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Nevada Development Authority
The Nevada Development Authority released this flier today as part of a campaign to attract California businesses to Las Vegas.
Published Thursday, Aug. 6, 2009 | 12:49 p.m.
Updated Thursday, Aug. 6, 2009 | 4:02 p.m.
Campaigning For Small Businesses
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The Nevada Development Authority is launching a $1 million campaign in Southern California on Friday to lure small businesses to Las Vegas.
Apples to Apples
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This commercial by the Nevada Development Authority is intended to encourage California businesses to move to Las Vegas.
Lipstick On a Pig
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This commercial by the Nevada Development Authority is intended to encourage California businesses to move to Las Vegas.
Monkey Off Your Back
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This commercial by the Nevada Development Authority is intended to encourage California businesses to move to Las Vegas.
Monkey Around
Viewing video requires the latest version of Adobe's Flash Player
This commercial by the Nevada Development Authority is intended to encourage California businesses to move to Las Vegas.
Sun Coverage
The Nevada Development Authority’s newest advertising campaign to lure Southern California businesses to Las Vegas says if they stay there they can “kiss their assets goodbye.”
The $1 million campaign, which breaks Friday in Southern California on television, radio and print, is the NDA’s latest attempt at enticing businesses to relocate.
Similar previous campaigns have drawn heated responses from California government officials and business organizations and the new campaign, which is edgier than those produced in the past, is expected to get under the skin of loyal Californians.
Los Angeles’ ABC affiliate, KABC, already has told the NDA that it would not run the new spots.
The campaign, developed by Las Vegas-based Shonkwiler Partners, incorporates two basic themes, an apple-to-apple comparison of California and Nevada business climate in which the California apple shrivels and rots and another that compares the effects of California legislation on businesses to the shenanigans of a monkey. The ads incorporate the tagline “Kiss your assets goodbye.”
The NDA sells Southern Nevada for its lower personal and business income taxes, reduced workers’ compensation rates and decreased operational expenses, including its friendlier regulatory environment.
The campaign hits at a time when California faces a $26.3 billion budget deficit projected to reach more than $42 billion next year. The state began issuing IOUs for a variety of payments it owes, but several banks stopped accepting them in mid-July. To lampoon the IOU development, the NDA is issuing IOUs promising a better business environment in Nevada whenever a company makes an inquiry.
The ads were debuted to the media and NDA guests at Town Square’s Rave Theaters on Thursday. Las Vegas Mayor Oscar Goodman was in the crowd and gave the campaign a thumbs-up for creativity and he said he believes they will stir things up when they’re aired.
“They’re really great,” Goodman said after the screening. “They’re going to drive them (Californians) bonkers. This campaign is very Las Vegas.”
Somer Hollingsworth, president and CEO of the NDA, said California’s problems aren’t just a product of the recession.
“Their problems started well before the recession began with the high taxes and workers’ comp rates and the regulatory policies,” Hollingsworth said. “Business owners would be able to make more money, hire more employees and buy more equipment here. They could do more with their business in Nevada than they ever could in California. Just looking at the numbers, I don’t know why a California business owner would not relocate to Southern Nevada.”
Hollingsworth said he expects the campaign would boost relocations by 20 percent and inquiries by more than 50 percent. Over the past five years, the NDA’s economic development efforts have resulted in the creation of 14,500 jobs resulting in an economic impact of $4.8 billion on the community, the non-profit agency says.
Shonkwiler Partners chief executive Terry Shonkwiler, who was pleased with the positive response the ads received in the debut, said he felt his team hit the mark by drawing attention with its edgy message and being relevant with references to high taxes, red tape and overregulation.
Shonkwiler said there would be more “guerilla marketing” tactics used for the duration of what’s expected to be a 90-day campaign. Tim Quillin, who heads the Q Ad-PR agency in Las Vegas, is planning a social media barrage and the NDA campaign already got a boost last week when people holding signs showing the NDA’s new Web site – www.move2vegas.biz – was visible in crowd shots during the “Today” show tapings in Las Vegas last week.
The NDA site received 53,000 hits, nearly 10 times what it normally gets, after the sign showed up on national TV.
What NDA officials are counting on is that the emotions generated by the campaign will lead to news stories and free media opportunities, just as Las Vegas benefited when the National Football League banned its “What happens here, stays here” ads during the 2003 Super Bowl.
Hollingsworth figures that KABC’s banning of the ads could lead to greater publicity for the campaign.
KABC did not return calls for comment on why it chose not to air the ads.
Hollingsworth also said a pop song titled “Kiss Your Assets Goodbye” would debut on YouTube next week. He said he hopes the song would reach another audience and lengthen the legs of the ad campaign.
I say Goodman should drive down the middle of Rodeo drive and downtown LA on top of a bus with a bull horn asking companies to come to Las Vegas. It worked when the Governator did that here in Las Vegas, right?
How lame. And Nevada's all that much better with an unstable tax base, an underfunded school system, and a lackluster health care system? Given, California has MANY, MANY problems... But believe it or not, "high business taxes" isn't one of them. Rather, their tax structure is just as unstable as ours thanks to a little something called Prop 13. Maybe if both states enact real tax reform to make the big corporate powers that be pay their fair share while reducing the tax burden on the working class and properly funding our infrastructure, these two states can stop trying to steal business from each other.
yes!
they will be lured by our high unemployment rate, crappy schools, high car insurance rates, lack of college educated employment base, and acres of foreclosed homes.
yep, we got it ALL here in las vegas.
we're going to at some point need a state income tax. it's obvious that reliance on ONE industry "gambling" isn't working.
I am happy to see the NDA being aggressive. I relocated from NY, another high tax state for many of the reasons in the ad. It's moves like this that will help to bring things back. I'm glad to see area leadership being proactive.
This is a great campaign. Texas has been luring businesses away from CA for a while now, and Fluor relocated to Dallas earlier this year. I moved here from Calif. last year and have enjoyed a 20% "raise" in my wages. It's true - lower taxes, twice the house, and even gas is cheaper. All my friends back in socal are always whinning about how bad the regulations are and how expensive it is to live. Good job.
I would bet money that everyone who posts that we need higher taxes doesn't make enough money to be worried that they would have to pay them. It just coincidentally always seems to work that way.
Even though it sucks to live here at times, you gotta hand to the NDA to try something - I'm sure many that do relocate will probably go "Man, this sucks! ... but at least I don't have to pay as much to feel this way!"
So lemme see if I've got this straight...
One of our major weaknesses as a state is a completely unbalanced system of taxation, one that rests heavily on discretionary consumer spending (i.e., gaming and sales taxes). Even the mildest of downturns touches off frenzied rounds of cost-cutting, and social services and infrastructure are woefully underfunded even in the best of times.
So our solution to solving this problem is... actively attempting to recruit companies whose main motivation for coming here would be that they wouldn't have to pay taxes. (Although I'm pretty sure they'd be happy to consume government services.)
Brilliant.
we SHOULD have been doing this 5 years ago when we still had a lot of open land for factories, warehouses, etc.
but no, we were chasing the nba all star game ( that went well, huh? ), and a major sports team ( that went well, huh? ).
i mean, it's better than not trying at all, but the reality is that we'll HAVE to raise taxes to keep basic police and civil services going.
stevem said:
"they will be lured by our high unemployment rate"
I know you were attempting a joke here, but this is actually a fact. High unemployment rates are a good sign for relocating businesses. It gives them a good population of people needing jobs. I work with a large business and when they are opening a new facility they consider high unemployment in that area attractive.
going bust... that is while all businesses are looking to relocate to Detroit.
lvcva should be marketing in CA wherever a casino is located. something like: the real las vegas is in nevada. get the tourists coming back, filling the rooms and casinos.
I saw this on the news this morning and all they showed were a coffee shop and a sandwich shop. Is THIS the kind of businesses they are wooing to come over the border????
I am happy to see the NDA being aggressive. I relocated from NY, another high tax state for many of the reasons in the ad. It's moves like this that will help to bring things back. I'm glad to see area leadership being proactive.
*****
And HOW long have you lived here?
I moved here after retirement from a high tax state simply because I was tired of support all the dregs on the dole. It appears not that the same stupid bunch of people have taken charge here. Next stop Panama. I would recommend all business that can, move to a low tax country that has no welfare or other social programs.
Mr. Hollingsworth had previously been an advertising agency executive, and we should all applaud him and NDA on this aggressive stand! It is time we worry about ourselves, as no one else will. Let us take care of number one...we need economic boosts, diversity in businesses, and need to make jobs available. Gaming will not worry about us, so let's reach out to new businesses and industries.
Nevada is a wonderful place -- but I wouldn't dream of living there until the state gets rid of that ... "governor" (for lack of a better word), and the lame, useless Harry Reid.
The fact is many California businesses ARE leaving California. But THEY'RE NOT RELOCATING TO NEVADA. A recent survey revealed that businesses are moving to Oregon, Idaho, Utah, Arizona and Colorado where the tax base is stable, they have good schools, a much higher educated work force and PREDICTABLE tax load. Smart business people are not impressed with Nevada's sleezy "showing leg." They know who's gettin' screwed in the end.
I moved a small company from California in November. It was a hard decision as I was born in CA and I love it. It was strictly a business decision. My new home is in Nevada. I love Las Vegas and want to be part of this community. As I see it, we need to diversify our businesses and this is a good way to begin. Then, we can work to improve schools, etc.
I HAD a business in California. It is, without doubt the most unfriendly small business host imaginable. It takes little imagination to realize we all benefit in a big way with more businesses relocating here--in a lower tax world, competition is enhanced (less tax, lower prices for products/services), more employees are possible, and the consumer benefits big-time. Those who like to tax businesses fail to understand THE CONSUMER PAYS THE TAX or the business fails to thrive. WAKE UP!
I applaud Kathy B for relocating her business here. That said, I wish the NDA and Oscar Goodman would quit farting around with the sophomoric campaigns aimed at just poking California in the eye. As many have observed, the quality of the schools and the workforce here is the bottom of the barrel. It puts us in a "catch-22" situation. We can't attract companies at the top of the food chain because we don't have the workforce to support them nor the quality of education and community to induce their employees to transplant. And because these people won't come, our schools and community remain lacking. What we have is a valley full of tattooed construction workers and migrant workers from south of the border, neither who have brought with them an educational ethic or a sense of belonging to the greater community.
So what do we do? The hardest part will be the in the beginning. But I feel we must work on specifically targeting and wooing any and every high-skilled employer that will listen to us.
Just one example: the Mayor had been trying to spearhead the effort to have the University of Pittsburgh bring a major facility here. That would have been WONDERFUL. But jealous and petty local physicians blocked that because they didn't want out-of-towners entering the cozy picture they have here. We are a scandal-plagued, "last chance" state for many physicians, afterall. We need to revisit the Mayor's plan and have the community get behind it, ardently. That should be our blueprint.
OMG you guys are so negative, this is a good step for us.
Las Vegas and Nevada won't recover til California does. The trickle of businesses is like a flea on an elephant's butt.
Tdoma,
"OMG you guys are so negative, this is a good step for us."
Sorry, but I gotta call it as I see it. The dopey campaigns with the info-bimbo morphing into a pig, the childish "IOU" schtick, and Goodman getting all tickled about driving California officials "bonkers" isn't going to bring good jobs to Nevada. Only the PR agencies are getting fat. Let's get a comprehensive, *serious* strategy in place. For starters, we could start speaking at the level of intelligence of the people we wish to attract. The kind of coarse crap they're using now is noise at best, and possibly even a turn-off to some potential recruits.
Mred,
"Las Vegas and Nevada won't recover til California does. The trickle of businesses is like a flea on an elephant's butt."
That's the whole point! To get past being dependent upon Californians weekending on the Strip.
If you're going to say something, have something to say.
Las Vegas is rough compared to California but I believe this is a good step, with some political and business leadership Nevada can be a good place to relocate a business.
sure, high unemployment is great if you're looking for a mass of "warm bodies" and you're going to pay them a crappy wage.
so...
corn dog on a stick and white castle...come to vegas!
Las Vegas needs to look toward a sustainable community and economy. There will never be enough water available for Las Vegas to have a typical economy based on population growth. Radical economic and population planning will be required for Las Vegas to survive. Higher than normal quality of education will be critical for sustainability.
Breaking Bad: California vs. the Other States
by Richard Rider, Chairman, San Diego Tax Fighters
Version 1.47 Revised 18 July, 2009
Here's a depressing comparison of California taxes and economic climate with the rest of the states. The news is breaking bad, and getting worse (I keep updating this article):
California has the 2nd highest state income tax in the nation. 9.55% at $48,000. 10.55% at $1,000,000
By far the highest state sales tax in the nation. 8.25% (not counting local sales taxes)
Highest state car tax in the nation -- at least double any other state. 1.15% per year on value of vehicle.
Corporate income tax rate is the highest in the West. 8.84%
2009 Business Tax Climate ranks 48th in the nation.
http://www.taxfoundation.org/research/to...
Fourth highest capital gains tax 9.55%
http://www.thereibrain.com/realestate-bl...
Highest gasoline tax (averaging 64.5 cents/gallon) in the nation (July, 2009). When gas hits $3.00/gallon, we are numero uno -- because unlike many states, we charge sales tax on gasoline purchases (built into the price).
http://www.api.org/statistics/fueltaxes/...
(continued)
(continued)
California has the sixth highest unemployment rate in the nation. (June, 2009) 11.6%. National rate 9.5%.
http://www.bls.gov/news.release/laus.nr0...
California's 2009 "Tax Freedom Day" (the day the average taxpayer stops working for government and start working for oneself) is again the 4th worst date in the nation -- up from 28th worst in 1994.
http://www.taxfoundation.org/research/sh...
To offset lower state revenues, 29 states are proposing 2009 state tax and fee increases totaling $24 billion. California, with 12% of the nation's population, is proposing 47% of that increase (6/5/09).
http://money.cnn.com/2009/06/04/news/eco...
1 in 5 in LA County receiving public aid.
http://www.latimes.com/news/local/la-me-...
California has 12% of the nation's population, but 36% of the country's TANF welfare recipients -- more than the next 7 states combined. Unlike other states, this "temporary" assistance becomes much more permanent in CA.
http://weblog.signonsandiego.com/weblogs...
California prison guards highest paid in the nation.
http://www.caltax.org/caltaxletter/2008/...
California teachers easily the highest paid in the nation.
http://www.nea.org/home/29402.htm (CA has the second lowest student test scores)
California now has the lowest bond ratings of any state, edging out Louisiana.
http://www.sfgate.com/cgi-bin/article.cg...
California ranks 44th worst in "2008 lawsuit climate."
http://www.instituteforlegalreform.com/c...
In 2005 (latest figures), for every dollar Californians sent to D.C. in taxes, we got back 78 cents -- 43rd worst.
http://www.taxfoundation.org/taxdata/sho...
(continued)
(continued)
America's top CEO's rank California "the worst place in which to do business" for the fourth straight year (3/2009). But here's the interesting part -- they think California is a great state to live (primarily for the great climate) -- they just won't bring their businesses here because of the oppressive tax and regulatory climate.
Consider this quote from the survey (a conclusion reflected in the rankings of the characteristics of the state): "California has huge advantages with its size, quality of work force, particularly in high tech, as well as the quality of life and climate advantages of the state. However, it is an absolute regulatory and tax disaster."
http://tinyurl.com/cyvufy
California, a destitute state, still gives away college education at fire sale prices. Our community college tuition is by far the lowest in the nation. How low? Nationwide, the average community college tuition is 4.5 times higher than California CC's. This ridiculously low tuition devalues education to students -- resulting in a 30+% drop rate for class completion. In addition, 2/3 of California CC students pay no tuition at all -- filling out a simple unverified "hardship" form that exempts them from any tuition payment, or receiving grants and tax credits for their full tuition.
http://www.sacbee.com/static/weblogs/cap...
http://www3.signonsandiego.com/stories/2...
On top of that, California offers thousands of absolutely free adult continuing education classes -- a sop to the upper middle class. In San Diego, over 1,400 classes for everything from baking pastries to ballroom dancing are offered totally at taxpayer expense.
http://www.sdce.edu
California residential electricity costs an average of 35.4% more than the national average. For industrial use, CA electricity is 56.2% higher than the national average (2007).
http://www.eia.doe.gov/cneaf/electricity...
http://www.eia.doe.gov/cneaf/electricity...
It costs 38% more to build solar panels in California than in Tennessee -- which is why European corporations have invested $2.3 billion in two Tennessee manufacturing plants to build solar panels for our state.
http://www.foxandhoundsdaily.com/blog/ja...
(continued)
(final segment)
Consider California's net domestic migration (migration between states). From April, 2000 through June, 2008 (8 years, 2 months) California has lost a NET 1.4 million people. The departures slowed this past year only because people couldn't sell their homes.
http://www.mdp.state.md.us/msdc/Pop_esti...
These are not welfare kings and queens departing. They are the young, the educated, the productive, the ambitious, the wealthy (such as Tiger Woods), and retirees seeking to make their pensions provide more bang for the buck. The irony is that a disproportionate number of these seniors are retired state and local government employees fleeing the state that provides them with their opulent pensions -- in order to avoid the high taxes that these same employees pushed so hard through their unions.
As taxes rise and jobs disappear, we lose our tax base, continuing California's state and local fiscal death spiral. This spiral must stop NOW.
NOTE: If you would like to receive my free periodic "Richard Rider Rant" e-newsletter with more of this type of information and analysis, just drop me an email at RRider@san.rr.com. To see the latest version of this "Breaking Bad" column, plus samples of my free "Richard Rider Rant" e-newsletter, go to my blog at www.RichardRiderRant.blogspot.com. This report is available as a 2 page Word file for formatted printing.