Video game company plans for 150 jobs in downtown Las Vegas

Las Vegas' nascent reputation as a high-tech hub could get a boost if the city closes a deal with the company behind popular video game titles "Grand Theft Auto" and "2K Sports" to open a branch downtown.

The city is dangling hundreds of thousands of dollars in incentives to lure Take-Two Interactive Software Inc. to lease space for about 150 workers in an office building at 302 E. Carson Ave.

The tech jobs would complement the Downtown Project, a separate, privately funded effort led by Zappos CEO Tony Hsieh to aid startup tech companies, small businesses and community projects.

The Take-Two proposal, months in the works, still needs approval by the redevelopment agency board and city council.

"There are issues that still haven't been solidified on the dotted line that are probably being worked out," Mayor Carolyn Goodman said. "But the first thing is to get the blessing of the council to move forward."

Under a participation agreement between the redevelopment agency and Take-Two, the company could get as much as $307,200 in grants in the first seven years after moving to Las Vegas.

According to the proposal, $247,200 in grants would go to the company if it meets goals such as employing at least 150 people downtown.

An additional $60,000 in grant money is available in annual installments of $8,571 if 15 percent of the employees are residents of the city's redevelopment area and at least 15 percent are racial minorities, women, disabled or veterans.

Other incentives include an offer of 70 free parking spaces within a half-mile of the site and 120 more free spaces in a city garage at 450 E. Fremont St.

A summary of the proposal on the city's website said incentives would not exceed $600,000.

In exchange, Take-Two would agree to lease nearly 25,000 square feet of office space for at least seven years and create about 150 jobs with a median salary of $18 per hour, the summary said.

Take-Two is a leading developer, marketer and publisher of video games. Besides "Grand Theft Auto" and the "2K Sports" franchises, the company produced the "BioShock," "Mafia" and "Borderlands 2" titles. According to Securities and Exchange Commission filings, the company reported nearly
$500 million in net revenue in the first half of the year.

Calls to the company headquarters Thursday didn't connect. Its offices are in an area of lower Manhattan affected by Hurricane Sandy.

Take-Two's latest filing also detailed where it expects to find future growth.

"We also have expansion initiatives in the rapidly growing Asia markets, where our strategy is to broaden the distribution of our existing products, expand our business in Japan, and establish an online gaming presence, especially in China and Korea," the filing said, adding, "In addition, during the summer of 2012, 2K Games released our first mobile social game for Japan, NBA 2K All Stars on GREE (a mobile, social gaming platform), and also announced a partnership with GREE to bring additional games to select global mobile social gaming markets."

Goodman said company officials would be available Wednesday for a presentation to the council.

Bill Arent, the city's director of economic and urban development, did not respond to requests for comment on the proposed incentives.

Councilman Bob Coffin, whose ward includes the proposed Take-Two site, said the incentives are a bargain compared with the nearly $90 million in state and local incentives used to lure Apple to build a data center near Sparks and a business and purchasing center in Reno.

The Apple projects are expected to generate about 40 full-time jobs, 200 contract jobs and 850 construction jobs, with the incentives spread over decades.

"This is inexpensive when you think about what Reno offered Apple for a relatively small amount of employees," Coffin said.

Contact reporter Benjamin Spillman at
bspillman@reviewjournal.com or 702-383-0285.