Transcript Business Planning & Growth

Economic Development
2004 4th Quarter Rural Nevada
Report
Economic Development
Overview
Northern Nevada
 Total committed companies year-to-date are 32 (21 Manufacturers)
 Total economic impact year-to-date is: $274 Million
 Total households added year-to-date are : 2,024
 Commitments should continue at this pace into 2005.
 Activity will remain strong. Increased activity in Elko, Fallon, Lovelock and Winnemucca regions.
Opportunity for rural Nevada to exploit:
 Unemployment in Washoe County in October fell to 2.8 percent from 3.1 percent a month earlier. The
state says the jobless rate in the Carson City labor market, which also includes Douglas, Lyon and
Storey counties, fell to 3.8 percent from 4.2 percent in September. Statewide, the jobless rate in
October stood at 3.6 percent — the lowest rate in more than 25 years.
 Nevada’s “Will Your Business Be Terminated” Campaign launched last October generated more than
260 local, regional and national stories worth more than $6 million in media value.
 U.S. Department of Agriculture today designated all 17 Nevada counties as drought affected. The
designation makes all Nevada agricultural producers who suffered a loss eligible for emergency farm
assistance programs.
 Nordic Windpower, a wind turbine manufacturer based in the United Kingdom, will build a
manufacturing plant in northern Nevada as soon as a Nevada wind energy project of sufficient size is
committed to construction. Energy Nevada of Carson City and Nordic Windpower inked the deal this
week.
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Economic Development
Activities
 The Northern Nevada Partnership, formerly known as the Mining Sustainability Group, whose
mission is to regionalize and support cooperative economic diversification in rural Nevada. Members
from the mining industry (Newmont, Placer Dome and Barrick), Elko County and Economic
Development Board, BLM, Great Basin College, met with Lander County and their Economic
Development Board
 NevadaWorks Board of Directors Activities: Promotion of Nevada Works to identify/quantify rural skill
sets required to meet targeted recruitment and expansion goals. Objective: Merge Nevada Work’s
resources of training dollars and on-site employment services with rural community's targeted
industries’ initiatives (Both retention and recruitment) Promote local JobConnect and development
authorities’ Partnerships, through involving JobConnect managers and community colleges in local
EDA planning and industry targeting plans and EDA boards.
 Industrial Park Map and Directory Phase One completed and submitted to Rural Development
Authorities for response. Currently, majority of rural Nevada Industrial Parks are listed on Sierra
Pacific’s Economic Development web site at http://econdev.sierrapacific.com
 Gold Mining activity in North and Northeastern Nevada continues to expand as new sites are
developed to supply gold to an increasingly valued market. Reports of operational constraints due to
late delivery of trucks, muckers and other mining equipment.
 Sierra Pacific to partner with NDOT and the Nevada Commission on Economic Development in
implementing State-approved economic development transportation monies for rural Nevada.
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Economic Development
Activities
 Fernley Industrial companies continue to strategize effective employee recruitment strategies
and retail/commercial development initiatives. Members include: Quebecor, Amazon.Com,
Trex, MSC Industries, A.R.E., Johns Manville, Honeywell, UPS Logistics, RMAX, Valley Joist,
and Fortifiber.
 BNSF has agreed to study infrastructure investment in northern Nevada, to be phased in:
 Storage tracks used to build trains
 Manpower in lieu of contracting with UP
 Intermodal Facility
 BNSF Transloading Operation
 SBA has agreed to guarantee the financing of the Wells Renew Tire Facility Project
 USDA has agreed to guarantee the financing of a commercial center in Fernley comprised of
a Bowling Center and retail.
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Economic Development
Activities
Sierra Pacific Economic Development continues to nurture important business and
political relationships with the following development authorities and economic
developers:
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Union Pacific Railroad
Burlington Northern Railroad
Elko County Economic Diversification Authority
Humboldt Development Authority
Northern Nevada Development Authority
Churchill County Development Authority
Lander County Economic Development Authority
Pershing County Development Authority
Lyon County Economic Development Authority
Mineral County Economic Development Authority
Western Nevada Development District
NCED/Rural ED Manager/NCED Marketing Manager and Rural Conference
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Economic Development
Activities
Elko County
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Strong job growth in mining maintenance, retail, construction and agriculture (alfalfa and beef production)
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Met with Steve McLaws, Union Pacific Director of Industrial Development and ECEDA Executive Director, identified
UP’s investment interest in developing a regional transloading facility.
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Toured Elko County with Burlington Northern’s Economic Development Manager, Kevin Palmer, to identify industrial
park development potential.
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Bulk fuel transloading identified as growth industry in northeastern Nevada.
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Retail Developments: Home Depot permits pulled, construction to begin once conditions of approval are addressed.
Super Wal-Mart opening Fall 2005. Walgreens to start construction Spring 2005.
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Expanding housing market due to job growth.
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Casino Express adding 15 flights a month, 1800 new visitors.
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Casino Express Airlines will offer gambling junkets to the Peppermill Corp.’s properties in West Wendover beginning
in mid-January. Players from 16 cities will have the opportunity to visit the Peppermill, Montego Bay, and Rainbow
hotel-casinos. There will be 20 flights per month. Each plane can carry 122 passengers.
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Scenic Airlines will begin air service from Elko to Las Vegas by late winter. It will replace Sky West on the Elko-Reno
route later.
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Existing transloaders in Carlin have expressed desire to provide services to outside vendors.
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Wells Tire Recycling plant moving forward as permits and financing through local investment board reach
completion. 15 employees to start
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SBA has agreed to guarantee the financing of the Wells Renew Tire Facility Project
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Queenstakes Resources Ltd says its Jerritt Canyon Mine 50 miles north of Elko produced 73,070 ounces of gold in
the 3rd quarter, up 20 percent from the 2nd quarter
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New mine, Leeville, and Gold Quarry expansion to be operational 4th quarter 2005.
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Home Depot expects to begin construction of its Elko store in January. The store will cover 102,000 square feet plus
a 35,000 garden center. The store should open in the summer of 2005.
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Economic Development
Activities
Lander County
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Placer Dome Inc. says its huge gold discovery at Cortez Hills north of Austin is even bigger than originally
thought. After drilling 94 holes, Placer Dome estimates its 60 percent share of the property holds 9 million
ounces of gold. Previous estimates showed the company’s share to be 7.6 million ounces. (At $400 an ounce,
the holding would be worth $3.6 billion.)
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Participated in Northern Nevada Partnership meeting in Battle Mountain with area businesses and political
leaders to identify opportunities to leverage and utilize mining industries’ assets to diversify regional
economy.
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Angel Fire Water Company continues discussions with Lander County.
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Newmont’s 200 MW Power Plant, will employ 650 construction workers in Lander County for two years, and
create 150 power plant jobs. Plant will supply electricity for Newmont’s Nevada operations except Gold
Quarry north of Carlin.
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Cortez Mine creating 40 to 60 new jobs by the end of 2004
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Newmont Mining Corp. has begun construction on the $200 million Phoenix Project near Battle Mountain,
three months ahead of schedule. The project has been in the planning and permitting stages for a decade.
Construction should continue until mid-2006. There will be about 450 workers on site during the construction
phase. The mine will employ about 300 when it becomes operational. Many of the workers will be transferred
from the Lone Tree Mine, which should halt mining operations in August 2006. About 6 million ounces of gold
reserves and 45 million ounces of silver reserves have been identified at the Phoenix site, and mining could
continue for 15 years. The mine could also produce 21 million pounds of copper per year. The area around
the mine has been excavated for about 140 years.
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Economic Development
Activities
Mineral County
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Continue to assist materials transportation and storage company’s plans to locate facility east of Hawthorne
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Security Training School to locate to Hawthorne Airport.
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Columbus LLC, a calcium and magnesium mining operation, operating south of Gold Hill Junction as Columbus
Marsh and generating 35 new jobs for Mineral County
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Shelley Hartman hired as new Executive Director of the Mineral County Economic Development Authority.
White Pine County
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Bald Mountain Mine expanding with 25 jobs, operated by Placer Dome
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Robinson Mine project commenced to employ 300, 50 additional jobs needed. Community looking to recruit
housing developers.
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Negotiations continue toward construction of a coal fired, 1600 MW power plant with L.S. Power.
Community continues to pursue purchase of Los Angeles Water and Power’s rail line.
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Retail sector experienced a strong summer tourist season.
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Retail co-op to open November 2004
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80 room Hampton Inn to break ground Spring 2005 in Ely.
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Enrollment in the White Pine School District increased by 4.78% for the 2004-2005 school year. Enrollment had
declined every year since 1998.
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Economic Development
Activities
Churchill County
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The Fallon area housing market had a remarkable year in 2004, and further growth is expected. The number
of permits for new homes issued by the City of Fallon and Churchill County near doubled in 2004 from the
previous year, to nearly 240 from 120. Several new subdivisions are planned in the Fallon area that will add
several hundred homes. The inventory of existing homes on the market is currently around 30, well below the
average for a market of similar size.
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The defense budget bill approved by the U.S. Senate includes $4.7 million for construction of explosivesstorage facilities at Fallon Naval Air Station.
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Matthew Homes closed escrow on the 1,700 acres Great Basin Industrial Park
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1,700 acre industrial Park in Hazen. Awaiting county Master Plan approvals
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Site Visit with Glass Manufacturer to Great Basin Industrial Park
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County to support the development of geothermal farms
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Regional Airport concept being reviewed
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Participated in Nevadaworks’ Listening Session with local business leaders and identified training and
recruitment needs.
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Economic Development
Activities
Storey County
New companies in Tahoe Reno Industrial Center:
 Wal Mart Distribution Center - 880,000 square feet , 550 jobs
 James Hardie Building Materials
 Golden Gate Petroleum
 Barrick’s Power Plant, 118 MW under construction:
During construction, there would be up to 350 jobs generated by the project. Once completed, it would be
operated by a crew of fewer than 25. It would generate up to 118 megawatts of power from 14 gas-driven
generators. Power will be used by Barrick's properties near Carlin on the Eureka-Elko county line
Eureka County
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Ruby Hill gold mine set to reopen Spring 2005, housing available
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Newark Valley in the Diamond Mountains area experiencing new oil exploration and drilling.
Pershing County
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Community currently working with manufacturers and distributors of wall systems, camping equipment and
dental accessories.
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County developed incentive policy to attract and retain industry.
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Community submitted proposal to locate 90,000sf trailer manufacturer, 200 jobs
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Aeroponics company to purchased property in Pershing County Industrial Park
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Site Visit and Community Presentation to Wall Systems Manufacturer.
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Economic Development
Activities
Humboldt County
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Apollo Gold reports its Florida Canyon Mine 42 miles southwest of Winnemucca produced 14,820 ounces of
gold at an average cash cost of $406 an ounce in the third quarter. The mine produced 26,158 ounces at a
cash cost of $289 a year earlier. The company, which lost $6.1 million in the quarter, says it slowed mining
to conserve cash.
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Nevada Geothermal Power Inc. says it struck a deal with Inovisions Solutions Inc., a Canadian firm that will
invest up to $5 million(Canadian) in the Pumpernickel Valley geothermal project near Winnemucca.
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Carry On Trailer Corporation announced its decision to construct a 90,000sf manufacturing facility employing
150 people, at the Winnemucca Airport Industrial Park, operational 2006
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Mining Exploration activity increases:
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Getchell Mine expansion (Turquoise Ridge Mine), truck drivers and welders hired
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Glamis Gold’s Marigold mine operation ramping up and possible expansion
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Newmont’s Phoenix Project moving forward toward 2006 start up.
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Economic Development
Trends
4 th Quarter 2 0 0 3
4 th Quarter 2 0 0 4
Was ho e Dis trict
Building P ermits
1,334
1,308
1,500
1,000
500
75
64
0
Resident ial
Commercial
Includes City of Reno, City of Sparks, and Washoe County. Information obtained from the respective
building departments.
4th Quarter 2003
4th Quarter 2004
4th Quarter 2003
4th Quarter 2004
Carson District
Building Permits
120
120
1,088
1200
104
100
1000
800
Eastern District
Building Permits
80
657
600
60
400
40
200
48
105
0
21
20
5
0
Residential
Commercial
Includes Carson, Churchill, Lyon, Douglas, Nye and Storey counties. Esmeralda does not have
building permits. Mineral County is not available at this time. The cities of Fernley & Fallon are
also included. (2004 4th quarter data only) Information obtained from the respective building
departments.
Residential
Commercial
Includes Elko, Lander, and Humboldt counties. Eureka County does not have building permits.
Pershing County not available at this time. The cities of Elko & Winnemucca are also included.
(2004 4th quarter data only) Information obtained from the respective building departments.
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Percentage
Economic Development
Trends
Unemployment Rates
7
Sept
Oct
Nov
5
4
3
2
1
0
Area
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Economic Development
Trends
Information obtained from the Nevada Department of Employment, Training & Rehabilitation
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Economic Development
2004 Most Active Prospects
Product/Service
Square
Feet/Acres
# Employees
Area(s) of Interest
Data Center
150,000
20
Elko
Industrial Park
Development
60 Acres
TBD
Elko
Horse Trailers
50,000
TBD
TBD
Engineered
Communication &
Measurement Svcs
35,000
TBD
TBD
TBD
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Elko/Reno
Construction
Management Svcs
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Economic Development
2004 Most Active Prospects
Product/Service
Square
Feet/Acres
# Employees
Area(s) of Interest
Sporting Goods
100,000
50
TBD
Wind Farm Generator
& Turbine Mfg
TBD
30
Northern Nevada
Distribution
2 Million
2,000
Elko/Winnemucca
TRIC/Fernley
Training of Military
Operations
15,000 sf
35-50
Hawthorne
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