Lyssa Anderson of Kummer Kaempfer Bonner Renshaw & Ferrario, Gregory Kramer of Kamer, Zucker & Abbott and Mark Riccardi of Fisher & Phillips discuss the importance of documentation in the workplace. Is your communications company working for you, or against you?

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LYLE E. BRENNAN Fueling Nevada’s Future Publisher What are the Alternatives? Once again, gasoline prices have risen above $3.00 per gallon, and the situation in the major oil-producing areas of the world is as unstable as ever. All over the country, people are asking what Americans can do to ensure a reasonably priced source of the fuel we need to keep our economic engines running.

he tourists who provide by streamlining the permitting process tons of biomass per year. The plant Nevada’s major source for renewable energy projects. was contributed by land manage- of income need fuel to One potential source of fuel is bio- ment agencies, including the Bureau T get here and, once they mass, defined in the Nevada Revised of Land Management, the United arrive, the resort industry needs elec- Statutes as any organic matter that is States Forest Service and the Nevada trical power to keep the neon lights available on a renewable basis, includ- Division of Forestry. flashing and the air conditioners hum- ing: agricultural crops and agricultural Biomass can also be converted di- ming. Those of us who live in Nevada wastes and residues; wood and wood rectly into liquid fuels, called biofuels; year-round, and conventional busi- wastes and residues; animal wastes; the two most common types are nesses that operate here, need fuel and municipal wastes; and aquatic plants. ethanol and biodiesel. Ethanol is an al- electrical power to maintain our 21st- There are many advantages to using cohol made by fermenting any biomass century lifestyle. biomass as fuel. For example, using high in carbohydrates. The principal Environmentalists who advise peo- waste products in urban areas means source of ethanol is corn, but re- ple to “Think Globally, Act Locally” local governments avoid costs associat- searchers are now looking for econom- have the right idea by encouraging us ed with solid waste transportation and ical ways to produce it from cellulose to look for solutions to large-scale landfills. Harvesting and burning forest and other materials found in all plants. challenges like this in our own back- and rangeland biomass reduces the Grass clippings, wood chips, roadside yards. Nevada Business Journal’s threat of wildfires, which is especially weeds and all sorts of farm waste could September 2006 issue included an ar- important in Nevada’s rural areas. fuel the vehicles of tomorrow. ticle entitled “Nevada’s Energy Fu- Most of the electricity currently Biodiesel is made from vegetable ture” that gave a good summary of ini- generated by using biomass is pro- oil, usually soy or canola oil, and can tiatives in the Silver State to produce duced by burning wood products to even be made from recycled oil from alternative sources of power, including produce steam. In a test program fryers in restaurant kitchens. Accord- geothermal, solar, wind and biomass. funded by federal grants, the David ing to the National Biodiesel Board, In February, Gov. Jim Gibbons signed E. Norman Elementary School in “Biodiesel is better for the environ- an executive order to support develop- Ely recently installed a steam heat ment because it is made from renew- ment of renewable energy in Nevada plant that burns approximately 150 Continued on Page 8

4 June 2007 © 2007 LYNDON WADE © 2007 LYNDON

Thank You Nevada for 75 Years of Gaming

nevadaresorts.org June 2007 • Volume 22 • No. 6

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

PUBLISHER / CEO Connie Brennan • [email protected] ASSOCIATE EDITOR April McCoy • [email protected] ART DIRECTOR COVER: Joe Thomasula What are the key details employers CIRCULATION DIRECTOR should pay attention to when hiring, Mark Keays • [email protected] training and firing employees? (L to R) Lyssa Anderson, Kummer RESEARCH / RANKING NEVADA Kaempfer Bonner Renshaw & Fer- [email protected] rario; Gregory Kamer, Kamer, Zuck- WEB EDITOR er & Abbott; and Mark Riccardi, McKensie Keever • [email protected] Fisher & Phillips are some of the em- ONLINE MARKETING DIRECTOR ployment law professionals inter- Harry Benson • [email protected] viewed in the story. CONTRIBUTING WRITERS Doresa Banning • Michael R. Griffin Photo: Opulence Studios Stephanie Herrera • Mike Hix • Mark Keays R. Keith Schwer • Michael Sullivan Soozi Jones Walker • Jeanne Lauf Walpole ADVERTISING / SALES Sheri Lautherboren • [email protected] Dawn Perkins • [email protected] Tarah Richardson • [email protected] EXEC. ASSISTANT TO PUBLISHER Hollie Howard • [email protected] CORPORATE OFFICE 375 N. Stephanie St., Suite 2311 • Henderson, NV 89014 BUILDING NEVADA: (702) 735-7003 • FAX (702) 733-5953 The concept of green building is be- [email protected] coming a new trend in Master- NORTHERN NEVADA ADVISORY BOARD Planned Communities. John Ritter, Chuck Alvey • EDAWN chairman and chief executive officer Krys T. Bart • Reno Tahoe Airport Authority of Focus Property Group, is one of Tom Clark • Tom Clark Consulting Company the experts who discussed the Connie Fent • Community Representative changing industry. Valerie Glenn • Rose Glenn Group Rick Gray • Fallon Convention and Tourism Authority Photo: Opulence Studios

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

Nevada Business Journal is a division of Business Link, LLC. 375 N. Stephanie St.,Bldg. 23, Suite 2311, Henderson, NV 89014. It is listed in Standard Rates and Data, #20A-Business-Metro, State and Regional. TopRank Nevada Ð Annual Statewide Book of Lists is a publication of Nevada Business Journal. Advertisers should contact Sales at (702) 735-7003, or write to: Nevada Business Journal, 375 N. Stephanie St., Bldg. 23, Suite 2311, Henderson, NV 89014. Demo- graphic information available upon request. Month-to-month circulation may vary. Nevada Business Journal is published monthly with one additional issue each year. Subscription rate is $44.00 per year. Special order single-copy price is $7.50. TopRank Nevada Ð Annual Statewide Book of Lists,a compilation of lists which have ap- peared in Nevada Business Journal over the past 12 months, is published on an an- nual basis. All contents ©2007 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 SPECIAL REPORT: Journal, 375 N. Stephanie St., Bldg. 23, Suite 2311, Henderson, NV 89014. Sub- scribers please include previous address or mailing label. Allow six weeks. The National Association of In- EDITORIAL SUBMISSIONS: Address all submissions to the attention of Kathleen Foley. Unsolicited manuscripts must be accompanied by a SASE. Nevada Business dustrial and Office Properties of Journal assumes no responsibility for unsolicited materials. DISCLAIMER: Editorial views expressed in this magazine, as well as those Southern Nevada is the voice of appearing in area focus and industry focus supplements are not necessarily those of the publisher or its boards. commercial real estate industry.

6 June 2007 CONTENTS

FEATURES DEPARTMENTS

12 Employment Law 4 Commentary The Devil is in the Details LYLE BRENNAN Fueling Nevada’s Future JEANNE LAUF WALPOLE What are the Alternatives? 22 Getting Your Message Across 10 Business Up Front Creating an Interactive Brand Experience • Building Design Leaders Collaborating on Carbon-Neutral Buildings STEPHANIE HERRERA • The Marketing Magic of Email 29 Industry Focus: Healthcare • Global Business in Today’s Market Caring for Nevada 11 Face to Face Kishan S. Singh, AMTI Sunbelt LLP Harvey Dondero, World Market Center 104 Nevada Briefs 22 • Service1st Bank of Nevada Brings Big Numbers to Market • Nutile Law & Associates Joins Hale Lane Law Firm • PPIC Provides Medical Malpractice Liability Insurance • Nevada Company Among First to Achieve LEED Gold Certification • Alliance Commercial Real Estate Announced National Affiliation 105 Banking On It APRIL MCCOY City National Bank Innovative Approach for Small Business Loans 106 Speaking for Nevada U.S. SENATOR JOHN ENSIGN How can Nevada’s healthcare system be improved? 107 Inside Politics MICHAEL SULLIVAN Gubernatorial Contenders Looking Ahead at 2010 108 Expert Advice SOOZI JONES WALKER Investing in Real Estate Risky but Rewarding 109 Town Meeting B UILDING NEVADA APRIL MCCOY Mayor Geno Martini 94 Master-Planned Communities City of Sparks 110 Compassionate Capitalism Environmentally-Friendly Neighborhoods Nevada Partnership for Homeless Youth 102 Building Nevada News in Brief Helping to Eliminate Homelessness Among Nevada’s Youth 111 Power of Attorney • Crovetti Medical Center Breaks Ground MICHAEL R. GRIFFIN • Final Stage of Lear Industrial Center Breaks Ground Alternative Dispute Resolution Clauses • $50 Million Class A Office Park Planned More Common Than You Think • LogistiCenter Reaches Milestone with Fourth Building 112 Money Management MIKE HIX • McCarran International Airport Expansion Continues Identity Theft 103 Commercial Real Estate How to Prevent Security Threats Market Report 113 People First MARK KEAYS First Quarter 2007 – Office Report Performance Appraisals Useful or Waste of Time? 103 JVC Architects 114 Business Indicators Creating Environmentally-Responsible Worship Centers R. KEITH SCHWER

June 2007 7 Continued From Page 4 WELL ROUNDED able resources and has lower emissions compared to petroleum BANKING diesel. It is less toxic than table salt CLEARR CUT ANALLYSIS • INTEGRAATED SOLUTIONS and biodegrades as fast as sugar. Since it is made in the USA from renewable resources such as soybeans, its use de- 1ST NAATIONAL BANKK OF NEVADA DELIVERS WE ARE A FULL SERVICE BANK creases our dependence on foreign oil • Pinpoint analysis offering one of the most comprehensive packages of deposit and loan products for and contributes to our own economy.” • Innovative solutions business or personal needs. • In-depth services Despite the advantages of using bio- • Entrepreneurial business knowledge Our IMAGE mass to produce electricity and fuel, DEPOSIT SERVICE • Dedicated customer service many challenges still need to be • Bottom line banking expertise speeds the deposit o your 1st worked out before it will be economi- Bank of ccount cally feasible. In some cases, the ener- We provide cally. RATE PRO gy needed to grow, harvest and process SERVICES the biomass is more than the energy to offset changing produced by the resulting biofuels. In interest rat addition, using corn or soybeans to produce biofuel may make corn and soy products more expensive, not only in the U.S., but around the world, which some predict would have a dev- astating effect on developing countries already struggling with famine. Despite these challenges, it’s impor- tant to continue with research to develop alternatives to fossil fuels, not only be- cause of concerns about global warm- We provid ing, but also because the United States variety of C AND REAL must not be held hostage by countries with experts to help you like Venezuela and Iran that control choose the best fit for your We specialize in COMMERCIAL INSURANCE business. vast supplies of oil. A prudent strategy services to businesses including would include investigating sources of contractors, developers, 1st National Bank of Nevada BUSINESS INSTALLMENT LOANS manufacturers, retail, distributors clean power in Nevada, such as wind, help your and professional organizations. business with affordable funding for any of geothermal, solar and biomass, as well your business needs. as supporting research on ways to 1st National Bank of Nevada has many • Purchase equipment BUSINESS BANKING account options make biofuels practical and affordable. • Finance other assets including a free small business checking • Purchase business vehicles account– no monthly maintenance fees, Our economic and political future • Expand your building or office space no minimum balance requirements, no depends on it. transaction fees. Sources: We are CUSTOMER FOCUSED, FAMILY OWWNED, WE CAN HELP YOU maximize Nevada Renewable Energy and Energy Con- LOCALLY OPERATED, PRIVAATELY HELD and we will your business profits. Call us today servation Task Force 702.889.2038 work with you to grow your business. www.nevadarenewables.org Nevada State Office of Energy We can help you grow http://energy.state.nv.us/renewable/bio- your business. mass.htm Call Todayy 702.889.2038 Bioenergy Feedstock Information Network www.fnbnonline.com http://bioenergy.ornl.gov/

Commercial Banking Treasury Management and Owner-Occupied SBA Loans National Biodiesel Board Depository Services Commercial Real Estate Gaming Financing Non-Profit Services www.biodiesel.org Acquisition, Development Fixed Rate Financing Lines of Credit & and Construction Options Wealth Management Term Loans Loans for Residential and COMMENTS Commercial Projects Insurance Services email: [email protected] MEMBER FDIC EQUAL OPPORTUNITY LENDER

8 June 2007

BUSINESS UP FRONT

Building Design Leaders Collaborating on Carbon-Neutral Buildings by 2030 The Marketing Magic of Email Global Business in Today’s Market

mail is the greatest marketing s business becomes increas- invention since the catalog, ingly global, entrepreneurs Ebut many companies still Amust organize, plan, oper- don’t use it effectively. Chris Bag- ate and execute in new ways. Tom gott, author of Email Marketing by Travis, author of Doing Business the Numbers: How to Use the Anywhere: The Essential Guide to World’s Greatest Marketing Tool to Going Global, defined basics you Take Any Organization to the Next need to know to be a player in Level,offers some tips on email today’s business market. Here are marketing. Here are seven tips from keys to business success in the glob- he American Institute of Ar- Baggott’s book: al market: chitects (AIA), the American ¥ Stay out of the spam folder. The ¥ Take advantage of trade agreements: TSociety of Heating, Refrig- quantity of emails you send means think outside the border. Understand erating and Air-Conditioning Engi- nothing but the quality of your mes- how trade agreements and preference neers (ASHRAE), Architecture sages means everything. programs impact your business. 2030, Illuminating Engineering So- ¥ You have to get your recipients to act. ¥ Protect your brand at all costs. ciety of North America (IESNA), An email’s success with your recipi- Every global company must protect and the U.S. Green Building Coun- ents is based on past behavior, relevan- its international reputation by pay- cil, supported by representatives of cy,frequency and creative strength. ing attention to the human rights and the U.S. Department of Energy, re- ¥ Build a killer database. Collect email environmental practices of offshore cently finalized a memorandum of addresses for your database from on- facilities. understanding, establishing a com- line email collection, offline or by ¥ Maintain high ethical standards. mon starting point and goal of net business-to-business networking. Your company must establish its own zero energy buildings. While fo- ¥ Find the best recipients. Segmenta- standards of acceptable conduct, com- cused on designing net zero energy tion is one of the most effective municate those standards to all trading buildings, the ultimate goal of the ways to boost engagement and pre- partners and enforce them through in- memorandum is carbon-neutral vent list fatigue. ternal monitoring systems. buildings by 2030. Carbon neutral ¥ Use analytics that matter. Pay at- ¥ Stay secure in an insecure world. buildings use no energy from exter- tention to your deliverability rates, While security of cargo from theft nal power grids and can be built and open rates, click-through rates and and loss has always been of concern operated at fair market values. The unsubscribe rates, and you will know to global traders, the tragic events building sector amounts for almost exactly what’s happening and why. of 9/11 ushered in a new era of half of all greenhouse gas emissions ¥ Put your messages to the test. compliance with global security re- in the U.S. annually and carbon neu- Multivariate testing involves simul- quirements. tral buildings reduce carbon emis- taneously testing several variables at ¥ Expect the unexpected. You must be sions to help mitigate climate once and measuring the net result. prepared to deal with situations that change, reduce independence on oil ¥ Ask for feedback. Almost every aren’t covered in traditional business power, fuel imports and the use of email you send should give the re- plans, whether the event creates an op- fossil fuels, and provide a measure cipient a chance to answer a ques- portunity or peril. of energy security. tion or two.

10 June 2007 FACE TO FACE

Best Business Advice: Type of business: Make your banker your best friend. This Civil Engineering, Surveying, Materials has helped during the most challenging Testing, Inspection and Geotechnical times.

Biggest business challenge: If you could start over and choose a Finding reliable individuals that are dedicat- different profession, what would it be? ed to their professions and have strong work I would be a Quality Control Engineer for ethics. NASA. It has been something that has in- terested me since I was a child. What do you enjoy most about your job? Confronting challenges that arise and find- How do you retain and recruit skilled em- ing alternative solutions that are also eco- ployees? nomical. The majority of our recruiting is done through recommendations from col- Kishan S. Singh How do you spend your time when leagues and others in similar fields or you’re not working? Managing Partner from past working relationships. AMTI I enjoy spending time with my family believes in giving back to our team by of- AMTI SUNBELT LLP and Acclaim Materials camping and taking in all of God's cre- Testing & Inspection LLP fering the opportunity of company part- ation. Henderson nerships, good health benefits, 401k and appreciation events. In addition, we incor- Little-known fact about yourself: Years in Nevada: 29 porate challenges for self achievements I speak Souix, a Native American Lan- and progressive responsibility in an enjoy- guage. Years with Firm: 7 able working environment.

Years in Nevada: I was born and raised in How do you spend your time when Las Vegas. My career took me many you’re not working? places before I returned to Nevada in I enjoy fly fishing, reading and am a 2006. supporter of the performing arts.

Years with Firm: I joined World Market Little-known fact about yourself: Center as CEO in 2006. I have four beautiful, intelligent daughters.

Type of business: Best Business Advice: World Market Center is a state-of-the art Listen to the customer because they will trade show complex in Las Vegas serving all figure it out before you do. segments of the home furnishings industry. How has World Market Center changed Biggest Business Challenge: downtown Las Vegas and the city itself? Bringing a new business model Ð a per- World Market Center has led the way in manent trade show complex to the city of the redevelopment of downtown Las Las Vegas. Vegas by building what will eventually be a $3 billion dollar permanent trade show Harvey Dondero What do you enjoy most about your job? complex, right here in downtown Las CEO Integrating Las Vegas with the home fur- Vegas. Our investment here demonstrates nishings industry. World Market Center our faith and commitment to the area and we have really pioneered the revitaliza- Las Vegas If you could start over and choose a differ- tion efforts of downtown Las Vegas. ent profession, what would it be? I am very happy with what I’m doing, but perhaps a teacher or an elected official.

June 2007 11

Cover Story: Employment Law

When it comes to employment law, naivete is a luxury that Nevada employers cannot afford. Given the ever-changing preponderance of rules that regulate today’s businesses, along with the increasing number of labor lawsuits, it’s no longer prudent to wing it as a nice guy, according to legal experts. Even with the best of intentions, employers can find themselves in legal hot water if they are unaware of the law, or if they don’t follow the letter of it. “There’s quite a need for help out there,” said Mark Ricciardi, an attorney who specializes in labor law at Fisher & Phillips LLP in Las Vegas.

mployers can feel somewhat re- with actual events. “You can have a accurate, the employee has no op- assured, however, that in spite of series of glowing performance eval- portunity to learn from the mistakes Etoday’s litigious climate they can uations that don’t reflect the true that have been made. go a long ways toward protecting situation,” she continued. Also, Greg Kamer, a founding partner of themselves through risk management. informal discipline, such as a Kamer, Zucker & Abbott in Las Vegas, Risk assessment and protection in- conversation with no formal written emphasizes the importance of setting up cludes such business nuts and bolts as record, is useless in terms of build- the proper terms and conditions for em- keeping necessary documentation, ing a case for taking action against ployment at the time of hiring. “The conducting investigations and provid- an employee. employment application is critical,” he ing training. said. Employers need to ensure that the “The thing that we see over and Honesty is the Best Policy application is designed to include the over is a failure to document,” said relevant information they need and are Lyssa Anderson, litigation partner at Although it can be difficult in allowed to have by law. Most impor- Kummer Kaempfer Bonner Ren- human terms for supervisors to point tantly, however, is to make sure the ap- shaw & Ferrario in Las Vegas. For out negatives in employees with plication is actually read with a critical example, employers and supervisors whom they closely work, it’s essen- eye after it’s submitted by an applicant. may be reluctant to fill out perfor- tial for the evaluation process to be Kamer cited a legal situation in which mance evaluations because of their conducted in a professional manner an employer unknowingly hired a per- desire to maintain friendly relations for it to be valuable to the business. son who had just finished serving a with employees. “Everything is fine “You need to be critically honest,” prison term for embezzlement. The em- as long as everyone is getting Anderson explained. “It absolutely ployee had included this information on along,” Anderson said. When a prob- has to be exacting.” Honest evalua- the job application, but nobody in the lem arises, however, such as the tions not only support employers’ business had taken the time to read it. need to discipline or terminate an actions and protect against potential Inattentiveness and failure to employee, the much-needed docu- legal quagmires, but also enlighten document not only cause legal mentation to support this action employees about ways to improve hassles, but can also be extremely either doesn’t exist or is in conflict their job skills. If an evaluation isn’t costly, according to Ricciardi.

June 2007 13 Cover Story: Employment Law

He recalls a case of a large company Equally important to a prompt that failed to monitor and document response is the appropriate dissemina- the hours of its workers over a long tion of information following an in- period of time. Employees were rou- vestigation of a complaint. In the case tinely coming in early, leaving late of harassment, it is important to and working through their lunch quickly initiate remedial measures. hours, all of which was not docu- Anderson remembers a complaint sit- mented by management. It eventually uation in which investigators didn’t cost the business hundreds of thou- communicate to upper management sands of dollars in overtime when em- that a supervisor had been disciplined ployees asked to be paid for the hours for harassing an employee. The inves- they had worked. “This was pre- tigators believed they were protecting ventable had the employer been mon- both the employee and supervisor itoring the hours,” Ricciardi said. from workplace gossip. The supervi- Although it may seem like a no- sor was subsequently allowed to com- brainer, making sure that the company pose a very negative performance is in compliance with wage and hour evaluation on that same employee laws is absolutely critical, according which could have resulted in the to Ricciardi. “You need to be sure as employee claiming employer retalia- an employer that you’re paying every- tion. Fortunately the employee ap- one properly,” he emphasized. “These proached upper management who are big areas of concern because then disciplined and reassigned the we’re often seeing employers being supervisor. The company also imple- sued.” To be in compliance with the mented harassment training. “Luckily minimum wage law, employers must the complaining employee wasn’t liti- pay $5.15 per hour if health insurance gious,” Anderson said. is provided and $6.15 without insur- Retaliation claims typically origi- ance. Employers must ensure proper nate from an initial discrimination or breaks are provided, that all hours harassment complaint which results worked are compensated for and that in some kind of negative action any overtime hours are also accounted against the employee, such as disci- for. Employees considered exempt pline, reduced work hours, a cut in from overtime include those on salary pay, a negative evaluation or even ter- and who have administrative, supervi- mination. “What makes it very scary sory and/or professional duties. is that the underlying complaint of When a complaint is filed by an em- discrimination doesn’t have to be ployee, it is essential to immediately true,” Ricciardi said. The plaintiff can launch a proper investigation to elimi- win a retaliation claim in court even if nate the inappropriate conduct. If ac- the discrimination claim is investigat- tion is delayed or ignored, the situation ed and found to be invalid. usually just gets worse. Karyn Taylor, Kamer advises his clients to add a a shareholder in Littler, Mendelson layer of protection to their businesses P.C. in Reno, remembers a company by purchasing Employment Protec- who ended up in litigation because it tion Libel Insurance (EPLI). Annual ignored an employee complaint about premiums can start as low as $5,000 off-color jokes in the workplace. The and typically provide nearly $1 mil- employer did nothing, claiming that lion in defense and $1 million in lia- everybody went along with the jokes. bility coverage. Costs vary according “This attitude doesn’t cut it when you to such variables as the type and size of get into court,” Taylor said. business and the history of litigation.

14 June 2007 Cover Story: Employment Law

Because small businesses are espe- front lines guiding subordinates, it is cially vulnerable to being hit hard by critical that they be properly trained in litigation costs, they are the most in the law, as well as how to treat em- need of the coverage. “It’s a small ployees with dignity and respect. “A price to pay in an extremely litigious supervisor is a line employee who is world,” he said. elevated to a stage,” he explained. That elevation needs to be accompa- Knowledge is King nied with the appropriate tools for success, which usually involves spe- According to Taylor, proper train- cific training. ing is one of the most important un- court and by reducing or eliminating Stan Miller, tort claims manager for derpinnings to risk management. It potential punitive damages. Most at- the Nevada State Attorney General’s teaches employees and employers torneys specializing in employment Office, is a big proponent of training. about what types of conduct are inap- law offer training that can be tailored Because of the increase in civil rights propriate and how to deal with them if specifically to the individual client. claims filed by state employees in re- they should occur. “Training also Training supervisors in such basic cent years, Miller regularly schedules helps establish a defense in case of a areas as harassment and liability in harassment training for directors and lawsuit,” she said. Although the initial the workplace is one of the most ef- administrators, requiring them to take cost of training may seem high, some fective ways to help employers avoid the course every other year. “I think attorneys recommend that it be a litigation, according to Kamer. “At it’s excellent training and it provides mandatory part of human resource least 25 to 30 percent of my profes- an affirmative defense,” he said. agendas because it pays for itself by sional time is spent in training,” he Miller deals with around 50 such helping to keep employers out of said. Because supervisors are on the cases a year, most of which are filed

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In nature, when one thing is made better by its association with something else, it’s called symbiosis. At Littler Mendelson, we like to think of it as simply good practice. As the top ALM Go-To Firm® for labor and employment chosen by Fortune 500 companies*, we work every day with the nation’s largest and most demanding companies, on some of the most complex and challenging legal problems facing employers today. At the end of the day that leaves us smarter, stronger and better prepared to face whatever comes buzzing around tomorrow. * “2007 Corporate Counsel In-House Law Departments at the Top 500 Companies Guide.”

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June 2007 15 in federal court where there is no cap on the award. Losing the case can be cost- ly to the state, with typical awards of around $50,000, but the largest being $1.7 million several years ago. Preven- tion is the key. “The more training we can get, the better,” he emphasized. Going hand-in-hand with training, the employee handbook formally no- tifies employees about the business practices of the company. “An em- ployer that doesn’t have a handbook is missing the boat,” Kamer said. “We have a stock handbook that clients can use and make revisions to. About 80 percent of every handbook is the same information with 20 percent varia- tions for specific businesses.” Begin- ning with the template, handbooks can then be crafted for each individual business. Much as a strategic plan de- scribes the unique goals and objec- tives of a specific business, the hand- book should accurately describe how a particular company takes care of its business. “The employee handbook is basically the general rules that the company wants employees to follow,” said Ann Morgan, stockholder in Jones Vargas in Reno. The contents can include company policies on such things as absenteeism, drugs, sick leave, harassment, benefits, diversity and vacations. Attorneys agree that a handbook should preserve an employ- er’s flexibility and should not create contracts with employees. It’s impor- tant to remember that whatever is in the handbook can be enforced in court. The company’s legal counsel can be an invaluable resource in the process of writing the handbook and should, at the very least, examine all policies before they are put in place and conduct an annual review of them from then on. “The handbook should be scrupulously followed,” Ricciardi emphasized. To avoid any confusion about policies, employees should be required to sign a statement indicating they’ve received a current copy.

16 June 2007 Cover Story: Employment Law

Employee evaluations are also im- employees at risk,” said Martin. portant Ð both for the employer and Being thorough in the hiring process the employee. “Most employment law helps provide the employer with a is driven by what the employers and better picture of the potential employ- employees believe is fair,” said Mor- ee’s skills and hidden traits. It is also gan. “People hear different things, so important to conduct reference having an employee review in writing checks. There is a qualified privilege is helpful for two reasons. It forces in Nevada that allows employers to the employer to sit down and give se- tell future employers about the em- rious thought to the employee’s per- ployee’s performance, according to formance. And it does not allow the Martin. However, most only provide employee to reinvent what they date of hire, last day of employment heard.” Writing evaluations down and job responsibilities. measures helps the employee perform Although discrimination might better and in the end, saves the em- seem like a straightforward issue, ployer from the expense of hiring and it’s important to know that the law training new people. only prohibits it when it is based upon protected status, which is race, A Client Centered Law Firm Hiring and Firing is Never Simple color, religion, national origin, sex, business & corporate age or disability. It is illegal for an Some of the roughest waters em- employer to treat an employee dif- real property • immigration ployers navigate are the acts of hiring ferently based upon his or her pro- construction • collection and firing employees. “Hire smart and tected status. To avoid any hint of labor & employment hire the right people,” Kamer advised. discrimination during the hiring Many potential employee problems process it’s best to use a standard can be avoided initially if employers application form devoid of irrele- focus a critical eye on their hiring vant questions such as age, height or policies and processes. Because the weight. Questions considered ap- laws change frequently and the propriate for the interview include process is ongoing for most compa- those that pertain to the business nies, it can present a constant chal- and the job. Inquiries about an ap- lenge. To keep the company out of plicant’s personal life could be con- trouble during the hiring process, in sidered an invasion of privacy and general you must: should be avoided. The entire ¥ Refrain from illegal discrimination; process is more likely to focus on ¥ Consider privacy rights; the job and its qualifications if the ¥ Follow rules for hiring immigrants job description is detailed and clear- and young workers; ly understood by applicants. ¥ Avoid making promises that can’t be Immigration is a growing challenge kept. in the workplace. Because it hasn’t “The screening process is extremely been monitored efficiently in the past, important in deciding whether or not many employers are not completing At Harmon & Davies, P.C., we are someone is a good fit for the job and the required I-9 forms which indicate dedicated to responding promptly to company,” said Tony Martin, an asso- whether an employee is legally autho- client needs and providing reliable legal ciate at Lewis & Roca in Las Vegas. rized to work in the country. “Em- advice based on a thorough understanding Employers can be held liable for neg- ployers will wink at some employees of each client’s particular business. ligible hiring, supervision and securi- who may not be working in the U.S. ty. “You hire a person and don’t do a legally,” Ricciardi said. With immi- background check. Come to find out, gration reform such a hot issue, en- 1428 S. Jones Blvd. Las Vegas, NV 89146 the employee has a criminal back- forcement of I-9 compliance is likely 702.733.0036 ground Ð you have now put your to increase. Anderson believes that www.h-dlaw.com

June 2007 17 Cover Story: Employment Law the law could go even further by re- employees from receiving or losing quiring something other than just an their jobs for not joining a union or I-9 form in the future. All businesses “Right-to-work laws paying union dues and allows them are subject to audit and fines, whether to resign from a union at their discre- they employ any illegal aliens or not. remain under attack tion. Also, union membership cannot The critical factor is having I-9s on be used as the criteria for hiring. file for all employees. in all 22 states Right-to-work laws remain under at- “Many people don’t understand the tack in all 22 states where they exist difference between employment at where they exist.” because unions believe they under- will and right to work,” said Martin. mine efforts to bargain for the best Because Nevada is an “employment working conditions. Union members at will” state, employers can termi- question the fairness of non-union nate employees for any reason as long workers receiving the same benefits as it is not illegal. “From a statutory for being pregnant. It is also illegal to as union members when they pay no scheme, I, as an employer, can’t ter- terminate an employee who: dues and are not involved in the col- minate someone for race, color, creed, ¥ Files a discrimination or safety com- lective bargaining process. gender, national origin, religion,” said plaint; Martin. Exceptions to this are em- ¥ Refuses to break the law; Protecting Data ployees who are under an employ- ¥ Takes leave according to the Family ment contract (which specifies the and Medical Leave Act; One of the newest risks that can termination conditions) and workers ¥ Refuses to take a lie detector test. give employers sleepless nights is who are covered by a collective bar- Nevada became a right-to-work the potential for losing company gaining agreement. It is illegal to fire state when Gov. Charles Russell trade secrets and electronic data to an employee for reasons relating to signed Senate Bill 79 into law in- departing employees. Since the pas- protected status described above or March of 1951. The law prohibits sage of the Sarbanes-Oxley Act of

COMMITTED TO CONTINUED GROWTH IN NEVADA

At Lewis and Roca, we are committed to continued growth. We are proud to announce that Howard

Cole, Suzanne Martin, Joice Bass and Diane Howard E. Cole Suzanne L. Martin Joice Bass Diane J. Markert Markert Partner Associate Associate Associate have joined the Labor and Employment Labor and Employment Commercial Litigation Real Estate firm and will be working in 702.949.8315 702.949.8291 702.949.8345 702.949.8332 [email protected] [email protected] [email protected] [email protected] our Las Vegas office.

A Legacy of Integrity and TrustSM WWW.LEWISANDROCA.COM • Las Vegas • Reno • Phoenix • Tucson • Albuquerque 702.949.8200 • 3993 Howard Hughes Parkway • Suite 600 • Las Vegas, Nevada 89169

18 June 2007 Cover Story: Employment Law

2002 and the Federal E-Discovery healthy. The Nevada State Psycholog- Rules of 2006, it is no longer possi- ical Association (NSPA) gives out an- ble to use ignorance of technology as nual Psychologically Healthy Work- an excuse for not safeguarding data. place Awards to recognize companies Ricciardi advises having employees that place importance on the emotion- sign confidentiality agreements and al well-being of their employees. Al- non-compete clauses upon hiring. though an eclectic variety of pro- Sensitive information should be la- grams and policies have been found to beled, locked up and kept truly secret improve the overall workplace cli- to make sure it is handled appropri- mate, the most successful are de- ately. Because so much information signed to improve communication, is stored electronically, it is critical place greater value on the employee’s to have a policy that ensures its pro- contributions and talents and to rec- tection and preservation. ognize the importance of balance in Considering the stormy seas em- In addition to simply minding the everyone’s life. ployers navigate each day, what can legal store, however, employers can Perhaps the single most important they do to minimize their risk of legal nip some problems in the bud by tak- element is how employers view their exposure? Attorneys agree that the ing steps to reduce stress in the work- employees. “Recognize your employ- key lies in knowing the law and then place. With 40 percent of the coun- ees as your most important asset by following it meticulously. Getting try’s workers reporting that their job paying them competitively and treat- training and advice from experts, can is “very or extremely stressful,” ac- ing them like human beings,” Riccia- help prevent incidents before they cording to a recent Northwestern Na- rdi advised. have a chance to take place. If they tional Life survey, clearly much can should occur, legal counsel can then be done to decrease stress and make Jeanne Lauf Walpole is a freelance help minimize the potential damage. the workplace more psychologically writer based in Northern Nevada.

June 2007 19 Don’t miss this opportunity to join the faculty at University of Phoenix. How to Manage a Big Happy

University of Phoenix is dedicated to providing working students with a Multi-Generational relevant, real-world education. We’re seeking experienced professionals with Family advanced degrees to teach graduate-level courses at our Las Vegas and Northern Nevada Campuses.* Managing the mix of generations in As a University of Phoenix instructor, you’ll teach evening courses that meet just today’s workplace can seem like a once a week for five- or six-week sessions. Start sharing your expertise today. family reunion gone bad to employers who are bewildered by the eclectic at- Email your resume to: titudes and needs of each age cohort. Las Vegas Campus | [email protected] With nearly 150 million total workers, the U.S. workforce is comprised of Northern Nevada Campus | [email protected] four major age groups, according to Rainmaker Thinking, Inc., which has GpçãÉ=ÅçìêëÉë=êÉèìáêÉ=~=ÇçÅíçê~ä=ÇÉÖêÉÉ=çê=ãçêÉ=ëéÉÅáÑáÅ=èì~äáÑáÅ~íáçåëK studied workplace changes since 1993. The four groups are: ¥ The Silent Generation or Schwarzkopf Generation, born before 1946 Ð 6.5 percent University of Phoenix is an Equal Opportunity Employer. ¥ Baby Boomer Generation, born 1946-1964 Ð 41.5 percent University of Phoenix is accredited by The Higher Learning Commission and is a member of the North Central Association (www.ncahlc.org). The University’s main headquarters are located at 4615 E. Elwood St., Phoenix, AZ 85040. Las Vegas Main Campus is located at 7455 W. ¥ Generation X, born 1965-1977 Ð Washington Ave., Ste. 317, Las Vegas, NV 89128. © 2007 University of Phoenix, Inc. All rights reserved. 29.5 percent ¥ Generation Y, born 1978-1990 Ð 22.5 percent The oldest employees in the work- place, the Schwarzkopfers exhibit their elders’ values of loyalty, depend- ability and dedication to the job. Born trust before and during World War II, their careers have showcased long-term vt. goals with an emphasis on security. 1 to have confidence in Products of child-centered homes 2 to commit to a person’s care and an increasingly youth-oriented 3 to allow to do something without misgivings culture, baby boomers have prided themselves on being agents of social 4 to believe change. While their distrust of author- ity caused them to drop out of educa- tion early in their lives, many tuned In timestimes of uncertainty,uncertainty, strengthstrength and security are achieved by forging worthwhile relationships back in to enjoy worthwhile careers with deeply rorootedoted partners. When it comes to facing Nevada’s ever-changing legal climate, later on. trust the name you know and the people who know your business. As the first generation to be told they probably won’t be as financially secure as their parents, generation Xers grew up with the attitude that they would need to take care of them- We know Nevada selves. With job security a thing of the past, Xers look for short-term goals las vegas 702.702.862.3300862.3300 || reno 775.786.5000 || jonesvargas.com with immediate gratification.

20 June 2007 A highly educated and socially con- These changes have been caused in workers through creative and flexible scious group, generation Yers grew up in part by an increasingly global market, work opportunities. She also suggests a global economy saturated with technol- heavily dependent upon new tech- communication training and mentor- ogy. Their strong self-esteem and entre- nologies, which has given rise to a ing to enable the different generations preneurial attitudes have led them to have business climate that is risky, fast- to work more effectively together. Be- high expectations of overall success. paced and frequently unpredictable. cause mid-level managers have be- Over the past decade, Rainmaker So how can employers stay afloat in come the most important people in has also identified six key changes in such a challenging environment? most businesses, they should be the employer-employee relationship “Flexibility rather than stability is viewed more as performance coaches which they define as the following: needed for the future,” said Carolyn A. and given the training to empower ¥ Work has become more demanding Martin, Ph.D, principal at Rainmaker. them to respond as such. for employees. A key skill for employers is the ability Although employers may not agree ¥ Employer-employee relationships to respond quickly to changes in the with the changes in today’s business are less hierarchical. world, she emphasized. However, world, if they are to be successful they ¥ Employers are less likely to have Martin has specific words of wisdom must learn how to manage their com- long-term employee relationships. for today’s business owners and man- panies within the parameters that exist. ¥ Employees have less confidence in agers. “One of the biggest challenges Being open to new ideas and ways of long-term rewards and greater expec- is knowledge transfer. Organizations doing things can be a big advantage. tations for short-term rewards. need to get on this bandwagon right “In the workplace everybody is a learn- ¥ Immediate supervisors are the most away,” she insisted. To accomplish er and a teacher,” Martin said. important people in the workplace. this, she recommends engaging people ¥ Managers need more skill and time at every level in transfer programs Jeanne Lauf Walpole is a freelance to supervise employees. while retaining and attracting older writer based in Northern Nevada.

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BNV_019_FroEnd_NVBJ_AD.indd 1 June 2007 5/4/07 2:12:13 21PM Getting Your Message Across Creating an Interactive Brand Experience

o what came first, the compa- Channel, a target can be accessed room. Consumers can narrow down ny’s brand or the technology to more definitively based on personal the search until they’re ready to start Spromote it? With technology taste, instead of having to wade visiting available homes in person. changing at an almost moment-by- through the masses to find that spe- The upside to not only getting the moment pace Ð just watch the differ- cific percentage. You may say, that’s message across is tracking its success. ent cell phone ads that seem to be not a new marketing strategy … but While Charter Media can’t obtain created on a weekly basis Ð one wait, there’s more. personal information, the company would assume a marketer’s job in Advertisers usually only get their can let an advertiser know how many promoting a client would need to re- message delivered in a 30-second or people opted to watch additional in- flect that pace. 60-second commercial spot, but what formation and for how long. And Gone are the days of relying solely if a company has more to say? A rela- when it comes to crossover, Pytel on the traditional avenues of brand tively new advertising product called compared On Demand interactive of- promotion. Rather, these traditional “I Want More” is available at Charter ferings as a cross between the Inter- media are further developed not only On Demand. Companies can create net, television and direct mail. The to get the message delivered, but to longer segments that further describes people who actively seek out this in- create a more interactive experience their products or services. Interested formation are in the market to buy. for the target audience. viewers can access these spots at-will Of course, as the technology Take cable television, for example. from Charter’s “I Want More” menu. changes, so does the opportunity for Norm Pytel, general sales manager Each regular commercial is tagged at more interactive media. Currently, for Charter Media in Northern Neva- the end, directing interested viewers plans are in place for an expansion of da, shares how cable television adver- to visit this expanded menu to learn the On Demand advertising product. tising opportunities define more more about the client’s offering. The company is experimenting with clearly where target markets exist and The cable affiliate in Los Angeles tools that allow viewers to use their re- how to reach them. Whereas network has been experimenting with offering mote control, when prompted to seek television programming may have a an in-depth informational option for additional information. Consumers program that appeals to a massive au- golf courses, restaurants, gaming op- will no longer have to specifically dience, cable television program- portunities and a program called New search out a menu item, but rather, ming, by its very nature, defines spe- Home Tour. This affords potential when asked if they desire more in- cific markets. By counseling homebuyers the opportunity to visit a depth options, they can be telescoped companies to focus on specific chan- variety of homes in various markets straight to the expanded informational nels such as HGTV or the History without leaving their own living piece. “One cable company in Hawaii

22 June 2007 Feature Story: Creating an Interactive Brand Experience

is currently experimenting with a pro- web site and taking it a step further professionals are often tasked with gram that, for example, allows the for clients. “LasVegas.com has con- pushing the target audience to a venue viewer to see a pizza restaurant adver- tinued to build a brand while creating that will provide information. With tisement,” said Pytel. “At the end of an interactive experience,” said interactive sites such as the commercial, a prompt comes up Melee. “A web site like this can speak LasVegas.com, it actually pulls the asking if the consumer wants to go to millions of people on a one-on-one visitor through to the buying process ahead and order a pizza. By hitting a basis to help future visitors create a so an actual financial transaction button on the remote control, a signal trip that’s personalized to their de- takes place. Additionally, a company is sent to the pizza company and the sires.” It also helps marketers with can have a site created and build a viewer can expect a phone call shortly the push/pull process. Marketing database that actually allows the thereafter with customer service offer- ing to take his or her order.” Not all new branding options are in the form of commercials, however. Creative marketers see branding not just as a specific campaign, but as an opportunity to hit their target market every chance possible. Branding is an ongoing process, rather than a one- time ramped-up campaign designed to introduce a new product or develop recognition, and technology is creat- ing more opportunities. Paula Yakubik, managing partner of MassMedia PR in Las Vegas, said her philosophy is really founded on help- ing clients understand the power of their own web sites. “We talk to our clients about their web sites being the most important thing they have,” said Yakubik. A company’s web site is a conduit to not only provide in-depth information, but also feature it in dif- ferent ways. One recent marketing innovation, the podcast, is a great tool for adver- tising clients who provide training services to their own clients. Rather than have participants actually leave their offices, find parking and spend extra time in the process, they can log on to the podcast during lunch from the comfort of their offices. “Our clients can consistently drive traffic to their web sites while still serving their customers by using podcasts,” said Yakubik. Mary Ann Melee, president and chief strategic officer for R&R Part- ners in Las Vegas, agrees with the im- portance of thoroughly utilizing a

June 2007 23 Feature Story: Creating an Interactive Brand Experience

company to own the transaction data. through building the database that is such as how future customers make a At the end of the day, the more infor- more specific to the individual poten- purchase, how much they purchase, mation a company has about how and tial consumer. “We are constantly en- what kind of cars they drive and what why a consumer makes a purchase, gaging customers, developing a rela- types of restaurants they prefer, the the better that company can deliver tionship and learning to utilize it,” audience is narrowed down and the future messages and strengthen the said Melee. “Technology has helped message made more specific. “Per- brand recognition. narrow down the target audience.” haps through your research, you dis- According to Melee, mass-reach For example, direct mail pieces can cover that the top 20 percent of your media on a local level, such as Televi- be designed in a manner to grab the target audience enjoys fine dining,” sion and radio, are still the most uti- consumer’s attention on a more person- said Melee. “You then have learned lized. However, the power comes al level. By researching information that to reach that audience, you should be buying ad space on the Food Network.” By utilizing technol- ogy to narrow down the audience’s interests, savvy marketers know where and how to find the best re- flection of the target audience. This No Matter How BIG allows marketing professionals to or Small, make sure the brand message is being received by the people who ac- Steve Byrne can tually want that brand, as opposed to finance your project shotgun marketing the masses, where you shoot and hope in the process that you hit your target audi- ence in there somewhere. Flip Wright, director of brand strate- gy and account planning for the Rose- Glenn Group in Reno, said that adver- tisers are really trying to develop a relationship with customers through Private Trust Deed Financing Land Acquisition, Development and Refinance the brand experience. It’s not just a Competitive Rates and Terms Bridge Loans on Income Producing Properties passive relationship, with one member delivering a message and the other re- Fast Response Construction ceiving it. Rather, the brand experience Loans up to $10 million Firsts,Seconds and Mezzanine is designed to give the audience some- thing memorable, that stays with them and makes each individual feel special. Technology can be utilized in surpris- ing ways to further strengthen a brand. One unique example is Second Life Ð 2450 St. Rose Parkway, Ste 210 Henderson, NV 89074 an online society where real people 2IÀFH‡)D[‡0/'/,& create fictional online personas who exist in virtual reality. People can trav- learn more about us online el, go dancing, shopping or just hang :::&$36285&(,1&&20 out at a bar, visiting with the regulars in the Second Life world. “If a com- Past performance is not necessarily indicative of future results pany such as Chili’s wants to launch or success. Money invested through a mortgage broker is not new product ideas, they can put them guaranteed to earn any interest or return and is not insured. Minimum investment is $25,000.00. Before investing, investors on the Second Life menu and see who must be provided applicable disclosure documents. orders what,” said Wright. Second Life creates an enormous virtual test

24 June 2007 Feature Story: Creating an Interactive Brand Experience

market that can essentially help guide utility is to get consumers to interact to get away from a passive setting and companies through the decision-mak- and identify with the brand. The really make an emotional connection. ing process when adding new products process attaches additional value to Apple is an example of a company and services. owning and identifying with the that has a thorough understanding of Similarly, MySpace and YouTube brand and doesn’t require a huge the importance in creating an have also provided useful marketing number of commercial spots to deliv- emotional connection for a brand. vehicles, particularly since the Inter- er the message. “Traditional advertis- While Apple was not always a main- net has changed the way people inter- ing is still needed but creating brand stream product, it still enjoyed strong act with each other. Marketers can utility simply adds to the overall brand loyalty among those consumers take advantage of the rapid-fire com- package,” he said. It allows marketers who owned an Apple computer. munications that occur on sites such as MySpace and YouTube to create “buzz” about new products and ser- vices. “Movies have huge followings before they are released in theaters because of the brand awareness creat- ed by these web sites,” said Wright. Blogs are also very useful tools that can help increase third party endorse- ments of a brand. “Many trendy sites generate publicity Ð both positive and negative Ð for a wide range of prod- ucts and services,” said Wright. The challenge is in getting positive buzz for your brand without bloggers feel- ing like they’re being used or manip- ulated to get a message across. The emerging changes and trends in technology have not become so ad- vanced that traditional media such as print and electronic can be disregard- ed. “Print is still a great medium that offers business plenty of advertising opportunities. It is still used very cre- atively to produce a strong, tangible brand experience,” said Wright. With print, however, advertisers can tell a story with text or with a powerful image. Many consumers go back and look at magazines more than just once. Advertisers do not have to keep their message in a specific time allot- ment and can create an emotional ex- perience with a photo or a few words. “Grabbing the consumer’s attention is not done only through the medium, but by how you communicate that message,” said Wright. There is a new concept on the rise in the industry called brand utility, ac- cording to Wright. The goal of brand

June 2007 25 If you’re thinking of going anywhere else, You ought to have your head examined. However, the company didn’t have a crossover to mass appeal. “The iPod And of course, we can do that. was the gateway ‘drug’ for Apple,” Wright said. “It enabled consumers to experience what Apple was all about. Now the Apple brand is perceived as cool, and there’s a lot of value being placed on cool these days.” The com- pany purposely designed their head- phones to be white Ð a color that is now synonymous with the Apple brand. “When one person sees anoth- er person wearing white headphones an immediate connection is made to iPod Ð Apple – that’s cool,” he said. angiography | biopsy | CT/CTA | DEXA | fluoroscopy | interventional | mammography Technology is always changing, MRI/MRA | nuclear medicine | PET/CT | ultrasound | x-ray which means the way people use it is also changing. Technology can pro- That’s just a little radiology humor, but when it comes to your well- being, our specialists couldn’t be more serious. That’s why Desert vide that interactive component that Radiologists is at the forefront of diagnostic imaging technology. brings the client full circle to the pur- Our team of radiologists, technical and support personnel promote chasing process. “When it’s all said a healthy, pleasant environment that relieves concerns and results in the ideal experience for our patients. Visit www.desertrad.com and done, branding isn’t easy and it 702-759-8600 to get a better picture of everything we have to offer. www.desertrad.com needs to be researched first with a 2020 Palomino Lane | 7200 Cathedral Rock Dr. | 3920 S. Eastern Ave. | 60 N. Pecos Road | 2811 W. Horizon Ridge Pkwy. strategy developed second,” Wright said. When technology is added to the traditional forms of branding with an increase in the frequency of how often a target audience is reached, changes start to take place. While the recipe for success sounds simple enough, proceeding without the right research and data development may leave a branding campaign flat. It’s hard to tell if technology is changing to better provide a venue for companies to place their brands squarely in front of the target audi- ence, or if the technology is simply changing and creative marketers are learning how to better utilize these tools. In this case, it doesn’t matter whether the chicken or the egg came first. It’s more important for companies to understand that more tools exist for getting the message across, and to clearly understand how to make these tools work to reach their clients.

Stephanie Herrera is a freelance writer based in Northern Nevada.

26 June 2007

FRONT ROW (L TO R): BACK ROW (L TO R): Steve Dixon • Southern Hills Hospital and Medical Center William Bannen • Anthem Blue Cross Blue Shield Charles Perry • Nevada Healthcare Association Paul Davis • United Healthcare Mark Howard • MountainView Hospital Las Vegas Ken D’Amico • Healthsouth LTAC Hospital James D. Sanchez • Comprehensive Cancer Centers of Nevada Anthony Pollard • Rainbow Medical Centers Industry Focus: Healthcare

ecently, industry experts sat states because it provides an easier down at Cili in Las Vegas to dis- methodology for making sure the pa- Rcuss the challenges facing Neva- tients receive care without having to da’s healthcare industry, such as re- go through the financial hurdles for cruitment, retention, emergency room those who have no resources at all. overcrowding and Medicaid. Kath- This paves the way toward expediting When we leen Foley, former editor-in-chief of patient access to sites of care and Nevada Business Journal, served as solving the financial issues. the moderator for the event as part of Charles Perry: The fiscal note that has the magazine’s monthly Industry been placed on the bill Medicaid pre- started, Focus series, which brings industry sumptive eligibility is around $10 leaders together to discuss issues per- million. And, there is a $100 million tinent to their professions. Following shortfall gap that everybody is won- is a condensed version of the round- dering how to close. I’m not real opti- Grant wasn’t table discussion. mistic that it’s going to pass. Howard: It comes down to available Impact of Sierra Health Services dollars. In some cases, there are other Buyout by United Healthcare priorities in the state, usually where on the $50, an established program is already in Paul Davis: United and Sierra look at place, and this will attempt to expe- this as a positive for the community. dite some of the dollars. We think it will expand choices for Perry: Well, the fact of the matter is, He was in the White House. the community by increasing prod- this is not supposed to cost more ucts and innovations by combining money. But it does involve the state the best of both organizations to ben- expediting money a little bit faster efit both sides of the equation, in than it would normally. terms of the merger. Bill Bannen: United brings a big, na- Staffing Crisis tional corporate presence to Sierra. It’s a positive acquisition for the com- Howard: We have made progress. munity. We’re no longer the worst in the Unit- Anthony Pollard: I think there is less ed States with regard to nursing staff concern from a contractual agreement shortfalls and poor nurse-to-patient standpoint. United has a broad range ratios in our hospitals. We’re behind of products, and they have an impact California now, and Utah is number nationally, as well as geographically, three. The nursing program will help so I think that helps. hospitals. The Legislature has in- Steve Dixon: It raises a variety of is- creased the size of the programs and sues for the insurance industry, in new programs have started within the terms of concentration on market last three years with University of power and targeting insurers. Southern Nevada and Nevada State Ken D’Amico: I think that physicians College. The healthcare industry has are receptive to United entering the done an extremely good job of includ- Irwin Union Bank, established 1871. market. Historically, Sierra has creat- ing those students in our hospitals and ed a lot of tension between providers other facilities so they can get the and payors, and it can only improve. proper education. As a result of its ex- plosive growth, however, Las Vegas is Carson City | Las Vegas | Reno 888.879.5900 Expediting Medicaid Care Through unique. What other community has

© 2007 Irwin Union Bank. Member FDIC. Presumptive Eligibility had eight new hospitals built in the last twelve years? It comes down to IrwinUnion.com Dixon: This has worked well in other the number of people moving into the Continued on Page 88 30 June 2007 Rose de Lima Campus Siena Campus San Martín Campus

St. Rose Dominican Hospitals is proud to be your choice for quality health care for the past 60 years.

In June 1947, seven Adrian Dominican Sisters traveled across country via train from their Motherhouse in Southern Michigan to Henderson. The Sisters made a commitment to Southern Nevada and purchased the Basic Magnesium Hospital, renaming it Rose de Lima. Their hard work, faith and dedication turned a fledgling hospital into a source of compassionate care for the Southern Nevada community. St. Rose’s mission to provide quality, compassionate care to all those in need continues to thrive today. The Rose de Lima Campus continues to serve the community, and its sister hospitals - Siena and San Martín - welcome patients and visitors in Henderson and Southwest Las Vegas. As Southern Nevada's only not-for-profit, non-tax-supported, religiously sponsored hospitals, St. Rose focuses on healing not only the body, but mind and spirit as well. We invite you to participate in our 60th anniversary celebrations throughout the year. Please visit www.strosehospitals.org for event listings.

Need a doctor? Call the St. Rose Physician Referral Service at 616-4508. Industry Focus: Healthcare

Continued From Page 30

Valley, the amount of healthcare facili- cost effective way to free up beds in ties, the number of beds required to Relieving Emergency Room the acute care services and emer- serve the growing population and the Overcrowding gency departments of Southern shortage of qualified healthcare em- Nevada’s hospitals. ployees. There is another bill that re- Dixon: If passed, this bill will help cently surfaced that will give the mental with emergency room overcrowding. Addressing the Uninsured Population health facilities the ability to do onsite When I walked in this morning, we medical examinations of their patients had five mental health patients occu- Dixon: I haven’t seen a significant so they don’t have to be brought to a pying beds. They were all cleared change in numbers of uninsured pa- hospital emergency center first. medically, but they were just waiting tients coming to our facility. It is an Howard: The other interesting thing is for a place to go. We are still severely interesting part of the hospital’s pa- that even with the HCA (Hospital Cor- lacking in mental health resources in tient population. We provide care poration of America) hospitals not ac- this community. just like all hospitals do, regardless cepting the Sierra Health patients, we Howard: As previously discussed, of people’s ability to pay. So that have not seen any abatement in our providing alternative services for seems to be a fact of life for us. emergency center visits, especially at mental health patients will go a long Many states are trying to address MountainView. We actually treated way toward alleviating the problem. the uninsured issue on a state-by- more patients in the first quarter of this We have reported at times, anywhere state basis. year than we saw first quarter last year. from 90 to 150 beds here in the Howard: Emergency rooms are the And that’s with about 25 percent of emergency centers in Nevada that uninsured population’s only access to those who previously came in through are occupied by mental health pa- healthcare. And those patients are sick- Sierra Health. So with the growth, we tients waiting to be transferred. Pro- er when they come in because they wait are still seeing more and more patients viding dedicated facilities for these longer to go to healthcare facilities. in our emergency room centers. patients will be the quickest, most Pollard: That’s because they can’t pay.

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88 June 2007 Industry Focus: Healthcare

Bannen: First, the truly poor who end up paying for those costs in the can’t afford insurance and don’t have form of higher healthcare benefits for any coverage. Second, 15 million their employees. young adults who earn $50,000 to Howard: Our coverage for the unin- $60,000 a year and don’t see the value sured is increasing each year. More of health insurance. We are develop- and more uninsured people are pass- ing catastrophic insurance plans for ing through, and they’re usually sick- this group of people. An additional 15 er so their stay is going to be a day or million in this second group are strug- so longer and they’ll need more cost- gling to survive on hourly pay just ly care and treatments. above the poverty line Ð they cannot Pollard: Given that, would there real- afford insurance and are ineligible for ly be a reduction to the paying cus- Medicaid. The third segment consists tomers who have policies based upon of 15 million people who are eligible a true program? for Medicare and Medicaid, but for typically do not see any. We have Dixon: Insurance companies are ac- whatever reason, don’t seek medical eaten the whole unpaid cost in the countable for setting premiums and a treatment until it’s an emergency. past. But, this is a national problem portion of that premium is designed to Many don’t earn enough money to and Nevada is one of the five worst subsidize the uninsured. buy insurance, but need it Ð working states when it comes to that. Bannen: I think that’s realistically moms, single moms, housekeepers or Dixon: Well, medical insurance does- true, although we’re not happy about employees of small businesses. So, I n’t cover the full cost of care regard- having to subsidize the uninsured. don’t think the problem is quite as big less, so those costs do get passed on to This is reflected in premium costs and as the numbers, but these individuals somebody. Hospitals don’t have a Nevada is a very sensitive state to the continue to appear in the ER as unin- printing press where we’re able to just continual rise in premium rates. It sured. Unfortunately, the group aged grind money out at-will. Employers truly is a free market enterprise where 25 to 50 who make $50,000 a year, end up taking a real hit. The unpaid costs of those people who are not on Medicaid, as well as the uninsured poor, are absorbed and written off by the hospital.

Insurance Reimbursements

Perry: Most of the government pro- grams started out as cost-based pro- grams. About 40 years ago, they were actually paying the cost of care. Now, hospitals are being shorted nearly 30 percent of what it costs to provide the care. This cuts into such expenditures as improvements needed at facilities or the addition of new technology. In the nursing home sector, we have lived with that phenomenon for a long time. And now, hospitals are taking the same type of hit to their bottom line. Something has got to give some- where. Howard: Hospitals would gladly take any kind of reimbursement, but we

June 2007 89 Industry Focus: Healthcare

the ability to negotiate the market shares and other things come into it. Davis: I agree. From a public policy perspective, regardless on which side of the equation you sit, the citizens of this state are ultimately paying for that care. If you want to put a program in place that pays for it proactively, then preventive care may be the solu- tion. The simple proverb, “An ounce of prevention equals a pound of cure,” means that, dollar for dollar, hospitals maybe. Every year after that, it’s been treatments has really helped our situ- can provide far more preventive care, medical care costs, inflation minus 1 ation. These treatments are not all funds, technology and management, percent to 3 percent. generic, in terms of treatment. One than emergency treatment for very Sanchez: We represent a very small treatment, for example, costs as much sick patients who are there because segment of the market, but it’s also as $14,000 Ð every two weeks. So, it’s that’s their only access to healthcare. probably one of the most costly por- a tremendous financial burden that Dixon: Unfortunately, that is right. In tions of the market, in the terms of we’re all bearing. Is it worth it Ð given the early ’80s, the promise from the providing care for cancer patients. the outcome some of these patients federal government was that every Often the vast majority of expenses can expect? Fortunately, we are not in year we would receive an update pay- are incurred during the last few a situation where we are forced to ask ment raise based on medical care cost months of these patients’ lives. The that question. It is more of a societal inflation. That lasted for one year, explosion of new drugs and issue and a constant tug of war. From our end, we feel that by managing costs, we can properly manage the type of care we provide. U.S. Oncolo- Compassionate gy has a program called Clinical Path- ways which allows us to take every Physician Care. patient with every type of malignancy and determine the optimal treatments to be administered. In a sense, it’s al- Fighting cancer takes strength, determination and the support of family and friends. That’s why we’re here, most a model for the industry. A providing Las Vegas with the latest advancements in cancer treatment in seven locations throughout the valley. Comprehensive Cancer Centers of Nevada provides patients in the Las Vegas area access to cancer research model like this would significantly trials through affiliations with US Oncology and UCLA. Visit us online at www.cccnevada.com for change the way we practice in the fu- additional information or call our Southwest office at (702) 952-1251. ture. We think that we can work to- gether with the healthcare agencies VALLEY LOCATIONS: HENDERSON CENTRAL VALLEY SUMMERLIN PEDIATRIC CARE 952-3444 952-3400 233-2200 688-6180 and hospitals to try and continue to NORTHWEST SOUTHWEST BOULDER CITY provide the quality of care, but also be 952-2140 952-1251 293-0357 mindful of the costs of care. D’Amico: With acute long-term care, the expenses are exaggerated even more because the situations are med- ically complex Ð sometimes directly from the ICU. Because of the de- creasing reimbursement of Medicare and the insufficient reimbursement of Medicaid, the burden often falls on Southern Hills Office Physicians our ability to negotiate an agreement From Left: Raul Meoz, MD, FACR Paul Michael, MD Noel Rowan, MD, FACP with the payors. Someone has to ab- Hamidreza Sanatinia, MD sorb the cost.

90 June 2007 Industry Focus: Healthcare

Recruitment and Retention We can train them but unless we can Managing Growth retain them, it has a very limited im- Howard: It is becoming harder to re- pact. The hope, of course, is that if Pollard: I think you are going to see cruit healthcare personnel because of you train folks here, they will stay more Wal-Mart type settings for med- the increased cost of housing. Nevada here. But there is no guarantee that ical practices Ð one large governing used to be the place to move to be- will happen. body because of the space limitation cause of the low costs. But now, peo- Howard: Most physicians have to see and high rent. It just won’t work in ple are looking at the Midwest or 20 percent more patients now than today’s environment, based on the Texas because they can buy a huge they did five years ago, to make the rent rolls to operate typical clinic-type property and still have money left same amount of money. facilities. I can see medical practices over. That is not the case in Nevada Sanchez: It’s worse than that. The me- becoming like Wal-Marts and Wal- anymore. It affects both recruitment dian age of a physician in oncology is greens Ð it may have already started and retention. 55 years. Doctors who are in training happening. Dixon: Ultimately, it affects the cost of look at oncology as stress-type em- Bannen: It has – it’s called Medical the care provided. The inpatient-care ployment for which training takes far Clinics in America and they have costs are driven by those factors. If we too long. We’re seeing physicians in partnered with Walgreens or Wal- can’t recruit people at the current medical school migrating towards Mart. Basically, they put nurse practi- rates, then the rates go up. And those areas of dermatology, ophthalmology tioners in Medical Clinics of America costs again get passed on to the gov- Ð areas where they can set their hours, and you don’t see a doctor, but a ernment, should they choose to pay, as well as their rates. We’re also find- physician assistant or nurses assis- or private employers who choose to ing that younger physicians have a tants. Those options are already oc- offer health insurance. completely different work ethic. They curring for patient’s care. To solve the Perry: We’re pricing our employees don’t work as hard or long as sea- larger problem, we have to decide out of the market, too. I mean, where soned physicians. end-of-life issues. It will come down are your employees going to live if they can’t get affordable housing right here in Nevada? It’s a big problem. We have vacancies in our facilities be- cause we can’t get the staff. And if you can’t take care of somebody in long-term care because you have a shortage of staff, you better not take them as a patient at all. We get sued increasingly under contract law be- cause we either did something that we weren’t supposed to do Ð or we said we would do something but didn’t Ð and then, that’s where they sue you for malpractice. Pollard: We have an issue with re- cruitment of physicians here. It’s going to continue, and eventually cause an issue in the ability to give adequate care. Soon, the physicians who are graduating here won’t be able to afford to practice here. Dixon: These physicians, once trained, are competing in a nationwide mar- ket. That competition plays out when physicians choose to set-up practice.

June 2007 91 Industry Focus: Healthcare

to the cost. These are legal, ethical unexpected. My 21-year-old daughter and political issues that we have to was a senior in nursing college and start dealing with. We have to manage she came down with leukemia. The our healthcare decisions. Are we chance of survival was 90 percent, but going to cover everything from cradle she was among the 10 percent who do to grave? At what point does the fam- not make it. What caused the ily take care of it? And, at what point leukemia? Was it the Agent Orange in do we say, “Maybe this person really Vietnam? Was it growing up in Las shouldn’t have a transplant.” Vegas during nuclear test? You are al- Pollard: Can you take a socialistic for- ways going to second guess. mula and squeeze it into a capitalistic Bannen: You do whatever you need formula? That’s basically what we are to do to try and save them. I’m not doing with healthcare. sure you transplant a heart into an Dixon: It will have to play out politi- 80-year-old. I’m not sure we spend cally. The can will be kicked down the enough or too much money on road so that somebody else has to deal leukemia treatment and research. I’m with it. not sure those are appropriate deci- Davis: Drug companies are also hurt- sions for us to make. We can offer ing us with their commercials that preventive OB-GYN healthcare for say, “Ask your doctor for this pre- thousands of women, which is a bet- scription.” But, these people don’t ter use of the dollar. I’m kind of op- know the side effects or if there’s timistic. Our problem is bringing something better for their issue that’s everybody together and staying less costly. Providers and insurance to pull us back in line and tell us the open-minded. If we don’t, the gov- companies like providing the pur- right way to go. ernment will force us to and we’ll chasers of insurance with the trans- Pollard: In terms of business, ethics pay the consequences. parent claims information so that and managing care for patients, I D’Amico: I can see crossroads here Ð they can start making some real con- think we [physicians] are more em- diagnosis just so the family can keep sumer group decisions, all the while pathetic towards people and the de- the checks coming. I’ve faced some the consumers still believe they can livery of care. We really weren’t real ethical issues. I think that’s access the healthcare environment trained to be businessmen. The real where we are in the healthcare. We’re for a $5 co-pay. issue is that people do not take care kind of at an ethical crossroads Ð do D’Amico: There is only one person of themselves. There is no account- we go more toward socialist or back who can admit or discharge a patient. ability here for why people have the to capitalist? But every time a group accepts a sicknesses and diseases they have. Bannen: We need to use common lower rate for higher volume, it wa- We all have free demeanor of sense and be realistic. We need to say ters down the programs for their own choice. We all have to make choices we have a limited healthcare dollar benefit. Physicians have let this get and accept the consequences for here. How do we use it to our advan- out of control. At some point, there those decisions. tage? Let the American public tell us has got to be some solidarity for Davis: Until we come together as re- what they want? them to come together and say, spective organizations and discuss Davis: We spend more on healthcare “Enough is enough.” There’s so how to manage healthcare, we’re not as a society than any other civilized much competition, we have almost going to ever lower healthcare costs, country in the world. The reality of it sold our souls. Now you have the in- we’re just going to shift the costs to is that the dollars aren’t being spent surer, payer and attorney Ð all trying each other [physicians and payors]. appropriately. It’s great to talk about to determine the right decision. But Bannen: I think you are exactly cor- this in theory, but the person we’re we know who is supposed to make rect Ð kicking the can down the road. talking about is somebody’s daughter, the decision and who has the most li- Pollard: It’s called realistic expecta- somebody’s wife and somebody’s ability for that decision. We need to tions. granddaughter perspective changes look toward our physician leadership Howard: But you always have the everything.

92 June 2007 Take care of the ones who take care of you A business is only as strong as its employees. Keep your employees strong and healthy and your business will follow suit. Health Plan of Nevada has been offering the tools business owners need to keep their business in top form. With a benefit plan to fit your business, at a cost that will fit into your budget, Health Plan of Nevada will help you take care of your most important asset…your employees.

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21NVHPN07159 John Ritter, chairman and CEO of Focus Property Group, discusses green trends in developing master-planned communities. Building Nevada: Master-Planned Communities

MASTER-PLANNED COMMUNITIES ENVIRONMENTALLY-FRIENDLY NEIGHBORHOODS

n its 1,953 acres, Inspirada, a new Definition and Benefits west Reno community. “You couldn’t master-planned community devel- do that with a 100-home subdivision.” Ioped in Henderson by Focus Prop- What is a master-planned commu- While master-planned communities erty Group, is designed to incorpo- nity? “It’s a community in which often incorporate many similar ele- rate residential, commercial and thought is given to the future needs of ments, they all are unique, expressing recreational areas, creating a live, the residents who are going to live those commonalities differently. work and play environment. It will there,” said Paul Curtis, chief execu- “Every community takes on a life of be a high-density development tive officer of Kiley Ranch Communi- its own, has its own identity,” said (11,500 homes) that emphasizes ties, the developer of Kiley Ranch, a John A. Ritter, chairman and chief ex- walkability and connectivity, incor- master-planned community in Sparks. ecutive officer of Focus Property porates environmentally-friendly el- “The thought that goes into the com- Group, the developer of Mountain’s ements and provides diverse housing munities allows them to work from a Edge and Inspirada. Master-planned options and architecture. Inspirada is livability standpoint.” communities tend to hold their value quite different from the master- Master-planned communities typi- because structure and design stan- planned communities of 15 to 20 cally have elements that define them: dards are maintained. In Summerlin, years ago. It represents a new way of landscaping, environmental graphics for instance, all built structures must thinking when it comes to designing or signage, wall treatment, lighting and be approved by a design review com- these communities. architecture. They have design stan- mittee. In the community’s garden “Planners are really studying the dards by which builders must abide. neighborhood, homes must showcase way people live and the way they They generally offer a way of life, with color palettes suggestive of an Eng- want to live, and then building the amenity packages, including every- lish garden and utilize garden ele- community around that. It used to be thing from walking trails, open space ments, such as trellises. the other way around – you’d build to parks and recreation centers. Some The inherent value in master- the community and then people contain public facilities Ð schools, li- planned communities makes buying a would be expected to shoehorn their braries, performing arts centers, fire home there a better investment than lives into it,” said Tom Warden, vice and police stations and even medical purchasing outside of them. The po- president of community and govern- clinics and hospitals Ð along with retail tential for investment appreciation is ment relations for Howard Hughes and other commercial enterprises. greater. “With a master-planned com- Corp., the developer of the 22,500- “At Somersett, a fee of $150 each munity, you understand what it will acre, Southern Nevada community, month from every home maintains all look like 20 years from now,” Smith Summerlin. the landscaping and recreation build- said. The communities’ codes, As master-planned communities ings, the trails and the nine-hole short covenants and regulations, how well have evolved over the past decade in course,” said Blake Smith, managing they’re written and enforced, are what Nevada, many new trends have partner of the Somersett Development control the environment and protect emerged. Co., the developer of the 2,800-acre, real estate values.

June 2007 95 Building Nevada: Master-Planned Communities

Residents enjoy the sense of com- access to several places for social gath- such as the Boy Scouts, on projects munity that master-planned commu- ering, such as parks, golf courses and a and offers its facilities for charita- nities provide. “I think one of the 22,000-square-foot recreation facility. ble events. things consumers are aching for is a The homeowners association holds nu- Opportunities for recreation at return to communities that embrace merous activities for all ages, from master-planned communities are a neighborhoods and embrace social in- potlucks, dances and parties to gym- major draw, as well. Aliante, a 1,700- teraction as opposed to the post- nastics and pottery classes. Mountain’s acre golf community in North Las World War II urban-sprawl neighbor- Edge, a 3,500-acre master-planned Vegas, for example, contains 428 hoods that really were built more community in Las Vegas, promotes acres for recreational and public use. around the car,” Ritter said. philanthropy to involve residents. It Facilities include an 18-hole golf At Somersett, residents enjoy partners with service organizations, course, 24 miles of trails, community parks, a library, picnic areas, sports courts and fields, tot lots, horseshoe areas and a 20-acre nature park, where community events take place. Construction has begun on a 200- room, 2,000-slot hotel casino, Aliante Station, complete with a bowling alley and movie theater.

New Design

High-density developments that in- corporate all the necessities to live, work, shop and play within the com- munity are on the rise. They’re re- ferred to as New Urbanism, Smart Growth or Traditional Neighborhood Design communities. These commu- nities balance the community feeling of traditional city neighborhoods while offering modern-day conve- niences and de-emphasizing the need for cars. Their high-density design conserves land, utilities and other re- sources. “What’s kind of ironic about the term New Urbanism and these new designs that have been develop- YOUNG ELECTRIC SIGN COMPANY ing over the last 25 years but are just now taking off is that they emphasize FOROVER85YEARS. a return to classic neighborhood de- sign,” Ritter said. GAMINGRETAILCOMMERCIALDESIGNCONSULTING To foster connectivity among its projected 26,000 residents, Inspirada’s ENGINEERINGMANUFACTURINGSERVICE streets will be narrow, walls between neighborhoods will be eliminated, 20 LEASINGFINANCING miles of trails will run throughout, all homes will be sited within five min- ELECTRONICSINTERIOREXTERIORSIGNS utes’ walking distance to a community park and pool, and garages will be de- 702-876-8080WWW.YESCO.COM emphasized, moving homes closer to

96 June 2007

Building Nevada: Master-Planned Communities

Paul Curtis, CEO of Kiley Ranch Communities, stands at the site that will be the new master-planned community in Sparks. WE’RE BETTER TOGETHER the streets and allowing for porches adding a high-density urban village to Armstrong Teasdale and picture windows. Civita, the town the community, a concept that was not Strengthens Nevada Presence center, will feature restaurants, shops, part of the original master plan. In its

San Francisco and Reno have joined cafes, entertainment venues and 200 acres, the as yet unnamed walka- Las Vegas as the newest offices of more. Other amenities might include ble village will incorporate many types Armstrong Teasdale. The attorneys of Senn a casino, schools, sports fields and of urban residential homes, including Meulemans LLP, a San Francisco based law firm with offices in Reno and Las Vegas, courts, and police and fire stations. row houses, walk-ups and mid-rise have joined Armstrong Teasdale. With more Kiley Ranch, the new, 808-acre towers, some with office space, as well than 265 attorneys, Armstrong Teasdale master-planned community in the as streetside retail. provides a coast-to-coast and international Spanish Springs area of Sparks, is presence focused on sophisticated local advice and exceptional client service. slated to incorporate 3,000 to 4,000 Environmental Focus residential units within about 323 Construction acres. Twenty-seven percent of the More and more master-planned Corporate total acreage is slated for commercial communities are integrating green, or Employment & Labor use and 25 percent for public facili- environment-friendly, features. Water Environmental ties, such as schools, parks, trails and and power conservation are at the Governance & Compliance open space. Linear parks and trails forefront of that movement. “More Intellectual Property will link the neighborhoods to three people are coming to the conclusion International activity centers: The Town Center (the we have to take care of the environ- Litigation entertainment hub, with restaurants, ment and we have to live our lives in coffeehouses, bookstores, movie the- a more resource-responsible fashion,” Real Estate aters and professional offices); The Curtis said. Securities Business Park (various types of pro- Mountain’s Edge prides itself on fessional and commercial space); and being water efficient and promoting The Marketplace (with retail stores, the use of drought-tolerant landscap- grocery markets, restaurants and local ing. Year-round it maintains an on-site shops and boutiques). Desert Demonstration Garden that www.armstrongteasdale.com “What we’re hoping to create is an showcases several native plants. With environment where you can get up in help from the Boy Scouts, the commu-

O. Kirby Colson III / 702.678.5070 the morning and wander down to the nity harvested 10,000 native plants on Las Vegas, Nevada bakery, have a croissant and espresso, Exploration Peak, a mountain at the and then go across the street to work. community’s entrance. The communi- Richard G. Campbell Jr. / 775.322.7400 Reno, Nevada Then you have lunch down the street, ty’s developer, Focus Property Group, and after work, have some friends stop published a book, Legendary Land- MISSOURI KANSAS ILLINOIS NEVADA by and go to a piano bar,” Curtis said. scapes, that is given to homeowners to CALIFORNIA WASHINGTON, D.C. SHANGHAI Southern Nevada’s Summerlin is help them create water-smart yards.

98 June 2007 Building Nevada: Master-Planned Communities

The rendering shows Summerlin Centre, a new retail center in Summerlin, scheduled to open in 2009.

“Originally when we first decided looking at green urban villages or res- within the community, an endangered to do the [Mountain’s Edge] project idential suburban villages,” Warden species habitat and create a series of this way about five years ago, there added. “That’s a huge step forward.” related trails, pathways and interpre- was a lot of resistance and a lot of Common efforts include the use of na- tive signs. Additionally, to educate people said it wouldn’t be successful tive landscaping rather than lawns, home buyers, the welcome center will because homeowners want palm trees and preservation of open space, display green elements, including and lawns,” Ritter said. “What we wildlife corridors and arroyos. patio pavers, recycled water features, found is quite the opposite.” In fact, Kiley Ranch developers are estab- recycled barn-wood flooring, bamboo Mountain’s Edge was the third lishing green building standards for the counters and on-demand water heaters fastest-growing master-planned com- community. Also, they plan to preserve Ð and explain their benefits. munity in the United States in 2005, according to RCLCO, a Bethesda, Md.-based, real estate advisory firm. Last year, the Las Vegas community ranked second. Summerlin’s green efforts include protection of the Red Rock Canyon National Conservation Area, incorpo- ration of natural landscaping and topography, preservation of natural drainage areas and arroyos, golf course water recycling and use of pol- lution-minimizing light fixtures. De- velopers are investigating alternative ways to generate power. A new com- munity center and the regional retail center will meet the standards for some level of Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. Residential builders at Summerlin are constructing almost all energy-smart homes, and Pulte Homes plans an entirely green village. “Instead of just talking about homes or singular buildings, we are now

June 2007 99 Safety Training Classes In the future, we will likely see .CU8GICU±%NCUUGUJGNFCV0)TGGP8CNNG[2CTMYC[5WKVG more use of weather-controlled irri- *GPFGTUQP084GIKUVGTD[ECNNKPIWUCV   gation systems, photovoltaic cells, energy-smart appliances and on-site %QP¿PGF5RCEG#YCTGPGUU ,WPGCOPQQP water recycling. #IGPGTCNRTQITCOVJCVKPVTQFWEGUVJGRCTVKEKRCPVVQ15*#¶UGUVCDNKUJGF TGIWNCVQT[TGSWKTGOGPVUHQTRGTOKVTGSWKTGFEQP¿PGFURCEGGPVT[6QRKEU Greater Diversity KPENWFGJC\CTFUCUUQEKCVGFYKVJEQP¿PGFURCEGGPVT[CVOQURJGTKEVGUVKPI CPFTGNCVGFRTQEGFWTGUCPFRGTUQPCNRTQVGEVKXGGSWKROGPV5CHGYQTM Today’s master-planned commu- RTCEVKEGUCTGCNUQFKUEWUUGF nities are incorporating a greater (QTMNKHV5CHGV[#YCTGPGUU selection of home and neighbor- ,WPGCO±PQQP hood styles than ever before, in 6JKURTQITCOKUIGCTGFVQYCTFOCPCIGTUCPFUWRGTXKUQTU5VWFGPVUCTG terms of architecture, income RTQXKFGFCPQXGTXKGYQHVJG15*#2QYGTGF+PFWUVTKCN6TWEM5VCPFCTF level, and residents’ ages and 6JKURTQITCOKPENWFGUUCHGQRGTCVKPIRTQEGFWTGUQRGTCVQTTGURQPUKDKNKVKGU NQCFJCPFNKPIEQPUKFGTCVKQPUQRGTCVQTVTCKPKPITGSWKTGOGPVUKPURGEVKQPU lifestyles. The residential units at CPFOCKPVGPCPEGTGSWKTGOGPVU Inspirada range from condos for the first-time home buyer to exec- 4GPQ±%NCUUGUJGNFCV-KGV\MG.CPG5WKVG'4GPQ08 utive, move-up homes. The com- 4GIKUVGTD[ECNNKPI  QT   munity boasts an eclectic blend of 5ECHHQNF4GIWNCVQT[4GXKGY Spanish, American, Traditional, ,WPGRO±RO Tuscan, Italiante, Monterrey and 6JKURTQITCOTGXKGYUVJG%QPUVTWEVKQP5ECHHQNF4GIWNCVKQPUCPFPGY Craftsman elevations. Architec- UVCPFCTFHQTOCV6JGGORJCUKUYKNNDGQPUWRRQTVGFUECHHQNFUYKVJUQOG ture, colors and materials vary URGEK¿EUQPUWURGPFGFUECHHQNFEJCPIGU6JGRTQITCOGPFUYKVJC FKUEWUUKQPQPVJGVTCKPKPITGSWKTGOGPVU from home to home. “It looks like an old-fashioned classic city that 15*#*QWT%QPUVTWEVKQP%QWTUG you might find in Europe or Amer- ,WPGCO±ROGCEJFC[ ica, or one of those areas that de- 6JKUVYQFC[EQWTUGRTQXKFGUCPKPVTQFWEVKQPVQ15*#CPF15*#¶U veloped organically over time,” %QPUVTWEVKQP5VCPFCTFU%(4+VYKNNEQXGTUGXGTCNUWDRCTVUQHVJG UVCPFCTFYKVJGORJCUKUQP0GXCFCGPHQTEGOGPVCEVKXKVKGU#VVGPFGGU Ritter said. OWUVCVVGPFDQVJFC[UVQTGEGKXGVJG15*#CVVGPFCPEGECTF Kiley Ranch, with a similar array of housing products, is 'NMQ±%NCUUGUJGNFCV)TGCV$CUKP%QNNGIGCV%QNNGIG2CTMYC[ planned to include in each neigh- 'NMQ084GIKUVGTD[ECNNKPI  QT  5#('08  borhood four or five architectural +FGPVKH[KPI%QPVTQNNKPI'NGEVTKECN*C\CTFU themes Ð Farmhouse, Ranch, ,WPGRO±RO Craftsman, Cottage and Victorian. 6JGRTQITCORTQXKFGUCPCYCTGPGUUQHVJGIGPGTCNJC\CTFUQHGNGEVTKEKV[ To achieve greater design diversi- KPVJGYQTMRNCEG6JKUKUCEEQORNKUJGFVJTQWIJCTGXKGYQHVJGDCUKE ty, Summerlin changed its ap- RJ[UKECNEJCTCEVGTKUVKEUQHGNGEVTKEKV[CPQXGTXKGYQHGNGEVTKECNUCHGV[JQY proach three or four years ago. “It VQKFGPVKH[EQOOQPGNGEVTKECNJC\CTFUCPF OGVJQFUVQEQPVTQNVJGO used to sell whole, 12- to 35-acre parcels to single builders, now it’s (QTCEQORNGVGNKUVQH (QTOQTG selling home sites in one neigh- ENCUUGURNGCUGXKUKV KPHQTOCVKQPECNN YYYUCHGPXUVCVGPXWU borhood to three or four different 5#('08 builders,” Warden said. 5CHGV[ENCUUGUCTGC HTGGUGTXKEGQHVJG 5CHGV[%QPUWNVCVKQP Technology Integration CPF6TCKPKPI5GEVKQP QHVJG0GXCFC&KXKUKQP Demand for greater technology in QH+PFWUVTKCN4GNCVKQPU master-planned communities is in- &WGVQNKOKVGFURCEG Your Partner for a Safer Nevada TGIKUVGTGCTN[ YYYUCHGPXUVCVGPXWU creasing. “The home buyers of the future, as well as businesses today,

100 June 2007 Building Nevada: Master-Planned Communities

require large bandwidth access to continue on Aliante Station for a late experts say. “In a major metropolitan technology,” Curtis said. 2008 opening. General Growth Prop- area, I think the tendency is going to Kiley Ranch’s developers plan to erties, the parent company of Sum- be towards mixed use, density, verti- provide fiber optic cable to every merlin’s developer, is building a 100- cality, much more green building, premise, home and business, in the acre regional retail center called more outdoor recreation and gather- community. Similarly, at Somersett, Summerlin Centre, scheduled to ing spaces,” Ritter said. Conversely, all homes are wired for various high- open in early 2009. It will contain communities in rural areas or on the tech applications, such as high-speed $1.5 million square feet of retail outskirts of metropolitan areas likely Internet access, energy management space, office space, residential units, won’t change much, he added. Future and home automation. a non-gaming boutique hotel and communities will feature more diver- four department store anchors, in- sity. More socioeconomic groups, res- Public Transportation cluding Nordstrom. idential products and architecture will In Northern Nevada, a new shop- be represented within one community. Access to public transit within ping plaza with a mix of shops, Amenities will be tailored to different master-planned communities is a restaurants and services Ð the Town stages of life. Overall, master-planned growing trend. At Inspirada, devel- Center Ð is under construction at developments are expected to grow in opers are considering building tran- Somersett and slated to open this popularity. “I would say that you will sit stops so that if Henderson month, Smith said. Two city parks see very strong, planned communities develops a mass transit system in the and the Somersett Fire Station are continue to capture more and more of future, it could be easily integrated under construction, which will be the buying public,” Warden said. into the community. Somersett is donated to the city of Reno. built for public transit, with bus Master-planned communities, in Doresa Banning is a freelance writer stops peppered throughout it. Kiley general, will continue to evolve, based in Northern Nevada. Ranch also plans for park-and-ride facilities and/or bus stops.  Fewer Golf Courses .YLLU>P[O,HZL Golf courses are no longer a given .YLLU*VUZ[Y\J[PVU amenity in new master-planned com- *VUZ\S[PUN:LY]PJLZ munities in major metropolitan areas 6SHFLDOL]LQJLQ/(('IRU+RPHV in Nevada. Yet, they still may be built in areas outside of major cities, such as (;;5/64,)<03+,9: Mesquite. Neither Kiley Ranch, in Sparks, nor Inspirada, in Henderson, (UH[PVUHSS`YLJVNUPaLK will contain golf courses. Summerlin, WYVNYHTOHZILLUW\[PU originally planned to have 15 courses, WSHJL[VVMMPJPHSS`JLY[PM` now has nine, according to Warden, UL^OVTLZ¸.9,,5¹ and will likely only develop one or two more. Once profit centers, golf courses have become too expensive to build in ¸.9,,5¹OVTLZZH]LVU Nevada considering land values and \[PSP[PLZHUKOH]LHKKLK water costs. Southern Nevada has be- ]HS\L come saturated with golf courses. ;OL[PTLPZUV^ Down the Line

The near future will bring changes to Nevada’s master-planned commu-  nities. This year at Aliante, work will ^^^NYLLU^P[OLHZLJVT

June 2007 101 B UILDING NEVADA BRIEFS

Crovetti Medical Center work is scheduled for completion in Breaks Ground September 2008. The two-story ad- BJI Orthopedics, a Las Vegas’ortho- dition to the existing satellite “D” pedic and sports medicine practice, concourse will provide nine addi- recently broke ground on the Crovetti tional gates and will consist of a Medical Center. Founded by orthope- lower level for storage, mechanical dic surgeon Dr. Michael J. Crovetti, and airline support facilities. The BJI will join Peak Performance Ther- new 128,000-square-foot addition $50 Million Class A apy and Fitness Center and the Neva- will be an exterior surface that fea- Office Park Planned da Sports Academy as the primary tures insulated glass with pre-fin- Stoltz Management Company and tenants of the new 39,761-square-foot ished aluminum panels. The project GoldenTree InSite Partners recently mixed-use medical facility. The $12.5 was designed by Tate Snyder Kim- announced plans to break ground million, two-story building includes a sey Architects. Upon completion of on Sunset Pilot Plaza, a 180,000- ambulatory surgery center with two the northwest wing, the satellite “D” square-foot Class A office develop- Class C operating rooms. Stable De- gates will total 44 gates. ment in Hughes Airport in Las velopment is the developer and Korte Vegas. The project is situated on Company is the contractor. Construc- Final Stage of Lear Industrial nine acres at the intersection of tion is expected to be completed in Center Breaks Ground Sunset Rd. and Pilot Rd., adjacent March 2008. Panattoni Development recently an- to McCarran International Airport. nounced that the company has begun Sunset Pilot Plaza will feature two McCarran International Airport work on Lear 390 in the Lear Industri- 3-story buildings totaling 180,000 Expansion Continues al Center in Reno. The 390,000- square feet, with divisibility from McCarthy Building Companies, Inc. square-foot industrial facility is the 5,000 square feet. The development continues construction on the satel- fourth and final building to be con- is scheduled for completion in the lite “D” northwest wing addition structed at the Lear Industrial Center. first quarter of 2008. JMA is the ar- and arresting cable vehicle barrier at It is located in the Silver Lake area of chitect and Martin Harris Construc- McCarran International Airport. The the Stead submarket. The center is tion is the general contract. $109 million project, awarded by the master-planned for nearly 1.4 million Clark County Department of Avia- square feet of industrial product. The LogistiCenter Reaches tion, is part of a $4 billion capital architect is Tectonics Design Group Milestone with Fourth Building plan for McCarran additions over and the builder is Panattoni Construc- DP Partners recently announced it the next four years. McCarthy began tion, Inc. Lear 390 is scheduled for has erected the walls for the largest construction in September 2006 and completion this winter. speculative industrial building in Southern Nevada at LogistiCenter in North Las Vegas. The 513,240- square-foot distribution center is the fourth building in the Center. The 102-acre, master-planned business park will feature up to seven distrib- ution buildings totaling more than two million square feet of industrial space. United Construction Compa- ny is the general contractor. DP Part- ners plans to construct the fifth building at LogistiCenter this year, a 360,000-square-foot building slated for completion in 2008.

102 June 2007 AT THE TOP

Commercial Real Estate Report

OFFICE– 1st Quarter 2007 JVC Architects TOTALMARKET Las Vegas Reno Creating Environmentally-Responsible Worship Centers Total Square Feet 41,899,057 7,068,139 Vacant Square Feet 4,665,075 930,945 ith two Las Vegas natives at stant on the firm’s project list. Recently, Percent Vacant 11.1% 13.2% the helm, JVC Architects JVC Architects completed Sacred Heart New Construction 766,758 na W has devoted itself to pre- Church in Ely. The firm designed a main NetVe Absorptionrge is a new urban-style550,662 community35,486 serving the other side of the nave Ð or central approach to the altar Ð Averageplanned Lease sf/mofor downtown (nnn) $2.32 Las Vegas.$1.60 city Ð the community that exists outside and a small chapel for the 10,000- Under Construction 4,063,148 na of the Strip. The company prides itself square-foot church, while incorporating Planned 7,780,168 na on architecture that enhances the sur- several green building features. CLASS A rounding environment and adds value to The local parish had the money to Total Square Feet 7,373,864 na the community, particularly cost-effi- build a nice facility due to generous Vacant Square Feet 544,861 na cient religious buildings. donations, but could not justify the Percent Vacant 7.0% na JVC Architects’ roots are anchored in capital required for costly upkeep. New Construction 277,645 na religious architecture. The firm was By implementing sustainable design born 16 years ago when founder James principles, including a special heat Net Absorption 99,689 na sf/mo (nnn) Van Compernolle teamed up with pump and insulated glass, JVC Ar- Average Lease $2.79 na Phoenix-based architecture firm CCBG chitects was able to create an energy- Under Construction 1,488,661 na to design St. Joseph, Husband of Mary efficient facility that requires less Planned 2,521,409 na Catholic Church in Las Vegas. The money to maintain. JVC Architects’ CLASS B 40,000-square-foot project involved the approach toward handling the Total Square Feet 30,825,558 na master-planning, design and construc- client’s unique concerns, coupled Vacant Square Feet 3,742,097 na tion of a sanctuary, large recreation with the project’s contemporary de- Percent Vacant 12.1% na room, offices and meeting rooms. JVC sign, resulted in a Best of 2006 New Construction 489,113 na Architects was involved in this three- Award in Green Building from Net Absorption 402,818 na phase project until its completion in Southwest Contractor magazine. Average Lease sf/mo (nnn) $2.31 na 2000, nine years after it began. Currently, JVC Architects is working Under Construction 2,574,487 na The goal with all the company’s reli- on a multitude of Nevada churches in Planned 5,258,759 na gious projects is to create environmen- different phases of design and construc- CLASS C

tally-responsible designs that meet the tion. These include Beautiful Savior Total Square Feet 3,699,635 na immediate and future needs of the Lutheran Church, South Hills Church Vacant Square Feet 378,117 na churches and their congregations. Community, St. Bridget Catholic Percent Vacant 10.2% na JVC Architects’ design process, spe- Church, Faith African Methodist Evan- New Construction 0 na cial sensitivity to religious projects and gelical, Northgate Christian Church and Net Absorption 48,155 na emphasis on sustainable principles has the Salvation Army Chapel. Together, Average Lease sf/mo (nnn) $1.75 na remained in the forefront of the firm’s the religious facilities total more than Under Construction 0 na work since its inception. It has proven to 300,000 square feet of space. 0 na be a successful approach as repeat and With Nevada’s growing population Planned long-term business is commonplace and and increased demand for places of Next Month: RETAIL the backbone of the firm’s client list. worship to accommodate larger ABBREVIATION KEY Since 1991, JVC Architects has always congregations, JVC Architects will MGFS: Modified Gross Full-Service had a project under contract with the continue to play an integral role in SF/MO: Square Foot Per Month Catholic Diocese of Las Vegas. providing aesthetically-pleasing, so- NNN: Net Net Net While JVC Architects does not solely cially-responsible and functional com- Southern Nevada statistics compiled by specialize in religious architecture, munity designs to Nevada and the Applied Analysis. places of worship have remained con- greater Southwest region. Northern Nevada statistics compiled by Alliance Commercial Real Estate Brokerage.

June 2007 103 NEVADA BRIEFS

Alliance Commercial Nevada Company Among First to Real Estate and NAI Announced Achieve LEED Gold Certification National Affiliation The Economic Development Authori- Alliance Commercial Real Estate Ser- ty of Western Nevada (EDAWN) re- vices has joined NAI Global to form cently announced that Patagonia’s NAI Alliance. NAI is the premier net- Reno Service Center is the first private work of independent commercial real company in the nation to receive in- estate firms and has 300 offices in 92 centives for its recent gold level Lead- countries. NAI Alliance will serve as ership in Energy and Environmental the company’s Northern Nevada part- Design (LEED) certification from ner. “We are proud of the progress we U.S. Green Building Council. The have made since our establishment center is the first building in Nevada to two years ago as an independent, lo- achieve the LEED gold certification Nutile opened in 2002 specializing in cally owned and operated commercial level Ð the second highest certification healthcare, assisting clients on a vari- brokerage company,” said Paul possible. The company’s171,000- ety of healthcare legal issues includ- Perkins, senior vice president of the square-foot expansion was designed to ing antitrust, healthcare and HIPAA Industrial Properties Group. “With incorporate green technology and was regulatory compliance, medical staff the maturation of Northern Nevada as a collaborative effort of architectural credentialing, hospital/medical staff a globally viable business location, firm Tate Snyder Kimsey Architects relations and mergers and acquisi- we recognized the advantages of be- and general contractor Trammell tions. As a partner at Hale Lane, coming associated with a network of Crow Construction. Following com- Maria Nutile, will lead the firm’s brokers on a global scale.” pletion of the project, Patagonia re- healthcare practice and be a member ceived $25,000 through Sierra Pacific of the firm’s business venture group, Nevada Business Journal Power Company’s Sure Bet program. focusing on the full-range of client business transactions. Service1st Bank of Nevada Brings Big Numbers to Market PPIC Provides Medical Service1st Bank of Nevada, a Las Malpractice Liability Insurance SUBSCRIBE Vegas-based business financial institu- Premier Physicians Insurance Com- tion, reported asset growth totaling pany (PPIC), a risk retention group, $112 million with $21 million based in has insured more than 100 physi- NOW loans as of March 31, 2007. The bank cians in its first year of business. also reported deposits at $63 million PPIC has surpassed $2.5 million in with $29 million based in non-interest capital and approximately $5 mil- IT’S EASY bearing demand deposit accounts. The lion in premium. The group was cre- quarterly earnings statement is the first ated to address Nevada’s medical the bank has reported since it opened malpractice liability insurance cri- in January. Average capitalization for sis, which developed in 2001 and new banks in Nevada has been $9 mil- 2002 when the majority of Nevada’s lion since 2000. Service1st opened in medical malpractice carriers discon- January 2007 with more than $50 mil- tinued offering medical malpractice lion in capital, the most ever by a bank liability insurance to physicians. Go to: created in Nevada. PPIC is based on a model encom- passing evidence-based medicine, www.NBJ.com Nutile Law & Associates Joins binding arbitration and effective Hale Lane Law Firm risk management strategies, which Hale Lane Law Firm recently an- result in fewer claims and lower nounced that the law firm of Nutile Law coverage costs. PPIC’s headquarters & Associates has joined with them. is in Carson City.

104 June 2007 BANKING ON IT

City National Bank Innovative Approach for Small Business Loans

ith real estate values on layer in a credit score on top of it.” the rise in Nevada, what “Real estate is an The bank does not allow restaurants W better way to capitalize or real estate developers to run than using home equity up-and-down through this product. Restaurants as collateral for small business have some specific nuances that re- loans? City National Bank, formerly industry.” quire more in-depth attention. Real Business Bank of Nevada, is doing estate developers do not have steady just that. The bank has enhanced its cash flows. “Real estate is an up- accelerated loan product, allowing bank collects the past two years’ tax and-down industry,” said Phillips. business owners to use the equity in returns for both the individual and “Cash flows are low one year, and their primary residence as collateral the business. Term loans allow pay- the next, they skyrocket.” for business loans up to $250,000. ments to be made over a three-, four- The accelerated loan product can The accelerated loan product was and five-year timeframe. “Small provide cash flow relief for busi- developed four years ago for small business owners typically face a ness owners during certain transac- businesses that needed to access number of challenges in the first few tions. “Sometimes businesses need smaller amounts of capital in shorter years of operation because they an extra boost,” said Phillips. periods of time. It also featured a can’t generate enough cash flow to “Leveraging personal real estate eq- simplified application process, lim- access the necessary capital to grow uity affords this support,” Phillips ited financial data and rapid loan de- and expand their businesses,” said continued. cisions and funding. “Since intro- Phillips. “The appreciation of home “We have a streamlined process to ducing this product several years values in our market over the last get evaluation on the property and ago, we have seen a dramatic in- several years provided us with a from a title perspective.” With the crease in the average size of small great way to help small business home as collateral, the bank gives business loan requests both at our owners secure the capital they need the business price breaks. The un- bank and throughout the state,” said by using the home equity to fund derwriting process is typically the Mark Phillips, senior vice president their business needs.” same from a cash-flow perspective. of City National Bank. The maxi- City National has some guidelines Residential appraisals and title costs mum loan amount for the product for business owners who are inter- range from $300 to $500, but City was originally $150,000 but the ested in using their home equity as National can eliminate a significant bank was able to increase it to collateral. The bank requires that portion of these costs because the $250,000, due to the increased de- businesses have been established for house is collateral. With real estate mand of the product. at least two years since most busi- values going up, small businesses Different products are available ness failures occur within the first owners and home owners can tap within the accelerated loan family, two years of operation. From a busi- into that collateral. “If you have a lot including a revolving line of credit ness standpoint, it gives them more of equity in your house, you have a and a term loan. With a revolving seasoning and an improved outlook. higher advantage to leverage,” said line of credit loan under $125,000, “This allows us to take a couple of Phillips. the bank collects one tax return for shortcuts on the information,” said both the individual and the business. Phillips. “We can go with a one-year April McCoy is associate editor for If the loan exceeds $250,000, the or two-year financial statement and Nevada Business Journal.

June 2007 105 SPEAKING FOR NEVADA

How can Nevada’s healthcare system be improved? Health Information Technology Expedites Process U.S. Senator John Ensign

merica is a leader in tech- Many individuals faced with dis- record, a doctor in a Nevada hospital nology. The world benefits eases and conditions that require more would be able to determine what A from many innovations cre- than one doctor, are forced to fill out medications were being taken by a ated by the nation’s entre- paperwork at multiple locations, mul- visitor from New York who was in a preneurs. While the healthcare system tiple times. Having an electronic copy serious car accident. As a result, prop- has some of the most advanced medical of health records will save time, re- er medication could be prescribed technologies, many doctors and hospi- duce errors and lower costs by elimi- during this life-threatening emer- tals use an outdated system for keeping nating cumbersome paperwork. This gency. During this small window for patient records to the detriment of all simple fix will immediately show re- treatment, the inability to check a pa- patients. The paper filing of records is sults. This is just the beginning of how tient’s history could result in death if not only costly to the entire healthcare Health IT can lower healthcare costs, the patient is unable to communicate system but costs lives. Every year, save lives and valuable time. to the doctor medical allergies or thousands of errors are made process- Studies have found that nearly $300 medications currently being taken. If ing paperwork because doctors cannot billion is spent on healthcare that does we implement these technologies, view complete patient histories when not improve patient outcomes. This is doctors will be able to provide im- diagnosing individuals. Health Infor- money spent on unnecessary or inef- proved medical care. mation Technology (Health IT) helps fective treatments. Health IT can help Health IT allows individuals to eliminate unnecessary and outdated reduce this number by allowing doc- have a personal electronic health paper-based system. Nevada hosted tors to view a patient’s medical histo- record. This record could look like a more than 51 million visitors last year, ry and review what the best practices credit card or already exist in a system and, because the state’s economy relies would be in helping the patient. A re- accessible by a doctor with permis- on tourism, implementing Health IT is duction in this spending will ultimate- sion to help properly diagnose a pa- much more important. ly lower costs for patients and allow tient. This legislation would put doc- There are countless examples of doctors to provide better care. tors on a standard, coordinated and how information technology has By utilizing e-prescribing, doctors and secure computer system. saved money, time and reduced er- pharmacists can reduce errors and save Fortunately, work is being done in rors. Credit cards are used around the lives. As orders for prescriptions are Nevada to implement electronic med- world, and banks are able to calculate being placed, computer programs will be ical records into our community currency differences. Instantly, navi- available to double check and ensure that health centers. Research at the Uni- gation devices in vehicles can help new orders will not cause adverse reac- versity of Nevada, Las Vegas, is help- tourists maneuver through traffic, and tions to other medication patients are ing lead the way by exploring how to emails can be received on a handheld currently taking. This technology exists put this concept into practice and pro- device in almost any corner of the but needs to be implemented. moting the benefits Health IT can de- earth. Yet, a doctor in Nevada at- The benefits of Health IT extend liver. From Carson City to Las Vegas tempting to save the life of an acci- across the country, including rural and West Wendover, these advance- dent victim from New York is ham- areas, as more individuals are travel- ments will help reform our healthcare pered by his inability to access the ing all over the world and sometimes system. Affordable, accessible and patient’s medical history. Health IT is need emergency care away from available healthcare is something we the solution. home. With an electronic health should all work toward.

106 June 2007 INSIDE POLITICS

Gubernatorial Contenders Looking Ahead at 2010

ep. Dean Heller’s recent accounts for the general election. 1998, so there is some precedent for this announcement in a Reno The Democrats certainly have the type of move. In addition, candidates R newspaper that he will horses to field a good candidate for like this don’t have voting records and strongly consider run- governor. On the top of the list has are much harder to attack on the issues. ning for governor sometime in his to be current Attorney General While no one is counting Gov. political career, got many political Catherine Cortez Masto. She’s Gibbons out just yet, things move watchers thinking and talking smart, politically savvy and by then, very quickly in politics, and candi- about 2010. will have established a solid reputa- dates cannot be blamed for position- That is the next time the guberna- tion. Several attorney generals have ing themselves for what looks to be torial seat will appear on a ballot. made the jump to governor, includ- a very interesting race in 2010. Normally, there would be little ques- ing Richard Bryan and Robert List. tion that the incumbent, Gov. Jim Secretary of State Ross Miller Michael Sullivan is president of Gibbons, would be a lock for re- could also be a strong contender. Knight Consulting, a Nevada gov- election. However, his rocky start While some might say his age and ernment affairs firm. and plummeting poll numbers Ð relative inexperience might be a nearly 30 percent earlier this month detriment to his possible campaign, Ð have certainly fueled speculation he’s smart and a hard worker. He that a strong opponent will emerge. also has the pedigree, as the son of Although it’s a full three years former Nevada Gov. Bob Miller. until the next election and anything Speaker Barbara Buckley could make Fearless? can happen in that time, if Gov. a strong push to be the first female ©2007 HUTCHISON & STEFFEN Gibbons’ numbers don’t bounce elected governor of the state. However, back, he could face a significant a lot depends upon how her next two challenge within his own party. sessions as speaker go. As former Someone like Heller or current Lt. Speaker Richard Perkins found out, Gov. Brian Krolicki might find it when you express an interest in wanting too tempting. They also might feel to run for governor, you put a target on that allowing Gibbons to run unop- your back for your political enemies. posed would practically give the Another possible development ...check. seat away to the Democrats. would be the entrance of someone Sen. Bob Beers may want to try completely outside the political his hand again now that he knows process, like a wealthy business per- the ropes. He’s been quiet this leg- son who could fund his or her own islative session, a sign that he’s try- race. One name that has been men- ing not to get tied to anything that tioned for years is former Harrahs could hinder his chances to run. CEO Phil Satre. Although close As the Democrats found out in friends say he won’t do it, he’s got 2006, though, primaries are danger- money and has quietly expressed an ous and candidates are not only in interest in this position in the past. jeopardy of giving the other side Kenny Guinn had never been elected issues, but depleting their bank to any office when he ran for governor in

June 2007 107 EXPERT ADVICE

Investing in Real Estate Risky but Rewarding

e have recently heard term appreciation? What effect about homeowners and “The higher the could the ownership have on your W investors who have had credit score? notices of defaults filed return, the There are no guarantees when in- against them due to interest-rate ad- vesting. Real estate is typically not justments, and 100 percent financing higher the risk.” considered a liquid investment. Fi- placed on their homes and investment nancial gain is usually forecasted properties. While it would appear that over a five-, 10- or even, 15-year the sky is falling, in fact, this is just a span. Real estate is cyclical, if you small percentage of the total loans even if a lender approved the financ- do not cover all your bases you may funded throughout the country in the ing, and make sure they are financial- be caught buying high and selling past few years. Many assume the ly able to accept the risk associated low. After you have reviewed the bankers and lenders are wearing the with the commitment. That checklist checklist, consider ethics. black hats, while others place the should include the following: ¥ Are you being fair to yourself and blame on borrowers for over-extend- ¥ Cash in bank: Do you have at least your family? ing themselves. Still, others are blam- three months expenses to cover va- ¥ Are you committed to make every ing the brokerage community. As a cancies and repairs? payment on the property, no matter result, the government is looking at ¥ Using equity from home: Should the what happens with the value? enacting more laws that will protect investment turn sour, will it affect ¥ Do you feel as though you are tak- property owners. your lifestyle and that of your family? ing too much risk? Investors raced into the market ¥ Due diligence: Have you thor- ¥ If you are the broker Ð do you over the past 36 months, day-trad- oughly researched the area where speak up if you think your clients ing homes, land and investment you are about to invest, or are you are over extending themselves, or properties the same way they day- relying on other parties’ opinions, do not understand the downside traded stocks before 2000. The rumors or compared pricing, which risk? character Gordon Gecko, played by may or may not compare due to lo- ¥ If you are the lender Ð do you Michael Douglas in the film Wall cation, taxes or available jobs? speak up if you think the buyer is Street, summed it up when he said, ¥ Borrowing funds: Will the pay- overextending, or does not under- “Greed is good.” But where does ments cover principle and interest or stand the down side risk? common sense enter the equation? is it interest-only loan, or even a Real estate is an outstanding in- Investments, whether they are a negative amortization? If the loan is vestment, however, time is a re- principle residence, income-produc- growing and the property is not ap- quirement to maximize its value. ing property or land speculation, all preciating, it may cause the invest- Hopefully, you choose wisely. have a level of risk. The higher the re- ment to cost you equity over time, turn, the higher the risk. At which thereby raising the risk. What is the Soozi Jones Walker, CCIM, SIOR, is point are you willing to loose it all? term of the loan? Is it due in just a corporate broker and president of Investors should review a checklist few months or years? Is your deci- Commercial Executives Real Estate before committing to an investment sion being made strictly for short- Services in Las Vegas

108 June 2007 TOWN MEETING

Mayor Geno Martini City of Sparks

eno Martini, mayor of ers, and we [city council and my- Are there any plans to build a col- Sparks, is no stranger to self] talk to the potential recruits to lege in Sparks? G politics, or the city of see if Sparks is a good fit for their Yes, Truckee Meadows Community Sparks. The mayor was business. College (TMCC) has been looking in born and raised in Sparks on a ranch the Spanish Springs Valley to build a that is now covered with warehouse What new developments are cur- satellite campus. They are looking for and industrial buildings. He is a grad- rently underway in Sparks? land which is so expensive out there uate of the University of Nevada, We are very excited about two mas- and tough to get. But, once they decide Reno with a 30-year career in bank- ter-planned communities currently the exact location, it will be exciting to ing. Martini began his political career under construction. Copper Canyon have the satellite campus here. in 1999, when he was appointed to is 13 million square feet of profes- the Sparks City Council to complete sional office space. Kiley Ranch is a April McCoy is associate editor for an unexpired term. He was elected as smart growth, master-planned com- Nevada Business Journal. mayor pro tem in 2003, and served munity that will be self-contained until 2005 when he was sworn in as with a town center and business mayor. Mayor Martini discussed the park. The 808-acre master-planned changing scene in Sparks with Neva- community will have 4,000 residen- da Business Journal. tial units and 100 acres of retail. Experienced? How is the city trying to differenti- The Legends at Sparks Marina is an ©2007 HUTCHISON & STEFFEN ate itself from Reno? awesome project that will put Our population is 88,000. Sparks Sparks on the map when completed. has been growing at 4 percent each It’s a true destination resort Ð 1,000- year for the past five years. We have room hotel, restaurants and shops. It always been known as the bedroom is very pedestrian-oriented and will community of Reno because we did- be a town center of its own. It will n’t have our own retail centers. In house Schiels All Sports Sporting ...yup. 2000, we actively changed gears, re- Goods Store Ð a 240,000-square- alizing that we needed to keep our foot two-story building. When com- tax base strong. To do that, we need pleted, it will be the largest sporting to develop some mixed-use develop- goods store in the world Ð right here ments. So, we went to the develop- in Sparks. Legends will have a di- ers and told them we need retail and nosaur-themed restaurant called T- commercial developments in Sparks. Rex, and Sparks is one of nine loca- tions in the U.S. where T-Rex will How are you recruiting businesses? be established. The project has a We work with the developers to re- three- to four-year build-out and cruit businesses. The developers re- will create an environment where cruit retail and commercial develop- people can eat, shop and play.

June 2007 109 by Michelle Danks COMPASSIONATE CAPITALISM

Kathleen Boutin is the founder and executive director Nevada Partnership for Homeless Youth of Nevada Partnership for Homeless Youth, Helping to Eliminate Homelessness Among Nevada’s Youth founded in 1999.

omeless and runaway vice, drop-in center in Nevada. Locat- Capital Campaign youth typically leave ed near University of Las Vegas, H home due to tragic cir- Nevada (UNLV), the Safe Place drop- NPHY’s success has resulted in an cumstances such as in center provides on-site counseling immediate need for increased space physical and sexual abuse. Kathleen services and has a small library, food to house those in need of their 24- Boutin, founder and executive direc- pantry, shower, closet, classroom and hour drop-in center. The organiza- tor of Nevada Partnership for Home- personal business station. tion recently launched a capital cam- less Youth (NPHY), had a vision to Unaccompanied minors between paign to purchase and renovate a help spread awareness for Nevada’s the ages of 16 and 18 are eligible to larger building to help accommodate growing population of homeless live in a furnished condominium the growth. The new building is youth and to change the perception unit, provided by NPHY, if they are called The Open Door and will pro- surrounding the circumstances of currently attending school and/or vide a host of services including young people without homes. Since working full-time. Parental permis- counseling, mental health services, its inception in 1999, NPHY has sion and cooperation is required job training and placement, nutrition provided food, shelter, job training and random home visits are made and life guidance. and counseling services for more daily. Adolescents are assigned a The new building, large enough to than 3,000 homeless and runaway case manager and given funding for house both the drop-in center and youth. The organization is credited food, clothing and school expenses. administrative services, was previ- for the passage of the “Right to Upon completion of high school, ously a dental clinic and will require Shelter” law during the 2001 Legis- the assisted minors are given full- more than $750,000 for extensive re- lature, which allows unaccompanied time employment opportunities and modeling. To help fund the building minors consent to the same services helped to make the transition to and remodeling costs, NPHY is of- that homeless adults receive. adulthood. fering corporate sponsorships from The NPHY Mentor Match pro- $10,000 to $50,000. Sponsorship el- Programs and Services gram was designed by former fos- ements include outside recognition ter care youth to help with the tran- and naming, room sponsorships, en- In 2002, NPHY created Safe sition from the foster care system dowment and scholarships. Place. Sponsored by the Terrible to independence. Prior to being Herbst Corporation, the program al- emancipated from the Clark Coun- lows young adults to receive emer- ty Division of Family and Youth For more information on gency assistance 24-hours a day at Services, young adults can be as- any Terrible Herbst convenience signed to the Mentor Match pro- NPHY services and its store throughout the Las Vegas Val- gram. Mentors assist with the edu- capital campaign, ley, Laughlin, Mesquite and cational needs, employment and contact Kathleen Boutin Pahrump. Safe Place has successful- related skill sets needed to estab- at 702-373-000 or ly served more than 400 youths in lish productive relationships. Southern Nevada. Training and support are available [email protected] NPHY maintains the only full-ser- to both the youth and mentor.

110 June 2007 by Michelle Danks POWER OF ATTORNEY

Alternative Dispute Resolution Clauses More Common Than You Think

o company is immune idence do not apply, but the arbitrator hearing. Since there is less time to pre- from conflict, which is can limit evidence if he feels it is not pare for an arbitration case, organizing N why a growing number of reliable. The parties may be repre- the information is also critical. business contracts routine- sented by counsel. Some discovery, Arbitration can be a more pre- ly contain an arbitration clause. Insert- including depositions, is typical, but dictable and less expensive alternative ed for the benefit of both parties, these may be limited depending on the na- to a trial, but every executive should clauses generally help thwart lengthy, ture of the case and the rules under spend considerable time discussing expensive lawsuits that lead to poten- which the arbitration is conducted. the benefits and risks with company tial exorbitant costs, damages and legal Following the hearing, the arbitrator counsel before signing or submitting fees. While many executives may be renders a decision within a short time. a contract with this clause. familiar with the terms mediation and There are different types of arbitra- arbitration as methods of alternative tion. Binding arbitration means just Michael R. Griffin recently retired after dispute resolution (ADR), truly under- that Ð the decision by the arbitrator is serving for 28 years as a district court standing them may ultimately decide a final and binding Ð and can only be judge in Carson City. He is an attorney company’s long-term financial health. overturned in extraordinary situa- with the statewide firm of Kummer Simply put, mediation is a negotiation tions, such as proof of fraud in the Kaempfer Bonner Renshaw & Ferrario. process between the disputing parties process. Most business contracts have His practice emphasizes mediation, ar- led by a skilled facilitator who assists in binding arbitration clauses. A person bitration and dispute resolution. helping the parties reach a mutually ben- who has a dispute with another where eficial solution. The mediator does not there is such a clause is prevented take sides and does not give legal or fac- from suing and obtaining a jury trial. tual advice. Arbitration, by contrast, uti- In most civil cases filed in the state lizes one or more skilled individuals, courts of Nevada, where the amount in Tenacious? who hear formal presentations by the dispute is less than $50,000, non-bind- ©2007 HUTCHISON & STEFFEN parties before deciding which party is ing arbitration is mandated. The hear- entitled to an award. Arbitration is simi- ing and procedural issues are similar to lar to the trial process, and the award binding arbitration, but either party granted by an arbitrator or arbitration may choose to overturn the award and panel is akin to a court judgment. Medi- seek further court action through a ation, on the other hand, can result in an short, modified jury trial or a trial de agreement which may contain any num- novo. However, if the party who is ber of items not originally part of the seeking to overturn the award does not ...oh yeah. parties’ lawsuit. That agreement may be significantly improve that award, he or enforceable in court. she may be required to pay the oppos- Arbitration is less formal than a ing counsel’s fees and costs. trial, but bears many similarities. The The most important thing a person fac- parties generally choose the arbitrator ing arbitration should do is prepare. and set a hearing. The arbitrator has Many times, items that could not be ad- latitude in scheduling the time and mitted in court are allowed in arbitration. place of the hearing. Nonetheless, it is Counsel should be furnished with any an established process with rules and and all information relating to the matter. procedures and one in which witness- Even innocuous-looking material that es are sworn and examined. Exhibits would never be admitted in a court pro- are presented. The formal rules of ev- ceeding can be important in an arbitration

June 2007 111 by Michelle Danks MONEY MANAGEMENT

Identity Theft How to Prevent Security Threats

dentity theft continues to be ¥ Employees with access to company According to proponents, two-fac- one of the fastest growing computers should be educated about tor authentication could drastically re- I crimes in the United States, the latest threats and scams, and duce the incident of online identity and has ranked as one of the trained to question any suspicious re- theft and other online fraud, because top consumer concerns for the past sev- quests for information. the victim’s password would no longer eral years. Identity theft is evolving in ¥ Be aware that financial institutions be enough to give a thief access to sen- more complicated ways that make it will not ask customers to provide sen- sitive information. harder for consumers to protect them- sitive customer information. Sensitive Several types of multi-factor au- selves. Education remains the most im- information includes items such as ac- thentication are available, but the most portant tool to help prevent identity theft count numbers, date of birth, or social common of these currently being in- The definition of identity theft is the security numbers. troduced are as follows: stealing of a person’s financial infor- ¥ Order copies of your credit report every ¥ User selected SiteKey (picture) en- mation, including credit cards and so- three months from the different credit re- ables the customer to identify the fi- cial security number, with the inten- porting agencies to ensure accuracy. nancial institution. The customer can tion of using that data to commit fraud Online security threats are becoming choose the verification image from a and create a phony persona. As report- more and more complex and sophisti- selected database of digital photos. ed by Newsweek and Forbes, the an- cated. The Federal Financial Institu- ¥ Challenge question (provided by the nual dollar loss reported to Congress tions Examination Council (FFIEC) customer) allows the financial institu- was $53 billion. The more frustrating has issued guidance that states single- tion to identify the customer. aspects of identity theft include the factor authentication is inadequate for Behind the scenes risk management many difficulties often encountered high-risk transactions. This means fi- (invisible to the customer) include: when attempting to restore one’s good nancial institutions must implement ¥ Customer profiling, which allows the name and credit, and the countless additional authentication controls. financial institution to identify the hours spent by law enforcement and Single-factor authentication is the customer with new technology. financial institutions trying to resolve use of only one recognized identifier ¥ Transaction monitoring Ð a non-typ- cases of identity theft each day. for authenticating individuals. Most of ical transaction may send up a red flag Here are just a few important steps us are very familiar with these types of that prompts the bank to contact the to remember: “authentications” which include the customer by phone to verbally con- ¥ Never provide personal or financial use of a password or personal identifi- firm the transaction. information in response to an unso- cation number (PIN) when we log on The drawback to the multi-factor au- licited telephone or Internet request to Internet locations with personally thentication is that some consumers (phishing scams). sensitive material. have trouble keeping track of yet anoth- ¥ Never provide or share passwords Systems that require two-factor or er means of identification in an age over the phone or in response to an un- dual factor authentication require at least characterized by information overload. solicited Internet request. two authentication identifiers, adding In the coming months, many finan- ¥ Review account statements regularly another level of protection Ð such as a cial institutions will be implementing to ensure all charges and transactions selected picture to confirm or a question this technology to aid in the fight to pro- are correct. to be answered Ð to the normal password tect sensitive financial information. ¥ Use a firewall, anti-virus and spyware or PIN before gaining access to our final protection software at work and at home. destination. This technology is usually Mike Hix is senior vice president and ¥ Use a shredder to dispose of person- referred to as multi-factor or two-factor branch administrator of 1st Indepen- al or financial information. authentication. dent Bank in Las Vegas.

112 June 2007 P EOPLE FIRST

Performance Appraisals: Useful Tool or Waste of Time?

sk employees from any the performance of each of their em- timely and meaningful manner. Perfor- company about perfor- ployees over the course of the review mance expectations and appropriate A mance appraisals and they period so that the appraisal covers an work behavior need to be clear and un- will likely tell you that the entire evaluation period. It also helps to derstood. Employees should never be performance appraisal is less than avoid the following: surprised by their rating in a perfor- meaningful, often poorly prepared and ¥ Halo effect, where the supervisor re- mance appraisal and should have a clear in many cases poorly delivered. If done calls only the positive things the em- understanding of how their perfor- well, performance appraisals can im- ployee has accomplished. mance is perceived by their leader. prove productivity and help an organiza- ¥ Horns effect, where only the employ- tion focus its employees on their indi- ee’s shortcomings are recorded. Mark Keays is president of Desert Man- vidual development. Additionally, they ¥ The effect of recency, when the man- agement Services, a Las Vegas-based provide a solid base from which to make ager or supervisor only remembers the management consulting firm and a facul- promotion and pay decisions. From a most recent performance of the indi- ty member of the University of Phoenix. human resources (HR) perspective, the vidual, good or bad. appraisals indicate that the employees Many performance appraisal forms are getting performance feedback Ð pos- create problems because the rating itive or negative Ð and are being made scales tend to skew the appraisal. In aware of the expectations placed upon most organizations, employees don’t

them by their leaders. The HR depart- consider themselves average, while un- ©2007 HUTCHISON & STEFFEN ment is often seen as the heavies when a trained leaders will tend to rate people manger or supervisor wants to terminate above-average because it reduces the an employee for poor performance, and likelihood of justifying the performance Th e perfect balance HR won’t support the termination be- rating. In that same vein-rating someone for what comes next. cause the employee’s performance ap- at the extremes of the scale Ð either praisals make no mention of any perfor- below-average or exceptional Ð usually mance issues. In worst-case scenarios, requires documentation. If it doesn’t the employee has received a pay in- exist, the trend is to rate everyone above- crease, an event that does not provide a average, thereby negating the value of solid legal basis to support a termination the performance appraisal process. of employment. Creating and maintaining a viable Formal performance appraisals Ð at a performance appraisal process requires minimum Ð should be done yearly. the development of a meaningful per- Regular informal meetings should be formance appraisal form and the com- held with each employee to reinforce mitment and support of the entire lead- a full-service, av-rated law fi rm good behavior and accomplishments, ership team in an organization. peccole professional park and discuss any employee problems or Managers and supervisors need to be 10080 west alta drive, suite 200 las vegas, nevada 89145 shortcomings with recommendations trained to document the performance of 702-385-2500 • fax 702-385-2086 for improvement. Managers and super- their employees on an ongoing basis 877-HSNVLAW hutchlegal.com visors should be trained to document and provide feedback in an honest, las vegas reno salt lake city phoenix

June 2007 113 BUSINESS INDICATORS

DATA GROWTH units dates latest previous year ago recent year ago comments ousing remains to be the weak NEVADA (%) (%) sector in an otherwise growing Employment 1,000 employees 03/07 1,307.9 1,298.6 1,268.0 0.7 3.1 Growing economy, both nationally and in Unemployment Rate %, nsa 03/07 4.3 4.5 3.9 -4.4 10.3 Favorable H Nevada. Those who argued that there would be no slowdown in Taxable Sales $ billion 01/07 3.674 4.698 3.641 -21.8 0.9 Down Recently 2007 are in full retreat. Similarly, those foretelling Gaming Revenue $ million 02/07 1,055.71 1,117.05 1,026.41 -5.5 2.9 Down Recently doom continue to wait. Of course, the housing Passengers passengers 02/07 3.888 4.099 3.818 -5.1 1.8 Down Recently slowdown that began in 2006 has stalled some Gasoline Sales million gallons 87.56 95.25 89.65 -8.1 -2.3 Down Recently business activities and has created unknowns that 02/07 cloud the future of some sectors, but all in all, the Visitor Volume million visitors 02/07 3.976 4.095 3.983 -2.9 -0.2 Down Recently facts point to the Silver State and the nation contin- CLARK COUNTY (%) (%) uing to expand at slower, more measured paces. Employment 1,000 employees 03/07 940.1 933.3 910.5 0.7 3.3 Growing Nevada job growth continues, up 3.5 percent in February 2007 over the same month a year Unemployment Rate %, nsa 03/07 4.2 4.3 3.7 -2.3 13.5 Favorable ago, even though unemployment is up from 4.0 Taxable Sales $ billion 01/07 2.760 3.406 2.733 -19.0 1.0 Down Recently to 4.5 percent over the same period. Still, the un- Gaming Revenue $ million 02/07 901.82 967.78 870.10 -6.8 3.6 Down Recently employment rates for Las Vegas and Reno re- Residential Permits units permitted 03/07 2,024 1,324 5,204 52.9 -61.1 Down Year Ago main below 5 percent, standing at 4.3 and 4.7 percent, respectively. Commercial Permits permits 03/07 134 91 208 47.3 -35.6 Down Year Ago Whether housing will stall future overall eco- Passengers million persons 02/07 3.490 3.698 3.412 -5.6 2.3 Mixed nomic activity remains an open question. But, hav- Gasoline Sales million gallons 02/07 61.07 66.92 60.88 -8.8 0.3 Down Recently ing seen sharp declines in permitting (down 61.1 Visitor Volume million visitors 02/07 3.408 3.546 3.401 -3.9 0.2 Down Recently and 49 percent for March 2007 relative to March 2006 for Las Vegas and Reno, respectively) and WASHOE COUNTY (%) (%)

U.S. housing starts off by 23 percent and similar Employment 1,000 employees 03/07 226.4 225.1 220.3 0.6 2.8 Growing downward adjustments for some months, one can Unemployment Rate %, nsa 03/07 4.4 4.7 4.1 -6.4 7.3 Favorable conclude that these severe shocks did not derail Taxable Sales Down the current expansion. $ billion 01/07 0.511 0.719 0.516 -28.9 -0.9 Adjusting to the housing overhang will take time. Gaming Revenue $ million 02/07 80.57 72.85 84.43 10.6 -4.6 Mixed

Prudence suggests that excess supplies may re- Residential Permits units permitted 03/07 128 179 251 -28.5 -49.0 Down main in key housing markets, including Las Vegas Commercial Permits permits 03/07 22 15 21 46.7 4.8 Up and Reno for awhile. Statements about having reached the bottom of the housing shortfall are pre- Passengers million persons 02/07 0.393 0.396 0.401 -0.7 -2.0 Down Slightly mature. After the fact, one will be able to pinpoint Gasoline Sales million gallons 02/07 13.92 14.45 14.04 -3.7 -0.8 Down Recently when the recovery began. Visitor Volume million visitors 02/07 0.379 0.355 0.392 6.8 -3.4 Down Year Ago Among the key sectors acting as a counter- UNITED STATES (%) (%) weight to the decline in housing, two merit com- ment. First, gaming revenue growth is now at small Employment million, sa 03/07 137.622 137.442 135.659 0.1 1.4 Growing rates, at least for the state of Nevada and Las Unemployment Rate %, sa 03/07 4.4 4.5 4.7 -2.2 -6.4 Improving Vegas. These rates follow a period of exceptional Consumer Price Index 82-84=100, nsa 03/07 205.4 203.5 199.8 0.9 2.8 Up growth. For February 2007, the state gaming rev- Core CPI , nsa 03/07 209.9 209.1 204.9 0.4 2.5 up enue is up 2.9 percent and Las Vegas, the state’s 82-84=100 major tourism metro, is up 3.6 percent. Reno, hav- Employment Cost Index 89.06=100, sa 4q06 103.2 102.5 100.1 0.7 3.1 Up ing a smaller market and facing strong competition, Productivity Index 92=100, sa 4q06 138.0 137.6 136.1 0.2 1.4 Okay reported a decline of 4.6 percent for February 2007 Retail Sales Growth $ billion, sa 03/07 371.567 369.070 358.235 0.7 3.7 Up relative to February 2006. Second, taxable sales, a Auto and Truck Sales Down major state revenue source, was flat, up 0.9 per- million, sa 03/07 16.27 16.57 16.54 -1.8 -1.6 cent for January 2007 compared with the same Housing Starts million, sa 03/07 1.518 1.506 1.972 0.8 -23.0 Down Year Ago month a year ago. Over the same period tax rev- GDP Growth $ billion, sa 4q06 11,513.0 11,443.5 11,163.8 0.6 3.1 Growing enues were up slightly for Las Vegas and down U.S. Dollar 97.01=100 03/07 106.670 107.230 110.430 -0.5 -3.4 Weak slightly for Reno. These more measured rates of expansion in gaming revenue and taxable sales go Trade Balance $ billion, sa 02/07 -58.436 -58.877 -62.912 -0.7 -7.1 Weak a long way in describing the slower recent pace S&P 500 monthly close 03/07 1,420.86 1,406.82 1,294.87 1.0 9.7 Up that the Silver State now finds itself. Real Short-Term Rates %, nsa 03/07 4.01 4.49 3.96 -10.7 1.3 Down Recently

Treasury Yield Spread %, nsa 03/07 -0.52 -0.44 0.09 18.2 -677.8 Negative

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

114 June 2007