3 firms receive Nevada tax breaks
Thursday, July 11, 2002 | 10:50 a.m.
CARSON CITY -- A national firm that makes salad dressings and sauces is going to get a $1.6 million tax break for building its West Coast manufacturing and distribution plant in Clark County.
The state Commission on Economic Development Wednesday agreed to give a tax incentive to Ken's Foods Inc. and also to two other firms, one of which is in bankruptcy.
Ken's Foods makes 400 varieties of salad dressings and sauces, including some for the brand of actor Paul Newman. In its last fiscal year, it had sales of $350 million and expects them to rise to $390 million this fiscal year.
Tom Lance, vice president of operations for the company, said it has operations outside Boston and Atlanta and is known in the East and South. But the Ken Food's brand is not prevalent in the West, he said.
The company purchased 20 acres in Clark County for $4.7 million and intends to construct a $32 million, 160,000-square-foot plant. The plant could be expanded to 320,000 square feet.
Lance said one of the advantages of Clark County is that many trucks bring in supplies to Las Vegas but they leave empty. He said that will allow the company to use these trucks on their return home at favorable rates.
He said Las Vegas was also chosen for its "wonderful quality of life."
It will start with 42 employees and the average hourly wage will be $15.29. However, 35 of the initial 42 employees will earn $13.02 or less an hour. Six managers will receive an average $28 an hour and the plant manager will earn $72 an hour.
The company also supplies a 401 (k) plan, medical and dental insurance; two weeks paid vacation; 10 paid holidays; life insurance; short-term disability; tuition reimbursement and uniforms.
To qualify for the tax break the company must pay an average $15.09 an hour.
The commission agreed to forgive $1 million on sales tax on the cost of equipment; $8,400 on the state business tax over four years and $610,635 on the personal property tax over 10 years.
The commission also said the company could defer paying $398,512 in sales and use tax.
Sunterra Financial Services, which has been in bankruptcy reorganization since May 2000, was given a $238,357 tax break for its planned expansion in Las Vegas.
Stacey Hightower, director of operations, said Sunterra is moving its corporate headquarters from Florida and other offices to North Las Vegas and there will be an additional 100 employees.
It merchandises timeshares internationally with 76 resorts, only one of them in Nevada at Lake Tahoe.
The average hourly wage for new employees will be $27.66. The current average wage for present 100 employees in Las Vegas is $16.10.
Hightower said he expects the company to be out of bankruptcy by the end of this month.
The commission agreed to grant a $154,000 tax break on new equipment being purchased; $64,357 on the personal property tax over ten years and $20,000 on the business tax over four years.
Economic Development Director Bob Shriver informed the commission Sunterra Financial Services received a tax break in 1998 when it located in Southern Nevada.
The commission also granted a $31,000 tax break to Intra-Aussie South Pacific, which is moving its headquarters from Los Angeles to Las Vegas. It has purchased a building in Las Vegas and intends to employ 33 workers to promote and sell packaged tours to Australia and New Zealand and other places in that part of the world.
Average hourly wage of new employees will be $18.15.
It will receive a $26,486 abatement of the sales tax on the $504,490 in equipment being purchased and $6,600 reduction in the business tax over four years. The commission also agreed to set aside $11,684 to train the new employees.
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