2006 NBJ November

Vicky VanMeetren, CEO of the San Martín campus of St. Rose Dominican Hospitals

COMMENTARY

LYLE E. BRENNAN Publisher Doing Business in Nevada? www.nbj.com is Critical

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4 November 2006

November 2006 • Volume 21 • No. 11

A division of BUSINESS LINK, LLC

PUBLISHER Lyle E. Brennan • [email protected]

PUBLISHER / CEO Connie Brennan • [email protected] EDITOR-IN-CHIEF Kathleen Foley • [email protected] ART DIRECTOR Joe Thomasula CIRCULATION DIRECTOR Mark Keays • [email protected] RESEARCH / RANKING NEVADA [email protected] WEB EDITOR McKensie Keever • [email protected] ONLINE MARKETING DIRECTOR Harry Benson • [email protected] CONTRIBUTING WRITERS Vicky VanMeetren is the CEO Doresa Banning • Ruth Furman • Liz Gamble Tony Illia • Mark Keays • Jessica Santina of Nevada’s newest hospital, Edward Serrano • Mike Sullivan • Jason Thomas the San Martín campus of St. Jeff Tino • R. Keith Schwer Rose Dominican Hospitals. ADVERTISING / SALES Our cover story features the Connie Brennan • [email protected] challenges faced by Nevada Sheri Lautherboren • [email protected] hospital CEOs as they try to Dawn Perkins • [email protected] Lucy Cox • [email protected] keep up with growth and Tarah Richardson • [email protected] maintain a healthy bottom line. EXEC. ASSISTANT TO PUBLISHER Hollie Howard • [email protected] CORPORATE OFFICE 375 N. Stephanie St., Suite 2311 • Henderson, NV 89014 (702) 735-7003 • FAX (702) 733-5953 [email protected] NORTHERN NEVADA ADVISORY BOARD Chuck Alvey • EDAWN Krys T. Bart • Reno Tahoe Airport Authority Tom Clark • Tom Clark Consulting Company Connie Fent • Community Representative Valerie Glenn • Rose Glenn Group Rick Gray • Fallon Convention and Tourism Authority Harry York • Reno-Sparks Chamber of Commerce Web Site: nbj.com • nevadabusiness.com TopRank Nevada: topranknevada.com

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6 November 2006 CONTENTS

FEATURES DEPARTMENTS

13 Healthcare Checkup 4 Commentary LYLE BRENNAN What’s Ailing Nevada’s Hospitals? Doing Business in Nevada? JESSICA SANTINA www.nbj.com is Critical 25 Industry Focus: Philanthropy 10 Business Up Front Giving Back to the Community Home Office or Corner Office? New Law May Affect Tax Returns 34 Nevada’s Credit Unions SBA Loans Set Records Engaged in a Delicate Balancing Act 11 Face to Face DORESA BANNING Paul Perkins, Alliance Commercial Real Estate Services Jim Howard, Desert Community Bank 13 58 Inside Politics MIKE SULLIVAN The 2007 Legislative Session What’s Ahead for Nevada? 59 Nevada Briefs • Nevada Hospitals Recognized for Quality Care • NCED Approves Economic Development Grants • Elko Casino Group Changes Hands • Convention Center Launches Recycling Efforts 60 Compassionate Capitalism UNLV Foundation Inventing the Future 61 Banking on It KATHLEEN FOLEY Silver State Bancorp Expanding in Nevada and Arizona 62 Technology EDWARD SERRANO B UILDING NEVADA Online Promotions How to Navigate this New World 44 Nevada’s High-Rise Market 63 Vital Signs Reaching Sky-High Levels LIZ GAMBLE Desert Radiologists TONY ILLIA New CEO Takes Over Growing Company 57 Building Nevada News in Brief 64 People First • Victorian Square Plans Mixed-Use Project MARK KEAYS • TWC to Construct Medical Office Building Returning Military Employees • Bank Building Topped Off Challenges in Returning to the Workforce • Work Progressing on Montecito Marketplace 67 Expert Advice • Build-to-Suit Project Breaks Ground JEFF TINO Employee Recognition 55 Strata Building Group Is It Really That Important? New Name, New Direction 68 Money Management RUTH FURMAN JASON THOMAS 55 Commercial Real Estate The Roth 401(k) Plan Market Report Can It Permanently Improve Your Future? Second Quarter 2006 – Industrial Market 70 Business Indicators R. KEITH SCHWER

November 2006 7 Continued From Page 4 able to subscribe to our RSS feed and have these articles beamed straight to your mobile phone or email address. Keep an eye on both NBJ Daily News and our new NBJ PR Wire for breaking news that will keep you up to date on all that is happening in Nevada. Getting started is easy. Go to www.nbj.com. If you are not currently a paid subscriber, start your paid subscription so you can take advantage of all the new benefits. If you are a current subscriber, proceed di- rectly to the Member Login page; you’ll find a variety of ways to log in and verify your existing subscriber information. For our Ranking Nevada features, choose the Ranking Nevada tab on our main page and select either TopRank Nevada or Nevada’s Choice. You can then easily choose a category and sub- category of business: for example, “Healthcare/Medical” and “Hospitals.” You will be shown a complete list of companies in that sub-category. If your company is not listed, you will be able to list it and post pertinent information. Besides keeping you informed on the latest trends and breaking news, these new online features can play a valuable part in promoting your company. While many publications charge for these services, we are offering them at no charge to our paid subscribers as an added benefit. We offer several opportunities to sponsor different sections of our website. Call 702-735-7003 ext. 6333 or 775-747-4434 ext. 6333 for further information on how to promote your company on what will become the most popular place on the Web for Nevada business and news.

COMMENTS email: [email protected]

8 November 2006 Designer Jewelry: The Perfect Gift

These are just a few of the major designer brands available at M.J. Christensen Diamond Centers:

esigner jewelry can be the perfect gift In addition, designers express their Dfor any occasion, according to Cliff stories, their dreams and their visions Miller, president and CEO of M.J. Christensen through their jewelry pieces. “Guests often Diamond Centers. Miller has become an ex- make a connection between themselves pert in the field, with nearly 40 designer and a designer and will identify with the brands exclusive to M.J. Christensen. symbolism of the pieces,” said Miller. “For “Designer pieces offer unparalleled example, I wear a bracelet designed by quality of workmanship,” explained Miller. John Hardy, created by natives on the trop- “The secret is often in the metallurgy. De- ical island of Bali. When things get tough, signers use extruded metal of the highest just looking at the bracelet allows me to quality, which is denser than the metal escape to an exotic, remote island.” used in most jewelry. For this reason, we M.J. Christensen also offers watches de- consider designer pieces to be ‘genera- signed and created by Swiss manufacturers tional’ because they not only serve this that lead the industry in quality and design. generation, but also future generations. In “With designer products, you never have jewelry designed for the mass market, 95 to be concerned about value,” noted Miller. percent will last only about 10 years, be- “Prices for designer pieces are set by the cause the metal is worked in a way that designer, not by the retailer, which elimi- saves production costs, without much nates the stress of shopping around for the thought to how long the piece will last.” best price and the worry that you may not Many people are attracted to designer be getting the best value.” M.J. Christensen Diamond Centers jewelry because of its uniqueness. “When Miller noted that 95 percent of what’s sold Four locations in the you see a piece in a typical jeweler’s dis- in mall jewelry stores consists of inexpensive Las Vegas Valley play case, be aware that there are at least knockoffs of what designers have created, Boca Park a dozen more just like it under the but without the designers’ concerns for Galleria Mall counter,” said Miller. “At M.J. Christensen, durability, quality and significance.“The mar- 856 E. Sahara Ave. we want our guests to be able to purchase ket is flooded with ‘just jewelry,’” he said. Meadows Mall something unique. When you give a gift of “However, if uniqueness and distinction ap- designer jewelry, you know that no one peal to you, M.J. Christensen is your only www.mjchristensen.com else will have one exactly like it.” destination… Without Question!”

November 2006 9 NEVADA BUSINESS JOURNAL ADVERTORIAL BUSINESS UP FRONT

The next step is for the IRS to im- telecommute because their work New Law May Affect Tax Returns plement the law through new regula- often can be performed autonomous- tions and changes to tax forms. ASA ly. However, she noted that even he American Society of Ap- will be actively engaged in the imple- those people who work from home praisers (ASA) recently com- mentation of the law. need to spend time in the office. Tpleted a five-year effort to get “Employees who work from home legislation enacted to change appraisal must ensure that being out-of-sight standards. President Bush signed Sen- Home Office or Corner Office? doesn’t also mean being out-of-mind ate Bill H.R.4 into law in late August, for promotions, team projects and ensuring that in the future only “quali- plum assignments,” Domeyer said. fied appraisers” will be eligible to submit appraisals for charitable gift tax purposes. Future appraisals will also SBA Loans Set Records be required to conform to the generally accepted appraisal standards for all mall businesses turned to the U.S. professional appraisers. Small Business Administration for Under the new law, all appraisers Scommercial financing in record who submit appraisals for tax purpos- numbers in fiscal year 2006, setting es will be held to a higher level of ac- records for both the number of loans and countability with the IRS. In addi- any professionals are con- the dollars loaned, SBA Administrator tion, both appraisers and taxpayers sidering telecommuting Steven C. Preston recently announced. will face increased penalties for valu- Mas an economical work The SBA backed a net 100,197 loans to- ation misstatements. option, but spending too much time taling $19.1 billion under its two primary According to the ASA, the new leg- working from home can mean say- small-business loan programs during the islation is a result of Congress’s growing goodbye to the corner office. In 12 months ending on Sept. 30. Both the ing alarm in recent years about the a recent survey by OfficeTeam, 43 number of loans and the dollar amount poor quality of many tax-related ap- percent of respondents said telecom- represented a single-year record for the praisals. Prior to the new legislation, muting is best suited for staff-level agency. The previous records were set extremely weak and ineffective re- employees, compared with 18 per- last year, when SBA provided a net quirements regulated who could sub- cent who felt telecommuting is most 94,554 loans worth $18.1 billion under mit valuations to the IRS. A wide vari- beneficial for managers. the same two programs. ety of private and corporate tax returns Executives were also asked, “Over- The 7(a) loan guaranty program Ð most will be affected, including personal in- all, how frequently do senior execu- often used for working capital Ð produced come tax returns, estate and gift tax re- tives at your firm telecommute?” Their 90,477 loans worth $13.46 billion. The turns and corporate tax returns. responses showed that 67 percent Certified Development Company, or 504, Business appraisers value billions of “rarely” or “never” commuted, while program, which is used for the purchase dollars of closely held stock and intan- only 28 percent “very frequently” or of real estate and fixed assets, provided gible assets each year, as well as many “somewhat frequently” commuted. 9,720 loans worth $5.61 billion. other types of entities, including Fami- “Effective management requires A third of the loans in FY 2006 went ly Limited Partnerships, which are be- plenty of ‘face time’ with employ- to minority borrowers, 32 percent went coming increasingly important in es- ees,” said Diane Domeyer, executive to start-up businesses, 22 percent tate planning. In addition to business director of OfficeTeam. “Supervisors helped fund businesses owned by valuation, the new legislation affects should have an open-door policy, and women and 21 percent went to busi- the full range of appraisal disciplines, that means being available to staff nesses located in rural areas. Increases including personal property, real prop- who need guidance with projects.” were recorded in loans to African erty, gems and jewelry, and machinery According to Domeyer, it’s often Americans, Hispanics, Asian Ameri- and technical specialties. easier for staff-level employees to cans and Native Americans.

10 November 2006 FACE TO FACE

Type of business be involved in a number of civic and chari- Commercial real estate brokerage table organizations, and I’m grateful to have made so many friends through both Biggest business challenge business and civic involvements. Utilizing technology to make me more efficient only seems to bog me down. I spend If you could start over and choose a too much time in the office responding to e- different profession, what would it be? mails instead of out in the market. I think I I think it would be commercial develop- was more productive with just a Day-timer, ment. Although there is a lot more risk, Rolodex and calculator. dealing with the myriad issues necessary to accomplish a project that provides lasting How do you spend your time when you’re value would be very gratifying. not working? My wife Lynda and I love to travel, play Little-known fact about yourself: golf and sail. When we were younger, we I’m a single-digit handicap golfer and can did a lot of water skiing and snow skiing, as drive a golf ball 350 yards. The reason it Paul Perkins, SIOR, CCIM well. is so little known is that I’ve never done it except in my dreams. Senior Vice President, Industrial Properties What do you like best about your job? Alliance Commercial Real Estate Services, LLC I love coming to work every day because I Best Business Advice: Reno love the people in our company. Working Live your business and personal life by with them, as well as having clients and the golden rule and never let a decision or Years in Nevada: 28 competitors for whom I have a great deal action that is expedient or self-serving of affinity and respect, has kept me enthu- take precedence over doing the right Years with Firm: Since company was siastic about my business, even after 37 thing. Treat people today as though they formed in May, 2005 years. I’ve also enjoyed the opportunity to would be asked to eulogize you tomorrow.

Type of business grandkids. I like cars as a hobby: buying, Full-service neighborhood bank restoring and playing with them. Golf is an “on demand” pastime only. Biggest Business Challenge: Personnel. It’s so hard these days to find Little-known fact about you: qualified bankers and lenders in this mar- I’m a Las Vegas native. When I was born, ket. The large banks used to train lenders only about 10,000 people lived here. for us, and then we would hire them away. The large banks are no longer really bank- Best business advice: ing companies; they’re sales companies A good name is really all you have. Pay now, and don’t train lenders anymore. your debts no matter what, keep your word, and maintain a good credit stand- If you could start over and choose a differ- ing at all costs. Becoming known as a ent profession, what would it be? bad credit risk or a dishonest person Law. Lawyers have all the power in this will truly limit your opportunities. Jim Howard country. You can still be a banker with a Juris Doctor degree, but you can also man- Which area of the business do you find most President age companies, practice the law or teach Ð interesting? Desert Community Bank it’s the most useful and versatile degree to Working to help people make and manage Las Vegas have. You can even run for office. their business successfully, as a partner with them. We understand business cycles, Years in Nevada: Las Vegas native (More How do you spend your time when you’re borrowing needs and financial analysis than 50 years) not working? better than most businesspeople do. Our We had weekend activities in the past advice and consultation is free. We don’t Years with Firm: 7 with our kids Ð now we do them with our charge you until we do a loan for you.

November 2006 11

Cover Story: Healthcare Checkup

Nevada makes a living from gamblers looking for “lucky numbers.” But with healthcare, Nevada’s numbers are anything but lucky: Nevada ranks 47th in the nation in physicians per capita, and 49th for nurses. Approximately 19 percent of the population is uninsured. And here in the fastest-growing state, those 65 and older – those who put the greatest strain on the system – are the most rapidly growing segment of the population. Hospital executives know there’s no easy remedy.

Bursting at the Seams Maintaining adequate staffing lev- tional University in Henderson offers According to the University of els is a problem around the country, nursing programs in the evenings and Nevada’s Center for Economic Devel- but Nevada’s difficulties are com- online. As Welch explains, in 2003 the opment, Nevada’s population will in- pounded by growth. One effect is that Nevada Legislature approved the crease 29 percent by 2014. The num- housing costs in Southern Nevada are NHA’s request to double the size of all ber of Nevadans 65 and older Ð baby now holding at around $308,000; in state-supported nursing programs. But boomers Ð will increase by 45.8 per- Washoe County the median housing this only increased the number of grad- cent. They will increasingly rely on price is $330,000. The high cost of uates from about 300 to 600 per year Ð new medical advances as they age, living makes recruitment of nurses, not nearly enough to meet the demand, further straining an already overbur- surgical technologists, medical assis- which the Western Interstate Commis- dened healthcare system. tants, home health aides and other sion for Higher Education (WICHE) “For the last 15 or 20 years, growth lower-paid Ð but much-needed Ð staff said is about 1,100 each year. has been an issue,” said Bill Welch, pres- a challenge. “The chancellor and the Board of ident and CEO of the Nevada Hospital Nevada also has the smallest ca- Regents have created an ad hoc com- Association. “It causes us to be short of pacity for residencies in the country. mittee focused on healthcare, which the healthcare workforce needed to keep The average physician in Nevada is will recommend funding requests to up. We haven’t had any major change in 55; as those doctors retire, the num- again double nursing enrollment, and the number of nursing students we’ve ber of physicians per capita will con- to coordinate nursing education at graduated, and our physician education tinue to shrink. community colleges and universities program hasn’t had a major change Touro University and the University to create better articulation,” said since the ’70s. Infrastructure hasn’t kept of Southern Nevada recently added Welch. “But we still have an extreme pace with demand.” nursing programs, and the private Na- shortage of nursing faculty.”

November 2006 13 Cover Story: Healthcare Checkup

Without faculty, doubling enrollment Maintaining adequate staffing locations in Southern Nevada and a does little good. The average age of fifth in the works. It’s the only Neva- nurse educators is 55, and retiring edu- levels is a problem around da hospital to be nationally accredited cators will soon need to be replaced. the country, but Nevada’s by the Society of Chest Pain Centers; Both Nevada State College and the its Center for Surgical Weight Loss is Community College of Southern Neva- difficulties are compounded a nationally accredited Bariatric da turned away more nursing students by growth. Surgery Center of Excellence, and its than they accepted for this fall, due to a Diabetes Treatment Center has been lack of resources. nationally recognized by the Ameri- As for physician staffing levels, Bill can Diabetes Association. Kaufman Welch said, “Tort reform was passed by feels that having such quality pro- the Nevada Legislature in 2004 and up- Hospital Medical Center, believes that grams helps with recruitment. “We held in 2005. That’s starting to help get quality, not quantity, is the key to em- have to offer competitive wages and the medical malpractice issue Ð which ployee retention. “Having a relation- benefits, too. But the fact that we have was keeping so many physicians from ship with staff is important,” said programs like these is very attractive,” practicing here – under control. But it’s Kaufman. “They like to be communi- he said. not fixed yet. We’re running just under cated with, so we’re always out on the The flagship of the Valley Health 200 residents a year, and we need more floor with them. I hold monthly System is Valley Hospital Medical than double that.” lunches and breakfasts so the staff can Center in Las Vegas. As CEO Greg discuss issues with me. Retention is Boyer explained, Valley, like many Staffing Solutions the most important thing, so we put hospitals, is determined to grow its tremendous effort into that.” own recruits. Valley now provides Sam Kaufman, CEO and managing Desert Springs is part of the Valley graduate medical education, through director of Las Vegas’ Desert Springs Health System, which has four partnership with Touro University and

14 November 2006

Cover Story: Healthcare Checkup

the University of Nevada School of St. Rose Dominican Hospitals, the Medicine (UNSOM). Boyer projects “Government payers don’t cover only faith-based healthcare organiza- about 100 new residency slots will be tion in Southern Nevada, has three the cost of care, which leaves available in the next three years. A campuses in Clark County. Vicky three-slot dermatology residency pro- healthcare facilities challenged with VanMeetren, president and CEO of gram was also recently approved. the San Martín campus, believes this being good stewards of resources Valley provides intensive education appeals to recruits. “We deal with the for nurses in areas of specialization, and picking up the shortfall.” body, mind and spirit here,” said Van- such as critical or emergency care, or Meetren. “I think that makes us the labor and delivery. Tuition reimburse- employer of choice for many people.” ment is available, and its Nurse Ap- St. Rose pays tuition reimburse- prentice Program helps students get ment and offers scholarships to every on-the-job experience. Its partnership Renown partners with nursing pro- nursing school in town. VanMeetren with UNLV allows Valley’s nurses grams at the University of Nevada added that for hospitals to boost staff with master’s degrees to serve as clin- Reno and Truckee Meadows Commu- numbers, they must reach out to ical instructors. nity College. This allows Renown to young people. “We need to change at- Renown Regional Medical Center conduct a student nurse mentor pro- titudes about going to work in this (formerly Washoe Medical Center) in gram, add nurse educators and clinical field,” she said. “We go into schools, Reno is addressing cost-of-living bar- nurse specialists to the staff, pay for explain to young people what the op- riers to recruitment. “We’re building a nurses to gain specialized expertise portunities are, and answer their ques- residential facility across from our and certifications, and provide faculty tions. We even have high schoolers main campus, which allows us to for those nursing programs. Renown shadow our managers on Bosses Day offer housing to potential employees,” is also a teaching hospital with a resi- in fields like marketing, to show them said Renown’s CFO Dawn Ahner. dency program for UNSOM. that those careers also exist.” Saint Mary’s Medical Center in Reno is also a faith-based organization, which CFO Don Kowitz said is a major selling point. Aside from competitive wages and traditional benefits, its creative recruitment offerings include a new fitness center, career planning and coaching, bonuses for national certification, flexible sched- uling, use of its Child Care Center and even discounted ski tickets.

A Healthy Bottom Line?

Hospitals aren’t exactly making money hand-over-fist. According to Welch, profit margins for hospitals in Nevada average between 2.5 and 4 percent Ð in the bottom quartile in the nation. So why are healthcare costs increasing? Increasing technological advances and longer life expectancies are part of the issue. Meanwhile, as Welch explained, about 60 percent of a hospital’s business is with those Nevadans using federal programs, such as Medicare,

16 November 2006

Cover Story: Healthcare Checkup

Medicaid or Indian Health. Those re- being good stewards of resources and given day, we’ve got 100 patients imbursement rates are set by the gov- picking up the shortfall,” she said. “It’s who need mental care sitting in our ernment. “The majority of those pro- a challenge to be financially viable.” ER,” said Greg Boyer. “We don’t grams pay anywhere from 5 percent to And the number of uninsured or treat psychiatric patients, but we have 15 percent less than our actual costs to under-insured workers keeps climb- to hold them if we think releasing provide service,” said Welch. ing. That means those people are them will pose a threat. We may end Meanwhile, as Dawn Ahner pointed using emergency rooms Ð where fed- up holding as many as 15 people at a out, 19 percent of the state’s popula- eral law requires hospitals to examine time. Those patients take valuable re- tion is uninsured, so the pool of people and treat patients Ð as primary-care sources away from those with legiti- to cover those remaining costs keeps facilities. mate health crises.” shrinking. “Government payers don’t Another factor clogging ERs to the Sam Kaufman said this is especial- cover the cost of care, which leaves breaking point is a lack of mental ly true at Desert Springs Hospital. healthcare facilities challenged with health facilities in the state. “On any “Here in the center of town, we have more than our fair share of uninsured, indigents, illegal immigrants and Spotlight on Vicky VanMeetren, CEO hard-to-collect payments. It’s proba- St. Rose Dominican Hospitals, San Martín Campus bly 25 percent of outpatients daily. Fi- nancial reimbursement is a real chal- s St. Rose Dominican Hospitals pre- • An accompanying three-story med- lenge for us.” Apares to open the doors to its newest ical office building with an outpatient Boyer added that the Medicaid en- location, the San Martín campus, in No- pharmacy; rollment rate in Nevada is 7 percent; vember, all eyes will be on Vicky VanMee- • An extensive range of health services, the national average is 13 percent. tren. She is not only the new hospital’s including an emergency department, the “The criteria here are far too high, so president and CEO, but she managed all full range of surgical and rehabilitative most people don’t qualify.” construction efforts at San Martín. services, obstetrics, the only pediatrics University Medical Center in Las VanMeetren has been with Catholic department in its region of the Valley, full Vegas is Clark County’s only public Healthcare West, the parent company of St. diagnostic imaging services (including hospital. CEO Lacy Thomas said that Rose, for 10 years, and has worked in MRI and CT), cardiac services, cancer/on- because UMC is owned by taxpayers, healthcare in Las Vegas since 1981. Prior to cology services, a chapel and chaplains and not shareholders, remaining finan- her current position, she worked for 10 and extensive community outreach pro- cially viable is a challenge. “Part of in- years at the Siena campus in Henderson – grams; surers’ appeal to companies is lower the first three years as director of quality • The “Get Well Network,” which provides costs,” said Thomas. “They’ll then try management, and the subsequent seven each patient with a flat-screen LCD tele- to drive down costs with us. But the years as senior vice president of operations. vision on a movable arm that allows pa- cost of care is the cost of care. We’re in San Martín isn’t the first major construc- tients to put the TV right in front of them; a unionized environment. So you get tion undertaking VanMeetren has man- the TV has full computer capabilities, as into a tug of war that makes it difficult aged. She was appointed the St. Rose lead well as television and movie rental op- for hospitals to get their fair share.” for the recent $100 million construction tions, all of which can be accessed from and expansion that nearly doubled the size patients’ beds. Ensuring Healthy Outcomes of its Siena campus. “My father was in the All beds in the new hospital are in private construction business, and so is my hus- rooms, which offer guest accommodations. Anthem Blue Cross and Blue band, so I guess I’m a magnet for it,” said A Healing Garden provides a quiet sanctuary Shield, the second largest insurer in VanMeetren. “I’ve watched the growth in for patients, visitors and employees where Nevada, serves about 220,000 this city for the last 25 years, and I’m ex- they can sit outside, think, pray, relax or even Nevadans. As Joe Hoffman, vice pres- cited to be a part of the changes.” eat lunch. Some space in the new San ident and general manager of the And the changes are indeed signifi- Martín campus is being shelled for future Nevada and Colorado offices, ex- cant. St. Rose broke ground on San expansion. plained, making sure people get the Martín in February of 2004, and when the Following San Martín’s opening, St. right kind of care is closely tied to ris- four-story, 111-bed acute-care facility Rose will begin remodeling its Rose de ing costs. He referred to this year’s opens in November, it will boast many Lima campus on Lake Mead Parkway in “First National Report Card on Qual- features, including: Henderson. ity of Care” by Rand Health, which

18 November 2006 Cover Story: Healthcare Checkup

found only 55 percent of Americans Hoffman. “Prevention and appropriate receive the recommended care, re- “On any given day, treatments are a significant portion of vealing “substantial gaps between costs.” He added that statistically only agreed-upon standards of care and the we’ve got patients 10 percent of costs are driven by care care actually provided.” delivered, 50 percent by behaviors, 20 Hoffman said Anthem negotiates who need mental care percent by genetics and 20 percent by with hospitals to arrive at a mutually the environment. “If we can help to con- agreeable reimbursement rate. (Sierra sitting in our ER.” trol behaviors Ð getting people to eat Health Services, the state’s largest in- right, stop smoking and follow doctors’ surer, chose not to be interviewed for instructions Ð that can be significant.” this article because at press time, it Hoffman said approximately one- was in the midst of contract negotia- third of the uninsured are actually eli- tions with hospitals.) The per diems, Anthem, he said, is doing its part to gible for government programs like or amounts paid for each day a patient improve outcomes. This includes of- Medicare, yet aren’t enrolled, while is in the hospital, are locked in as a fering case management programs to another one-third live in households way to keep costs reasonable. “We try help members deal with ongoing con- earning more than $50,000 per year. not to tie our rates to hospital bill ditions and properly follow doctors’ The remaining one-third are working charges, to make them more pre- instructions. Anthem is also encour- poor who are unable to purchase in- dictable,” Hoffman said. “They’ve aging consumers to try to understand surance. Programs like Anthem’s new gotten to be unrealistic. We’ve all the cost of care they’re receiving. Tonic, for 20- to 29-year-olds, help heard stories of patients being “People read Consumer Reports to cover those most likely to be unin- charged $100 for Tylenol, those kinds buy a dishwasher, but they don’t do sured, but who are generally in good of things. This puts a burden on hos- nearly enough homework when it health. “You want healthy lives in the pitals to be efficient.” comes to cardiac surgery,” said insurance pool, to help offset the costs

November 2006 19 of the not-so-healthy,” he said. “If we can insure people who can afford it, and get others properly enrolled in government programs, that will go a long way to solving our problems.” In some cases, hospitals themselves have become insurers in order to weather the reimbursement storm. In Northern Nevada, both Saint Mary’s and Renown offer their own healthcare plans; this is a rarity. “It’s really an outgrowth of how this community has evolved in terms of its relationship between hospitals and health plans,” said Kowitz, referring to many insurers’ contracts with specific hospitals. “[Having our own health plan] has provided another leg of stability.” “We’d be hard-pressed not to have insurance,” said Ahner. “For us it’s an in- tegral part of healthcare. It helps us compete with larger national players and offer services to the local community. “

What’s the Prognosis?

Most agree that there will have to be some changes in the healthcare industry. What they will be, and what effect they’ll have, is anyone’s guess. Kowitz predicted that discussions about what kind of care is really necessary will begin taking place. “More isn’t necessarily better. Look at the pharmaceutical industry. We used to treat indigestion with antacid, but now it’s called ‘acid reflux disease’ and we have people asking for Nexi- um because they saw it on a commercial. As the system gets pushed, we’ll have to make decisions about what kinds of treatment we really need.” VanMeetren points to St. Rose’s new Joint Replacement Program, which was developed for active, otherwise healthy patients needing joint replacement. This program treats patients like outpatients; a family member or friend receives early training to become a “coach” to the patient, and can assist with recovery after a short

20 November 2006

three-day stay. “While I believe the number of stays will increase, I think in the long run, their duration will be shorter, thanks to patient education,” said VanMeetren. Thomas’ biggest concern about the future is that many boomers are healthcare workers. That leaves UMC to fill those gaps. UMC is looking to expand its part-time employee programs to attract more staff. But Thomas said it’s not keeping him up nights. “The reality is that we’ve had challenges in every decade, and we’ve met them,” he explained. All in all, Welch is optimistic about the future of healthcare in Nevada. He said, “We have a dedicated hospital community, regardless of the challenges, and its members continue to look for ways to be more efficient, to better utilize their resources to ensure Nevadans access to quality, affordable healthcare. And we’re committed to meeting those challenges.”

Jessica Santina is a freelance writer based in Northern Nevada.

St. Mary’s to Join CHW The board of directors of Saint Mary’s has voted to enter into exclusive negotiations to join Catholic Healthcare West (CHW), the largest Catholic healthcare system based in the western United States. St. Rose Hospitals in South- ern Nevada are also affiliated with CHW. “Over the last two years, CHW has partnered with Saint Mary’s to provide strategic planning assistance and to allow for group purchasing options. As a result of our successful interac- tions, our organizations have found compatibil- ity of mission, cultures, and values,” said Larry O’Brien, chief executive officer of Saint Mary’s. Headquartered in San Francisco, CHW is a system of 41 hospitals and medical centers in California, Arizona and Nevada. Founded in 1986, it is one of the nation’s largest not-for- profit healthcare systems, with a network of more than 7,800 physicians and approximately 45,000 employees providing services to more than 4 million people annually.

22 November 2006 Goodbye, Washoe Hello, Renown

ashoe Health System and its sub- The organization contracted with nation- $500,000 donation to the city of Reno as Wsidiary organizations underwent a ally known firms to conduct research and seed money to assist with funding for a major rebranding in September, adopting set up focus groups, and the results clear- screening and treatment facility for mental the name Renown Health. Its flagship Reno ly indicated that the name was indeed a health patients. “There is a very significant hospital, Washoe Medical Center, is now problem. “When people were asked their unmet need in mental health,” said Miller. known as Renown Regional Medical Cen- opinion of private hospitals versus public “People whose needs are going unmet are ter. The region’s oldest hospital, which hospitals, they clearly preferred private ending up in the hospital emergency room, traces it roots back to 1864, was originally hospitals,” said Miller. Because the hospi- which is not the best place to take care of affiliated with Washoe County; however, it tal shared the name Washoe with the those issues. We decided to make the lead has been a private, not-for-profit health county, hospital leadership felt it needed to donation for this project to encourage oth- network for more than 20 years. clarify that it is a private hospital. ers to step up as well to help get the facil- Jim Miller, president and CEO of Renown Renown’s management hopes the re- ity built.” Miller hopes Washoe County, its Health, said market research and image branding will result in positive benefits, in- cities, the state and the hospitals will all surveys provided the impetus for the name cluding an increase in the number of peo- collaborate to build and support the center. change. “We found people were leaving ple staying in town for their healthcare. “It The organization’s name change co- town for medical care, partly because they offers benefits to the patients and their incides with the construction of a new weren’t aware of all the services we of- families, because it’s more convenient for 10-story patient tower, which will con- fered,” he said. “When the hospital board them to stay close to home,” noted Miller. tain 200 private beds, 18 operating was discussing our new patient tower and “But the community as a whole also ben- rooms and 25 emergency room beds. all the changes that would come about be- efits, because the more people who stay The new tower will also be equipped cause of that, we decided if there was a here, the more services we can offer.” with state-of-the-art technology in its problem caused by our name, now would At the ceremony announcing the re- Heart Institute, Neurosciences Institute be the time to fix it.” branding, Renown Health presented a and radiology department.

November 2006 23

INDUSTRY FOCUS

Philanthropy: Giving Back to the Community

n an effort to educate our readers Connie Brennan (Nevada Business about the philanthropic efforts of Journal): What is the process for INevada businesses and foundations, granting money to nonprofits? What Nevada Business Journal recently do you look for? sponsored its first-ever philanthropy Kirk Clausen: Requests come in a FRONT ROW (LEFT TO RIGHT): roundtable meeting, which was at- number of ways. We see a minimum Doretha Easler Nevada Power Company Melissa Nelson Station Casinos tended by some of the biggest givers of 30 unsolicited requests a month Ð Laurie Susie St. Rose Health Foundation in the Silver State. They discussed is- maybe as high at 50 or 60, depending MIDDLE ROW: sues important to all companies in- upon the time of the year. A lot of us Bret Bicoy Nevada Community Foundation volved in community giving cam- here also use the grassroots approach; Merlinda Gallegos MGM Voice Foundation paigns, including the challenges and our employees are out in the commu- Gina Polovina Boyd Gaming rewards of fundraising, methods of en- nity, they see an organization or a Julie Murray Andre Agassi Charitable Foundation gaging employees in volunteerism, cause they like, and they run it up the Colleen Bacchus Deloitte & Touche Kirk Clausen Wells Fargo and strategies to ensure dollars make flagpole with the team. We have a the most impact in the community. committee, which is fairly representa- BACK ROW: Mercedes Warrick Business Community Investment Council Connie Brennan, publisher of Neva- tive of the different positions within and The Empowerment Zone, Inc. da Business Journal, served as the the bank, which makes decisions on Steve Anderson Donald W. Reynolds Foundation Paul Stowell Business Bank of Nevada moderator for the event as part of the how to spend the budget we have for Steve Schorr Cox Communications magazine’s monthly Industry Focus charitable giving. Rob McCoy Embarq series, which brings CEOs together to Steve Schorr: As a company, we have NOT SHOWN: discuss pertinent issues in their indus- been involved with certain groups for Debi Puccinelli Harrah’s Entertainment try or profession. Following is a con- a long time, but we also get sugges- densed version of the discussion. tions from members of our team, and

November 2006 25 Industry Focus: Philanthropy we give each of these equal weight. Schorr: We demand a face-to-face We have been able to narrow down meeting. We want to be on a first- the scope of our giving to three name basis with the people running things: children, families and educa- the organization, and we want them to tion. They’re not necessarily in order know who we are as well. of one, two, three because they all Paul Stowell: We have people we can have equal importance. We don’t typ- turn to as a resource Ð specifically, the ically get involved in anything outside Business Community Investment of those three categories. Our philan- Council (BCIC). We tap into its re- thropic efforts have actually grown Brennan: If you’re considering support- sources on a monthly basis to find out over the years, so each year it’s a little ing an organization you haven’t worked about nonprofit organizations that we more of a challenge. with before, what do you look for? may not be familiar with. A lot of Rob McCoy: The needs, especially in companies are affiliated with BCIC, Southern Nevada, have far out- McCoy: To begin with, we want to ver- but more importantly, I can pick up stripped the funds available. ify that the organization has a 501(c)3 the phone and call Steve [Schorr] and Gina Polovina: Yes, and too few of us classification. We also want to see who say, “Hey, Steve, have you heard are being asked to do the majority of is running the organization and who’s about this organization?” Nine times the giving. serving on its governing board. If it’s a out of 10, if he hasn’t heard about it, Doretha Easler: Nevada Power has a local group, this basic information is it’s probably not a group that’s worth charitable foundation and, like Cox, usually enough to help us separate the the affiliation. we try to narrow our focus down to contenders from the pretenders. Julie Murray: BCIC meets monthly four specific areas. For anything that Clausen: We look for United Way certi- with the goal of strengthening and im- falls outside of that, I have a budget I fication, too. If we see United Way is proving philanthropy in Southern can use to purchase a table at an event supporting them at some level, there’s a Nevada. In fact, there are four past and or things like that. strong likelihood we may support them. current presidents around this table.

Brennan: Of all the requests you get, what percentage actually get funded?

Clausen: If I had to guess, maybe four out of 10 are getting approved. That’s taking into consideration that we’ve been supporting some organizations for the last 10 years, so very few new organizations are coming online. We look for ways to support as many as we can and to make as much impact as we can, but in the end, we have a responsibility to make sure our stockholders are getting the most bang for their buck. McCoy: Sometimes what we can’t support with dollars, we will support with in-kind contributions, such as technology. We can also send volunteers to a group to help them out. Mercedes Warrick: At BCIC, we’re hearing a lot of questions from members about how to make the most impact. They’re asking, “How can I collaborate with other businesses and organizations to make an impression?” Organizations

26 November 2006 Industry Focus: Philanthropy are coming together and pooling re- McCoy: With some organizations Ð for sources, whether financial or in-kind, instance, the Salvation Army Ð we to make the most impact for their con- know the dollars are being passed tribution. straight through to the needy. Schorr: The challenge for corpora- Stowell: Nonprofit groups need to un- tions today is, we have to do things derstand that they have a responsibili- differently. Before, if there was a ty to be accountable to their donors, problem, we would throw money at it. especially those that are contributing We can do other things now besides shareholder dollars. If you’re not that. With Cox, it’s not just technolo- going to be accountable and provide gy – it’s everything from public ser- Brennan: When you are looking at a that kind of feedback, then I guaran- vice announcements to volunteering proposal, do you ask how much of tee the funding is going to dry up. our employees, and sometimes that’s your donation will actually fall to the Gallegos: We have specific focus as valuable as giving money. I think bottom line? areas: working with at-risk children, that’s the key for philanthropy today Ð public education and community de- it’s not just money – it’s partnership. Debi Puccinelli: Always. We actually velopment. We’re starting to look at Merlinda Gallegos: At MGM Mirage, request they put it in writing. more of a continuum of care and also when you count the requests for table Schorr: We always want to know focusing on systems issues. For ex- purchases and auction donations, we what percentage goes for administra- ample, right now we’re sponsoring get around 400 inquiries per week, tion and what percentage goes for one of the empowerment schools, which is a bit overwhelming. And out whatever the cause may be. That’s a Peccole Elementary, and we will be of those, I would say about 75 to 80 critical factor to determine what we’re building some of our philanthropy ef- are requests to actually support pro- going to do. If a disproportionate forts around that. We’re going to have grams. Of those, a very small percent- amount of funds goes to administra- more volunteers actually at the school age actually gets funded. tion, we typically stay away. site. We collected 1,500 backpacks

November 2006 27 Industry Focus: Philanthropy and had our employees distribute the student to pay for books and cred- the caregiver for the senior citizen. them there, because we see it as part it hours and there are no administra- So, when we look at where we invest of our corporate responsibility to help tive costs. As a giver, we love that. our dollars, it’s important to consider our employees get more engaged in Bret Bicoy: One of the things we in how much of it is going to those kinds the community. the philanthropic world forget some- of costs, but we must also recognize Clausen: There are also opportunities times is that when you are dealing that those are appropriate in some to restrict your giving. For example, with human services, overwhelmingly ways. You have to pay someone to we’ve been able to go to universities the biggest cost is the human beings. teach in a classroom. That’s an appro- and target specific dollars to first-gen- You need a person to actually provide priate expense. It’s when you have to eration scholarship winners. We know the service Ð to do the counseling, to pay for five bureaucrats for every one 100 percent of that money is going to be the teacher of the young person or teacher that you begin to know something is wrong. Schorr: Looking around this room, I would guess we’re talking about at least $20 million to $30 million in philanthropic giving, in both cash and time. I will speak for everybody by saying that none of us do it for the publicity. We do it because it’s the right thing to do for the community. But the organization receiving the money needs to respond in a proper way. And that is, to use that money for the reason it was given, and to then report back to the organization on what it did with the money. Gallegos: With the MGM Mirage Voice Foundation, we build in a re- porting time twice a year. Grant recipients send us outcome reports twice a year, and we also have site visits so our employees can see their dollars at work. I was really proud of our employees this year. They took a chance with a fairly new organization that I hadn’t heard much about. The group is working with youth, and has a prevention focus, so we decided to take a chance this first year, and we’ll keep an eye on them. I think we’re in danger of not being as innovative as we can be if we’re basing our decisions on small-town relationship giving. It’s also good to add some spice and get some outside influences in to solve community issues. Bicoy: I couldn’t agree more. There are well-established charities that are very good investments for our community and they have a proven track record. But where do new ideas come from? Where does innovation come from?

28 November 2006

Industry Focus: Philanthropy

Bicoy: I don’t have any corporate statistics for the same reason. However, the Chronicle of Philanthropy conducted a study about five years ago that talked about individual giving. They looked at the percentage a typical community gives to charity out of its dis- cretionary money. As a state, we consistently fall somewhere in the 40s out of the 50 states. I don’t think this shows we are less generous. For example, it’s unfair to compare Las Vegas to more established cities. If charitable giving is the manifestation of love and From people who are willing to chal- to go around for education Ð there commitment to one’s community, it’s lenge the way we’ve always done aren’t enough books in the library or hard to have that love and commitment things and look for something different. enough computers in the classrooms. if you have only lived here for three Warrick: At BCIC, we are really en- So I appreciate having access to the years. So I don’t think we are less gen- couraging smaller and medium-sized ideas the Agassi Foundation devel- erous Ð we are just new. What we lack businesses to join the philanthropy oped to build their school. in Las Vegas is a long tradition of phil- world. Our organization allows small- Murray: One of the great things about anthropy, but we are beginning to build er companies to ask questions like, Las Vegas is there’s such a “can do” one right now. Every day you hear “How do I get my employees more in- spirit. If a problem or a social service about another large, exciting project, volved?” and “How do I bring the need arises, everyone steps up to address like the Nevada Cancer Institute. themes of my business together with it, and we collaborate with each other. McCoy: We are maturing as a com- the needs of the community? How I Stowell: If we don’t collaborate, and munity. Over the last few years, when can make an impact?” And we get if we don’t engage more businesses to potential business customers consider some great ideas from companies that come to the table, we’re never going a contract with us, they will ask what have small budgets for giving. to solve these issues. we are doing as a company to help the Schorr: There are some wonderful community. That information helps ideas out there, and I think it’s okay Brennan: How does Nevada stack up them make the decision whether to for us to steal ideas from each other. I in terms of giving, compared to other deal with us or not. am not afraid for somebody to take an states? idea I started, and have it grow for Brennan: I think we can assume that their company. I have learned a lot Warrick: Actually, that is very elusive donations are made for the right rea- from the Agassi Foundation. The information, because companies cal- sons, but you can do good for the greatest joy of my life is that I have an culate their giving differently, and it’s community and also get media expo- elementary school named after me. difficult to place a dollar value on vol- sure for the company. So, how do you However, there’s not enough money unteer hours. maximize that exposure?

Puccinelli: That’s a good question, and it’s one we often wrestle with. If we give a small amount and get a large response to it, either in terms of communications or external publicity, the foundation board considers it money well spent. If we present a large gift and hear next to nothing about it, it makes it much more difficult for the next group that comes forward and asks for that type of commitment. Laurie Susie: As a foundation, we receive charitable funding from a lot of

30 November 2006 Industry Focus: Philanthropy people around this table, and we look for ways to partner with local corporations. For example, we added Boyd Gaming’s name to our pediatric unit. In addition, we did something very creative with Harrah’s; instead of saying, “We want your money to fund a bilingual magazine,” we put articles about our partnership in the Women’s Care Magazine that goes out to 360,000 people, so readers can see that Harrah’s is supporting St. Rose. Puccinelli: We always encourage nonprofits to keep a little marketing spirit in everything they do, because it really was at about 33 percent. Since then, it employees to give, and you have an is critical to get that feedback. I think has grown consistently to its present accountability piece so they know ex- it’s also important that nonprofits show level of 47 percent. The more we edu- actly where their dollars are going, they are aligned with a reputable orga- cate our employees about the needs in that’s the human spirit on fire. nization such as Wells Fargo or Nevada the community, the more they want to Colleen Bacchus: Corporate philan- Power. It gives them added credibility. be engaged. One of the quotes that thropy gives you a competitive advan- Stowell: Many times we look at the goes around our company is, “There’s tage as an employer as well, because ROI (return on investment) and ask, nothing more powerful than the employees are demanding that we do “What are we getting out of this?” human spirit on fire.” When you can things for the community. This is es- Steve made a good point that we’re re- educate and reach out and have a sys- pecially important to the new genera- ally doing this to be good corporate cit- tem in place that makes it easy for tion. They’re not only asking how izens who believe in the community. But you have to understand, studies have shown that companies that give back to the community have greater loyalty among their employees, because employees want to work for companies that will support the causes they’re involved in. And the consumer will do business with companies that are more philanthropic, rather than those that aren’t, with all things being equal. So, there is a tangible return. Bicoy: Publicity is important for several reasons, and one of them is that it’s setting new norms for our community. If I’m running a bank and I see that Business Bank is involved in the community, then I recognize that maybe I should be doing it too. Cele- brating giving is important because we don’t have the long traditions of philanthropy here. One of the ways we’re going to create it is to show that it is “the thing to do.” Gallegos: When the MGM Mirage Voice Foundation was founded five years ago, our employee giving rate

November 2006 31 Industry Focus: Philanthropy

much we’ll pay them, they also want every building constructed with a cap- to know how involved we are in the ital grant to include the name Donald community. So we pay close attention W. Reynolds. People tell me that this to what our people are asking us to helps them approach other funders do, and we do a lot of community in- because they have been recognized as volvement based on that. We also try being a successful organization. to match up their skills and desires with what the community needs. Brennan: How do you motivate your Stowell: Punam Mather from MGM employees so they become engaged helped us understand how we can and have a passion for giving? craft charitable giving into our employee benefits package. Employees Gallegos: We have a great program want to work for you if you are phil- called Dollars for Doers, which do- anthropy-minded. When Kirk ity was creating our own charitable giv- nates $10 for every hour of volunteer [Clausen] serves as chairman of Unit- ing report. It is a way we can communi- work. For example, if an employee ed Way of Southern Nevada, guess cate with our internal customers Ð our volunteers 25 to 50 hours per year for what? Employees are going to say, fellow employees, our boards of direc- his kid’s soccer club or something else “Caring must start at the top,” and tors Ð as well as our external customers. that’s within our focus area, we write they appreciate that. We do that on an annual basis and also out a check to that nonprofit in his Polovina: Boyd Gaming has a long his- post it on our website. name for $250, and send it to him so tory of philanthropy in this community, Steve Anderson: One thing you don’t he can present it to the organization. If having operated for four or five want to overlook is the value that the any of our employees volunteers 51 decades, and one of the things we found recipient gains from the recognition hours or more per year, we write out a to solve the challenge of getting public- of receiving the grant. We require check for $500 to that organization. Continued on Page 65

32 November 2006

Feature: Nevada’s Nevada’s Credit Unions

NEVADA’S CREDIT UNIONS Engaged in a Delicate Balancing Act

evada’s credit unions offer an tion, the national trade association Distinctive Characteristics array of financial services; how- serving credit unions. “Credit unions N ever, much more goes on behind originally were intended as coopera- Unlike banks, credit unions are the scenes. They’re constantly han- tives where ordinary people could owned by their members and are gov- dling new regulations, fierce competi- pool their resources and create a erned by a volunteer board of direction, escalating fraud, fluctuating inter- source for credit and other financial tors. Each member is afforded one est rates and more. In essence, they services. That basic concept continues vote in electing the board. Banks, on engage in a continuous balancing act: to this day,” said Brad Beal, presi- the other hand, have their stockhold- providing the most benefits to mem- dent/chief executive officer of Nevada ers elect the board of directors, whose bers, while dealing with the challenges Federal Credit Union. With 83,000 members are often paid for their ser- that threaten to undermine that goal. members and $85 million in assets, vice. Stockholders may have more According to July 2006 data pro- NFCU serves Clark County, Pahrump than one vote, depending upon how vided by the California Credit Union and inner-city areas of Reno. much stock they own. Credit unions League (CCUL), Nevada is home to In 1900, Canadian Alphonse are not-for-profit organizations, 29 state- or federally-chartered credit Desjardins organized the first cred- whereas banks are for-profit institu- unions. The CCUL provides Nevada it union in the western hemisphere tions. Because of their status, credit credit unions with information, edu- in Quebec. Nine years later, he unions are exempt from paying feder- cation, advocacy and support ser- founded the first U.S. credit union al income tax on earnings. vices. Combined, Nevada’s credit in New Hampshire. The country’s “Our motive is to give as much unions have $4.7 billion in assets and credit unions peaked in the late back as we can to our member own- 467,120 members. 1960s. Since then, the number of ers. That goes hand in hand with our Credit unions originated in Ger- credit unions has declined due to not-for-profit structure,” said Bruce many in the mid-1800s, according to mergers, yet membership contin- Rodela, president/CEO of Reno- the Credit Union National Associa- ues to climb. based Frontier Financial Credit

34 November 2006 Feature: Nevada’s Nevada’s Credit Unions

Union. FFCU has $71 million in as- Facing Competition sets and serves 8,600 members who “We have every primarily are government and health- Because credit unions offer as care workers in Washoe and contigu- loan product many services as banks, they compete ous counties. for the same customers. Financial Credit union presidents argue that there is, every Horizons, which serves 9,200 mem- because their organizations focus on bers in rural Nevada, struggles to serving the membership rather than checking and compete in Fallon, where about 10 fi- on maximizing profits for stockhold- nancial institutions exist. ers, they’re able to offer members bet- savings product “The banks are growing faster than ter rates on loans, higher returns on the community is growing,” said Bar- savings and a greater number of no- there is.” bara Reuter, president. “Everyone is fee services. Clark County Credit getting their share of the growth, but it Union gives back a bonus dividend to is a challenge to grow in that particular its members at each year’s end ($12 area because of all the other options.” million in 2005), said Wayne Tew, Credit unions use various methods president/CEO. CCCU has 37,000 to draw potential members. “A major members, $560 million and serves Frontier Financial Credit Union, challenge for us is helping folks un- employees of specific Clark County founded in 1958, originally served em- derstand what makes credit unions government groups, Clark County ployees of Washoe County and different, particularly people living in medical professionals, employees of Washoe Medical Center, along with 13 the community who aren’t credit the cities of Las Vegas and Henderson employer groups. Now its membership union members,” Beal said. “We and contributing members of KNPR encompasses all government and work hard to help them understand public radio in Las Vegas. healthcare workers in Washoe and and let them know that they’re eligi- Credit unions also are self-insured. neighboring counties, unions in North- ble for membership.” “A percentage of member deposits ern Nevada and employees of any Strategies include advertising goes into a deposit insurance fund to business associated with the Builders through radio, television, newspapers, add safety and soundness to the entire Association of Northern Nevada. billboards and employer groups, industry,” Rodela said. His credit The scope of services credit unions along with direct mail, newsletters, e- union, Frontier Financial, insures provide also has expanded, dictated mail, on-hold messages, event spon- members’ shares for up to $500,000 by members’ needs and wishes. When sorship and word of mouth. “We’re per account. many credit unions started, they of- always looking for new ways to reach Credit unions are restricted in ways fered what the industry calls “plain out,” said Reuter, whose credit union that banks aren’t. Their capital must vanilla services” Ð savings accounts relies primarily on radio and newspa- come only from retained earnings, and one or two loan options, Rodela per advertising. whereas banks can issue stock. Credit said. Today, however, the range of ser- Generally, Nevada’s credit union unions are also limited on who their vices is much wider and includes heads describe competition with banks members can be and what regions everything from certificates of deposit as healthy and beneficial for con- they can serve. to mortgage loans. Other offerings are sumers. However, they have to expend checking accounts, credit cards, time and resources defending against Evolution Over Time ATMs, online banking, e-statements, legislative attacks by banks. Many of commercial loans, home equity loans Nevada’s credit unions contribute Despite these restrictions, the state’s and more. money annually to the California credit unions have grown in size, and “We have every loan product there is, Credit Union League, which advocates many have expanded their membership every checking and savings product on their behalf, Schumacher said. fields. For example, Nevada Federal there is,” said Carol Schumacher of One complaint bankers lodge is that Credit Union, formed in 1950, original- IBEW Plus, a 30,000-member, $130 the playing field for the two types of ly served about 200 of the state’s major million credit union that serves South- entities is uneven because credit employers. In 2001, however, it changed ern Nevada union workers and select unions don’t pay federal income to a community credit union serving employer groups. “We have had to taxes. “Those banks chose their struc- anyone who lives in Clark County. evolve to be competitive in the market.” tures,” Rodela said. “I really believe

November 2006 35 Feature: Nevada’s Nevada’s Credit Unions Nevada Business Journal

there is room for both types of organi- like to see that take place so they can zations. The real bottom line for the buy out these institutions down the bankers is that they want to own the road. That’s another form of wanting playing field. They’re going to lawyer to see the credit unions go away.” SUBSCRIBE up and lobby to try to do away with Another criticism is that credit us. If you look at how the banks oper- unions don’t contribute to the tax base. ate, in my opinion, they’re against “That is erroneous,” Beal said. “Credit NOW anybody in the financial arena that unions pay real estate, payroll, Social competes with them.” Security and unemployment taxes.” Walter Murray, president/CEO of Credit union money benefits com- Greater Nevada Credit Union (GNCU), merce locally, Rodela added. “The IT’S EASY said banks have advantages in their beauty of credit unions is that they’re ability to raise capital and grow. “The locally owned and operated,” he said. playing field has not been level since “The funds stay in the community and Day One because we’re not-for-profit are reinvested in the community.” and they’re for-profit,” he said. With Along with banks, credit unions $495 million and 51,000 members, compete with other financial institu- GNCU serves Northern Nevada. tions and companies offering finan- Go to: Reuter said the complaint is a non- cial services. Those include insurance issue. “Banks are great big business, companies, auto dealerships, mort- and credit unions aren’t,” she said. gage lending companies and industri- www.NBJ.com Banks’ earnings and growth history al loan corporations (ILCs). ILCs are over the last several years, along with state-chartered companies, oftentimes the number of new banks being non-financial institutions, with broad Nevada Business Journal formed in Nevada, prove this fact, banking powers, such as Target, Gen- said Beal. Further, a number of banks eral Motors and BMW. Nevada is one are assuming a subchapter S status, of seven states that permit these char- which, with some limitations, allows ters. Wal-Mart and Home Depot ap- stockholders to own a portion at a very plied earlier this year for industrial similar tax structure to that of credit bank charters. SUBSCRIBE unions. “It’s readily apparent that “The environment has changed sig- credit unions are not damaging the nificantly in the last 10 to 15 years,” banks in a competitive way,” he said. Murray said. “Some of the other play- Bankers also argue that credit ers in the marketplace are the Wal- NOW unions have become large and bank- Marts, Toyotas and industrial loan like, and therefore should pay taxes. companies that exist in the marketplace “Credit unions as a whole have like Charles Schwab and ING Direct, reached those plateaus and their struc- which are making inroads into tradi- IT’S EASY tures because of the wishes of their tional consumer banking products.” members using those services, and Schumacher of IBEW Plus said her have done it over many years,” greatest competition is with mort- Rodela said. “While there are some gage/home equity lending companies very large credit unions, they’re cer- that offer interest-only financing and tainly eclipsed by the Bank of Ameri- car dealerships that offer zero-per- cas, the Citigroups and the Wells Far- cent financing. Go to: gos. They’ll never be able to reach As for Wal-Mart entering the mar- that size unless their tax exemption is ketplace, Beal believes the impact revoked and they end up becoming a could be dramatic. “There’s a lot of www.NBJ.com bank structure of some form and they uncertainty about how that would im- grow even further. The bankers would pact financial services,” he said. “Do

36 November 2006

Feature: Nevada’s Nevada’s Credit Unions we really want Wal-Mart in that busi- is problematic in its own right. “We’re it’s very dynamic and takes effort, ness? How much of our economy do challenged with growing the credit time and money.” we want Wal-Mart to control? How union so we continue to focus on a Rising interest rates are impacting much of our national economy do we mission of service,” Murray said. “We Frontier Financial. “We’ve been oper- want centered in one place?” don’t want to get big for the sake of ating at all-time lows for a couple Credit unions, however, say they getting big, but rather because what years now,” Rodela said. “We’re start- welcome competition in any form. “I we’re doing is the right thing for peo- ing to feel the shocks of higher rates am a big believer in the free market,” ple. As we continue to grow, that be- taking hold. It takes awhile for an in- Tew said. “People can make some- comes a bigger challenge for us.” stitution to basically reach a new thing happen, and if it’s a better wid- At Clark County Credit Union, plateau to be able to deal with the get, it ought to be available. I’m not a loan growth is exceeding deposit higher rates and maintain levels of re- fan of legislation to keep people out growth, Tew said. CCCU is also serves and regulatory compliances of the marketplace. Competition is working hard to have the technolo- and that sort of thing to maintain its good for the consumer. It’s good for gies to meet consumer demand for safety and soundness.” business because it forces businesses delivery of various services. Credit unions also strive to educate to be more efficient. If competition Another hurdle for some Nevada the public about sound financial prac- forces me to be introspective and im- credit unions is staying current with tices. Nevada Federal gives free sem- prove what I’m doing, I’d better do it changing and new regulations. “The inars and financial counseling online or I won’t survive.” regulatory environment has changed via a toll-free number. IBEW Plus so dramatically over these last several provides financial education in ele- years in the wake of 9/11, Hurricane mentary and high schools. It’s look- Other Challenges Katrina and electronic privacy is- ing to start a $150-limit credit card sues,” Murray said. “They all created program for teenagers. Despite competition, some of Neva- a significant challenge for us to stay The increase in fraud has credit da’s credit unions are growing, which up with. It’s nothing we can’t do, but unions on the offensive. They’re

38 November 2006

Feature: Nevada’s Nevada’s Credit Unions

seeing the most fraud with debit mercial deposits. Nevada Federal plans to cards, money orders and PIN-based offer a payroll card for consumers who transactions. “We see that people who “ I’m not a fan don’t have deposit accounts. IBEW Plus commit fraud get very creative, and is considering e-statements and a 24/7 there are new schemes out there con- of legislation to call center. Greater Nevada hopes to ex- stantly,” Murray said. “It’s one of pand small business lending, grow its real those things that take time and energy keep people out estate services and eventually offer health to stay up with and make sure we savings accounts. Frontier Financial is have the most current technological of the marketplace. ” looking at a student loan program for procedures possible to help prevent members attending college. those frauds and catch them when Additional branches are planned as they do occur.” well. Greater Nevada and Frontier Fi- To combat fraud, the credit unions nancial both have branches under way use various means, including fraud- in Sparks. In Southern Nevada, Clark detecting products, employee educa- “We work with other credit unions,” County Credit Union has one and tion, identification and other proce- Schumacher said. “We network really IBEW Plus has two new branches dures, black lights for detecting fake well. When we find something out, slated for Las Vegas. money orders and more. Sometimes we call the others and let them know.” “We do quite well just living a quiet they’re forced to limit transactions or little life and moving forward,” Tew eliminate services. Greater Nevada, On the Horizon said. “As long as we do that quietly for example, eliminated credit card and not get the bankers too mad at us, services because of fraud. IBEW Plus Consistent with their mission, some we do quite well.” stopped its members from using debit Nevada credit unions are exploring new Doresa Banning is a freelance cards to rent cars. services. Clark County is evaluating com- writer based in Northern Nevada.

Corporate Catering

40 November 2006

Sam Cherry is shown in one of the penthouse units of Soho Lofts in downtown Las Vegas. He is developing two other high-rise projects nearby. Building Nevada: Nevada’s High-Rise Market

NEVADA’S HIGH-RISE MARKET REACHING SKY-HIGH LEVELS

he Nevada landscape has Interstate-215; Diversified Real Es- town’s first residential high-rise, changed dramatically in recent tate Concepts’ 825-unit Aqua Blue at quickly sold out. T years due to an influx of retirees 4178 Koval Lane; and Related’s $3 Cherry is also developing the $87 and urban dwellers drawn to high-rise billion, 2,764-unit Las Ramblas at million Newport Lofts at Casino Cen- living. This trend has fueled a vertical Harmon Avenue and Koval Lane, ter Drive and Hoover Avenue, togeth- building boom at both ends of the among others. Despite this, the higher with Seegmiller Partners. The 23- state. In Las Vegas, however, land rise market remains robust, with 14 story, 168-unit tower features homes prices, construction costs and compe- projects totaling 4,288 units going from 900 square feet to 1,600 square tition caused some high-rise condo- vertical and more on the way, accord- feet in size, with ground-level retail minium cancellations over the last 18 ing to Restrepo. and an exotic car dealership. It’s ex- months. Some fallout was inevitable, “The market has stabilized some, pected to open by summer 2007. say observers, due to the volume of which had to happen, because it had Cherry, never one to rest easy, is al- planned projects, speculation and in- been white-hot,” said Bea Goodwin, ready at work on his next creation, vestment activity. president of the Las Vegas High-Rise Stanhi. The 65-story, 425-unit glass Ninety-five proposed luxury condo- and Condominium Association, an in- skyscraper at Gass Avenue and Third minium projects were on the books in dustry trade group. “As a result, today’s Street could break ground as early as Southern Nevada in August, totaling buyers are more savvy and educated.” mid-2007. WPH Architecture is de- 53,260 units, according to John Re- signing all three projects, with Breslin strepo, principal of Restrepo Consult- Downtown Las Vegas on the Rise Builders as general contractor. ing Group, a Las Vegas-based real es- “Downtown hadn’t taken off until tate research firm. In contrast, only Much of the activity is taking place Soho got started. It was the first one 30,750 new single-family homes were in downtown Las Vegas, thanks in out of the ground,” Cherry said. sold in Southern Nevada last year. part to developers like Sam Cherry. “We’re trying to create an urban vil- Recent high-rise cancellations in- The 28-year-old high-school dropout lage lifestyle that combines living, clude: the Hard Rock’s $1.4 billion, turned entrepreneur completed the working and playing in the heart of 1,420-unit Flats, Bungalows and Res- $63 million, 120-unit Soho Lofts ear- the city, similar to San Diego, New idences at Harmon Avenue and Par- lier this summer at the southwest cor- York or Chicago.” adise Road; The Curve’s 389 resi- ner of Las Vegas Boulevard South and Cherry’s vision for a revitalized dences at Durango Road and Hoover Avenue. The project, down- downtown is shared by Mayor Oscar

November 2006 45 Building Nevada: Nevada’s High-Rise Market

Goodman, who has tirelessly crusad- struction is the general contractor. Haddad expects to break ground on ed for transforming the area into an Streamline Tower, developed by Bar- the 450-foot-tall, 678,000-square-foot intimate community of small busi- clays North of Everett, Wash., is tower in early 2007. UPA Group is the nesses, residences, boutiques, restau- scheduled to open in mid-2007. general contractor, with RNL Design rants and art galleries. As a result, CityMark Development, mean- as architect. The project will offer downtown is once again becoming while, is building a $167 million homes from 1,100 square feet to hip. It’s the type of place where young mixed-use project called Juhl nearby 1,800 square feet in size, plus restau- professionals and singles can mix and at 255 E. Bonneville Avenue, between rants, boutiques, an art gallery and mingle, shop and live. “Like it or not, Third and Fourth streets. The six- recreational facilities. downtown is the core of our city, the building complex will have 330 resi- Boulevard Properties, a Miami devel- heart and soul of Southern Nevada, dences, 13 live-work units and 24,000 oper, hopes to build the 350-foot-tall, and without a healthy inner core, the square feet of storefront shops. City- 159-unit Evolution Lofts nearby, at city will rot from the inside out,” said Mark, the firm responsible for reener- Charleston Boulevard and Third Street. the mayor. gizing San Diego's Lamplight Dis- Designed by JMA Architecture Studios, Goodman’s conviction and opti- trict, was selected from a nationwide the 29-story high-rise will offer resi- mism has helped spawn several new request-for-proposal process to devel- dences from 806 square feet to 2,100 downtown developments, including op the 2.38-acre city-owned site. square feet, with seven levels of parking the 21-story, 275-unit Streamline Juhl’s first residents are expected to and 2,800 square feet of retail. Although Tower at 150 Las Vegas Boulevard move in by 2008. Turner Construction groundbreaking isn’t expected until North. Designed by JMA Architecture Co. is the general contractor. June 2007, Martin-Harris Construction Studios, the $105 million, 700,000- Other downtown projects include has been named as general contractor. square-foot high-rise will have 12,000 the 38-story, 270-unit HUE Lofts at Additional downtown develop- square feet of retail space and seven Art Central at Charleston and Casino ments could come from Michael levels of parking. Martin-Harris Con- Center boulevards. Developer Eddie Mirolla’s 35-story, 413-unit Sand- hurst Tower at Iron Horse Court and Grand Central Parkway, Diversified Real Estate Group’s 60-story, 912- unit Club Renaissance at Casino Cen- ter Boulevard and Bonneville Avenue, and Metroplex Group’s 39-story, 311- unit Gateway Las Vegas at Charleston Boulevard and Fourth Street.

Las Vegas Strip Looking Up

“Condos are continuing to sell, but location, branding, pricing and amenities remain very important with prospective buyers,” said Bruce Hiatt, owner of Luxury Realty Group Inc., a Las Vegas high-rise real estate spe- cialist. “Currently, the Strip corridor ranks first in desirability, followed by downtown.” The Strip, defined by its verticality, is seeing a residential building boom with projects like Sky Las Vegas. The 45-story, 409-unit blue-and-white tower is taking shape along Las Vegas Boulevard, just south of Sahara Av- enue. The $325 million, 500-foot

46 November 2006

Building Nevada: Nevada’s High-Rise Market high-rise is a joint-venture develop- Those qualities can be found in the later this year. M.J. Dean Construction ment between Aaron Yashouafar and Edge Group’s $2.5 billion, 4,000-unit is the contractor, with Klai Juba as ar- David Pourbaba. Designed by Klai W Las Vegas at the northeast corner of chitect. Hallier is planning two more Juba Architects, the 45-story sky- Harmon Avenue and Koval Lane. The 42-story towers at the site. scraper is scheduled to finish in early twin 50-story glass towers are expect- Turnberry Ltd. is the firm credited 2007. M.J. Dean Construction is the ed to break ground in 2007, with an- with launching the Valley’s current contractor. ticipated completion by 2009. M.J. high-rise mania. The Florida-based Allure Las Vegas is rising up just Dean Construction is the contractor. developer recently completed its $650 west of the Strip on Sahara Avenue. Around the corner, Bruce Langson is million, 778-unit Turnberry Place Developed by the Fifield Companies of planning the $1 billion, 1,000-unit Las condominium complex at the north- Chicago, the 41-story, 428-unit high- Vegas Central at Sierra Vista Drive be- west corner of Paradise Road and rise is scheduled to finish by late 2007. tween Paradise Road and Swenson Riviera Boulevard. The 15-acre devel- Bovis Lend Lease is the contractor. Street. The dual 40-story towers re- opment, which originally broke Sales for a second 41-story, 472-unit cently launched sales. Tutor-Saliba ground in 1999, consists of four 40- tower are now underway. Although Fi- Corp. has been named as contractor, story buildings and the 80,000- field has built 50 high-rise projects val- with Jerde Partnership as architect. square-foot Sterling Club. ued at over $3 billion throughout the Del American, meanwhile, will fin- “In 1998, many were skeptical that country, Allure is the company’s first ish its four-story, 212-unit Bella the luxury high-rise condominium foray into the Vegas market. Venezia I at Flamingo Road and concept would succeed in Las Vegas,” “Today’s buyers want nice finishes, Swenson Street in early 2007. Summit said John Riordan, Turnberry’s senior a good location, an experienced devel- Builders Construction Co. is the con- vice president. “Our success here is oper and a quality project that will re- tractor. Laurence Hallier’s 646-unit, based on superior locations, architec- tain its value over time,” said Tamra twin Panorama Towers at Dean Martin ture and amenities, but primarily our Trainer, manager of Beasley & DeVar- Drive and Harmon Avenue, just west experience. Over the next 25 years, the reau Sotheby’s Vertical Realty Group. of the Bellagio, will move residents in popularity of high-rise living in Las

48 November 2006

Building Nevada: Nevada’s High-Rise Market

Vegas, particularly near the Strip, will grow beyond anyone’s expectations.” The firm is already at work developing the 632-unit Turnberry Towers at Paradise Road and Karen Avenue, which consists of two 45-story buildings. The first tower is expected to finish this spring, followed by Tower Two in 2008.

Condo-Hotels A Unique Product

In addition, Turnberry has partnered with MGM Mirage to build three, 40-story condo-hotel towers at the southwest corner of Harmon Av- enue and Koval Lane. The $1.2 billion, 1,727-unit Residences at MGM Grand is the Strip’s first completed condo-hotel project. The initial tower Turnberry Place recently completed its fourth tower. opened this summer. Tower Two will finish in November, followed by the last phase in May 2007. A condo-hotel is a unique product Ian Bruce Eichner, the developer re- that enables owners to earn an income sponsible for Manhattan’s One Broad- by renting out their residence when it way Place, is also building a condo- is not in use. Units are normally mar- hotel product. The $2 billion keted by the building’s operator in ex- Cosmopolitan Resort & Casino is lo- change for a portion of the income. cated on the Strip just south of Bella- Most condominiums, by contrast, gio, and consists of two 53-story tow- have strict guidelines for subleasing. ers and a four-level low-rise. The “For the Strip resorts, there is little property will contain 3,000 hotel and downside to condo hotels,” said Restre- condo-hotel units. Cosmopolitan is expo. “It’s essentially a way of having pected to finish by 2008. Perini Build- buyers finance a room expansion. And ing Co. is the contractor, with Miami- 85 percent of resort corridor projects based Arquitectonica as architect. have been purchased by second home- George Maloof is joining the condo- buyers, investors and speculators.” hotel crowd with his $350 million Palms Diversified Real Estate Concepts Place at Flamingo Road and Arville recently opened the 17-story, 255-unit Street, a few blocks west of the Strip. The Platinum condo-hotel at E. Flamingo 50-story high-rise will have 599 luxury Road and Koval Lane. Milwaukee- condo-hotel units that connect to the based Marcus Hotels & Resorts man- Palms by a 300-foot-long moving walk- ages the property, where owners par- way. Designed by Jerde Partnership, with ticipating in the rental program can M.J. Dean as contractor, Palms Place is use their units for 60 days a year, but scheduled to open in December 2007. no more than 29 consecutive nights. “We sold out at an incredible pace, Owners, however, share in the rental despite six price increases,” Maloof revenue, which is often a 50-50 split said. “We could have sold out another minus additional fees for housekeep- tower, but we won’t build another ing and marketing. one. This is one-of-a-kind.”

50 November 2006 Building Nevada: Nevada’s High-Rise Market

Donald Trump experienced similar of the South Coast Casino. Devel- enues across from The Orleans sales success with his self-named oped by Palm Beach Resort Condo- Hotel and Casino. Pinnacle Las condo-hotel tower behind the New miniums LLC, the project calls for Vegas has two golden towers con- Frontier Hotel and Casino. The $500- four seven-story towers. Martin- nected by three sky bridges. De- million, 1,282-unit high-rise is a Harris Construction is the contrac- signed by YWS Architects, with joint-venture between Trump, New tor, with PGAL as architect. The Marnell Corrao Associates as con- Frontier Owner Phil Ruffin and Jack first building will finish in early tractor, the project is expected to Wishna (a dealmaker who brought the 2007, with expected build-out in open in 2009. two together). The skyscraper, which 2009. It’s just one of many emerging Migrating further west toward the sold out in under a week despite sale South Strip projects, which include suburbs is Sullivan Square, at Duran- prices of $600,000 to $6 million, is Gemstone Development’s go Drive and Sunset Road. The $800 scheduled to finish in early 2008. 700-unit Manhattan mid-rise condo- million, 1,300-home mixed-use com- Perini Building Co. is the contractor, minium complex across the street plex, developed by Glen, Smith & with Bergman Walls & Associates as from Boca Raton and AmLand De- Glen Development, is expected to architect. Unlike Maloof, Trump is velopment’s five-tower, 1,000-unit break ground in early 2007. Martin- planning a sequel. He hopes to launch ONE Las Vegas at Las Vegas Boule- Harris Construction is the contractor. sales for a second tower in early 2007 vard South just south of Windmill Another suburban project, One to coincide with the new season of Lane. Queensridge Place, is located at the The Apprentice, the hit television real- Property prices have pushed some southwest corner of Alta Drive and ity show starring Trump himself. projects further west, beyond the tra- Rampart Boulevard, across from the But MGM Mirage trumps them all ditional resort corridor. The Falcon Suncoast Hotel and Casino. The with its $7 billion, 18 million-square- Group, for example, is building an dual-tower, 340-unit project is being foot Project CityCenter. The 76-acre $850 million, 1,100-unit condo- developed by Executive Home complex, which broke ground on June hotel at Tropicana and Cameron av- Builders and Peccole Nevada. 26, is located on the Strip between the Monte Carlo and Bellagio resorts. Plans call for 2,800 condominiums designed by Rafael Vinoly, Helmut Jahn, Kohn Pederson Fox and Nor- man Foster. MGM Mirage formed CityCenter Realty Corp. this summer to oversee sales. The sales center will officially open in January 2007, though CityCenter isn’t expected to finish construction until November 2009. Perini Building Co. is the contractor. CityCenter’s ag- gressive Realtor compensation program could dampen sales for projects elsewhere. After all, not everyone has central Strip frontage like MGM Mi- rage. Soaring land costs have already driven rival projects southward, giving shape to a new “South Strip.”

High-Rises Moving to New Areas

Boca Raton, for instance, is a $450 million, 756-unit condominium complex at Las Vegas Boulevard South and Serene Avenue, just north

November 2006 51 Northern Nevada Plans Projects

Northern Nevada is undergoing a vertical building boom of its own. Much of the action is happening in downtown Reno, with nine planned residential projects potentially adding Come and Experience the Non-Gaming Atmos- up to 2,000 new homes. “A lot of pro- phere at the Renaissance Las Vegas Hotel, the jects are taking place here,” said Lisa Great Las Vegas Alternative. Now is the ideal time Newberg with the Reno Redevelop- to book your holiday party. Select from a number ment Agency. “There are plenty of empty-nesters and people who want a of packages and receive special pricing for weekday high-rise type of lifestyle.” lunch and dinner events. Capstone Partners LLC, for in- Private Dining for Intimate Celebrations at ENVY Steakhouse. stance, is planning to build the $90 For parties up to 60 people, call 702-784-5716 million, 16-story Arterra at Liberty and Special Pricing on Holiday Rates starting from $89. Sierra streets. It will consist of 185 For details, call 702-784-5751 units, with five live-work commercial spaces and a rooftop terrace. It’s tenta- Renaissance Las Vegas Hotel tively scheduled to open by 2009. 3400 Paradise Road • Las Vegas, NV 89169 The 120-unit Residences at River- Phone: 702-733-6533 Fax: 702-735-3130 walk (the former Comstock hotel-casi- Toll Free: 866-352-3434 no) is underway at 200 W. Second Street, and BCN Development’s 12- story, 87-unit Palladio tower at First and Sierra streets is expected to finish in 2007. Siena Communities is building the Thoma Lofts Ð three-story retail-work-live spaces Ð at Thoma and Center streets. Plans are also underway for the $200 million, 499-unit Wing- field Towers at Island Avenue and Court Street, which includes 40,000 square feet of retail-commercial space. BCN Development, however, has dropped its plans for the 10-story, 50- unit Chambolle, adjacent to the River- side Artist Lofts downtown, due to rising construction costs. In response, the city is issuing requests for proposals. “More people living downtown will bring more retail and support services needed for a live-work-play environment,” said Newberg. “We require retail on the ground floor on new projects so streets and businesses can stay open and thriving after dark, making downtown alive.”

Tony Illia is a freelance writer based in Las Vegas.

52 November 2006

Sullivan Square Developer: It’s Easy Being Green

enneth Smith, managing partner down, and it’s often cheaper to use of Glen, Smith & Glen Develop- non-toxic or recycled materials than to Kment (GSG), said the idea of in- use the traditional, harmful products. If corporating green building principles they cost the same or less, why not go into the company’s Sullivan Square with the better ones? However, if you project was motivated by a deep per- don’t take the time to look for these al- sonal concern for the environment. ternatives, you won’t find them.” “When respected national publica- Smith said the principal costs of tions like Time Magazine, National getting LEED certification are not in Geographic and the New York Times construction methods or materials, run article after article saying the but in paperwork. The general con- planet is in peril, we shouldn’t stick tractor on a project must document our heads in the sand and pretend each step in the process and turn in everything is okay,” Smith warned. One innovation GSG is making at the proper records in order to get ac- “Each person has a responsibility to Sullivan Square is reclaiming water to credited. “That’s because it’s a new change things in his or her own corner use for landscaping. Smith estimates program,” he explained. “As it ma- of the world. For me, as a real estate this will save 45 million gallons of tures, the process will get easier and developer, that means looking for water a year. Green building principles those extra costs will go away.” ways to make subtle changes in pro- also involve using different materials. Most changes in the Sullivan Square jects that will make a huge difference Smith explained that it used to be diffi- project will be invisible to the people liv- in their effects on the planet, either by cult to find products made from recy- ing and working there; changes such as causing less damage or by reducing cled materials, or to find carpet that did better insulation or more efficient win- consumption of valuable resources.” not emit harmful vapors. “People are dows may each save 1 or 2 percent in Sullivan Square will eventually waking up to the need for green mate- energy costs, but making many subtle contain 1,300 residential units in mid- rials,” said Smith. “You get points changes can result in saving a substan- rise and high-rise buildings, as well as from LEED for using them, so there’s tial percentage. Smith estimates the end neighborhood retail shops and ser- more demand, which leads to more user at Sullivan Square can reduce ener- vices and a 13-story Class A office production. The costs have come gy bills between 25 percent and 30 per- tower. GSG is seeking LEED (Lead- cent, compared with the same-sized ership in Energy and Environmental home or office in a traditional building. Design) certification for the project, a Additional savings could come in designation from the National Green the form of property tax abatements. Building Council. The LEED Green Because of a recent bill passed by the Building Rating System is the nation- Nevada Legislature, if the project really accepted benchmark for the de- ceives the LEED Silver certification it sign, construction and operation of is seeking, residents may recognize a high-performance green buildings. tax abatement up to 42 percent for “The LEED system is like a cafete- seven years. ria plan,” explained Smith. “There are Smith believes the movement to- hundreds of options that can save en- ward more green high-rises is in- ergy, reduce waste and lessen envi- evitable, and pointed out that MGM ronmental impact. Each choice you Mirage has committed to getting make has points, and the more points LEED certification for its $7 billion you accumulate, the higher your rat- Project CityCenter. “Green buildings ing. It’s fascinating to look through are healthier to live in, healthier to the list and realize all the different work in and cheaper to maintain,” he ways there are to make a difference at said. “I absolutely think green build- little or no extra cost.” Kenneth Smith ing will be the wave of the future.”

54 November 2006 AT THE TOP

Strata Building Group New Name, New Direction Commercial Real Estate Report

trata Building Group is projects. “We think we do design-build as INDUSTRIAL– 2nd Quarter 2006 making a name for itself well as anyone,” Mitchener said, pointing to TOTALMARKET Las Vegas Reno S among Southern Nevada the firm’s commitment to value engineering Total Square Feet 85,920,851 61,828,057 contractors. It’s a new and the monthly status reports, complete Vacant Square Feet 3,414,947 2,993,887 Percent Vacant 4.0% 4.8% name, coupled with a renewed vision with photos, it prepares for clients. New Construction 1,620,623 560,539 and focus. Projects he is particularly proud of include Net Absorption 928,575 1,586,054 Strata Building Group LLC was for- buildings for Colonial Bank, Vestin Mortgage Average Lease sf/mo (nnn) $0.67 $0.33 merly known as Centra Construction. and Stewart Title. With a construction volume Under Construction 4,990,955 312,000 While Centra Construction nurtured a of approximately 350,000 square feet and Planned 6,597,748 2,157,000 MANUFACTURING thriving client base Ð working for its more than $20 million in the past two years, Total Square Feet 19,213,433 na parent company, Centra Properties, as Strata Building Group is developing Gaming Vacant Square Feet 362,686 na well as taking outside contracts Ð the as- Today’s office/warehouse project and the Percent Vacant 1.9% na sociation with the parent company Giroux Glass office/warehouse building. New Construction 185,268 na caused the firm to miss opportunities, Another recent challenging project in- Net Absorption 125,309 na sf/mo (nnn) according to President Charles Mitch- cluded the conversion of Pulte Homes’ Average Lease $0.82 na Under Construction 941,198 na ener. Some developers opted to hire former headquarters into a multi-tenant Planned 129,260 na other firms due to concerns that the par- building for Pulte/Del Webb. “It required DISTRIBUTION ent company, a well-known developer a lot of planning and coordination to Total Square Feet 54,310,278 na in Southern Nevada, would be involved make it happen,” Mitchener said. Vacant Square Feet 2,332,270 na in their business. This ultimately led Strata is in negotiations for numerous Percent Vacant 4.3% na New Construction 1,144,537 na Mitchener and Centra to dissolve their other large-scale projects and tenant im- Net Absorption 578,882 na bonds, allowing Mitchener and his team provements and will be working on a Cal- Average Lease sf/mo (nnn) $0.54 na to form Strata Building Group. ifornia condominium project that is a joint Under Construction 3,774,027 na Mitchener, who brought the entire venture with another contracting firm. Planned 6,095,135 na Centra Construction team to Strata Mitchener and his team also go to great FLEX Building Group, said he feels strongly lengths to maintain excellent relation- Total Square Feet 11,921 na Vacant Square Feet 715,408 na that the bottom line to success is having ships with subcontractors. “We and other Percent Vacant 6.0% na a team of people who can make things contractors are all working from basical- New Construction 290,818 na happen. “It is easy to fill spots in an or- ly the same pool of subcontractors,” he Net Absorption 224,384 na ganization, but it is much more difficult said. “We spend a lot of time building our Average Lease sf/mo (nnn) $1.04 na to have the best people in the spots,” he relationships with our subs and treat Under Construction 275,730 na Planned 322,313 na said. “We believe we have that now. We them with respect.” R&D each care about what we are doing, want Mitchener has spent nearly three decades Total Square Feet 476,018 na to do it the best we can, want the process in the construction industry. His back- Vacant Square Feet 4,583 na to be easy and enjoyable for our clients, ground also includes senior-level positions Percent Vacant 1.0% na want our clients to be successful in the for Panattoni Construction, Kitchell Con- New Construction 0 na facility we construct, want our team to tractors, Nathan Construction, Americon Net Absorption 0 na Average Lease sf/mo (nnn) $0.95 na be successful, and look forward to con- Companies, Inc., Tibesar Construction, Under Construction 0 na quering the next challenge.” Sigma Contracting and Splashtown USA. Planned 51,040 na To further inspire team-building, Although his company is doing business Next Month: OFFICE Mitchener recently took all of his em- under a new name, Mitchener’s goal re- ABBREVIATION KEY ployees on a team-building trip fly-fish- mains the same: to build at the next level, in MGFS: Modified Gross Full-Service ing in Montana. both his personal and professional life. “We SF/MO: Square Foot Per Month When not reeling in fish, the Strata understand it’s not Strata paying our salaries NNN: Net Net Net Building Group team is hard at work reel- – it’s the customer,” said Mitchener. Southern Nevada statistics compiled by ing in a variety of clients, with a focus on Ruth Furman is a publicist and writer Applied Analysis. office, industrial, retail and commercial based in Las Vegas. Northern Nevada statistics compiled by Alliance Commercial Real Estate Brokerage.

November 2006 55

B UILDING NEVADA BRIEFS

Victorian Square Plans Center Drive in the Summerlin area of Mixed-Use Project northwest Las Vegas. The six-story, The city of Sparks and Trammell Crow 150,000-square-foot Business Bank Company recently announced that plans Corporate Centre reached its final for The District at Victorian Square have height of nearly 100 feet when the final been approved, with groundbreaking steel beam was bolted and welded into slated for the second quarter of 2007. place. Business Bank owns 26 percent The three-acre development, which will of Charleston Pavilion, LLC, the in- be the city’s first mixed-use community, vestment group that owns the building. is a major part of downtown revitaliza- The bank will occupy approximately Victorian Square tion efforts. The first development phase 32,000 square feet of space, which will consists of three buildings: a four-level include its corporate headquarters and structure featuring live/work spaces and administrative offices, as well as a specializes in motorcycle, ATV, snow- single-level condominium homes, plus 5,000-square-foot bank branch. Fertit- mobile and watercraft parts and acces- two, three-level structures featuring ta Enterprises recently signed a lease sories. Drag Specialties is a dealer and townhomes with alley-accessed, two-car to occupy 9,000 square feet in the distributor of aftermarket parts and ac- garages. The residential component building. Completion of the $40 mil- cessories for Harley-Davidson. Both comprises 171 condominiums and lion project is scheduled for May companies are units of LeMans Corpo- townhomes ranging from approximately 2007. Howard F. Thompson and Asso- ration and are the largest parts and ac- 760 square feet to more than 2,000 ciates designed the building and Whit- cessories distributors in North Ameri- square feet. Architect for the project is ing-Turner Contracting was selected as ca, fulfilling 20,000 orders daily. The James, Harwick+Partners Architects; general contractor. 418,000-square-foot facility is sched- Blue Water Studio provided interior de- uled to be completed in March 2007. sign services. Work Progressing on The general contractor and architect on Montecito Marketplace the project is United Construction. TWC to Construct Medical Montecito Companies, which recent- Office Building ly opened Phase I of Montecito Mar- TWC Construction has received a con- ketplace, is continuing work on Phase tract valued at $9.8 million to construct II of the retail project in northwest the 100,000-square-foot Centennial Las Vegas. When complete, the $48 Hills medical office building in Las million development will contain Vegas, which is being developed by 207,765 square feet of retail space sit- Ensemble Real Estate Company and uated on 19.2 acres at the southeast Universal Health Realty Trust. Located corner of Durango Drive and Elkhorn on three acres near the I-215 Beltway Road. Phase I includes 104,904 and U.S. 95, this project will be the first square feet of retail space anchored medical office facility in the Centenni- by a 65,000-square-foot Smith’s Food al Hills area and will be close to a new & Drug. The architect for Montecito hospital serving northwest Las Vegas. Marketplace is Vedelago Petsch; civil Construction of the four-story structur- engineering was performed by Great al steel building is scheduled to start Basin Engineering South this quarter, with a completion date in the third quarter of 2007. Build-to-Suit Project Breaks Ground Bank Building Topped Off Parts Unlimited and Drag Specialties Business Bank of Nevada and have broken ground on one of the Charleston Pavilion, LLC recently an- largest build-to-suit projects in Sparks. nounced that construction crews have The new facility is located on 26 acres completed vertical construction of the in the Spanish Springs Business Center bank’s new corporate headquarters at at the intersection of Pyramid Highway Charleston Boulevard and Pavilion and Isidor Court. Parts Unlimited

November 2006 57 INSIDE POLITICS

The 2007 Legislative Session What’s Ahead for Nevada?

ven before the shouting endow the very popular Millennium facilitator between Buckley and dies down on Election Scholarship, or perhaps even rebate Raggio, but without his presence no E Day 2006, many heads are money to businesses. one knows how the two legislative already turning toward Where it will get very interesting, leaders will get along. Carson City and the 2007 Legislature. however, is how the rest of the money Committee chairmanships are likely Sure, there’s still turkey to be will be allocated. There are always to stay much the same, but Buckley carved, presents to be handed out and programs that need additional funding, will likely give up chairing Assembly champagne to be sipped, but for some and a budget surplus can be a dream Commerce and Labor. That post could it’s never too early to start plotting come true for their supporters. go to Oceguera or Ð if he chooses not strategies and getting a start on lobby- While issues will take center stage to chair a committee Ð to Marcus Con- ing for their favorite causes. in 2007, a changing of the legislative klin, an able lieutenant and well-re- As always, there will be numerous hierarchy will also vie for some atten- spected legislator. important issues discussed at the bi-an- tion in the early going. After four ses- On the Senate side, things could get nual meeting of our legislative leaders. sions as Speaker of the Assembly Ð interesting. At press time, it looks as Energy issues will be on the table again, that body’s top position Ð Richard though Raggio will keep his Majority as will funding for education and taxes, Perkins (D-Henderson) will step Leader position, but the conclusion of although nowhere near the level they down (he did not run for re-election). the governor’s race will decide what have been in previous sessions. Majority Leader Barbara Buckley happens on the Democratic side. If There will be a substantial budget will become the first female Speaker Dina Titus wins her race to become surplus to deal with this year, so it will in Nevada history. Assistant Majority governor, then the minority leader title be interesting to see how legislative Leader John Oceguera is likely to re- will be up for grabs. Even if she loses, leaders attempt to carve up the hun- place her as Majority Leader for the it’s a possibility we will see a new mi- dreds of millions of dollars for major Democrats in the Assembly. nority leader next session. The leading issues and pet projects. It will be very interesting to watch candidate is Senator Steven Horsford, The Democrats are sure to push for the dynamic between Buckley and who will be in his second term. He has all-day kindergarten and raising Senate Majority Leader Bill Raggio solidified relationships with many of teacher pay. Republicans may look to (R-Reno). Perkins was often seen as a his caucus members and brings a wealth of union and business contacts to the position. Chairmanships in the upper house will most likely parallel last session, but memberships on those committees could change slightly. There will be no shortage of issues for the “Gang of 63” to deal with this session, and as always, it is hoped they will do it in a bi-partisan, non-con- frontational fashion.

Mike Sullivan is president of Knight Consulting, a Southern Nevada government affairs firm.

58 November 2006 NEVADA BRIEFS

Nevada Hospitals Recognized land for a rail spur into the Winnemuc- for Quality Care ca Airport Industrial Park and another At a recent meeting of the Nevada for a workforce development project. Hospital Association, HealthInsight, the Medicare Quality Improvement Elko Casino Group Organization (QIO) for Nevada and Changes Hands resulting in savings of $28,000 for Utah, announced two Nevada hospi- McClaskey Holdings, owner of the Red the LVCVA compared to the previous tals as recipients of the 2006 HealthIn- Lion, Gold Country and High Desert MAGIC trade show. Having the oper- sight Quality Award. The hospitals casinos in Elko, has sold the properties ation set up on-site meant a 100 per- were selected for demonstrating high- to Nav Elko, a company owned by Las cent cost savings for the sponsors of quality healthcare and excellence in Vegas-based Navegante Group. The MAGIC because the fee normally performance on publicly reported new owners, who have received the ap- paid for trash removal was complete- quality-of-care measures. The hospi- proval of the Nevada Gaming Commis- ly eliminated. The LVCVA plans to tals selected for awards were: St. Rose sion, said they plan to retain the man- implement similar recycling opera- Dominican Hospitals, Rose de Lima agers who oversee day-to-day tions during the upcoming Specialty Campus (Henderson) and Washoe operations at the casinos. Larry Woolf, Equipment Marketing Association Medical Center (Reno). Washoe Med- founder and chairman of Navegante (SEMA) show and the Global Gam- ical Center subsequently changed its Group, said plans called for refurbishing ing Expo (G2E). name to Renown Health. the three properties with ticket-in, ticket- out slot machines. The new owners will NCED Approves Economic also direct marketing efforts to attract Development Grants local residents. The group manages four The Nevada Commission on Econom- downtown Las Vegas casinos, in addi- ic Development (NCED) recently tion to the Grand Sierra in Reno and awarded the first seven Nevada Eco- Casino Fandango in Carson City. nomic Development Fund (NEDF) grants, which totaled $1,705,770. The Convention Center Launches grants are designed to help rural Neva- Recycling Efforts da communities and blighted urban The Las Vegas Convention and Visi- areas remain economically viable. The tors Authority (LVCVA) introduced first applicants to receive grants were: new, on-site recycling efforts during the city of Caliente, for engineering the recent MAGIC International con- and construction of a rail siding vention at the Las Vegas Convention transloading facility; the city of Carlin, Center. The LVCVA contracted with for improvements to the Carlin Indus- Environmental Recovery Services, a trial Park; the Board of Lincoln Coun- Las Vegas company, to conduct on- ty Commissioners, to acquire land for site separation of recyclables and re- the Alamo Industrial Park; the city of moval of the materials to a recycling Ely for renovation of the Northern facility. Its staff collected materials Nevada Railroad; and the Northern such as cardboard, wood, plastic, Nevada Development Authority for the paper, carpet, carpet padding and alu- Rural Regional Incubator Project. The minum for recycling. The company Humboldt Development Authority re- managed to achieve a recycling rate ceived two grants: one to purchase of 68 percent during MAGIC,

November 2006 59 by Michelle Danks COMPASSIONATE CAPITALISM

UNLV Foundation Inventing the Future

s a leader in fundraising tive director of the UNLV Foundation. Vegas Valley will grow with or without efforts at the University of “The growth in student enrollment and UNLV Ð the service sector will always A Nevada, Las Vegas, Don the rise in sophistication of our pro- need workers. But to attract other in- Snyder is not only helping grams has made it necessary for us to dustries and businesses to Southern to shape the future of the university, he step up our fundraising efforts, not Nevada, a strong university is a must. is also playing a role in shaping the fu- only to meet basic needs, but to en- “All you have to do is look at other ture of Southern Nevada. hance the quality of the university as a cities Ð Austin and San Jose, for exam- Snyder, retired Boyd Gaming presi- whole,” Gallagher said. ple Ð which have grown because of dent and a member of the UNLV As a result, the foundation launched their multi-layered university system,” Foundation’s board of trustees, said its first comprehensive campaign, In- he said. economic diversity is necessary in vent the Future, in January 2002 with Another UNLV Foundation board order for the Las Vegas region to grow the goal of raising $500 million by the member, Terry Wright, owner of Neva- more broadly. end of 2008. To date, the university has da Title, pointed out that the university “Economic diversity is vital to a raised more than $334 million. not only has more to offer than educa- long-term healthy economy, and the The objectives of the campaign are tion, but it also improves the quality of university is the link between what you to raise UNLV’s public profile and life for all Southern Nevadans. want to be and what you can be,” he academic reputation, broaden alumni “It provides culture and entertain- said. “While it might seem to be a bit support, strengthen the university’s ment such as concerts and lectures. We of a cliché, you can’t have a great city ability to impact economic develop- have museums and athletic events,” he without a great university.” ment, and increase the fundraising re- said. “It makes the community a better The UNLV Foundation is the sources, which will strengthen UNLV place to live, and when you have a fundraising arm of the university. The and the community. community that’s a great place to live, foundation’s board of trustees, 60 Nancy Strouse, the UNLV Founda- you’re able to attract people from other prominent local business leaders like tion’s senior associate vice president areas who will make it even better.” Snyder who volunteer their time, pro- for development, said the foundation More information on the Invent the vides important links between campus gets a tremendous amount of support Future campaign can be found on the and community to help raise and man- from local businesses. “Employers are foundation’s Web site, http://founda- age the millions of private dollars that looking for well-educated, high-quali- tion.unlv.edu. flow in each year through annual giv- ty employees, and they look to the uni- ing programs, scholarships, major gifts versity to provide them,” she said. and estate gifts. Their support isn’t just financial, UNLV Foundation Snyder has been involved with the Strouse said. Business leaders serve on 4505 S. Maryland Parkway UNLV Foundation since moving to advisory boards, where they can help Las Vegas from California as a banker shape the direction of a particular col- Box 451006 in 1987. When he came on board, he lege or department by providing guid- Las Vegas, NV 89154-1006 said the state provided about 50 per- ance on programs and reviewing cent of the university’s budget. The strategic plans. (702) 895-3641 state now contributes 32 percent of the Ted Quirk, vice chair of the UNLV funding, said John Gallagher, vice Foundation and an intellectual proper- president for development and execu- ty and patent attorney, said the Las K

60 November 2006 by Michelle Danks BANKING ON IT

Silver State Bancorp Expanding in Nevada and Arizona

ilver State Bancorp, the branch recently opened at 6895 Aliante new branches. Silver State has pur- holding company for Sil- Parkway in the master-planned com- chased five sites in Clark County for S ver State Bank, has ex- munity of Aliante in North Las Vegas. additional branches, and Choice Bank panded in 10 years from a The holding company also operates has purchased a site in Mesa for anoth- five-person operation to a multi-state loan production offices in Reno, Salt er branch, which should break ground financial services provider with more Lake, Denver, Seattle, Portland, Sacra- in January 2007 and be open by sum- than 260 employees. In September of mento and San Diego. mer. “We try to open up a branch each this year, it acquired Choice Bank of In June, the bank celebrated the year, and so far we’ve been right on Scottsdale, Ariz. As a result of the opening of its new Central Administra- target, with 10 branches in 10 years,” merger, the holding company’s consol- tion Building, located in Henderson. said Johnson. “If things continue to go idated assets now exceed $1 billion. The $7 million, 30,000-square-foot the way they are, we’ll look at other Corey Johnson, president and chief building houses many of the compa- opportunities to expand outside of the executive officer of Henderson-based ny’s back-room operations, including Nevada marketplace.” Silver State Bancorp, explained the loan processing, information technolo- reasons for purchasing Choice Bank. gy and compliance offices. “We had a loan production office in Silver State was recently awarded the Arizona with four lenders who were Economic Independence Award by the doing great and consistently exceeding Small Business Administration (SBA) our expectations of what they could for achieving the highest dollar volume produce. However, when we generated of SBA loans in the state of Nevada for loans in Arizona, we would have to the seventh consecutive year. “Whether fund those loans with deposits made in the business is a restaurant, a dental Nevada,” he said. “We were unable to clinic or a mortgage broker’s office, we take deposits in Arizona because we provide quick turn-around time,” said weren’t chartered as a bank there. Pur- Johnson. “We’re a nationwide preferred chasing a bank gave us a platform to lender, which means we can approve fund the loans out of local deposits.” our own loans throughout the nation.” Another advantage of purchasing Silver State Bank sponsors a Choice Bank was that it had a portfo- Women’s Business Group, which pro- lio of residential loans. Silver State vides a forum for female business own- Bank, which is primarily a commercial ers and executives to get together for lender, gained the expertise of the new luncheons where they can listen to in- Arizona staff, which Johnson hopes formative speakers. “Women-owned will enable it to break into the residen- business is a big market that is often tial loan market in Nevada. overlooked,” said Johnson. “In addition, Silver State Bancorp now operates women are often the decision-makers 10 full-service branches in Southern within a company, so we want to main- Nevada through Silver State Bank, as tain our connections with them.” well as two Choice Bank branches in Johnson said plans for the bank’s fu- the Phoenix area. Silver State’s latest ture include expanding with several

November 2006 61 T ECHNOLOGY

Online Promotions How to Navigate this New World

whole new world has ers. Widgets R Us would simply visit could be awash with new prospective emerged in recent years Ð one of the “big three” search engines buyers who otherwise would never A a world that helps busi- ÐYahoo!, Google, MSN (now called have known of Widgets R Us or their nesses transform and grow Live) Ð and sign up for an advertis- new line of amazing blue widgets. at the speed of an Internet connection. ing account to “sponsor” search Best of all, Widgets R Us only paid This new world is referred to by vari- terms that Internet users type in for traffic that wanted to go to its ous names, including Paid Search, when looking for information on website to check out the blue wid- CPC and Sponsored Links Ð all of blue widgets. gets. This is called the bid price or which enable businesses to tap into Widgets R Us would then assem- price per click (PPC), and can vary millions of business prospects online. ble a list of terms and phrases that widely by sponsored search term. The major advantage of this new people would most likely use when My advice to business owners is, world of advertising is that business searching for blue widgets, such as please – don’t try this at home! This owners pay a preset cost only when “blue widgets,” “widgets,” and even new world of advertising utilizes someone (a prospective customer) “store selling blue widgets in Las tons of new approaches and technol- clicks on their ad and arrives at their Vegas.” The more terms one has, the ogy. Success depends upon many website. Clearly the customer has an better the reach. (I have more than factors, including finding out which interest in the company’s product or 100,000 terms and phrases in order search terms convert into sales and service and wants to find out more. to promote all of my websites.) which don’t. Believe it or not, these This is a far more effective form of Next, Widgets R Us would set the change over time due to competitor advertising than the failed 1990s price it is willing to pay each time influences and even change on a sea- type, which was based on a CPM someone clicks its sponsored sonal basis. Other factors include model (cost per thousand impres- search ad. This can vary widely, but how well a website is designed to sions), in which every single person starts at 5 cents per click on most convert visitors into sales (a real sci- arriving on a search engine was ex- search engines. ence, by the way) and other factors. posed to banner ads, and the adver- Within hours, Widgets R Us has a Consult with a specialized ad tiser paid whether a click was stimu- full-blown ad campaign running on a agency called an interactive ad lated or not. In fact, it was not search engine. Depending upon the agency. Paid search is very different uncommon for an unsuspecting ad- amount of search volume for blue from traditional advertising models vertiser to rack up hundreds of dol- widgets, the Widgets R Us website and demands continual research and lars in ad fees and not get a single refinement of ad campaigns and Web visitor to its website. Success depends upon landing pages (pages designed Here’s how it works: A Nevada specifically to stimulate a particular business (let’s call it Widgets R Us) many factors, including action, be it a sale or a lead). wants to find more customers in finding out which search order to move its new line of Blue terms convert into sales Edward Serrano is president of Hen- Widgets. Widgets R Us has an e- derson-based nineblue.com. Serrano is commerce-enabled website that can and which don’t. also president of the Las Vegas Chapter process orders from interested buy- of EO, Entrepreneurs Organization.

62 November 2006 VITAL SIGNS

Desert Radiologists New CEO Takes Over Growing Company

ill Moore recently took Secure in its position as the largest (now North Vista Hospital) in North over the reins of Desert imaging company in Nevada, Desert Las Vegas, COO for Desert Springs B Radiologists, which has a Radiologists recently further expanded Hospital Medical Center in Las Vegas 41-year history in Nevada. its foothold with the announcement of and COO for Lakeside Hospital in Rather than dwelling on the firm’s past an agreement to provide radiology cov- Metairie, La. successes, however, the new CEO looks erage for Mesa View Regional Hospital Moore sees Desert Radiologists as forward to the challenge of leading the in Mesquite. Under the agreement, playing a part in the improving image imaging company into the future. which took effect on September 15, of Southern Nevada’s medical commu- With five outpatient centers through- 2006, Desert Radiologists provides in- nity. He added, “When a need exists, out the Las Vegas Valley and contracts terpretation of diagnostic images, Southern Nevada’s medical community to provide in-house diagnostic service which examines how the body is func- steps up to the plate to meet that need.” to five hospitals, Desert Radiologists tioning, as well as interventional radiol- has grown with Southern Nevada’s ogy support, which works to make Liz Gamble is a freelance writer based population and now performs more changes in the body by using electro- in Southern Nevada. than a million procedures annually. Its magnetic or particulate radiation to services have also expanded with med- treat disease. icine’s technological advances; today, “We’ve been offering diagnostic ser- the company offers technologies rang- vices for more than 40 years and pro- ing from CAT Scans and MRIs to pedi- viding hospital coverage for the same atric radiology, mammography and ul- amount of time. Our vision calls for a trasounds, as well as nuclear medicine, continuation of the same quality ser- dental CTs and other imaging services. vices beyond the Las Vegas Valley, It’s that diversity of services and con- growing the company throughout the tracts with hospitals that Moore believes entire state of Nevada,” said Moore. As will protect Desert Radiologists from part of its growth plan, Desert Radiolo- the effects of what he sees as the great- gists is committed to continuing to give est challenge facing his industry Ð the back to the community through such Deficit Reduction Act (DRA). Sched- programs as its participation in Breast uled to take effect in January, 2007, the Screening Month and its care for indi- Medicare Reform portion of the DRA gent patients. calls for payments for medical imaging Moore leads more than 250 employ- services in a physician’s office or imag- ees, including 40 board-certified radiol- ing center to be capped at a rate not to ogists and specialized technicians. exceed the rate paid to a hospital outpa- Moore knows and understands the tient department. “The implementation for-profit side of healthcare operations. of this act could reduce reimbursement Prior to joining Desert Radiologists, he by as much as 75 percent,” said Moore. served as senior vice president of oper- “Smaller imaging companies could be ations for the western region of US On- forced to close, and more devastatingly, cology, Inc. located in Houston, Texas. it could prevent seniors from getting He also held the positions of CEO for lifesaving diagnostic tests.” Lake Mead Hospital Medical Center

November 2006 63 P EOPLE FIRST

Employee Rights And Employer Obligations

he increasing level of mil- On the employer side, the act out- or six months if the person’s period itary operations in Iraq, lines the requirement for prompt of military service was 31 to 180 T Afghanistan and other reemployment, “which will depend days. Employment discrimination places in the world has on the circumstances of each individ- because of past, current or future resulted in the ongoing activation of ual case.” It also defines an escalator military obligations is prohibited. thousands of National Guard and Re- position, which “requires that each The ban is broad, extending to most servists. As the rotation and deploy- returning service member actually areas of employment, including hir- ment cycles continue, many Guard step back onto the same seniority es- ing, promotion, reemployment, ter- and Reserve members are now re- calator at the point the person would mination and benefits.” turning to resume their civilian jobs. have occupied if the person had re- The act allows liability for viola- Problems between these returning mained continuously employed.” tion of the law to be established if service members and their former The act further describes the ser- service connection is just one of the employers are occurring in increas- vice member’s rights and the em- employer’s reasons for any adverse ingly frequent numbers. ployer’s obligations regarding pen- action against the service member. The returning service members, as sion and retirement programs. The Violations of the act can result in ac- former employees, have legal reem- act states the following: “A reem- tion by the Department of Justice ployment rights. Employers have a ployed person must not be treated as and civil action with the support of legal obligation to reinstate these in- not having incurred a break in ser- the U.S. Attorney General. dividuals in their previous positions. vice with the employer maintaining a The ESGR, as part of its duties, at- The returning service members have pension plan;” and: “Military service tempts to work with employers to recourse under the Uniformed Ser- must be considered service with an make sure that they understand the vices Employment and Reemploy- employer for vesting and benefit ac- law and their obligations to returning ment Rights Act of 1994 (USERRA). crual purposes.” service members. Employers need to The Employer Support of the The act also provides protection understand their obligations under Guard and Reserve (ESGR) is a De- from discharge and discrimination. USERRA and make sure that their partment of Defense-funded pro- “A reemployed employee may not be supervisors and managers know the gram that works to resolve employ- discharged without cause, for one appropriate actions to take in dealing ment or reemployment issues year after the date of reemployment with returning service members. between service members and em- if the person’s period of military ser- All quotes are from the USERRA ployers. The USERRA guidelines vice was for more than six months, guidelines, which can be accessed at: outline the fine points of the act and http://www.esgr.org/employers2/ clearly define service members’ Employment discrimination thelaw.asp?c=userra.html. obligation to notify their employers, because of past, current or whenever possible, of an upcoming Mark Keays is president of Desert activation or deployment. Addition- future military obligations Management Services, a Las Vegas- ally, it provides timelines for them to is prohibited. based management consulting firm, return to work upon deactivation and a faculty member of the Univer- from active service. sity of Phoenix.

64 November 2006 Industry Focus: Philanthropy

Continued From 32 Clausen: We encourage our team But what’s very rewarding for a com- Melissa Nelson: We put together a cal- members to get involved in organi- pany is seeing your employees put to- endar of events all year long, so there’s zations, even sitting on the boards gether a program by themselves and constantly some sort of activity going of nonprofits. carry it through. A couple years ago, on. And it’s not necessarily giving Stowell: Our company actually man- Center for Independent Living was re- money – it’s giving your time. Maybe a dates that everybody at VP level and modeling and trying to furnish their school needs help, a house needs re- above must sit on at least one non- center. Our management had no clue pairs or a project to clean up Red Rock profit’s board; senior VPs and above that employees were collecting dona- Canyon has been organized. We like to sit on at least two boards, because if tions for the project behind the provide as much opportunity as possi- you are going to set the example, then scenes. Management found out about ble to our team members in various you better go out and get involved. it and asked, “Why didn’t you get us community-related activities. Puccinelli: We do a lot of senior-related initiatives, including delivering birthday cakes to seniors. We’ve found that if we get an employee to go out on one of those deliveries, nine times out of 10 he or she becomes a real advocate of the program and starts recruiting other employees to volunteer as well. Stowell: We pay our employees to go out during work hours to mentor and tutor and get involved with students at at-risk schools. But communica- tion is crucial if you want people to volunteer time over a weekend. They’re not going to show up if you don’t communicate that information to them. At Business Bank, we don’t want management pushing volunteerism on our employees from the top down. We want our employees to communicate it from the bottom up. Our employees actually sit on the grants committee, and they are the ones driving the voluntarism of the employees who get involved. Polovina: However, I don’t think you can underestimate the importance of the hierarchy in your organization, because they lead by example. And when you have people who are philanthropically inclined, it’s going to filter down throughout the entire organization. Puccinelli: Recognition is important too. We sponsor a nice employee recognition luncheon on an annual basis. And we’re always looking for ways to recognize employees who contribute.

November 2006 65 involved?” and the employees said, “We didn’t need your help.” Murray: One final thing Ð Bret men- tioned that we rank in the bottom 10 in many areas of giving, but when you look at our ranking with regard to high school dropouts, teenage preg- nancies and crime, they’re just tied in side-by-side. And when you look at the companies around this table, they are the ones funding health and human services and capital campaigns and so many great causes. It has to spread to the rest of the community, or else we won’t get off of the bottom of the list for these indicators. Schorr: We have to be innovative in what we do, to take care of the major issues we face: education, healthcare, homelessness and others. A lot of people knock the business community by saying we aren’t doing enough for civic and charitable organizations, but I believe we are accomplishing a great deal, and I am proud of what the people around this table do on a daily basis.

The Volume of Corporate Giving articipants at the Philanthropy PRoundtable were asked to es- timate the amount their business or foundation contributes annually to communities in Nevada. While individual results were con- fidential, the total dollar amount was staggering: the 15 organizations represented at the roundtable contributed more than $110 million to local nonprofits and community groups. The participants represent just a fraction of all the companies in Nevada with charitable giving campaigns, which illustrates the immense impact philanthropy makes on the state’s well-being. Congratu- lations to all businesses, large and small, that make our state a better place in which to live.

66 November 2006 EXPERT ADVICE

Employee Recognition Is It Really That Important?

hroughout the years, re- It is clear that employee recogni- implementation. If a recognition search has proved that tion has been Ð and will continue to program becomes viewed as man- T employee performance be Ð vital to the success of compa- agement’s “program of the month,” and retention are strongly nies large and small. In fact, as baby it loses its luster and thus the de- linked to consistent, appropriate boomers retire and the pool of qual- sired effect of appreciating and mo- positive reinforcement of behaviors ified workers shrinks, increasing tivating employees. that promote employers’ goals. competition for top performers, em- The actual rewards can be any- Within companies, a recent study by ployee recognition may be more im- thing. The reward itself should be Gallup showed that a simple act of portant than ever. Learning to ap- just part of the process. Recognition recognition by an employee’s col- preciate workers in an appropriate can be achieved by having the re- league or superior dramatically en- way is a key skill for any good ward given at a gathering of em- hanced an employee’s work output leader. A recognition program does ployees, and by recognizing the and motivation. not have to be expensive. An effec- award in corporate communications Another recent study conducted by tive program has the following com- such as a newsletter. Northwestern University found a di- ponents: fairness, high visibility Awards products are growing in rect link between employee satisfac- and consistency. significance for companies across tion and customer satisfaction, and To be fair, a program must not America as they seek dynamic between customer satisfaction and favor one employee over another, methods of boosting employee improved financial performance. So merely because of his or her posi- morale, productivity and sales. you see, employee recognition is not tion within the organization, or rela- Recognition programs have become just about warm fuzzies Ð it can im- tionship with a supervisor. There mainstream among companies prove a company’s bottom line. must be an effective means of iden- seeking to reward employees for This is not a new phenomenon. tifying employees who deserve their dedication. Ever since researchers started con- recognition. In many programs, em- So ask yourself: When was the ducting workplace satisfaction sur- ployers initiate a simple system by last time you publicly recognized a veys, employees have prioritized which employees can nominate oth- great employee for his/her specific recognition. In 1949, when ers for recognition. contributions to your team? If you Lawrence Lindahl asked North Making certain a program is high- can’t remember, it’s been too long. American workers to rank the rely visible helps to ensure consistent Start today by offering specific wards of their jobs, highest on the praise to an employee for a job employees’ lists were: (1) feeling Employee recognition well done and you can practically appreciated for work done; and 2) is not just about ensure yourself a repeat perfor- feeling “in” on things. Managers warm fuzzies – mance, not only by that employee, were shocked. They had guessed but also by others who witnessed that good wages and job security it can improve the act of appreciation. would be No. 1 and No. 2. The study a company’s bottom line. has been replicated many times in Jeff Tino is the president and CEO recent years. Each time, the findings of Recognition Express, based in are exactly the same. Las Vegas.

November 2006 67 MONEY MANAGEMENT

The Roth 401(k) Plan Can It Permanently Improve Your Future?

n 2006, two things hap- Since the original Roth Section of inflation and adjusted rising tax pened to strengthen the 401(k) plan was set to expire after brackets. Further still, if a tradition- I ability of investors to 2010, many employers were reluc- al 401(k) plan is utilized in conjunc- shelter income in a tax- tant to establish the Roth as part of tion with the Roth, current income deferred pension plan. The first was their benefit package. Now that the taxes could be saved. The key is the creation of the Roth Section provision has become permanent, finding the right balance to getting 401(k) plan on January 1, 2006. The employers are more likely to imple- the most effective tax-deferred sav- second occurred on August 17, 2006, ment the Roth feature to their exist- ings portfolio with minimal risk. when it became a permanent fixture ing Section 401(k) plan. Rules for Roth 401(k)s have to be of the available tax-deferred saving The combination of having a tra- followed to make them worthwhile. plan options. Originally, the Roth ditional Section 401(k) plan with a For example, once funds are con- 401(k) plan was set to expire after Roth Section 401(k) does require tributed, participants have to hold the 2010, but the Pension Protection Act the employer to maintain separate account for five years in order to pull of 2006 eliminated the expiration. accounts for the employee. Funds of out funds tax-free, and be over 59 1/2 The Roth 401(k) plan entitles the the Roth cannot be commingled when they do so. In addition, the participant to contribute $15,000 with funds of the traditional 401(k) funds cannot be withdrawn penalty- per year of post-tax earnings to a plan Ð a requirement that will cause free for the purchase of a first resi- tax-deferred savings plan. Contribu- additional administrative expense. dence or qualified educational ex- tions can be withdrawn tax-free However, the extra costs now appear penses, which a traditional Roth IRA after the age of 59 1/2. If the partic- justified, because the Roth feature is allows. With any savings plan, the ipant is over the age of 49, an addi- now permanent. aspects of the plan need to be fully tional $5,000 can be contributed an- The features of the Roth 401(k) researched to make sure the advan- nually to the plan. The traditional can increase tax-deferred compound- tages outweigh the disadvantages. Roth IRA maximum contribution is ing of retirement investments. Sav- All in all, the Roth Section 401(k) $4,000, with a $1,000 catch-up con- ings under the traditional plan, com- plan adds up to be a powerful savings tribution for older workers. bined with the Roth, could reduce plan. The benefits of the plan are too The benefit of the Roth-type plans risks because future tax brackets are enticing to ignore for older, as well is that even the tax-deferred earn- unknown. If tax brackets go up, and as younger, workers. It only makes ings accumulated over the years by Roth investments were taxed at a sense to take advantage of the Roth the plan will never be subject to in- lower rate when they were originally 401(k) option if it creates more re- come taxes if managed correctly. contributed, then money is made by tirement savings in the long run. Put another way, your retirement simply paying the tax early. nest egg could never be reduced by Combine that with the non-taxa- Jason Thomas is a shareholder and income taxes, meaning more dis- bility of the earnings on the Roth as- vice president of tax services at posable income for the lifestyle you sets over time, and a financial hedge Fair, Anderson & Langerman, a Las desire in your retirement. is created to defend against the risk Vegas CPA firm.

68 November 2006 North Las Vegas… A CLOSER LOOK

J ANUARY 2007

he past, present and future of one of Nevada’s most dynamic and RESERVE YOUR SPACE TODAY. fast-growing cities will soon be revealed in Nevada Business Call Nevada Business Journal at 702-735-7003, ext. 6333. TJournal’s special focus on the City of North Las Vegas. The pub- RATES: lication will be included in the full run of the January 2007 issue, where Rates start at $710 on a contract basis. it will reach over 68,000 business decision-makers statewide. In addi- DEADLINES: tion, the stand-alone magazine will be distributed throughout the year Space reservations: November 22, 2006 Materials: December 1, 2006 to the movers and shakers in the North Las Vegas business community, and to those considering relocating to the area. Special editorial features will uncover the unique North Las Vegas lifestyle, its business opportunities and commercial and residential developments. Take a look at what North Las Vegas has to offer you as a community partner, and see how you can benefit from exposure in this annual issue. 702-735-7003 ext. 6333 BUSINESS INDICATORS

DATA GROWTH unitsdates latest previousyear ago recent year ago comments mid some pessimism, NEVADA (%) (%)

we see a good U.S. un- Employment 1,000 employees 08/06 1,293.8 1,288.3 1,228.9 0.4 5.3 Strong Trend employment rate below Unemployment Rate %, nsa 08/06 4.6 4.3 4.3 7.0 7.0 Still Favorable A 5 percent, but inflation topping out at the upper Taxable Sales $ billion 06/06 4.507 4.074 4.183 10.6 7.8 Good end of the comfort range. The core Gaming Revenue $ million 07/06 1,038.76 921.08 958.48 12.8 8.4 Very Good consumer price index (CPI) is growing Passengers passengers 07/06 4.619 4.399 4.580 5.0 0.9 Modest Trend at an annual rate of 2.8 percent. With inflation posing a concern, the Gasoline Sales million gallons 07/06 98.32 98.32 97.23 0.0 1.1 Flat Federal Reserve has moved the Fed- Visitor Volume million visitors 07/06 4.483 4.254 4.602 5.4 -2.6 Modestly Off Trend eral Funds rate from 1 percent to 5.25 CLARK COUNTY (%) (%) percent in a series of steps. However, Employment employees 08/06 923.4 918.7 872.2 0.5 5.9 Strong Trend with the prospect of weaker housing, 1,000 auto and other consumer durable Unemployment Rate %, nsa 08/06 4.6 4.3 4.3 7.0 7.0 Still Favorable markets, the Fed has seen reason to Taxable Sales $ billion 06/06 3.270 3.009 3.007 8.7 8.7 Very Good take a pause. Gaming Revenue $ million 07/06 850.26 757.74 765.69 12.2 11.0 Very Good As inflation has picked up, the long- Residential Permits Down awaited housing market slowdown units permitted 08/06 2,324 2,232 3,714 4.1 -37.4 got underway. The indicators show re- Commercial Permits permits 08/06 118 92 130 28.3 -9.2 Down cent U.S. housing sales declined 13.3 Passengers million persons 07/06 4.148 3.949 4.062 5.1 2.1 Good percent, and auto and truck sales de- Gasoline Sales million gallons 07/06 65.99 65.99 65.12 0.0 1.3 Flat clined 4.8 percent. With slowing housing and auto markets and a recent Visitor Volume million visitors 07/06 3.791 3.574 3.866 6.1 -2.0 Modestly Off Trend sharp retreat of oil prices, the outlook WASHOE COUNTY (%) (%) calls for less inflation and slower Employment 1,000 employees 08/06 228.0 227.2 218.4 0.4 4.4 Strong Trend spending ahead. Unemployment Rate %, nsa 4.2 4.0 3.9 5.0 7.7 Very Favorable The U.S. economic picture, though 08/06 still comfortable, gives reason to Taxable Sales $ billion 06/06 0.692 0.602 0.657 15.0 5.2 Very Favorable watch for danger signs. The most no- Gaming Revenue $ million 07/06 99.72 88.83 101.12 12.3 -1.4 Good July table concern is for deflating housing Residential Permits units permitted 08/06 493 380 475 29.7 3.8 Up asset values, which could cascade into a recession. Commercial Permits permits 08/06 61 45 43 35.6 41.9 Up Las Vegas and Reno have experi- Passengers million persons 07/06 0.466 0.445 0.504 4.8 -7.5 Trend Down enced rapid housing price apprecia- Gasoline Sales million gallons 07/06 15.72 15.72 15.64 0.0 0.5 Flat tion and could be vulnerable to market Visitor Volume million visitors 07/06 0.479 0.477 0.516 0.4 -7.2 Trend Down corrections. Abundant anecdotal evi- dence, such as price concessions by UNITED STATES (%) (%) sellers, shows slowdowns occurring. Employment million, sa 08/06 135.500 135.372 133.792 0.1 1.3 Good

Residential permits are down 37.4 Unemployment Rate %, sa 08/06 4.7 4.8 4.9 -2.1 -4.1 Still Favorable percent in Las Vegas for August 2006 compared to the same month a year Consumer Price Index 82-84=100, nsa 08/06 203.9 203.5 196.4 0.2 3.8 Concern ago, and permits are up moderately Core CPI 82-84=100, nsa 08/06 206.7 206.2 201.0 0.2 2.8 Concern

(by 3.8 percent) in Reno. Employment Cost Index 89.06=100, sa 2q06 101.7 100.8 98.8 0.9 2.9 Up With good investment prospects for Productivity Index 92=100, sa 2q06 138.6 138.2 134.9 0.3 2.7 Good the Silver State, however, one might expect more rapid market corrections Retail Sales Growth $ billion, sa 08/06 368.233 367.351 345.226 0.2 6.7 Trend Up than in slower-growing areas. Indeed, Auto and Truck Sales million, sa 08/06 16.02 17.14 16.82 -6.5 -4.8 Down the trend of job growth in Las Vegas is Housing Starts million, sa 08/06 1.665 1.772 2.075 -6.0 -19.8 Down at 5.9 percent and 4.4 percent in GDP Growth q Expansion Reno – rates well above the national $ billion, sa 2 06 11,388.1 11,316.4 11,001.8 0.6 3.5 level of 1.3 percent. Therefore, though U.S. Dollar 97.01=100 08/06 107.770 108.510 110.690 -0.7 -2.6 Down there may be a greater housing mar- Trade Balance $ billion, sa 07/06 -68.044 -64.818 -58.080 -5.0 -17.2 Down ket overhang in Nevada, strong S&P 500 monthly close 08/06 1,303.82 1,276.66 1,220.33 2.1 6.8 Up growth makes adjustments quicker, other things being equal. All in all, we Real Short-Term Rates %, nsa 08/06 4.76 4.65 2.93 2.4 62.5 Up foresee weaker housing markets, but Treasury Yield Spread %, nsa 08/06 -0.21 0.01 0.74 -2200.0 -128.4 Caution Signal things will hold up in the Silver State. SOURCES: Nevada Department of Taxation; Nevada Department of Employment, Training and Rehabilitation; UNR Bureau of Business and Economic Research; UNLV Center for Business and Economic Research; McCarran International Airport; Reno/Tahoe R. Keith Schwer International Airport; Las Vegas Convention and Visitors Authority; Reno-Sparks Convention and Visitors Authority; U.S. Depart- UNLV Center for Business and Economic Research ment of Commerce, U.S. Bureau of Labor Statistics, U.S. Census Bureau; U.S. Federal Reserve Bank.

70 November 2006