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in Southern Nevada |
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in Southern Nevada |
Southern Nevada has experienced unprecedented economic growth since the 1981 - 1982 national recession. The driving force behind opportunities that attract new residents to the region is job growth. Since Southern Nevada is known as the Entertainment Capital of the World, the primary engine of our economic growth has been expansion of the gaming industry and associated services. In 1997, about 50% of Southern Nevada jobs were directly or indirectly associated with the gaming/hospitality industry. At the same time, the construction sector has expanded to 10% of the workforce as new resorts continue to be built and housing developments with associated retail and service support for new Southern Nevada residents are brought on line.
Given that 60% of the total Southern Nevada employment is associated with two industries, gaming and construction, the Southern Nevada economy is vulnerable to downturn. Three challenges are clear. First, we must maintain and enhance our favorable business climate and competitive advantage with other western cities. Southern Nevada’s climate, tax structure with no personal or corporate income taxes, and favorable regulatory environment all contribute to our reputation as a business friendly region.
Second, we must continue to diversify Southern Nevada’s economy. Economic development efforts have been successful. In 1997, 37 new companies and 13 existing company expansions occurred outside of the gaming sector. However, enhanced diversification needs are clear when considering that total employment from these new and expanded companies is less than the employment at one new Las Vegas Strip resort. Third, we need to provide the education and training building blocks of a skilled workforce.
A crucial aspect of diversification is to attract businesses and industry that will equally participate in and contribute to the economy of Southern Nevada. As we diversify Southern Nevada’s economy we must ensure that the tax burden is distributed more evenly. Also, we need companies that will provide employee compensation and benefits at levels that do not strain health and other public service provision systems while having reasonable access to the housing market.
The successes of the Nevada Development Authority (NDA) have shown that the NDA can lead regional diversification efforts with participation from local entities and private sector businesses. Diversification efforts should focus on the strengths of Southern Nevada and alternative uses of facilities where substantial investments have been made. Opportunities include high-tech industries related to entertainment, telecommunications, financial services, research and development, and distribution.
The Nevada Test Site presents outstanding opportunities for high-tech research and development endeavors. Also, since Southern Nevada contributes over 60% of the State of Nevada economy and the state will benefit accordingly from diversification efforts, state participation and support of diversification efforts is warranted.
Another key component of diversification efforts should be marketing a positive image of Southern Nevada. A program to broadly communicate the advantages of Southern Nevada including quality of life, business opportunity, tax advantages and the natural environment is needed.
OBJECTIVES STRATEGIES A. Promote a business friendly tax and regulatory environment. 1. Evaluate and implement where appropriate successes and programs from other western states.
2. Evaluate and establish programs that will increase Southern Nevada’s competitive advantage while not eroding tax base.
3. Establish procedures to periodically evaluate business regulatory and tax environment to ensure maintenance of competitive advantage and to ensure that the tax burden is distributed more evenly.
4. Involve elected officials in focus groups, town meetings, and other activities to enhance their awareness of business needs and experiences.
B. Promote an environment that encourages small business investment. 1. Examine incentive programs to assist business start ups including venture capital funds.
2. Develop small business incubator programs and make entrepreneurs aware of SBA programs.
3. Demystify the licensing and permitting processes and establish uniform business license regulations for all Las Vegas Valley jurisdictions with a one-stop licensing program.
OBJECTIVES STRATEGIES A. Pursue diversification opportunities based on the strengths of Southern Nevada. 1. Develop an Economic Diversification Team, coordinated through the Nevada Development Authority with the resources of the state, Southern Nevada jurisdictions, education and business leaders.
2. Develop a recruitment plan to target businesses related to telecommunications, entertainment, light and clean manufacturing, and distribution.
3. Aggressively promote alternative use of facilities where substantial infrastructure investment has been made.
4. Encourage business and industry to recognize the benefits of diversification and broader tax base and participate in diversification programs.
5. Focus diversification efforts on businesses and industries that pay employees a “living wage” and associated benefits in order to equally share in Southern Nevada benefits and responsibilities that will contribute to tax base expansion and provide employee compensation, including benefits, at levels that avoid burdening existing service provision systems.
B. Develop programs to facilitate economic diversification and investment. 1. Develop a comprehensive regional economic data base to support diversification programs.
2. Conduct periodic analysis to identify regional diversification opportunities and constraints.
3. Establish statewide funding mechanisms for economic development. This could include funding pools that can be accessed locally for incentive programs with emphasis on venture capital loans for emerging mid-level companies.
4. Implement a statewide business relocation program with support, assistance, and incentive elements.
5. Develop local incentive programs with the Nevada Development Authority that will result in a unified regional coalition of Southern Nevada entities.
6. Pursue legislation that will enable the provision of infrastructure to support economic development/diversification.
C. Develop a skilled professional and technical workforce. 1. Create a team of educators and business representatives to develop and implement a 10 year quality workforce plan.
2. Reevaluate and enhance the state commitment to elementary, middle, high school, and higher education.
3. Develop uniform, consistent, and equitable state funding allocations for higher education between Northern and Southern Nevada.
4. Form private/public sector partnerships to increase workforce skills in the diversification target areas through educational programs at the Community College of Southern Nevada and the University of Nevada Las Vegas.
5. Encourage the Clark County School District to enhance technical programs and on-the-job opportunities.
D. Promote a positive image of Southern Nevada as a high-quality living environment. 1. Focus promotion of the Las Vegas valley on quality of living, educational and business opportunities, and the natural environment.
2. Develop and implement a five year marketing plan to communicate the positive aspects of living and working in the Las Vegas valley.
3. Establish funding mechanism and responsibility for implementing the marketing program.