State gives subsidy to LV aerospace firm

David Strow

Tuesday, Nov. 14, 2000 | 11:14 a.m.

Developer Robert Bigelow's company has received nearly $28,000 in tax credits -- but not for his announced plan to launch lunar tourism from the Las Vegas Valley.

Instead, a Bigelow-controlled company, Bigelow Development Aerospace, received $27,850 in abated sales and business taxes from the Nevada Commission on Economic Development last week for the business of producing prototype parts for large aerospace companies.

The division will employ eight people, at an average wage of $17.47 per hour -- exceeding the state's average wage of $14.61 per hour.

The Bigelow company is a contract manufacturer that will use high-tech equipment to make prototype parts used in the design efforts of companies like Boeing and Lockheed Martin. The abatements were awarded for the purchase of about $500,000 in equipment; an additional $10,000 in taxes will be deferred.

Bigelo, owner of the Budget Suites hotel chain, is perhaps best known for his dream of creating a luxury spaceship that would ferry tourists to and from the moon.

Last month, the North Las Vegas Planning Commission approved Bigelow's plans for a 40-acre "space campus" in that city, complete with a 40,000-square-foot rocket-shaped building and visitor's center. Bigelow had originally planned to place the center near Red Rock Canyon, but scratched it after finding that Summerlin did not permit airplane hangars.

Still, Bigelow's tax credit may not be completely unrelated to his space efforts; while the center is a contract manufacturer, commission Executive Director Bob Shriver noted that the development facility could be used to make parts for Bigelow's space projects.

A far larger incentive was awarded to credit card giant Providian Financial Corp., which received $116,000 in training funds from the commission. Providian will use the funds to train 300 employees at its Henderson center in computer software, electronic commerce and Internet transactions.

The trainees will be paid an average wage of $11.69 -- below the state's average, but within the 80 percent of average wage standard used to award training funds. Providian will cover $375,000 in training costs. Shriver said the commission was also swayed by a generous benefits package that will equal 30 percent of the employees' pay.

Also receiving training funds was Powertrusion 2000 International, which received $20,000 in training funds to train 20 employees for its North Las Vegas manufacturing center. The company needs to train employees in machine operation at the center, which will produce power poles made of composite materials. Jobs at the center will pay an average of $17.66 per hour.

The Providian and Powertrusion awards made a significant dent in the commission's training fund pool. With the training awards, the commission now has just $139,000 in training money left until June 30.

But Shriver said the job training that will be provided by the two companies will have broad application beyond just those jobs, a key consideration in making the decision to award such credits. If the commission runs out of training funds prior to June 30, Shriver said the commission will request additional funds from the Legislature to complete the fiscal year.