Tax incentives approved for three companies

Kevin Rademacher

Monday, July 19, 2004 | 11:06 a.m.

The Las Vegas Valley could gain 145 jobs after the Nevada Commission on Economic Development last week approved tax incentives for three companies.

If each of the companies actually make the move, they would bring a total of $93 million in economic impact to Clark County in their first year of business, commission estimates said. The tax abatement and deferral for those companies amounts to $251,356.

The largest proposal receiving commission approval was $174,583 in incentives for the Upper Deck Co. The Carlsbad, Calif.-based trading card company is exploring the possibility of relocating its warehouse and distribution facility to North Las Vegas.

If the company moves ahead with plans it would bring 75 jobs to Nevada with an average hourly wage of $16.

The company's application was approved despite questions by Commissioner LeRoy Goodman who indicated that while the average wage was $16, many jobs were paying significantly lower wages but offset by higher pay for a few top executives.

Somer Hollingsworth, chief executive of the Nevada Development Authority, countered that the statewide average wage is calculated in the same manner and affected by the high salaries of top executives.

"We have always had to play by those rules," he said.

Sam Mudaro, controller for Upper Deck, told the commission that some of the wages could be adjusted higher because of a higher local pay scale.

Typically, the commission can give incentives only to companies with an average wage equal to, or higher, than the statewide average. Each of the companies applying had to meet a minimum wage of $15.89, but the commission announced that the average wage has been increased as of July 1 to $16.49, raising the bar for new companies applying for incentives.

The commission also approved $43,140 in incentives for May Manufacturing LLC, which does business as Artesian Spas. The company will be relocating its Victorville, Calif., manufacturing facility and headquarters to North Las Vegas. A company executive said the move will mean at least 42 new jobs with an average wage of $16.15 per hour.

The company is a wholesale manufacturer of spas.

New Pointe Group Inc. also received approval for $33,633 in incentives to establish the headquarters and operations facility in Southern Nevada for a planned radio sports network.

Company Chief Executive Joseph Hipple said New Pointe is in negotiations with a Strip casino to broadcast a syndicated talk show from its sports book. The network is expected to be in operation this fall.

The commission report said New Pointe would have 28 employees with an average wage of $43.70 an hour.