Schwarzenegger cancels Vegas trip

Kevin Rademacher

Monday, June 7, 2004 | 11:13 a.m.

California Gov. Arnold Schwarzenegger's plans to lure businesses back to his state will not change the mind of Mitchell Greif.

The chairman of Coast Converters last year moved the manufacturing arm of his company, which makes plastic bags, to North Las Vegas. The shift created 125 Nevada jobs and put Greif at the center of a debate over the rising cost of doing business in California.

Schwarzenegger, while still campaigning for the job of governor, held a press conference at Coast Converter's former Oxnard, Calif., plant, vowing to turn back the tide of rising taxes that have prompted many businesses to leave.

Last week, Schwarzenegger notified Nevada Gov. Kenny Guinn that he planned to come to Las Vegas to launch an advertising campaign designed to bring companies that have left his state back.

Still, Greif said he has no plans to go back.

"It wouldn't affect me," he said. "I couldn't afford to do business in California."

Over the weekend, Schwarzenegger's office sent out a press release announcing that a Las Vegas visit planned for today was canceled because of the death of former President Ronald Reagan. As of this morning, Schwarzenegger's office had not yet decided when or if the visit will be rescheduled.

Darrel Ng, a spokesman for the California governor, confirmed that the visit to Las Vegas had been canceled but declined to confirm that the visit was related to an economic development pitch.

"We haven't said what the trip was for," Ng said. "So, we'll just leave it at that."

Greg Bortolin, a spokesman for Guinn, said Schwarzenegger's plans confirm the success of Nevada's business climate and economy.

"Clearly there's a reason people are making the decision to move their businesses here," he said. "Over the last several years, a number of businesses have moved to both Las Vegas and Reno."

Jerry Sandstrom, deputy director of the Nevada Commission on Economic Development, also seemed pleased that Nevada had attracted the attention of Schwarzenegger.

"The fact that the governor would come over here to do that, obviously we've gotten their attention," he said.

Bortolin also said an effort by California's governor would have little meaning without the support of that state's lawmakers.

"Ultimately the changes that need to be made in California have to come from the Legislature," Bortolin said. He also pointed out that despite a new tax package handed down by Nevada's Legislature in 2003, this state's economic development efforts have remained strong.

"It's comforting to know that -- I don't think -- it did anything to hurt Nevada," he said. "Businesses have continued to come here and the economy has remained very strong. I don't see that ending anytime soon."

Greif, who still has his company's administrative offices in California, did compliment Schwarzenegger's effort to help businesses, but he said fixing the problems in California will take time.

"We're really happy with Schwarzenegger and his efforts," he said. "But it's still going to take awhile. ... He is helping, but it's going to take awhile. ... I think he's got his hands full."

Last week, Nevada economic development officials were circulating a list of new bills proposed in the California Legislature that would preserve Nevada's competitive advantage. Among the proposals was an initiative to raise the minimum wage, a new set of fees for chemical companies and a measure keeping in place streamlined rules that allow employees to sue their employers.