June 17, 2021 - 5:33 pm
Eight companies considering relocation or expansion in Nevada may have a sweeter deal after the Governor’s Office of Economic Development approved $8.9 million in tax incentives Thursday.
The tax abatements may help create 2,000 jobs in the next five years, three-quarters of which are expected in or near Las Vegas. Some companies have roots in Nevada, though most that applied indicated they are considering expansion in the state.
“We’re thrilled to welcome these companies to our region,” Jonas Peterson, president and CEO of the Las Vegas Global Economic Alliance, said in a statement. “Our team is excited to see an increase in companies, like these, choosing to invest in our community and help diversify our local economy. As we continue to push through the challenges of the pandemic, I’m optimistic about Southern Nevada’s economic outlook.”
Only one of the eight companies approved Thursday is considering a project outside of the Las Vegas area. Foot Locker wants to expand into a distribution center in Washoe County. The other seven applied for projects in Southern Nevada.
Tax abatements are reductions or discounts in tax liabilities, not a payment to the company. All estimated tax abatements are shown over 10 years and are discounted from the company’s total tax liability. The companies applied for various combinations of abatements on sales tax, modified business tax and personal property tax.
The companies chosen for the tax abatements, ranging from eyeglass maker Warby Parker to metal minting company Sunshine Minting, show the economic development group’s goal to diversify industries operating in the region, officials said.
“I’m very excited about the range of jobs these companies are creating in Nevada, most importantly in Southern Nevada which saw its leisure and hospitality sector nearly shut down during the pandemic,” GOED Executive Director Michael Brown said in a statement. “Diversifying Clark County’s economy is GOED’s top priority.”
Here are the companies:
Fresh N Lean
Average hourly wage: $22.42
Estimated abatement: $1,303,910
This ready-to-eat meal manufacturer cooks, produces and ships pre-prepared meals for people on keto, paleo, vegan or protein-packed diets. The subscription service is based in California and wants to expand its operations to North Las Vegas, following significant growth in the last six years, founder and CEO Laureen Asseo said in a news release.
“Today we look forward to continuing this growth trajectory in our new home,” Asseo said. “We are also privileged to be able to offer employment to hundreds of individuals who are willing to work but cannot find opportunities, especially due to COVID-19.”
Fresh N Lean says it will create 500 jobs in the first two years of operation, and potentially 150 more within five years of operation in North Vegas.
Sunshine Minting, Inc.
Average hourly wage: $21.38
Estimated tax abatement: $368,880
Sunshine Minting is a precious metal supplier and base metal mint. The company has a location in Coeur d’Alene, Idaho, but is expanding its manufacturing operations to a new production facility and corporate office in Henderson.
Business leaders expect 142 jobs to be created in the first two years and as many as 75 additional jobs within five years of operation.
Average hourly wage: $26.66
Estimated abatement: $311,299
This company focuses on accelerating other brands’ ecommerce footprint by purchasing products from vendors, then listing them on other e-marketplaces like Amazon, Walmart, Target and eBay. Spreetail is expanding its fulfillment center in Southern Nevada and said it will bring 110 jobs in the first two years of operation.
Pitney Bowes Presort Services
Average hourly wage: $24.61
Estimated abatement: $519,627
Pitney Bowes Presort provides mail sorting and distribution services, focusing on efficiencies through the U.S. Postal Service network.
The company is adding operations to Southern Nevada and is expected to create 50 jobs in its first two years, and may add 120 more within five years of operation.
Average hourly wage: $18.42
Estimated abatement: $379,106
Eyeglass retailer Warby Parker will establish a manufacturing and distribution center in Clark County. The company’s abatement was approved for the creation of 136 jobs in the first two years of operation, and a possible 74 additional jobs within five years.
TCP Global Corporation
Average hourly wage: $38.90
Estimated abatement: $403,202
TCP Global is a wholesale paint and varnish supplier. It wants to create a new national distribution center and possibly move its corporate operations to North Las Vegas for its ecommerce services that work worldwide.
Its abatement was approved for 80 jobs in its first two years of operation, with the potential for an additional 75 jobs within five years.
Foot Locker Retail
Average hourly wage: $21.49
Estimated abatement: $2,696,908
Shoe retailer Foot Locker is eyeing a distribution center in Washoe County to service consumers in the Western United States, the company said in its application. It is considering a 450,000 square-foot facility, with development beginning in January 2022. It expects to hire 212 people within the first five years of operation.
Tapestry, Inc. / Coach Services, Inc.
Average hourly wage: $26.88
Estimated abatement: $2,919,138
This luxury fashion company operates and distributes major brands, such as Coach, Kate Spade and Stuart Weitzman. Tapestry is considering a distribution and fulfilment center in Clark County. It estimates it will bring more than 100 new jobs during its first two years of operation.
McKenna Ross is a corps member with Report for America, a national service program that places journalists into local newsrooms. Contact her at email@example.com. Follow @mckenna_ross_ on Twitter.