th in the 2005-2006 rank- faced with a transiency rate of nearly must be addressed and taken into ac- ings. But the state is not alone. Other 60 percent and Lincoln County has 44 count before any restructuring can take western states sharing the dubious percent. And it’s not just the rural place. Finally, taxpayers must be aware honor of the five worst are California counties. Clark is looking at nearly 36 of the costs, as any such split will come (46), New Mexico (48) and Arizona percent and Washoe is sitting at near- with an increased cost to taxpayers.” (50). Others in the West fared only ly 28 percent. White Pine County has Tiffany has a multi-step solution of slightly better: Wyoming (17), Idaho the most stable population, but even it her own. “The first step is to get an- (28), Washington (30), Utah (33) and has a transiency rate of 13 percent. swers,” she said. “The second step is Oregon (38). Nevada’s ranking of 47 Statewide, the transient student popu- to get it on the ballot and let the peo- was an improvement over 2004-2005 lation is 33.5 percent. ple vote for it.” Current statutes set the numbers when the state came in 49th; rule of one district for every county. in 2002-2003 it was ranked No. 46. The Big Districts

It is easy to grade a state’s educa- tional system by examining its largest districts. Nevada continues to see a gloves-off contest between the two gi- ants of Nevada: CCSD and Washoe County School District (WCSD). Population growth in both urban centers continues to skyrocket. Clark County has increased by 335,000 peo- ple since 2001; Washoe County has seen an influx of 50,000 people dur- ing the same period. WCSD Superin- tendent Paul Dugan focused on the types of growth each district is expe- riencing, calling WCSD growth “manageable growth,” while labeling CCSD growth “forced growth” that necessitates reaction rather than ac- tion. “Besides the numbers,” Dugan said, “this is the main difference in the challenges both districts face.” WCSD consists of 87 schools and roughly 64,000 students. Though not a direct part of the school system, four higher education campuses support the district. On the other hand, CCSD

14 October 2006 Cover Story: Nevada Education Outlook

carries the title of fifth-largest school district in the nation (behind only New York City Public Schools, Los Getting to Know Dr. Walt Rulffes Angeles Unified, City of Chicago n January 26, 2006, the Clark County School District Board of School District 299 and Dade County School District). The district has more Trustees unanimously voted in favor of Interim Superintendent Dr. than 300 schools and services more OWalt Rulffes (pronounced roll-fess) as the district’s 10th superinten- than 300,000 students. dent. Though the committee had been divided in its discussions, the vote in Neither district is in stellar condi- favor of Rulffes was unanimous. tion. The AYP designated WCSD as Rulffes holds an MBA in Business and Finance and a doctorate in Educa- In Need of Improvement for the tional Leadership from Gonzaga University. As interim superintendent of third year. CCSD is “on hold,” hav- CCSD since 2005, he has pushed through full-day kindergarten and devel- ing made adequate yearly progress oped English as a Second Language (ESL) programs to benefit area youth after two years of being In Need of and parents, and also is heavily involved in county and state legislation con- Improvement. cerning educational plans and funding. He said he has many plans for the district, but, “The focus must always remain on the students.” The Smaller Districts Rulffes’ experience has led him to believe that his position as superinten- dent is only one piece of the puzzle that is the Clark County School District. According to The Rural School and He hopes to bring the district more into focus and be a part of much-need- Community Trust, only 7.4 percent of Nevada’s students attend schools lo- ed solutions to the problems the district faces. cated in rural areas, and 19 percent of The superintendent’s ties to helping youth have their roots in tragedy. the state’s schools are in rural areas. “After losing a son,” he said, “I devoted my whole life to making young peo- The Trust considers funding among ple successful in life and helping to provide the means to achieve their suc- school districts in Nevada far from cess.” Rulffes, now 65, father of two and grandfather of four, sees his new even. In fact, it considers the funding position as a simple extension of that commitment. the fourth worst in the nation. The As Ruth Johnson, Board of Trustees president, said after the vote to make percentage of state education funding Rulffes CCSD superintendent, “He is the man who will lead the Clark Coun- to rural schools is only 10.8 percent. ty School District into the future, and he will carry the responsibilities that Kathy St. Clair, Nevada director of this board will continue to give him.” It is a future Rulffes’ embraces. Title I services and assistant director of special education and school improve- A Quick Look at Dr. Rulffes ment, said, “These rural communities Born: Long Island, New York are not just remote Ð in some cases, Raised: On a small ranch in Washington State they are completely isolated.” This Childhood Dreams: Cowboy, Professional Baseball Player alone can create factors detrimental to Favorite Sport: Baseball, Equestrian Events the entire educational system. Antoinette Cavanaugh, superinten- Favorite Book: To Kill A Mockingbird, by Harper Lee dent for Elko County School District, has lived in her county for 23 years. She even went to school there. She said that while the larger districts have to contend with constant growth, the rural ones are challenged by the boom and bust of the often disparate communities within the counties. “We’ve handled our growth pretty well,” she said, “but huge, rapid growth would leave us scrambling.” Two factors that have helped the dis- trict handle its booms and busts are its

October 2006 15 Cover Story: Nevada Education Outlook

pay-as-you-go building and renova- Poverty” by way of the original Ele- districts in the state received a por- tion policy and a hold-harmless mentary and Secondary Education tion, with CCSD receiving $57 mil- agreement with the Nevada Legisla- Act (ESEA) of 1965. For schools in lion of that Title I money. ture. If the district goes through a bust areas with high poverty rates, it sets Title I is often measured by how period, the Legislature won’t reduce standards to determine eligibility for many students are eligible for free and its per-student allocation. federal funding. It currently affects reduced-price school lunches. In Neva- However, Cavanaugh said neither over 75 million American children da, 171,000 students (41.5 percent) are growth, ESL or transiency is as big a every year. Its intent is to attack eligible for the free and reduced-price challenge as finding qualified teach- poverty through early education. lunch program. Nearly 134,000 of ers willing to move to what is con- “There are different ways to deter- those students live in Clark County. sidered a rural area (she contends mine which districts receive how Another 21,000 live in Washoe Coun- that Elko, being equidistant to three much money, and it’s based on the ty. But the highest percentage of stu- major cities Ð Salt Lake City, Boise poverty level for that school,” ex- dents in the program reside in Esmer- and Reno Ð is not rural). This is cer- plained St. Clair. Title I funding pro- alda County, where 66 percent of tainly a problem neither of the big vides for several different projects students (57 students) are eligible. districts is facing. that improve school technology, facil- ities and morale. These include reme- English Proficiency The Title I Program dial programs, new teachers, teacher training, tutoring programs, after- In Nevada, more than 63,000 stu- Title I, the largest federal education school programs and ESL programs. dents (15.5 percent) have limited program ever, began as a part of Pres- This year, Nevada received $77 mil- English proficiency. St. Clair said ident Lyndon Johnson’s “War on lion in Title I funding. All 17 school she’s heard numbers closer to one in every five students Ð nearly 75,000 students Ð are ESL. The majority of these students (more than 50,000) live in Clark County. Washoe County adds another 9,000 to that roster. However, the county with the highest percent- age of students with limited English proficiency is Carson City with 18 percent (1,548 students). Not all students with a limited pro- ficiency in English come from fami- lies who do not speak English at home. But students with English as a second language do make up a large portion of this group. For instance, Rulffes understands English proficiency stems from a number of reasons, including poverty, as well as ESL families. As opposed to simple increases in numbers of non-English speaking families, he said, “We have a changing population here. And getting these kids proficient [in English] is a challenge we must take and must respect.” Joe Enge, chairman of EdWatch Nevada and a research fellow for the Nevada Public Research Institute,

16 October 2006 Cover Story: Nevada Education Outlook

said that in his years as an educator, with a vote of 9 to 1. The one oppo- up for success. The Nevada Depart- he observed that whether or not a nent, Barbara Myers, said she turned ment of Education also developed a child comes from a family with a fa- it down simply because she wanted to research-based improvement process miliarity with academics (such as par- decrease the ratio even further. called “Student Achievement Gap ents who have been to college) is Governor Kenny Guinn has re- Elimination,” or SAGE, to help more important to success than quested programs to apply the federal schools and districts in their efforts. whether or not the family speaks Eng- “No Child Left Behind” (NCLB) Even smaller districts are seeking lish. However, our system focuses on standards as soon as possible. Neva- new ways to help students live up to the language barrier alone. da’s plan of NCLB implementation their potential. Cavanaugh noted she takes shape in “Every Child Can Suc- has increased ESL teaching positions Keys to Success ceed.” In 2003, the Nevada Legisla- and has opened a position for an ESL On August 6, 2006, the Las Vegas ture passed motions requiring im- Coordinator (though, after five months, Review-Journal reported, “The Neva- provement plans be regularly that position remains unfilled). She also da State Board of Education recom- developed, revised and implemented mentioned a variety of programs to mended that the 2007 Legislature in- on every level of education, thus cre- help prepare students not only for col- crease spending on public education ating a comprehensive, evolving ap- lege, but also for the workforce. by $1 billion,” boosting current proach to education reform. A pro- Readiness for college is a hot issue salaries and also adding over 2,000 gram can take several years to see in Nevada now, with reports that teachers across the state. Other mea- results. Fortunately, Nevada began about 40 percent of the Nevada high sures the board approved were de- this process three years ago. school graduates in 2005 who en- creasing student-teacher ratios from Programs such as “Every Child Can rolled at the state’s colleges and uni- 21.4 to 19.7. This proposal passed Succeed” are in place to set Nevada versities had to take at least one reme-

October 2006 17 Cover Story: Nevada Education Outlook

dial course. Jim Rogers, chancellor classes will garner both high school the country and use them.” He still for the Nevada System of Higher Ed- and college credits. stands by this statement. Recently, he ucation, said that is going to change, In 2002, Anderson Elementary expanded on this idea: “We all have to and not for the usual reasons (more School in Washoe County was one of be conscious of the best practices of teachers, more funding). He said two schools to fail its Adequate Year- other districts. And we need to listen Nevada grads are seeing better pro- ly Progress targets in three consecu- to the people in the field: faculty, stu- grams because of a drastic increase in tive years, according to dents and area businesses. They all coordination between K-12 and the www.schoolsmovingup.net. Only 22 have something to offer.” university system. This newfound percent of third graders and only 9 The ultimate objective of education spirit was only recently implemented, percent of sixth graders were reading is to prepare a new generation to bring but Rogers sees it as revolutionary. proficiently. But during the 2003- success and prosperity to themselves “Everyone is working together,” he 2004 school year, Anderson Elemen- and to the institutions and communi- said. “There are memoranda of agree- tary not only improved dramatically ties that supported them through ment everywhere. With 13 regents in literacy goals, but it also earned childhood. Education is the lock on and eight presidents getting along, it “High Advancement Status.” In 2004- the door of success; it’s up to the peo- is a whole new world.” 2005, the school continued to make ple of Nevada to turn the key of re- Rogers noted partnerships such as Adequate Yearly Progress. form to unlock its treasures. that between Clark County Commu- Examples like this demonstrate nity College and CCSD in which stu- Nevada’s ability to adapt, to change, Cindie Geddes, owner of Flying Hand dents will be tested at the end of their to better itself in the tide of educa- Writing Services, is a freelance writer junior year, rather than their senior tional reforms washing across the na- based in Reno. Jonathan LaRossa is a year, so they will know which classes tion. Dr. Rulffes was once quoted as freelancer currently working on his they need to take in order to be col- saying, “I’m willing to steal some of teaching credentials. lege-ready. And those high school the best ideas from districts all over

18 October 2006 STATE THE ISSUES

What Cost Education? Two Views In this special “State the Issues” column, we used excerpts from the executive summaries of two recent re- ports on education. The report from Augenblick, Palaich and Associates was represented to the Nevada Leg- islature in August, and the report by Dr. Richard Phelps was published by the Nevada Policy Research Insti- tute. Readers are urged to read the complete versions of each report in order to make an informed decision.

Estimating the Cost of an Adequate The “School Funding Adequacy” Evasion Education in Nevada Richard P. Phelps, Ph.D. Augenblick, Palaich and Associates, Inc. Proponents of increased spending on public schools often describe funding adequacy studies as objective and scientif- ic. They are neither. Augenblick, Palaich and Associates (APA), the most prolific of several groups conducting this In today’s world of No Child Left Behind (NCLB), in- type of study for a fee, released its latest for the Nevada creased accountability for student, school and district perfor- Legislature in August 2006. APA recommends doubling mance, and a steady growth in high-stakes testing, there is public expenditure on Nevada’s public schools. ever-increasing pressure on education systems to ensure that The education standards movement and, more recently, all students leave school with the tools and skills they need to the federal No Child Left Behind Act, play into the funding succeed in life. Such increased pressure can have a positive in- adequacy drama. If states require that students and schools fluence on performance, but only if policymakers and educa- meet specific performance targets, it is argued, states should tion leaders also have the capacity to answer what might ap- provide “adequate” resources for meeting those targets. pear to be a simple question: Do schools and districts have the APA chiefly employed two estimation methods Ð the resources they need to meet performance expectations? “successful schools” and “professional judgment” ap- In many states, policymakers have created accountability proaches. Both are simplistic and produce unreliable re- systems with consequences for schools and districts when ex- sults. With the former method, APA relied on a three-year pectations are not met. Most often, however, these expecta- trend in test scores to judge school success and ended up se- tions and consequences are created without understanding lecting a disproportionate number of magnet schools and what it costs for schools and districts to meet desired out- schools labeled “in need of improvement” under NCLB cri- comes. teria. The latter method asked panels of teachers and school This “funding adequacy” report is designed to help address administrators how much money they needed in order to be this issue in Nevada and address both what is it costs to meet successful in meeting standards. Not surprisingly, they esti- present-day standards as well as future standards, where 100 mated high. percent of students are required to be meeting proficiency by These estimation methods rest on three assumptions: ed- both the federal and state government in 2013-14. ucators bear no conflict of interest when estimating their Key Findings own resource needs; legislators will (and should) imple- “Starting” cost. Drawn primarily from an analysis using ment the funding recommendations of the panels exactly as 2003-04 data, 12 Nevada districts need an additional $79.6 the panels prescribe; and a one-to-one correspondence ex- million, or $231 per student on average, to bring them up to ists between education spending and student achievement. the successful schools adequacy level. In total, Nevada would In cases of extreme deprivation Ð in some very poor coun- need to spend $2,295.5 million annually to meet the 2003-04 tries, for example Ð the correlation between spending and successful schools adequacy level, plus an additional $15.3 achievement can be rather high. Given the current structure million in hold-harmless money for the five districts currently of United States school systems, however, researchers have spending over adequacy. This figure must also be adjusted for difficulty finding any correlation between spending and inflation. achievement. The most optimistic estimates claim a corre- A “goal” cost. This cost, drawn primarily from the profes- lation of 0.1, meaning a doubling of education spending sional judgment group analysis, represents the full cost of ed- could be expected to increase student achievement by just ucating students Ð including the base cost and added weights 10 percent. for CTE (career and technical education) and students with A vast research literature on effective schools reveals that special needs Ð to reach future performance standards. The the key features leading to improved student achievement end-point would be $3,551.3 million, not allowing for hold- are related not to money, but to the quality of school man- harmless money. agement and leadership.

October 2006 19 Feature: Homes Mean Nevada

Homes Mean Nevada Questions and Answers with Nevada’s Home Builders

ome things remain unchanged: The Players homes, supply exceeds demand. Nevada is the fastest-growing We’re only building homes after Sstate in the nation. Job growth re- In the south we talked with Klif An- they’re sold – there’s no spec build- mains healthy in Reno and Las Vegas, drews, division president for Pardee ing. We’re trying to make sure we Nevada’s cost of living remains more Homes, founded 53 years ago; Don qualify potential homeowners prior to reasonable than in neighboring states, DelGiorno, division president, KB sale, then start building and take them and people keep moving here. Home, which came to Nevada six all the way through the process. What’s changing is the housing years ago by acquiring Lewis Homes; We’ve also slowed down development market. In early 2005, houses were Matt Koart, area president for Pulte of future lots – there’s no sense flying off the market. There were Homes/Del Webb Nevada; Dan Fer- adding to the bulge in the market. waiting lists for new homes, resales guson, president, Christopher Homes, Ferguson: It’s slowed down in the were selling in a matter of days and a luxury home builder; and Dennis sense that we have the same number homes were appreciating at a star- Smith, Home Builders Research, Inc. of buyers, but far more inventory. tling 20 percent to 30 percent a year In Northern Nevada, we caught up However, if you look at all the other rather than the normal 4 percent to 6 with Jon Delaurentis, president, leading indicators in Southern Neva- percent. Investors were diving in Lifestyle Homes, which was founded da, we have very low unemployment and driving the market higher, while in 1989; and Steve Haley with Dick- Ð the lowest rate in the country Ð good buyers were treating homes as son Realty, 2006 president of the job growth and people moving in. short-term investments rather than Reno/Sparks Association of Realtors. We’re still fairly competitive with places to live. cost of living compared to other By fall 2005, things were changing. Is the housing market slowing down states, especially California. The buying frenzy was cooling, prices in Nevada? What adjustments has Smith: The year-to-date total of new were still rising but not at the same your company made to the new homes sold through July in Southern dizzying pace, more product was Nevada housing market? Nevada was 21,545 Ð up 6.1 percent coming onto the market, and every- Andrews: The housing market has from 2005. The slowdown mostly one was concerned we were in a hous- slowed down throughout 2006 and shows up in resales, which are 22 per- ing bubble that was about to burst. we’ve adjusted to it by keeping our in- cent lower year-to-date than last year In fall 2006, the market continues to ventories low. If our sales have (as of July). adjust. Experts say it’s not so much a slowed, so have our construction Delaurentis: There has definitely been downturn as a return Ð for the most starts. We’re still seeing sales in all a slowdown. We have one project part Ð to normal. the submarkets around Las Vegas. going in Cold Springs. We were al- Nevada Business Journal brought The activity varies widely between lo- ready in the process of improving our together a handful of top builders to cations. options and exterior features before get the scoop on what home-sweet- DelGiorno: The housing market has the slowdown, so we’ve continued home means in fall 2006. Home own- slowed. It’s the same in every market. with that trend. ership is the American dream Ð we But really, we have an excess of sup- According to Haley of the wanted to know if it’s still a possibili- ply. There are 23,000 resales on the Reno/Sparks Association of Realtors, ty for Nevada residents. market, and if you add in the new the market is slowing down across the

20 October 2006 Feature: Homes Mean Nevada

board in Northern Nevada and sellers in Nevada, and we’re still doing well most desirable parts of the Valley are resisting the change. Builders of with tourism. Over the long term, this there is still room to grow and satisfy new homes are offering selective is one of the places that will still be a the needs of homeowners. price reductions in some subdivisions great housing market. There are still Delaurentis: I read a great article in or increasing the number of incen- places to build. In the northwest [Las National Geographic that said Ameri- tives, such as interest rate buy-downs Vegas Valley], we’re building in a new cans want a sense of community. or free upgrades. In Southern Nevada, master plan called Providence, and in They want to be part of something. I the resale market saw a 22 percent de- the south, we have a major holding think master-planned communities crease from July 2005 to July 2006. called Inspirada, a 1,900-acre master- are what the market’s going to want, planned development. In some of the where infrastructure, parks, play- What’s the median price for a new home? How does it compare to last year? Smith: The median price of a new home in July 2006 in Southern Neva- da was $324,517, a 2.1 percent in- crease year-to-year over 2005. Delaurentis: I’ve heard median price [in Northern Nevada] is upwards of $380,000 or $390,000 Ð maybe less in the North Valleys. I think there’s been a slight decline in median pricing since October 2005, but I wouldn’t want to speculate as to why.

What do you think will be the next hot housing market?

Andrews: We think Southern Nevada will be one of the stronger markets over the next 12 to 18 months. The fact is, there’s not much land available in Southern Nevada. Since job cre- ation and economic growth is still very solid, we feel this market will correct itself very quickly, probably by year-end. All the builders have slowed their construction starts and we’re keeping our inventories low, but because Las Vegas still leads the na- tion in job creation, people are still moving here and they need houses. According to Smith, the annual job growth rate in Las Vegas was 5.5 per- cent in June and 5.6 percent in July. For the U.S. the rate was 1.3 percent. DelGiorno: It’s hard to speak to other parts of the country, but I have faith in the Las Vegas market. We’ve still got great job growth, it’s a great place to live, there are tax advantages to living

October 2006 21 grounds, schools and activities are all located within the community and you don’t have to drive to town to get groceries or something to eat.

What types of homes are most in de- mand? What are kinds of features are people looking for?

Andrews: Lower priced homes in the $250,000 to $300,000 range are real- ly in demand. Koart: Never mind price. Energy effi- ciency is a huge priority. Also, the best location that has the lifestyle component the buyer wants. DelGiorno: People still want the best value for square footage. They also want to customize to a certain extent. Delaurentis: Our large two-story homes, which are basically the least expensive per square foot, are sell- ing rather quickly. Also our smaller, least expensive homes in the $230,000 range. Haley: Square footage, kitchens and garages Ð garages are always popular in Reno. Having a four-season cli- mate here, people want to store things indoors. Three-car garages are a huge bonus. Features vary by price range. People paying a million dollars for a home expect granite countertops and stainless steel. If they’re paying $300,000, they’re hoping for land- scaping or central air.

What do you consider an affordable home, and what’s the market like for these types of homes? Can families still expect to own a piece of the American dream?

Haley: Affordability is driven by in- come, so what’s affordable for one person is not necessarily affordable for another. It’s a function of balanc- ing median income and house size. We’ve had corrections in the Reno market. I’d say we were undervalued for years, considering our lifestyle

22 October 2006 Feature: Homes Mean Nevada

and the price of property and finished term, it’s more than likely we won’t months, so that has almost doubled homes, and we’ve had a correction see this trend reverse itself. We may the time for getting entitlements. driven by demands from outside the see small periods of softening costs, Delaurentis: There was a code change area, but I think we’ve met that cor- but it’s going to be more expensive to last summer and it took a little time to rection now. We might see a correc- provide homes. get the plans current and approved at tion of some kind Ð housing prices Ferguson: In the last year and a half, our end. The company got hit pretty might come down a bit. At the same costs have increased by 10 to 15 per- hard with re-submittals for new time, if interest rates stay stable and cent, and that’s a large number over codes. We almost expected a slow- the tax laws stay the same, I think the such a short time. down, but I think it’s gotten better. It’s change needs to be in the wage situa- Delaurentis: We’re seeing increases fairly consistent now. tion. In order to be more attractive to from subcontractors and suppliers. Koart: Along with rising costs, it’s an- people coming into the area, we defi- The cost of material goods is steadily other hurdle, the ever-increasing diffi- nitely need to raise wages. Currently a going up because of the price of fuel. culty in obtaining enough land and medium-priced home in Reno is 13 So many things are made through getting the approvals necessary to percent above the national average, some kind of process that requires build. The regulatory environment has and wages are 12 percent below. fuel, or it takes fuel to get it here. The become more difficult over the years. There’s a 25 percent swing between price of lumber constantly goes up Have you been able to get all the labor the two. and down. We’re seeing a steady in- you need to build? Delaurentis: There are different types crease in material costs, even though Andrews: There’s plenty of labor, of affordable: first-time buyer afford- prices have flattened on new homes probably because of the lower con- able, upgrading-to-a- larger-home af- and resales. struction starts. It was different a year fordable, empty-nester downsizing af- Has your company had problems ago, but now we have everything we fordable. It’s a relative term getting permits and entitlements from need. depending on what your circum- local governments? Are you experienc- Koart: We’ve been fortunate to get the stances are. ing delays in getting projects approved labor we need today. However, with DelGiorno: In the $300,000 to or getting approvals from inspectors? immigration legislation and things $350,000 range, mortgage rates are Andrews: No more than normal. There that are happening politically right still at historic lows and still afford- are always delays in that process, it has- now, there are serious concerns in the able and there are so many different n’t changed much one way or another. industry. We don’t profess to have the loan products, people have a lot of Ferguson: In the last year and half, the answers to very difficult questions, choices. process has slowed because of the de- but certainly it needs to be balanced. mand on people in those roles and the Labor has been in short supply in the What effect has the rising cost of ma- demand for architects and engineers. industry for a long time and it’s been terials had on your company? That whole process has slowed down, a very competitive environment to at- particularly with government entities tract enough labor, and immigration Andrews: It makes it difficult. Even as Ð what took four to five months be- legislation could negatively impact home prices are pressured down- fore now takes six to eight or even 10 the availability of labor. wards, the cost of materials continues to rise almost across the board Ð con- crete to steel to drywall to windows Ð everything continues to go up, and fuel costs are also driving part of that. DelGiorno: We’ve been lucky. KB Home is a large national builder with national contracts, which allows us to soften the blow of rising costs. Koart: It’s one of the contributing fac- tors making housing less affordable over the last decade. Overall, every- thing is more expensive Ð land, labor, raw materials to build houses. Long-

October 2006 23 Is land still available for large tracts or master-planned communities? If so, where?

Andrews: No. Large tracts are not avail- able in Las Vegas. Many large parcels are already in development or are under federal ownership, and we have a lot of complications because of that. Koart: The BLM [Bureau of Land Management] has auctions occasion- ally and sometimes those land parcels are big enough to provide large-scale master-planned communities. Short of that, it’s rare to find a piece large enough to develop what we consider a master-planned community. We’re left with more of an in-fill environment. Will homes be built on smaller and smaller lots as land prices rise and land becomes scarcer? Andrews: While multifamily products will continue to grow in market share in Southern Nevada, I don’t believe they will ever be the dominant prod- uct. I really do believe that a home with a yard, a garage and a little bit of space between houses is still an en- during part of the American dream and buyers are not going to easily trade that in for a condominium. Haley: The regional plan does call for some higher-density in-fill, but getting those projects approved through local governments has proved challenging. In-fill doesn’t always mean condomini- ums Ð sometimes it means reduced lot sizes. Right now around 4,500 square feet is the smallest lot size, but we might have to go down to 2,500-square-foot row house lots. There is also a move to mixed-use, live/work type environ- ments, and commercial buildings with residences in the neighborhood. Delaurentis: I don’t think [very small lots] sell well. For the immediate fu- ture, I think you’ll see the regeneration or rebuilding of the downtown Reno area, converting some of the old hotels into condominiums. However, on the outskirts, I don’t think smaller lots and houses closer together are desirable.

Continued from Page 24 October 2006

Feature: Nevada’s Accounting Firms

Nevada’s Accounting Firms Managers Calculate Solutions to Challenges

oday’s accounting firms face provide a working environment that know who the Gen X and Gen Y peo- many of the same challenges can be all things to all people. ple truly are and embracing these dif- T being experienced by other in- Recently, an article in Inside Public ferences. Instead of trying to make in- dustries and professions: recruiting Accounting magazine broke down the dividuals fit the firm, the firm is and retaining qualified people, keep- specific differences between the gen- finding it has to fit the people. ing up with competition, and rein- erations. The main difference noted is What is this younger group like? venting themselves to adapt to a that older generations are used to pay- Mike Klaich and Caesar Ibarra, part- changing marketplace. In fact, it ing dues and putting in long hours to ners with Muckle Anderson CPAs in would not be unusual to attend a busi- pursue the partner track, while Reno, explain that younger staff ness mixer and find the same topics of younger generations do not want to “aren’t loyal to a profession or an em- discussion taking place among sever- wait 30 years to develop work/life ployer, but to people.” While liking al different industry leaders. Howev- balance. Members of the younger the company they work for is fine, it er, the accounting profession also generation see time as currency, ac- is not the priority that drives these faces unique challenges, which we cording to the article, and they do not people to work. In addition, this gen- discussed with the principals at sever- want to trade it for money. However, eration also looks to their parents for al Nevada firms. when the older generation is doing the guidance beyond college. In a world hiring, bridging the gap between the where parents are continuing to pro- Workforce Challenges – two groups becomes vital and pro- vide as much as they can for their Keeping the Best Staff vides challenges at the same time. children, it is not unusual for a parent So, what’s an accounting firm to to help negotiate an employment con- Four generations work side-by-side do? Baby boomers are getting ready tract with the goal in mind of provid- in today’s workforce, which in any in- to retire, Sarbanes Oxley has signifi- ing their children with as much op- dustry keeps upper management hop- cantly increased work for accounting portunity as possible when accepting ping. For the accounting profession, it firms, and firms need to develop suc- a position with a firm. has required managing partners and cession plans, in addition to filling Klaich and Ibarra also explain that mentors to become creative in truly holes that already exist in the ranks of these individuals like to work in understanding the differences be- experienced staff. One thing several groups, and teamwork is very impor- tween these generations in an effort to Nevada firms are doing is getting to tant to them. However, though these

26 October 2006 Feature: Nevada’s Accounting Firms generations like to work as a group, relation between longevity and the they also like to stand out in the team contentment of staff, which directly and create their own individual contri- impacts the satisfaction of the client. bution. Because of this dynamic, firms “Clients needs are being met on a are adapting in creative ways to accom- more timely basis. We have teams modate the team mentality. Klaich and who work on each client’s account. Ibarra say their firm started implement- The staff may rotate, but the partner in ing changes a year ago and have been charge stays the same,” she explained. experiencing positive feedback. Gadosh also described the benefit to The goals are still somewhat the having an understanding and appreci- same, in that a staff person has a goal ation for those people who like to of annual chargeable hours, with an es- offices located throughout Nevada, work, but do not desire traveling up timation of how that time should be the option to place staff where needed the corporate ladder into partnership. distributed throughout the year. How- helps to fill gaps, while the extra pay These people are valuable because ever, the staff person has the choice options provide incentives. they offer consistency in a client’s when it comes to taking care of when O’Carroll also notes that her firm team. Instead of having staff members the work is done. Flexible hours allow offers marketing assistance to staff rotate through as they promote up, the for staff to get their 40 hours in any- who are interested in ascending the people staying in place have the op- time between Monday and Sunday. corporate ladder. Clearly, developing portunity to develop long-term rela- Telecommuting creates productivity new business is part of the responsi- tionships with clients. opportunities when a parent normally bility of staff in higher management For Curt Anderson of Fair, Ander- could lose a whole day of work staying positions. In anticipation of the im- son & Langerman, adjusting to staff home with a sick child. Now, parents portance of providing training in all seeking work/life balance is not much can still remain productive from home. areas of management, Kafoury, Arm- of an issue. “All of us as baby boomers For Kafoury, Armstrong & Co., the strong & Co. employs the services of want balance in our lives,” he said. team concept has existed for years its marketing company to teach mar- “For the most part, we are looking for through the company’s mentoring keting techniques in an effort to better the same things this next generation is program. Partners Felicia O’Carroll prepare staff in the area of business looking for. In our firm we’re all after and Kristen Burgess explain the development. the same thing.” Anderson figures firm’s policy is to allow staff to Carlene Gadosh, chairperson for the staff members average 55- to 60-hour choose the area on which they would Nevada Society of CPAs, agrees that work weeks and that, while it is good like to focus, and then mentor that having an appreciation for the impor- to work hard, “Burnout doesn’t do staff person with a partner and/or tance of work/life balance now, rather anybody any good.” higher-level professional who is also than later, is key to finding and attract- Anderson also recognizes burnout strong in that area. In addition, the ing qualified people to a firm. For her can also result in producing bad work staff person is mentored in developing firm, Thorne & Gadosh, offering flex for clients. He maintains it is important a plan to achieve professional goals. time, part-time work, job sharing and for a firm to be innovative for clients, The emphasis is continually placed on the option to work from home have and if burnout is high, production of allowing staff the freedom to deter- been instrumental in keeping staff sat- creative work is low. Ultimately he be- mine their future, as opposed to the isfied. Gadosh explained that many lieves, “You can’t help clients run a firm dictating the terms. young parents would prefer to work business if you can’t empathize with O’Carroll and Burgess also note the from home, and having access to these their needs for balance.” At the end of firm offers flexible hours for 40-hour options help achieve that goal. the day, Anderson said he believes in work weeks, the option to work full- However, keeping the lines of com- two truths: “Nothing is more personal time for part of the year and part-time munication open is still a priority, so a than business,” and, “Don’t get be- during other parts of the year, once-a-week staff meeting called tween a mother and her children.” telecommuting and the option to take “work in progress” allows for every- For Anderson’s firm, owners set the overtime in the form of time off or one to meet face-to-face and stay on example for staff. If an owner in his cash. The firm also pays for travel the same page. Within her firm, Ga- firm works part-time in the office and time incurred when staff members dosh noted that flexibility has been a part-time at home, it is important that travel outside the immediate area to success not only for employees, but staff members understand those op- work for a client. For a firm with six for clients as well. She cited the cor- tions are available to them as well. He

October 2006 143 Feature: Nevada’s Accounting Firms also believes that providing flexibility Stephen Comer sees the current trend addition, Deloitte has built more flex- around necessary days off resulting as cyclical, responding to the current ibility into schedules, so staff mem- from illness Ð or even a well-deserved economic boom. Nevertheless, he ad- bers are able to exercise more control half-day Ð are often more important mits the firm is spending more money over how work gets accomplished. than working around vacations, since on recruiting, while certain internal Over the past summer, Comer said the working around a planned vacation is changes have been implemented to firm also provided four floating days easy to manage. accommodate the need to retain qual- beyond regular vacation time to each Even larger national firms such as ified staff. employee to be used at their discre- Deloitte & Touche LLP are experi- Comer lists significant increases in tion. Unlike other firms, Comer de- encing challenges with hiring and re- compensation as one way the firm is scribed a program for paternity leave tention. However, Managing Partner attempting to retain current staff. In to help alleviate the stress of introduc- ing a new child into the family. It en- ables new fathers to spend two to three weeks off after children are born. They also have the option of working from home. Ultimately, Comer believes current staffing challenges are the growing pains that come with each generation in charge of a firm. He explained that when he came into the profession, “My boss would say my generation were slackers. Every group says they work harder than the next generation coming up.” He does not believe the new generation is unwilling to work hard; it is just that they want to work differently.

Getting the Work Done

Though many firms are dealing with the challenges of finding, hiring and retaining talented and qualified people, the reality is that holes some- times exist. Outsourcing to other firms, and even to India, is an option firms may use. However, in Nevada, outsourcing is seen as a less than de- sirable option. Gadosh noted that only a few firms in Nevada outsource, usu- ally to India, where there is a high population of accountants who are fa- miliar with the United States tax code. However, she recognizes that many firms outside the state use this option and find it highly beneficial. Gadosh explained the reason for the lack of outsourcing in Nevada is often relational. “People coming to a firm want help with the planning side,” she said. Clients often do not appreciate

144 October 2006

hearing their work has been out- sourced to an individual they cannot talk to in-person. Even if a confiden- tiality agreement is signed, clients still worry about confidentiality is- sues. Ultimately, it is better for the re- lationship with a client if a firm finds alternative means for accomplishing the work.

Diversity – It’s Not Just a Man’s World Anymore

The accounting profession has long been seen as a man’s world, but re- cently this has changed with the in- crease in women entering the field. Across the nation, accounting firms have seen a dramatic rise in the num- ber of women entering accounting programs and ultimately developing careers in the field. Klaich cited the higher level of women in the firm as a direct reflection of the number of women in the graduation pool. Ga- dosh noted that Nevada also has seen an increase in female partners, as well as woman-owned accounting firms. Anderson pointed out that more than half the graduates coming out of accounting programs are women. Therefore, while the number of female partners may not accurately reflect the number of women in the profession today, it is just a matter of time before it does. Since this change in percent- ages started in the 1980s, Anderson thinks it is more a function of timing in getting a person trained for upper management, versus a prejudice against women in the workforce. For Kafoury, Armstrong & Co. this change has been significant over just the last half dozen years. The firm is entering its 65th year and, at most, had only one female partner until re- cently. However, that number has now jumped to 10 female partners throughout the state. O’Carroll noted that the staff mix is still about 50/50 men and women. Making sure these valuable female

146 October 2006 staff members stay with a firm pro- vides different challenges. Typically, women are tasked with the responsi- bility of caring for children, and mak- ing sure the firm understands this dy- namic is very important. Companies such as Deloitte & Touche have pro- grams designed to allow for flex time for working mothers. In addition, fe- male partners supervise a program de- signed to clearly understand the needs of female staff, so necessary accom- modations can be made with the ulti- mate goal in mind of keeping these women in the workforce longer. Con- sidering that women make up such a large percentage of today’s workforce, addressing these challenges is not just a touchy-feely benefit, but rather a ne- cessity to remain competitive.

Competition through Consulting

Several years ago, the accounting profession went through a change in which it added consulting services to basic accounting and tax services in order to remain competitive and pro- vide the opportunity for clients to re- ceive a “one-stop shopping” experi- ence. However, among smaller firms in particular, trying to be all things to all people did not necessarily provide the payoffs that were anticipated. Instead, smaller firms came to real- ize that clients generally come to an accounting firm for core services, and seeking assistance with things such as financial planning, business consult- ing and IT services were simply add- ons. Ultimately, clients did not come to a firm for consulting services and then add on accounting and tax assis- tance. The core services were still key for the firm’s success. With this in mind, many firms that delved into the world of consulting services either backed away from di- rectly offering consulting services, or partnered with professionals to pro- vide everything a client needed. On the other hand, Fair, Anderson & Continued on Page October 2006 147 MGM Senior Vice President Alan Feldman is in charge of developing the $7 billion Project CityCenter, the largest privately funded building project in the U.S. Building Nevada: Changing Nevada’s Skyline

CHANGING NEVADA’S SKYLINE LARGEST COMMERCIAL PROJECTS MAKE ECONOMIC IMPACT

f time travelers familiar with Neva- developments with artificial lakes and been imploded. Scheduled for com- da’s rival resort cities in the 1950s other amenities, shopping malls as pletion in late 2009, the project will I or 1960s could visit Reno and Las large as small communities and a net- include high-rise buildings with a Vegas now, the shock might be over- work of roads and freeways that are contemporary urban design. Planned whelming. Fifty years ago, both cities nearly as difficult to navigate as those are 2,800 luxury condominium units, had populations numbering about in Los Angeles. Las Vegas became the a 4,000-room hotel and casino, two 50,000 people and were heading in No. 1 convention city in the nation 400-room non-gaming boutique ho- different directions. The Reno area and experienced the most growth of tels and more than 470,000 square grew to 300,000 people and evolved any city in the United States in the feet of retail, dining and entertain- into a community with industry that past 50 years. ment facilities. The convention center takes advantage of its low costs to The evolution of Las Vegascontin- will contain half a million square feet manufacture and distribute products ues. Resort projects are becoming of space. in the West. The resort industry capi- bigger and more ambitious. New The MGM project will be the talized on Lake Tahoe and scenic at- lifestyle shopping centers are being largest privately-financed develop- tractions to lure tourists. The business developed and high-rise condomini- ment in the United States, said MGM boom stimulated growth in adjacent ums are giving the city a look rivaling Senior Vice President Alan Feldman. Sparks and made the small town of Manhattan. Two gaming conglomer- It will be connected to the Bellagio Fernley into a bedroom community ates, MGM Mirage and Boyd Gam- and Monte Carlo resorts by a people- for the two cities. ing, are launching projects with new mover system. A visit to Las Vegas in the early concepts for the Strip. MGM executives began exploring 21st century would be even more options for the prime Strip acreage six mind-boggling for our fictional time Project CityCenter years ago and decided a new concept travelers. The Southern Nevada popu- to Change Strip was needed, Feldman said. “We lation has expanded to 1.8 million couldn’t justify building another people with the Las Vegas Strip dom- MGM is developing the $7 billion hotel-casino out of the same mold,” inating the gaming industry with Project CityCenter on 66 acres be- he said. “That decision took us down huge, themed resorts that offer an in- tween the Bellagio and the Monte a completely different road. We de- credible variety of shows and con- Carlo, on the site of the old Board- cided to create an incredible and dy- certs. The boom included residential walk Hotel and Casino, which has namic gathering point for Las Vegas.

October 2006 149 Building Nevada: Changing Nevada’s Skyline

We find ourselves in a unique mo- head the development team at Eche- ment in history in which we are lon Place. “There are two dynamics primed to move from the most dy- shaping the Las Vegas market Ð the namic tourist destination in the world upscaling of the product and the need to becoming one of the most impor- for quality meeting room and conven- tant centers of commerce and leisure tion space,” said Rob Stillwell, vice in the United States.” president of corporate communica- Feldman compared Las Vegas to tions for the project. Chicago of 100 years ago, when it was transformed after the great fire into a foot casino, four hotels with a total of Grand Sierra Coming to Reno dynamic industrial and commercial 5,300 rooms, 25 restaurants and bars, center. Las Vegas benefits from being the 650,000-square-foot Las Vegas Reno has a more modest resort in- a crossroads for people and also “one Expo Center and 1 million square feet dustry, but its skyline is also chang- of the most sophisticated Internet in- of convention space. The Stardust will ing. The Reno Hilton is being con- formation hubs of any place in the be open through the end of this year, verted into the Grand Sierra Resort world,” Feldman said. and then will be demolished to make and Convention Center. The resort sits The first phase of the CityCenter way for the new complex, which is on 148 acres north of the Reno-Tahoe project will include a 4,000-room scheduled to open in 2010. International Airport, about 10 min- hotel and will be designed by Cesar Boyd plans to operate the 3,300- utes from downtown. The land was Pelli, one of the world’s top architects. room Echelon Resort at its new prop- originally the site of the MGM Grand The center’s main resort, CityCenter erty, which includes a tower with Hotel, one of a new generation of re- Hotel and Casino, will have two tow- 2,600 rooms and one with 700 suites. sorts that expanded in Reno during ers (48 stories and 43 stories) and will Echelon will have a theater with stadi- the late 1970s. Grand Sierra Resort include a convention center, 2,000- um seating for 4,000 and another the- Corp. purchased the property last year seat theater and two parking garages. ater with 1,500 seats. with plans to build two high-tech, in- A new Elvis/Cirque de Soleil show is The company has reached an agree- door water parks as the centerpiece of scheduled to debut at the hotel when it ment with Shangri-La Hotels and Re- the new resort. opens in November 2009. sorts, a leading operator of luxury ho- The $1.8 billion conversion also in- Subsequent phases of the project tels in Asia, to manage a 400-room cludes plans for a 5-acre outdoor am- will include two 400-unit condo tow- hotel that will include a 20,000- phitheater and park, 10 new restau- ers, one condo-hotel tower with 300 square-foot spa. rants and bars and a four-story units and another one with 1,500 Morgans Hotel Group and Boyd cabana-style golf driving range. The units. Mandarin Oriental Hotel Group have entered into a joint venture to de- first phase will convert the top 11 sto- will manage a 37-story, 400-room velop two projects within the Echelon ries of the existing 27-story building luxury hotel in the center, which will Resort Ð the Delano and Mondrian Ð into 824 condo units. open in the third phase, along with a that are described as “lifestyle-bou- The second phase will feature an- shopping center featuring high-end tique” hotels. The Delano will have other tower with 1,200 condo units, retailers and another 400-room hotel. 600 rooms and a nightclub and will be and the third phase will include seven Feldman said the project will have its similar to a sister property in South more residential towers along the own power plant and will be environ- Miami Beach, Fla. The Mondrian, Truckee River containing a total of mentally sensitive, with rooftop gar- with 1,000 rooms, will be patterned 2,000 condo units. dens and other features. after the Hollywood hotel of the same From the previous owner, the Grand name with facilities for business trav- Sierra inherited 300,000 square feet of Echelon Resort Planned elers and tourists, Boyd officials said. casino and convention space, nine for Stardust Site The master plan calls for a retail restaurants, a shopping promenade, promenade with 350,000 square feet thrill rides, go-cart and jogging tracks, The Boyd Group is replacing the of space and covered parking for dinner theater and golf facilities. Stardust Resort & Casino, which first 8,000 cars. The Navegante Group, which runs opened its doors in 1958, with the $4 Bob Boughner, a 30-year Boyd vet- the Casino Fandango in Carson City, billion Echelon Place. The 63-acre eran, will leave his position as CEO at will operate the Grand Sierra Casino. site will include a 140,000-square- the Borgata Resort in Atlantic City to Larry Woof, chief executive officer of

150 October 2006 Building Nevada: Changing Nevada’s Skyline

Navegante and former CEO of the to give the feel of an old-fashioned MGM Grand Hotel in Las Vegas, will American main street. “We will have be in charge of casino operations. a collage of architectures from the Plans call for the additions to the past 200 years,” said Centra founding property to be completed in six years, partner, Jim Stuart. “We want to cre- said Tom Schrade, president of the in- ate an emotional experience for peo- vestment group. Schrade said Reno ple who visit,” Stuart said. “I would has become an outstanding destina- be very disappointed if we built just tion for people who want outdoor ad- another shopping center.” venture, such as skiing, camping, dos, MGM plans to build 1,344 units A 20-screen RAVE Motion Pic- hunting, fishing and other activities. in a 520-foot tower called The Place tures complex will be included, along The water park will give visitors an- at Mandalay at the corner of the Strip with a children’s play area with at- other alternative with no “weather at Mandalay Bay Road. The company tractions inspired by entertainment risk.” He said the developers got the also expects to increase the number of companies such as Disney and Uni- idea from the network of Dells Re- condos behind the MGM Grand from versal Studios. The center will have sorts water parks in Wisconsin. “I like the 1,700 already built or under con- venues for concerts, art festivals and to think of Reno as the healthy alter- struction to more than 2,800 units. No other special events. native to Las Vegas,” he said. “It has a condos are planned at Echelon Place, The wide variety of retailers in- great climate with outdoor activities but Boyd has set aside 33 acres for clude Robb & Stucky, Abercrombie & and is a wonderful place to be.” possible condo development. Fitch, Victoria’s Secret, Eddie Bauer, White House/Black Market and Bor- More Condominiums Planned Partners Developing ders. The project will have a 24-Hour in Nevada Town Square Fitness Center and several restaurants new to Las Vegas, such as Tommy Ba- Grand Sierra and other casino devel- In addition to huge new malls and hama’s, Tropical Café, Yardhouse and opers say Reno is going to become a continued expansion of upscale shop- Texas de Brazil. strong market for high-rise condos for ping at Las Vegas resorts, the city is In addition to retail and dining, tourists, young professionals, empty seeing development of regional Town Square will also feature nesters and executives attracted by lifestyle centers with a variety of en- 400,000 feet of office space. A small new industry. Small Reno properties tertainment and retail shops. boutique hotel was originally such as the Comstock Hotel and the The $750 million Town Square re- planned, but was scrapped in favor of Sundown Casino have already been gional lifestyle center under develop- more office space because of a sur- converted into condo projects. The ment on Las Vegas Boulevard south prisingly heavy demand from both Sundown is now Belevedere Towers of Mandalay Bay is one of the largest large companies and smaller tenants, and the Comstock has changed into projects. The 117-acre center is under Stuart said. the Residences at River Walk, with construction at the intersection of In- The developers anticipate that the views of the Truckee River. terstate 15 and the I-215 Beltway, volume of traffic at the project site will One of the most ambitious projects next to Fry’s Electronics. increase 10-fold and they are building currently planned for Reno is the Pal- The developers of the project, Turn- a $3 million flyover ramp that will take ladio Luxury Condominiums, a 12- berry Associates and Centra Proper- motorists traveling north on Las Vegas story tower being built by BCN De- ties, purchased Fry’s last year and Boulevard directly into the center. velopment at First and Sierra streets made it an anchor tenant. Turnberry is There will also be an entrance from in downtown Reno. The 92 units in a national company that has devel- Las Vegas Boulevard with access to the the complex, which features a fifth- oped more than $7 billion in commer- center from both directions. floor pool, are scheduled to be com- cial and residential property; Centra is pleted sometime in 2007. a Las Vegas company that has devel- Furniture Showroom Marks The Las Vegas market has suffered oped $3 billion in projects to date. Diversification a downturn in single-family home Town Square, which will have more sales, but its high-rise condo market is than 150 retail shops and 12 restau- World Market Center, the first per- still hot, casino executives say. In ad- rants, is scheduled to open in the fall manent trade show facility in Las dition to its Project CityCenter con- of 2007. The center will be designed Vegas, could be the forerunner of an-

October 2006 151 Building Nevada: Changing Nevada’s Skyline

other non-gaming trend. The first project will depend on market condi- ing- or entertainment-related. Other phase of the facility, which hosts two tions. Estimates of when the project cities like Atlanta and Chicago have major furniture shows a year, was will be completed vary from 2012 to merchandise marts, but this is the first completed in the summer of 2005. 2015. The $3 billion project is being merchandise mart for Las Vegas.” General Manager Dave Palmer said developed by World Market LLC and The new complex is next to a 61- most locals probably will have no idea The Related Companies. Market acre parcel that the city of Las Vegas of the magnitude of the project until it founders and Los Angeles business- wants to make a showcase for the is finished in the next few years. men Jack Kashani and Shawn Samp- community’s redevelopment. Palmer The furniture showcase, which sits son have worked for six years to cre- said his project should have a synergy on a 57-acre parcel southeast of the I- ate a complex that will surpass the with whatever Las Vegas develops on 15-U.S. Highway 95 interchange just industry’s historic showplaces in San its acreage. Plans are being consid- west of downtown, has one 10-story, Francisco and High Point, N.C. The ered for retail, commercial and cultur- l.3-million-square-foot tower already market recently hosted its third show al facilities. open and another tower almost com- with 42,000 attendees coming from The World Market stimulates strong pleted. Long-range plans call for eight all over the United States and 100 economic activity in the weeks lead- buildings, connected by sky bridges, other countries. ing up to each show as people are with a total of 12 million square feet. The developers say that the project hired locally to deal with 600 trailer- To put this in perspective, the Las will have a major impact on down- loads of merchandise and handle reg- Vegas metro area currently has 9.5 town revitalization and will pump istration, security, food service and million square feet of convention $200 million in non-gaming revenue many other activities vital to the show, space. The second tower, a 16-story into the economy and create 35,000 Palmer said, adding, “This will change building with 1.6 million square feet jobs, both directly and indirectly. the face of downtown Las Vegas.” of exhibit space (300 showrooms) “This (the World Market) is totally will open in January. different than anything else in Las Tom Dye is a freelance writer based Palmer said the timetable for the Vegas.” Palmer said. “This is not gam- in Las Vegas.

152 October 2006 B UILDING NEVADA BRIEFS

Commercial Condos Underway ed construction of two bridges, in- Venture Corporation, California’s cluding one of the largest round- largest developer of privately-owned abouts in the western United States. commercial buildings for small compa- Improvements to the sites were de- nies, recently began construction of signed to help relieve commuter traf- Venture Commerce Center in Las fic congestion from Fallon to Reno Cutline: Huffman Professional Plaza at Ft. Apache Vegas. The four commercial buildings, and thru Fernley. Construction of located on Eastern Avenue in the two bridges, located along U.S. 50A Parkview Center Business Park, will near the Fernley/Fallon Interchange sion line between Fish Springs Ranch have 38 privately-owned business and along U.S. 95A at the Truckee and the north valleys of Washoe Coun- properties ranging in size from 1,313 Canal Bridge, began in May 2005. ty. Subsequent phases of the project in- square feet to 3,600 square feet. The clude the equipping of six wells on the properties fronting Eastern Avenue are New Office Park Opens ranch, as well as construction of a one- and two-story office buildings. in Las Vegas pumping station, storage tanks and an The other two buildings feature two- Huffman Builders West recently electrical substation, currently being story offices in the front and flex space opened the doors to its newest Las constructed by Sierra Pacific Power Co. in the rear. The buildings should be Vegas office park, Huffman Profes- Total construction is estimated at rough- ready for occupancy at the end of 2006. sional Plaza at Fort Apache. Located ly $70 million. The imported water is on the southwest corner of Fort earmarked for municipal use and will DP Partners Building Apache and Russell, the park is locat- eventually serve new homes in the north Largest Spec Project ed in the southwest medical district valleys of Washoe County. Reno-based DP Partners is proceeding near Southern Hills Hospital, St. Rose with construction on the fourth build- Hospital-St. Martín campus, Spring ing within its 102-acre master-planned Valley Hospital and the Nevada Can- business park, LogistiCenter at North cer Institute. The professional center Las Vegas. The 513,240-square-foot is 100 percent occupied, with each big-box distribution facility will be the tenant owning the office space rather largest spec building in the Las Vegas than leasing it. With an estimated cost market, according to Brad Myers, Las of approximately $30 million dollars, Vegas regional manager for DP Part- the Huffman Professional Plaza cov- ners. The building, situated on a 25- ers more than 122,000 square feet, acre site, features a 32-foot clear-height housing 30-plus customized office ceiling, eight drive-in doors and 100 spaces in 13 single-story buildings dock-high doors. The facility is sched- and one two-story building. uled for completion in the first quarter of 2007. When built out, the Logisti- Fish Springs Ranch Project Center will contain up to six distribu- Scheduled tion buildings totaling nearly 2 million Fish Springs Ranch, LLC has awarded square feet. Reno-based Contri Construction Com- pany a $34.6 million contract to build a Granite Construction Completes water importation pipeline, beginning NDOT Projects construction in November. Vidler Water Granite Construction Company re- Company is the managing partner of cently announced it has completed Fish Springs Ranch, LLC. two projects totaling $16.7 million The first step of construction includes with the Nevada Department of laying 28 miles of 30-inch steel pipe, Transportation. The projects includ- which will serve as the main transmis-

October 2006 153 AT THE TOP

LaPour Partners Commercial Real Estate Report RETAIL– 2nd Quarter 2006 Finding a Niche in Commercial Development Total Market Las Vegas Reno

aPour Partners owns and man- involvement of its principals in every aspect of Total Square Feet 43,342,692 13,159,210 ages a portfolio of more than 1 the development process Ð from analysis, ne- Vacant Square Feet 1,183,340 876,431 L million square feet in eight of- gotiation, planning and financing, to leasing Percent Vacant 2.70% 7.87% fice and flex properties in and tenant relations Ð enable the company to New Construction 512,227 n/a Nevada, California and Arizona, and boasts a maximize value and minimize risks. Net Absorption 399,253 166,249 successful track record of approximately 60 In addition to The Holsum Lofts, LaPour Average Lease sf/mo (nnn) $1.97 $1.78 deals last year. Partners’ Las Vegas projects include: Diablo Under Construction 3,747,005 n/a Branding itself “a boutique firm with an Commerce Center, a 143,711-square-foot Planned 9,354,974 n/a entrepreneurial culture,” this small nine-per- mid-bay distribution development; WesTech CLASS A son real estate development company has Business Center Phase III, consisting of 10 in- Total Square Feet 12,196,686 na carved a niche for itself in Southern Nevada, dustrial buildings offered for sale and ranging Vacant Square Feet 223,378 na and is responsible for such high-profile de- in size from 4,480 square feet to 10,448 square Percent Vacant 1.80% na velopments as The Holsum Lofts, located in feet; Decatur Crossing Phase II, which con- New Construction 0 na the historic Holsum Bakery building in sists of three buildings totaling 140,594 square Net Absorption -8,703 na downtown Las Vegas. feet; and Perimeter Center, with eight free- Average Lease sf/mo (nnn) $2.10 na One of the area’s redevelopment pioneers, standing, fee-simple office buildings for sale. Under Construction 1,812,010 na LaPour Partners was one of the first to rec- Like many other developers and investors, Planned 4,258,873 ognize the promise of downtown Las Vegas LaPour is also branching out into Phoenix, na CLASS B as a thriving urban environment. Today, the where his most recent acquisition is 35 acres rehabbed 1954 Holsum Lofts counts among for a $35 million, 400,000-square-foot master- Total Square Feet 12,458,005 na its tenants progressive to classic establish- planned business park. “Phoenix expansion is Vacant Square Feet 254,860 na ments, including artistic boutiques, fine gal- a natural for us,” said LaPour. “We know the Percent Vacant 2.0% na leries, designer showrooms and a popular market well and it’s convenient to Las Vegas.” New Construction 0 na restaurant. LaPour said land prices in Las Vegas are a big Net Absorption -14,767 na “Downtown Las Vegas has never had a factor causing developers and investors like Average Lease sf/mo (nnn) $1.77 na brighter future than it does now,” said Jeffrey himself to look to other markets. Under Construction 693,322 na LaPour, president of LaPour Partners. “There While LaPour and his company focus their Planned 2,450,546 na are some great projects downtown, like the hands-on business model in other Southwest CLASS C Molasky Corporate Center. However, the markets, he remains positive about Nevada Total Square Feet 18,688,001 na fast-changing landscape is a curse and a even in the face of rising land prices and con- Vacant Square Feet 705,102 na blessing at the same time. The market has struction costs. “I am optimistic about the Las Percent Vacant 3.80% na changed so quickly that many believe the best Vegas market, specifically in regard to de- New Construction 512,227 na product for the area is high-rises. In order for mand,” he said. “However, I’m pessimistic Net Absorption 422,723 na downtown Las Vegas to be successful, there about the cost of land and the cost of con- Average Lease sf/mo (nnn) $2.00 na has to be some product differentiation.” struction, which I would rank as the market’s Under Construction 1,241,673 na As a regional real estate development, in- No. 1 problem.” Planned 2,645,555 na vestment and management firm, LaPour Nevertheless, like a true entrepreneur, Partners develops light industrial and flex LaPour followed up his remarks with a touch Next Month: INDUSTRIAL space commercial properties, invests in va- of confidence, adding, “Any time you’re bring- ABBREVIATION KEY cant land, and provides unique real estate in- ing added value to the table, there’s a niche.” MGFS: Modified Gross Full-Service vestment opportunities. “We can move This seems true for a company that currently SF/MO: Square Foot Per Month quickly to analyze and close each property has more than $60 million in the pipeline. NNN: Net Net Net investment because there’s no bureaucracy,” Southern Nevada statistics compiled by said LaPour. According to LaPour, the firm’s Liz Gamble is a freelance writer based in Applied Analysis. real-time flow of information, plus the direct Southern Nevada. Northern Nevada statistics compiled by Alliance Commercial Real Estate Brokerage.

154 October 2006 NEVADA BRIEFS

Historic Post Office cations center features state-of-the- Being Restored art equipment, including fiber-optic The City of Las Vegas recently re- cabling, closed-circuit television ceived a grant from the U.S. Depart- cameras and a new telephone and Post Office ment of Housing and Urban Devel- paging system. The project was opment totaling nearly $800,000 to funded through a grant from the help with its $32 million project of Federal Aviation Administration, renovating the former post office which provided 93.75 percent of the and courthouse building in down- cost, with 6.25 percent matching Lander, Nye and While Pine coun- town Las Vegas. The 73-year-old funds coming from the Reno-Tahoe ties, is larger than more than 20 building will be transformed into a Airport Authority. states in the U.S. One way the col- cultural center and museum. The lege successfully meets the challenge city council has approved a $7.5 mil- Nevada Child Welfare of serving such a large territory is lion contract with architectural firm Data Published through distance education technolo- Westlake Reed Leskosky, which in- The Center for Business and Econom- gy, using interactive video, Internet cludes the interior and exterior core ic Research at the University of Neva- classes and other high-tech methods and shell of the building, museum da, Las Vegas recently released the to communicate with students seek- planning, and exhibition develop- 2006 edition of the Nevada KIDS ing associate’s or bachelor’s degrees. ment and design. The adaptive use COUNT Data Book, which contains Great Basin College is a community of the building is widely viewed as a county, regional and state data on the college unit of the Nevada System of centerpiece of the city’s downtown well-being of Nevada children. The Higher Education. revitalization efforts. It will feature publication includes data on health approximately 13,000 square feet of conditions, economic well-being, ed- Employers Insurance exhibition space and will accommo- ucation, safety and juvenile justice. to Go Public date cultural, civic and educational This year’s book revealed that three EIG Mutual Holding Company, the programming and receptions, spe- indicators of child well-being im- parent holding company of Employ- cial events and conferences. It is proved from last year (child death ers Insurance Company of Nevada scheduled to open in early 2008. rate, high school dropout rate and ju- (EICN), recently announced plans to venile violent crime arrest rate). convert from a mutual insurance Reno Airport Gets Three other indicators showed wors- holding company to a publicly traded Security Upgrades ening conditions (percentage of low- stock company. In 1999, the State In- Officials at Reno-Tahoe Internation- birthweight babies, infant mortality dustrial Insurance System was dis- al Airport recently unveiled more rate and percentage of children in solved and EICN was established as a than $4.5 million worth of enhance- poverty). A digital copy of the publi- mutual insurance company owned by ments to the airport’s security sys- cation may be downloaded from: its Nevada policyholders. If the plan tem. A new Emergency Operations http://kidscount.unlv.edu. receives the necessary regulatory ap- Center (EOC) enables emergency provals, EICN’s current surplus of workers to manage security from a Great Basin College Expands approximately $554 million will be remote site near the airport. Internet- Great Basin College, based in Elko, distributed to its 6,500 eligible mem- based software integrates with the has expanded its service territory to bers, and the parent company will Washoe County Regional EOC and include Nye County, Nevada’s conduct an initial public offering of the emergency management system largest county. The college’s 62,000- common stock. The company antici- at the federal Transportation Securi- square-mile service area, which now pates the conversion will be complet- ty Administration. A new communi- includes Elko, Eureka, Humboldt, ed in the first quarter of 2007.

October 2006 155 Feature: Homes Mean Nevada

Continued from Page

What’s your opinion of the housing market in Nevada? nomics. Traditionally in the 21 years homebuyers, trades rely on construc- I’ve been in business in Reno, you’re tion-related jobs. The last three or DelGiorno: What was happening in looking at a 4 percent to 6 percent ap- four years have been almost ridicu- the market wasn’t sustainable. The preciation per year. We’ve had more lously busy, and it’s nice to see things law of averages is that everything has than 50 percent for a three-year peri- get back to what was normal before to come back to the middle and the od, so there has to be some adjust- the big push. You asked about a slow- historical rate of appreciation is 5 per- ment. Right now, buyers are the ones down, but that’s really part of the cent to 6 percent a year. It will work forcing that adjustment and sellers are cycle of building. its way back. Investors who came into resisting. Sellers need to do a reality the market were looking at homes as check and say, “When I purchased Jennifer Rachel Baumer is a freelance short-term investments, when in real- that property, what were my expecta- writer based in Reno. ity a home is, first of all, a place to tions?” The market over the last few live that will appreciate over time, but years has far exceeded anyone’s ex- not over a year or two. It’s a place to pectations. live and raise a family. Delaurentis: It’s a little nerve-wrack- Haley: We’ve had incredible apprecia- ing watching home sales go down, be- tion [in home prices] these last three cause there are so many satellite busi- years and have to understand that’s nesses that depend on construction. not normal. Twenty percent apprecia- People sell lunches to construction tion is not a normal function of eco- workers, furniture outlets sell to new

156 October 2006 SPEAKING FOR NEVADA

Changing Dynamics of the Workforce A Challenge for Employers and for DETR Question: What is the Department of Employment, Training, and Rehabilitation doing to help ease the shrinking qualified workforce?

he Department of Em- market. There are many reasons peo- It takes a collective effort to solve ployment, Training, and ple are not working. Sometimes they this emerging problem of the de- T Rehabilitation (DETR) cannot afford equipment or clothing creasing qualified workforce. That’s regularly releases eco- required for a specific job. Often, why DETR proactively partners with nomic reports confirming that Neva- these are hard-working individuals employers. The Equal Rights Com- da’s job market is among the best in who have fallen on hard times. mission,for example, does not just the nation. Our remarkable economy Therefore, we have the Client En- investigate claims of discrimination, equates to great opportunities for hancement Program, which pays for but it also provides employer services Nevada’s working citizens, but can items such as sheriff’s cards, tools to help make the workplace the kind be a great source of angst for the em- and uniforms. of environment where a skilled work- ployer community. Most are aware Through JobConnect, ESD devel- er would want to stay. Staff is avail- there is a shortage of skilled workers ops partnerships with employers to able to provide informational training for businesses seeking to keep up identify appropriate workers. Other to employers about workplace dis- with the state’s massive growth. less common avenues to explore in crimination and fairness. Because of this shortage, DETR re- hiring skilled workers are youth, dis- There are many different compo- mains one of the state’s most valu- placed homemakers and disabled per- nents to this issue, which will contin- able resources. Our role is very tangi- sons. These populations are very ue to escalate as the workforce ages ble. DETR strives to maintain eager to work. Because of the de- and baby boomers retire. There must Nevada’s economic health by getting mand for labor, employers must be be a shift in thinking. Times are gone people employed and keeping them prepared to tap potential resources when a person has only one job until employed. However, just as impor- not previously considered. retirement. Companies now offer at- tant is its success in serving the em- The Rehabilitation Division has a tractive incentives and excellent ployer population by helping main- variety of services for disabled per- training programs leading employees tain a robust pool of skilled workers. sons who may need some assistance to make regular job changes. DETR encompasses four divisions: getting into the job market. This di- DETR focuses on assessment of Employment Security Division vision offers services that help the workers as well. We find they are (ESD), Rehabilitation Division, the disabled function independently. looking for growth opportunities, Equal Rights Commission and the In- The division encourages employers good benefits, good pay and healthy formation Development and Process- to tap into this population of enthu- work environments. It’s imperative ing Division (IDP). Additionally, siastic citizens. Often an employer that companies treat their current em- DETR is a major partner in the Job- is not aware that by supplying sim- ployees like the valuable commodi- Connect System, staffing JobConnect ple assistive equipment, a disabled ties they are and begin offering more offices throughout the state. These di- person can become a valuable mem- incentives and the best possible ben- visions work with JobConnect to de- ber of the employer’s team. Addi- efits. Essentially, we must recognize liver services that strengthen Neva- tionally, the rehabilitation division the worker as an individual with da’s employment environment. works with the school district to goals and needs, and businesses as The Employment Security Divi- help disabled students transition places where those goals and needs sion works with JobConnect to pro- into the workforce. Again, this be- can be met. vide training and job placement for comes another group of skilled those entering or reentering the job workers for Nevada. Terry Johnson, Director of DETR

October 2006 157 INSIDE POLITICS

November Ballot Questions Time to Review Our Options

or a while this summer, it voice your approval or disapproval question has been left intact. appeared as though Neva- this year because of the way the sig- Opponents filed another suit with F da’s 2006 ballot may natures were collected on the initia- the court, stating that because the closely resemble its neigh- tive. The signature gatherers circulat- court had so changed the question, it bor to the west, California. Our state’s ed two slightly different petitions should not be allowed on the ballot lenient initiative and referendum laws when collecting sponsors throughout because it no longer reflected what brought a host of national interests to the state, and the Nevada Supreme Nevada voters had signed on to sup- the Silver State with the intent of Court ruled that the signatures from port. It’s an interesting legal argument passing a variety of proposals. both petitions could not be counted as that could also strip this measure from Many of these interests were well- supporting just one version of the ini- your November ballot. funded and able to hire teams to tiative. That meant the petition fell A couple of proposals that you will gather signatures on petitions, which short of the needed support to be put definitely see in November are the is how these questions qualify for on the ballot this fall. anti-smoking initiative and the “pro” ballot status. Unfortunately for the Another initiative that was ruled on smoking ballot question. It may be petition sponsors, however, it was by the Supreme Court is PISTOL, or extremely confusing to voters, but this very process that led to their ul- the eminent domain initiative. It seeks one would completely eliminate timate downfall. to severely limit a government’s smoking in any establishment that Once such example was TASC, or rights to impose eminent domain to serves food. The other would not go the Tax and Spending Control initia- take private land for public use. As of that far, but would put additional tive. This proposed change to the press time, the outcome of this ballot smoking bans into Nevada law that Nevada Constitution, championed by question was still up in the air. The aren’t quite so intrusive and disrup- State Senator Bob Beers and others, Supreme Court stripped many of the tive to our tourist economy. would have required votes of the peo- initiative’s provisions because they The initiative to allow up to an ple before state and local governments did not agree with the state’s constitu- ounce of marijuana for personal use is could increase tax rates or spend tax- tion, but the fundamental part of the also on the ballot again. This question payer money on certain projects. would allow government stores to sell It was strongly opposed by a variety up to one ounce of marijuana to adults of private and public organizations for personal use, but would create under the premise that it would com- stiffer penalties for those who sell the pletely cripple economic development drug to minors. in the state. They pointed to the one The Nevada Legislature has for the state that had passed such a measure, past few years gotten a bit tougher on Colorado, as an example that the pro- requirements for the initiative and ref- posal just doesn’t work. Proponents erendum process. However, the Silver said TASC would force governments State still remains one of the easier to do what businesses and private citi- states for interest groups to get their zens have done since the beginning of questions on a statewide ballot. organized societies Ð work with what they have in their budget. Mike Sullivan is president of Knight Regardless of how you feel about Consulting, a Southern Nevada gov- TASC, you won’t get a chance to ernment affairs firm.

158 October 2006 POWER OF ATTORNEY

The Charging Order for LLCs and LPs The Exclusive Remedy of Creditors

usiness owners, execu- butions applicable to the charged in- the 2003 Nevada legislative session. tives and others often es- terest are paid to the creditor. After passage of this bill, Nevada be- B tablish one or more limit- The creditor does not take the con- came one of the very few jurisdictions ed liability companies trol away from the owner of the with laws making its LLCs and LPs (LLCs) or limited partnerships (LPs) charged interest and therefore cannot subject only to the charging order. to protect their assets from creditors. force a distribution. This puts the This substantial modification to These entities frequently hold busi- debtor in control and generally forces the Nevada creditor protection laws, ness interests, but other times they the creditor to settle the dispute with when coupled with Nevada not hav- hold non-business assets such as real terms favorable to the debtor since the ing any state income tax or franchise estate or marketable securities. creditor will have a difficult time exe- tax, significantly increased the num- For liability purposes, an LLC is cuting on a judgment. ber of LLCs and LPs filed in Nevada superior to a corporation in nearly Prior to 2001, Nevada law was like by residents of Nevada and other every instance. If the assets within the most states’ laws in that it did not states. Nevada is now one of the entity are the cause of a lawsuit, the make the charging order the exclusive most popular jurisdictions in which owners of the entity are protected per- remedy of a judgment creditor of a people all over the country establish sonally in the case of both a corpora- member of an LLC or a partner of an their entities. tion and an LLC. However, if an indi- LP. Until such time, the charging vidual who owns part of an entity has order was one of many potential Steven J. Oshins is an estate planning a judgment creditor against him, then remedies available to the creditor. If and creditor protection attorney at there are significant differences. the applicable state statute does not Oshins & Associates, LLC in Las If the individual has a judgment make the charging order the exclusive Vegas. creditor, then that creditor can take remedy, the judge may award addi- the person’s stock in a corporation. tional remedies, including the possi- However, that same judgment creditor bility of selling the assets in the enti- may not be able to take the person’s ty to pay off the creditor. membership interest (i.e., ownership In the 2001 Nevada legislative ses- interest) in an LLC. This significant sion, the author herein co-wrote the creditor protection advantage ex- portion of Senate Bill 51 that was in- plains why fewer corporations and tended to fix the charging order holes more LLCs are formed nowadays. in the Nevada statutes for LLCs and The reason that the LLC member- LPs. However, this initial fix was per- ship interest may be protected is that ceived by many to be the second best the LLC’s applicable state law may way Ð not the best way Ð of drafting provide that a charging order is the the charging order statute because it exclusive remedy of a judgment cred- allowed for a foreclosure of the LLC itor against a member’s interest. A or LP interests. “charging order” is a type of lien on Because of the potential imperfec- the interest that does not allow the tion of the 2001 version of the Neva- debtor to receive any distributions da charging order statutes, the author from the LLC. If any distributions are herein co-wrote an additional change made from the LLC, then those distri- to the statutes in Assembly Bill 536 in

October 2006 159 P EOPLE FIRST

Employment Eligibility Verification A New Effort to Control Immigration

The issue of illegal immi- with respect to the hiring and reten- The benefits of the program are gration appears to be on tion of unauthorized workers; obvious: compliance, decreased T everyone’s mind these ¥ Establish protocols for addressing identity theft and uniformity. How- days. Employers are now Social Security Administration mis- ever, questions must be asked regard- being courted by an unlikely source match letters and ensuring that sub- ing the agency’s ability to manage Ð the Immigration and Customs En- contractors adhere to the same “best what could become a huge and cost- forcement (ICE). ICE is touting a practice” guidelines; ly program. Has funding been ear- program newly announced by the ¥ Create and maintain safeguards marked to ensure system upgrades? Department of Homeland Security against discrimination; Will this program become mandato- (DHS) called ICE IMAGE, or ICE ¥ Submit an annual report to ICE that ry? What happens to those same Mutual Agreement between Govern- describes the results and effects of “certified” employers if an error does ment and Employers. their participation in IMAGE. occur? Will the employer or employ- Under IMAGE, ICE hopes to part- ICE will provide training and edu- ee be held accountable? Who will ner with companies representing a cation to its IMAGE partners on bear the cost? How often will the broad cross-section of industries so proper hiring procedures, fraudulent training and “ongoing communica- these firms may serve as charter document detection and anti-dis- tion” occur? Who’s creating the members of IMAGE and as liaisons crimination laws. ICE will also share “best practices”? Have they enlisted to the larger business community. As data with employers on the latest il- the Society for Human Resource part of the program, employers must: legal schemes used to circumvent Management (SHRM) or the Ameri- submit to an Employment Eligibility legal hiring processes. Furthermore, can Society for Training & Develop- Verification (Form I-9) audit con- ICE will review the hiring and em- ment (ASTD) in the process (two of ducted by ICE and use the Employ- ployment practices of IMAGE part- America’s leading human resource ment Verification Program to verify ners and work collaboratively with and training organizations)? the employment eligibility of all new them to correct isolated, minor com- I would suggest that before you hires. However, employers will also pliance issues that are detected. consider affiliating with ICE and be required to: Those companies that comply with their IMAGE Program, consult with ¥ Establish an internal training pro- the terms of IMAGE will become counsel; seek input from your indus- gram (providing instruction in I-9 “IMAGE certified,” a distinction that try liaison groups, as well as from compliance, use of the Employment ICE believes will become an indus- SHRM and ASTD. Understand your Verification Program and detection try standard. options and your rights. Many com- of fraudulent identity and work au- Although the program appears to panies have already been using the thorization documents); be well thought out, providing train- Employment Verification Program; ¥ Create an in-house review of I-9 ing, ongoing support, best practices, however, IMAGE would require and Employment Verification Pro- etc., for some, it does appear that much more. gram compliance and use an outside ICE has found another way to levy For those companies interested in auditor to conduct annual I-9 audits; business relationships to lighten its learning more about ICE’s IMAGE ¥ Establish a self-reporting system own burdens as the news continues Certification Program, a full list of for violations and create a tip line for to report that the organization is best practices and program materials employees to report illegal activity overburdened. can be found at www.ice.gov.

M. Annelle Lerner is a human re- October 2006 160 sources consultant based in Las Vegas. Feature: Nevada’s Accounting Firms

Continued from Page Langerman, although not a large firm, strong leaders within the profession to has experienced success with offering meet these challenges head-on, re- a myriad of services in addition to main creative in finding solutions, and core accounting, audit and tax work. ultimately develop proactive pro- It even spun off a separate IT consult- grams to turn challenges into success. ing firm. For Deloitte & Touche, consulting Stephanie Herrera is a freelance services is a very successful and prof- writer based in Northern Nevada. itable offering to clients. However, the firm operates on a national level and is able to support separate depart- ments dedicated to services such as IT consulting and financial planning. Comer explained that Nevada is still small enough not to need dedicated consulting offices. However, the firm is able to pull from resources in other offices when needed. The accounting profession is ever- changing and often a direct reflection of corporate America today. One as- pect that does not seem to change is the foresight needed in order for

October 2006 161 BANKING ON IT

Banking at Wal-Mart? Industrial Loan Companies in the Spotlight

n industrial loan company cluding ILCs. He said the two kinds other banks,” said Ray Specht, presi- (ILC) is a financial institu- of institutions have been able to co- dent of Toyota Financial Savings A tion that lends money, and exist peacefully since ILCs entered Bank. Specht has been in the banking may be owned by non-fi- the state nearly 10 years ago. Nevada industry for over 30 years Ð 14 years nancial institutions. Though the bank ILCs, such as Eaglemark Savings on the ILC side. “Our bank isn’t going itself comes under state and Federal Bank and Toyota Financial Savings head-to-head with community banks. Deposit Insurance Corp (FDIC) regu- Bank, aim to convince the public that What we’re doing is offering bank lation, a debate exists whether to allow they can continue this coexistence. products that will increase our buyers’ companies, such as Wal-Mart, to own Over the last several years, they have interest in purchasing more of our such a bank, because the parent com- been actively testifying in support of products and services,” he said. pany would remain unregulated. ILCs ILC charter approvals during Neva- The company, owned by Toyota Fi- are currently chartered by seven states, da’s legislative sessions. nancial Services Americas Corpora- including Nevada. “Thrifts/ILCs offer a versatile tion, opened its doors in 2004 after FDIC directors recently imposed a charter for companies to set up fi- being approved by the FDIC and state six-month moratorium on approving nancial institutions, which Ð regard- of Nevada. Since its inception, the applications for ILCs. The moratorium less of their ownership Ð exist to company has generated well over is intended to give federal bank regula- serve an identified consumer need,” 10,000 rewards-based credit card ac- tors time to review and determine if the said Donal Hummer, vice president counts for Lexus customers, which growing number of ILC institutions of community and government af- are used to promote future product pose any emerging safety or financial fairs for Eaglemark Savings Bank. purchases by loyal card users. policy risks. According to Nevada Eaglemark, headquartered in Car- According to Specht, the ILC in- banking experts, the charter application son City, is the city’s largest private dustry is currently one of the of the world’s largest retailer, Wal-Mart employer. “In almost all instances, strongest areas in banking and will Stores, to establish an ILC in Utah is servicing those needs is not in con- continue to grow. “Coming from both probably what incited the moratorium. flict with community banks, and in schools of banking, I have a balanced “Approving the growing number of fact is complementary,” he added. perspective on ILC chartering issues,” ILC charters is certainly an issue. And, The seven-year-old ILC, which oper- Specht said. “Considering fact that like any issue, there are pro and con ates as a subsidiary company to Harley- ILCs are just as regulated by the sides to it,” said Bill Uffelman, president Davidson Financial Services (HDFS), FDIC and the state as other Nevada of the Nevada Bankers Association. provides its customers with secured chartered banks, all I can see is po- “For the most part, ILCs seem to be motorcycle loans. Last year, the Eco- tential to create a more competitive working. But, it’s important to consider nomic Development Authority of West- marketplace, which benefits con- all implications a thrift bank can have on ern Nevada estimated the ILC had a $65 sumers, and potential for the state of a community. In the case of Wal-Mart, million net positive impact on the Nevada to grow this industry and pro- regulators need to consider how it may state’s economy. According to Hum- vide more jobs, income and diversity impact community banks.” mer, HDFS made 99.95 percent of its in business throughout the state.” Uffelman heads the Nevada trade revenue from loans outside Nevada. association, which includes most of “ILCs are state-chartered, insured Amber Schutz is a freelance writer the state’s financial institutions, in- banks that are just as regulated as based in Southern Nevada.

162 October 2006 The Ace of Diamonds Reveals Jewelers’ Secret

liff Miller is not only passionate how well a diamond will sparkle and shine. Ten Facts You Need to Know about diamonds, but he is also will- Diamonds with the same color and clarity Before Buying a Diamond Cing to share his passion and his grades can vary in value by as much as 50 • Never compromise on the cut. Cut deter- knowledge with anyone who’ll take the percent or more, depending on the all- mines the brilliance of the diamond. time to listen. For 32 years, he has studied important cut. • Consider only certified diamonds by in- the art and science of diamonds, traveling A diamond with poor proportions – cut too dependent labs like AGS, GIA or EGI. the world many times over and purchasing deep or too shallow – will “leak” light out of • Fluorescence can be good and bad. more than $50 million in diamonds. the bottom of the stone instead of reflecting Know the difference. As president and CEO of M.J. Christensen it upward, explained Miller. Perfectly cut • Beware of treated diamonds (clarity and Diamond Centers, which was founded in stones allow the maximum amount of light color enhancement). 1939, Miller is acutely aware of the com- to be reflected out of the top of the diamond • Buy only loose diamonds. None of the 4 pany’s history and heritage in serving and for maximum brilliance and sparkle. C’s can be determined in a setting. educating the public about diamonds and M.J. Christensen features the world’s • Deal with an established, reputable com- other fine jewelry. most perfectly cut diamond, distributed by pany, one that is a member of the American “Not only can we deliver the right diamond Hearts on Fire. Gem Society (AGS). at the right price, but we also educate our Ask the Experts • Avoid “sales” or other promotions. Usual- guests so they are assured and confident of It is advisable to consult a certified gemol- ly, the only thing discounted is the quality. the value they are receiving,” said Miller. ogist before purchasing a diamond and to • Know the store’s return policy. “Quality does not cost more. We allow deal only with retailers who are members of • Know the upgrade policy. No other jewel- guests to make buying decisions in a re- the American Gem Society (AGS). Less than er offers 100% diamond trade-in with no laxed, no-pressure environment. They can 5 percent of the jewelers in America meet additional investment required. M.J. Chris- choose from a large inventory of our in- the high standards of this organization and tensen does. stock unmounted diamonds or from tens of are privileged to become members. “This • Make sure everything is written down so thousands of available diamonds from decision will ensure you are talking with a you know exactly what you are buying. worldwide sources with overnight delivery.” knowledgeable staff who will help you make The Secret Revealed the best decision when it comes to your di- Miller, known as “The Ace of Diamonds” amond purchase,” noted Miller. for his expertise, continued, “At M.J. Chris- Diamond buyers should also ask for a M.J. Christensen Diamond Centers tensen, we emphasize and illustrate for our certificate from an independent, unbiased Four locations in the guests a key element that we know can af- laboratory. Without a certificate, there are Las Vegas Valley fect diamond value up to 50 percent – the no guarantees that the diamond purchased Boca Park secret is in the cut.” is the color, clarity, cut and carat weight Galleria Mall Most people realize that the three quality stated on the store’s appraisal. At M.J. 856 E. Sahara Ave. factors of cut, color and clarity can dramat- Christensen, all diamonds from a half-carat Meadows Mall ically affect the beauty and value of a dia- or larger are girdle-inscribed and come mond, but they often don’t realize that cut with a certificate from one of the leading www.mjchristensen.com – more than anything else – determines laboratories in the world.

NEVADA BUSINESS JOURNAL ADVERTORIAL MONEY MANAGEMENT

Financially Intelligent Parents The Value of Teaching Good Money Values

re you making money de- to be more compassionate and car- ways needing the newest thing, to cisions based on personal ing. By participating as a family, how you treat the clerk at the depart- A values? If not, you are you help your children learn empa- ment store or the person who is park- probably not teaching thy and responsibility toward oth- ing your car," says Jon Gallo. your children to do so, either. ers. Your children will realize they “Are you demonstrating to your In The Financially Intelligent have the power to make life better kids that because you have money, Parent, 8 Steps to Raising Success- for others. people working at a lesser job are ful, Generous, Responsible Chil- Encourage a work ethic. A good less valuable people? You need to dren, authors Eileen and Jon Gallo work ethic is a learned behavior, teach kids that money is something examine how parents can create an and parents are the best models for they have, not something they are. internal structure of values for both their kids. Jon Gallo cites a Harvard Their net worth and self worth are themselves and their children that University study that shows devel- entirely different things. There are allows them to use money in oping the capacity to work, or a wonderful people without any healthy ways. work ethic, between 6 and 12 years money and not-so-wonderful people According to the Gallos, giving old is the single biggest predictor of with a great deal of money. Give your kids a “money value vocabu- adult mental health. your kids money and good values, lary” is important. This means hav- You can help your children develop and they will treat money as a tool ing the words to make financial de- a good work ethic by assigning them and be good, responsible people. cisions based on values. For chores that are to be done without ex- Give them money without values, example, if children are trying to pectation of being paid, encouraging and who knows what they will be decide whether to spend their entire them to always “do their best” as op- like,” he adds. allowance on video games like their posed to “being the best”, and en- The way you spend your money friends do, a money values vocabu- couraging them to get part-time jobs sends messages to children about lary can help them resist peer-group when they are old enough. your values and priorities. Finan- pressure. They can say to them- Parents need to be conscious of the cially intelligent parents are highly selves, “I believe in saving at least values they model. “One of the most conscious of their spending habits, some of my money for more impor- important things for a financially in- how they balance their work and tant things in the future, so it does- telligent parent to be aware of is the family time, and the values they n't make sense to spend all of it each messages that their own behavior communicate. week on these games.” sends to kids. That ranges from al- The book lists eight money be- Shanna J. Kehoe is a Registered haviors of financially intelligent Representative of and offers securi- parents. Here are a few that will get ties, investment advisory and finan- you started: cial planning services through MML Become a charitable family. Investors Services, Inc. The Wealth Teach your children that they can do Consulting Group is not an affiliate more with their money than spend it or a subsidiary of MML Investors on themselves, and encourage them Services, Inc.

164 October 2006 by Michelle Danks COMPASSIONATE CAPITALISM

The Adoption Exchange Helping Kids Find “Forever Families”

Victoria, Cheyenne and Justin, shown from left he Adoption Exchange is a have problems as adults, “and society to right, are seeking “forever families” by being not-for-profit organization pays for those problems through the featured as part of The Adoption Exchange's T that finds “forever fami- justice system and the welfare system.” Heart Gallery. Photo by Hank DeLespinasse. lies” for local children Clark County District Judge Nancy waiting to be adopted. With a growing Saitta, who chairs The Adoption Ex- Throughout November at the Clark office in Las Vegas, as well as the abil- change’s Nevada Advisory Commit- County Government Center, ity to serve Northern Nevada, it has a tee, sees what can happen when chil- prospective parents can visit the simple mission: to connect children in dren grow up lacking a family Nevada Heart Gallery, a traveling ex- the foster care system with qualified foundation. Saitta, who was adopted as hibit of compelling portraits featur- families who want to adopt them. a child, was instrumental in opening ing dozens of local children who are It focuses on recruiting local fami- the organization’s Nevada office in waiting for families. lies for children who have survived January of 2000. Since then, she has The Adoption Exchange also abuse and neglect, providing training led the group’s growth, while watching makes connections through and education to professionals who the number of children needing its ser- “Wednesday’s Child,” a television work in the field and providing infor- vices soar. news segment on adoption that airs mation and support to families who In Clark County alone, Saitta said, each Wednesday at 4:30 p.m. on adopt. It also offers classes on adop- more than 2,300 children are in foster KLAS-TV Channel 8 in Las Vegas. tion and a lending library offering free care, with hundreds ready to be adopt- By helping children find families, literature on the subject. ed at any given time. The number of supporters say the charity also saves Since it was founded in 1983, The local children needing shelter is in- Nevada taxpayers hundreds of thou- Adoption Exchange has helped near- creasing by nearly 30 percent per sands of dollars annually. That’s based ly 4,600 children nationwide Ð in- year. The need in Northern Nevada is on national statistics showing state tax- cluding hundreds in Nevada Ð find also growing. payers spend an average of $20,000 permanent homes. To spread the word, and to raise per year to care for each child in the “The Adoption Exchange is focused funds to support its services, The foster care system. on the hard-to-adopt children,” said Adoption Exchange hosts an annual Assistant Clark County Manager Vir- golf tournament and a Monopoly- ginia Valentine, a member of the orga- themed fundraising event. nization’s Nevada Advisory Commit- It also partners with Clark County’s The Adoption Exchange tee. “Adoption is the best chance these Department of Family Services and 333 N Rancho Dr, Ste 660 children have to be cared for, to have a other local adoption and government family, to just lead a normal life.” agencies to present an annual Adoption Las Vegas, NV 89106 Like other supporters, Valentine Fair. This year’s fair will be held Sat- (702) 436-6335 speaks from personal experience. As urday, Nov. 4, from 11 a.m. to 2 p.m. at the parent of an adopted daughter, she the Clark County Government Center [email protected] said she has learned firsthand that in downtown Las Vegas. The ninth an- www.adoptex.org/nv_office.htm “there’s a direct correlation between nual event is free and open to the pub- permanence and success.” She said lic, offering food, fun and games for children who move from one foster children, along with education for home to another are more likely to prospective parents. K

October 2006 165 BUSINESS INDICATORS

DATA GROWTH units dates latest previous year ago recent year ago comments ousing, a strong compo- NEVADA (%) (%) nent of the economy the Employment 1,000 employees 07/06 1,288.1 1,288.6 1,225.5 0.0 5.1 Slow recent H past few years, shows Unemployment Rate %, nsa 07/06 4.6 4.3 4.3 7.0 7.0 Up recently, but good signs of weakening, Taxable Sales $ billion 05/06 4.074 3.941 3.835 3.4 6.2 More modest growth both nationally and in Nevada. And, Gaming Revenue $ million 06/06 921.08 1,126.60 954.17 -18.2 -3.5 Down since housing generates more Passengers passengers 06/06 4.412 4.385 4.352 0.6 1.4 Flat spending locally than many other ac- Gasoline Sales million gallons 05/06 96.74 96.80 98.53 -0.1 -1.8 Trend down tivities, we should expect slower growth for the last half of 2006. Visitor Volume million visitors 06/06 4.229 4.376 4.367 -3.4 -3.2 Down Whether a slower housing market CLARK COUNTY (%) (%) spills over to overall consumer Employment 1,000 employees 07/06 918.3 919.2 869.4 -0.1 5.6 Slightly off recent spending remains to be seen. Unemployment Rate %, nsa 07/06 4.6 4.3 4.3 7.0 7.0 Up recently, but good In Nevada, the Clark County (Las Taxable Sales $ billion 05/06 3.009 2.949 2.841 2.0 5.9 More modest growth of late

Vegas) numbers are decidedly Gaming Revenue $ million 06/06 757.74 962.62 797.11 -21.3 -4.9 Down weaker than the Washoe County Residential Permits units permitted 07/06 2,232 3,708 3,517 -39.8 -36.5 Down

(Reno) numbers. All but one of the Commercial Permits permits 07/06 92 122 84 -24.6 9.5 Down recent monthly indicators posted weaker Passengers million persons 06/06 3.961 3.971 3.881 -0.2 2.1 Slightly off recent numbers. Only taxable sales posted Gasoline Sales million gallons 66.19 67.62 68.65 -2.1 -3.6 Trend down improvement for month-over- 05/06 month changes, up a modest 2.0 Visitor Volume million visitors 06/06 3.574 3.747 3.683 -4.6 -2.9 Down percent. Reno, on the other hand, WASHOE COUNTY (%) (%) showed stronger growth in taxable Employment 1,000 employees 07/06 227.3 226.7 217.6 0.3 4.5 Slow recent sales, up 8.2 percent (month-over- Unemployment Rate %, nsa 07/06 4.2 4.0 3.9 5.0 7.7 Up recently, but good month) and 6.4 percent for the Taxable Sales $ billion 05/06 0.602 0.556 0.566 8.2 6.4 More modest growth same month (year-over-year). Gaming Revenue $ million 06/06 88.83 91.19 86.60 -2.6 2.6 Down recent

Overall strong performance in the Residential Permits units permitted 07/06 380 279 438 36.2 -13.2 Up recent, trend down

Silver State for the first half of 2006 Commercial Permits permits 07/06 45 41 40 9.8 12.5 Up should keep year-end numbers in Passengers million persons 06/06 0.445 0.409 0.456 8.7 -2.4 Up recent, trend down the positive category, though the Gasoline Sales million gallons 15.69 14.74 14.49 6.5 8.3 Trend up outlook is for a more modest last 05/06 half of 2006. Visitor Volume million visitors 06/06 0.453 0.420 0.476 7.9 -4.8% Up recent, trend down Concern for inflation should moti- UNITED STATES (%) (%) vate the Federal Reserve to keep in- Employment million, sa 07/06 135.354 135.241 133.617 0.1 1.3 Sluggish terest rates up in the months ahead. Unemployment Rate %, sa 07/06 4.8 4.6 5.0 4.3 -4.0 Up The increasing discussion among Consumer Price Index 82-84=100, nsa 07/06 203.5 202.9 195.4 0.3 4.1 Up

Fed players, including Chairman Ben Core CPI 82-84=100, nsa 07/06 206.2 205.9 200.8 0.1 2.7 Up

Bernanke, is “inflation targeting,” Employment Cost Index 89.06=100, sa 2q06 101.7 100.8 98.8 0.9 2.9 Up and there is reason to believe infla- Productivity Index 92=100, sa 2q06 138.6 138.2 134.9 0.3 2.7 Holding tion concern will likely come first. Retail Sales Growth $ billion, sa 07/06 367.941 362.874 351.454 1.4 4.7 Up That is, faced with a slowing econo- Auto and Truck Sales million, sa 17.14 16.12 20.68 6.3 -17.1 Sluggish my, the Fed is loath to let up on its 07/06 targeted Fed-Fund rate for fear of Housing Starts million, sa 07/06 1.795 1.841 2.070 -2.5 -13.3 Down letting inflation get out of hand. GDP Growth $ billion, sa 2q06 11,385.3 11,316.4 11,001.8 0.6 3.5 Good, but slowing All in all, we expect that Nevada U.S. Dollar 97.01=100 07/06 108.510 108.760 112.120 -0.2 -3.2 Down again will experience more modest ex- Trade Balance $ billion, sa 06/06 -64.804 -64.974 -58.419 0.3 -10.9 Trend down pansion ahead, but should continue S&P 500 monthly close 07/06 1,276.66 1,270.20 1,234.18 0.5 3.4 Up of late to rank among the better-perform- Real Short-Term Rates %, nsa 07/06 4.65 4.59 2.76 1.3 68.5 Up ing state economies in the U.S. Treasury Yield Spread %, nsa 07/06 0.01 0.19 0.89 -94.7 -98.9 Flat

SOURCES: Nevada Department of Taxation; Nevada Department of Employment, Training and Rehabilitation; UNR Bureau of R. Keith Schwer Business and Economic Research; UNLV Center for Business and Economic Research; McCarran International Airport; Reno/Tahoe International Airport; Las Vegas Convention and Visitors Authority; Reno-Sparks Convention and Visitors Authority; U.S. Depart- UNLV Center for Business and Economic Research ment of Commerce, U.S. Bureau of Labor Statistics, U.S. Census Bureau; U.S. Federal Reserve Bank.

166 October 2006