Solar firm wins tax break for plant

Kevin Rademacher

Thursday, July 14, 2005 | 11:08 a.m.

North Carolina-based Solargenix Energy LLC on Wednesday received more than $15 million in incentives from the Nevada Commission on Economic Development for its proposed solar energy power plant in Boulder City.

The Nevada Commission on Economic Development voted to give the company about $6 million in sales and use tax abatement incentives for the $106 million in equipment needed to build the 350-acre, 65 megawatt power plant. Solargenix also received $9 million in property tax abatement through a program created by the 2003 Legislature to promote renewable energy development.

"It's an exciting project," said Lt. Gov. Lorraine Hunt, who heads the commission.

Earlier this year, Solargenix drew criticism from the Nevada Senate Committee on Commerce and Labor for project delays.

The company secured a lease with Boulder City in 2003 to build the plant, but several renewable energy developers have said that financing has been difficult to secure because of credit problems with Nevada Power Co., which would buy the electricity generated by the plant. Nevada Power and its parent company, Sierra Pacific Resources, saw their credit downgraded amid fallout from the Western energy crisis.

The plant could generate enough for 18,000 hotel rooms in Las Vegas, Solargenix Executive Vice President Jeff Myers told the Commission on Economic Development on Wednesday.

Myers also told the commission that the development of the plant would begin within "the next several months" with the plant operational by late 2006 or early 2007.

Once operational, the plant is expected to employ at least 20 full-time employees.

Also receiving incentives from the commission on Wednesday was Cash Systems Inc., a check cashing, credit and debit card advance and automated teller machine company that plans to move its headquarters to Las Vegas from Burnsville, Minn. The company received about $200,000 in sales and use tax abatement and deferrals.

Carmelan Gillilan, vice president for administration with Cash Systems, said the move will be made in order to be closer to the gaming industry and because of the interest the investment markets have taken in Las Vegas.

"It just has a synergy here that we can't find anywhere else," she said, adding that the company plans to employ 38 employees locally.

The commission also awarded training funds to two companies preparing to open local operations. Technology supplier CDW Corp. received $182,000 to train 182 employees for its under-construction distribution center in North Las Vegas.

Veristeel Inc., which will manufacture a composite flooring and roofing material for modular buildings in North Las Vegas, received $15,000 for training assistance.