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Monday, Jan. 18, 2010 | 2 a.m.
Sun Coverage
In trying to hash out the lessons learned from the collapse of the economy, 70 of Southern Nevada’s business leaders, academics and politicians returned to a suggestion that has been around for years: Diversify the local economy.
It was nowhere near a revelation. But during good times, it was easy to let the status quo continue, so the region relied heavily on gaming, tourism and growth-fueled industries such as construction and real estate. Having all the local economy’s eggs in one basket is the main reason Southern Nevada is in a deeper hole than the rest of the nation — and is expected to take longer to climb out.
So when the Lied Institute of Real Estate Studies at UNLV gathered the opinions and observations of community leaders for its “What Happened? What’s Next? Can We Hit the Reset Button?” report, one consensus was a hope that maybe things got bad enough this time that everyone would finally recognize that economic diversification is crucial.
The problem is that it will take more spending to get there. For one thing, economic diversification will require a greater investment in K-12 and higher education, says John Restrepo, principal of Restrepo Consulting Group, who gave presentations on the economy during the series of round-table discussions that were the basis for the report.
Why education? Because Las Vegas must do more to improve the quality of the workforce to get more businesses — and a greater variety of businesses — to set up shop here, Restrepo said.
Debra March
Henderson Councilwoman Debra March, who put together the round-table panel when she was executive director of the Lied Institute, says this is a crucial time and potential turning point in the region’s future when it comes to creating a diverse economy.
“We can and we must hit the reset button — not to recreate what we’ve had in the past, but to create something much better — a vibrant and sustainable community with a diverse economy, and a top-notch educational system that attracts new business for its ability to educate its workforce,” March said.
It’s striking that the Las Vegas Convention and Visitors Authority spends $90 million a year promoting the resort industry around the world, but the Nevada Economic Development Commission has only a $6 million budget to attract businesses, she said.
John Vorsheck, chairman of the group that produced the report, said Las Vegas is a household name similar to Coca-Cola, Apple or Nike. The region has a lot to offer businesses and needs to get that word out.
Somer Hollingsworth, president of the Nevada Development Authority, a nonprofit group that helps lure businesses to the region, agrees that more needs to be done to diversify the economy.
He said there has been little money to compete against states that provide incentives to lure companies and pay for marketing campaigns, thus getting the word out about advantages of moving to the state. Nevada could take advantage of tax woes in states such as California and New Jersey and possibly hire someone based in California to help lure companies, he said.
“You have got to put that message out there and let people know about it,” Hollingsworth said. “We have never put an emphasis on diversification (as a state).”
The Nevada Development Authority has a $1.3 million budget in addition to $1 million from the state for marketing, Hollingsworth said. Similar organizations in Arizona have more funding, he said.
“We hope this is a wake-up call to the more thoughtful members of our community — leaders both in business and elected officials — that once we get through this recession, we can’t go back to the old ways,” Restrepo said. “That is the hope. We shall see.”
A version of this story appears in this week’s In Business Las Vegas, a sister publication of the Sun.
How can you bring outside and/or out of state business to vegas when you have corruption and moral bankruptsy that runs so rampant in the valley if not the state...Not everone is blind to it,,the worst offenders are the business owners and elected leaders here in vegas who belong to a little church thats based in Salt Lake..they make the mob look ethical..I wish the mob was back at least you knew they had a code of ethics
the changes have to come from the People. There has been no leadership.
Seek new leaders.
Until the old guard dies off, you will have the same old economy, that is dying right along with them.
Once they're gone (The Las Vegas Convention and Visitors Authority), you will see a new Nevada where education is strongly supported in order to attract robust industries that will create a sustainable economy.
Until then, it's craps all the way, Baby. . .
how come i finally seeing artical about diversification lately what happen 8 years back NEDC only spent 6 million last year where do they get there money from private or government. BIGDAN disn't couple mormon bank go under last years
The most startling comment is that the Las Vegas Convention and Visitors Authority spends $90,000,000 per year marketing a "What happens..." slogan that does not work. This is a shame...$90 Million on marketing and the Nevada Economic Development Commission only has $6 Million. Take a look at the makeup of the LVCVA Board. If we are to survive we must diversify our economy...
give me a break. the "leaders" of this area get elected and paid by gaming.
that's why almost every large plot of land near las vegas has a "zoned for casino" sign stuck in it.
they'll never pull that land away from gaming and let other industries develop on it.
this is just election year nonsense.
There is a lot of talk about the looming water shortages in the American southwest and the pipe line from central Nevada to the Vegas valley.
The biggest question of this idea is cost and how long will the aquafier last?
I think there is a better source of water available for the Southwest... The Mississippi river .. if the major players in our area, both public and private were to combine their efforts and do a study on the feasibility of a pipeline connecting a series of reserviors across the arid regions I believe there would be a consensus on its viability.
Expensive? Of course it would be ,but there is enough water going out to sea every day to support millions of new residents and the towns that would spring up around the reservoirs.
If such a pipeline/s followed Interstate hwys 10 and/or 40 right of ways, the cost and impact of such a project would be significantly reduced.
10% of the average daily flow of Mississippi river flow at New Orleans is 50 billion gallons of water per day,approx 40,000 acre ft.per day!
Could the country that built such projects as the Panama canal turn the desert into an economic bonanza that would rival some of Americas most prosperous growth spurts?
davidcurtis is absolutely right! It's not the folks fault that this economic diversity has not come to Nevada. Look to our completely ineffective lame, local, state and national so called leaders. They are to blame! Also when taliking about how Vegas gambling has tanked, the blame for that lay completely with the lame idiot corporate CEO's and owners for screwing the players. Let's get rid of the present bums, and bumettes, and get some real leaders!
I think there is a better source of water available for the Southwest... The Mississippi river ..
This is THE most ridiculous idea on how to get water to the Southwest I have ever heard!! Look at a map, Sir! There is a bigger body of water much closer than the MIssissippi River that the Southwest can get their water from. It's called the Pacific Ocean!
PS The States bordering the Mississippi will NEVER EVER agree to something like this. In other words - get your own damn water and leave our River alone!!!
DUH!
Why would a company want to be located in Las Bugsy? It has absolutely NOTHING to offer and problems galore.
Water, Water, Water. To sustain population growth water is needed.Hi welcome to Las Vegas,it's a bring your own water city.
@stevem, yes, I agree totally
ummm...that water in the mississippi river...uhhh...see, they use that for this stuff called "food".
food vs. bellagio fountain.
you pick.
look, the vegas of the early 2000's is over and it's not coming back.
The people has to make the decision to not support the Major parties any longer.
NV economy is a disaster zone. The solutions are going to come from the people. We need to build a forth market driver, and a fifth, and a sixth, ones not dependent on Tourism.
If we do not do this, there will be little reason to stay in NV.
The people have to make the decision to not support the Major parties any longer.
NV economy is a disaster zone. The solutions are going to come from the people. We need to build a forth market driver, and a fifth, and a sixth, ones not dependent on Tourism.
If we do not do this, there will be little reason to stay in NV.
stevem
lolol Good observation! Food. That little necessity of life. Not to mention - HOW many States would they have to pipe that water through????? People amaze me on how little they know of geography of this country of ours!!
I also agree with your statement about how any multi-acre plot of land is zoned for casinos. The one that comes to mind is that huge parcel off Losee and 215 in NLV. Great location for some industry but some casino company owns it!!
Attract businesses with a limited and stable regulatory framework and low taxes. Increasing government spending and regulations is not the answer.
http://www.writeonnevada.com/2010/01/nev...
This is why Nevada is already the 9th wealthiest state in the nation. PS, more spending on education will not produce results, we need fundamental reform to achieve that goal.
http://npri.org/blog/does-more-spending-...
I have posted my comment about the Mississippi river several times and have received comments like those posted above on numerous occasions.
Are you people really that 'geography challenged' or are you like Stevem [whos only desire in life is to see the Colorado river and LV both dry up and blow away]?
Point 1 .. The Mississippi river flows into the Gulf of Mexico, becomes saline and no one benefits from it.
Point 2 .. The USA has all of the surrounding drainage and rights to the river .. try getting any of the countries on any other major river on earth to agree with the distribution of that rivers water resource?
Point 3.. a low head dam at the tide pool on the Mississippi would allow MOST of the Mississippi's flow to be utilized for the gain of the entire arid American southwest [NOT JUST THE LAS VEGAS VALLEY]..West texas to central Calif. is the arid American southwest geo. challenged!
Point 4.. Right now in America there are hundreds of thousands of capable construction workers, construction companies and billions of dollars worth of construction equiptment setting idle'
How much money would be generated if the yearly flow of Mississippi river was delivered and sold sold to its users for 1 penny per gal.? 2 cents per gal.?
Det ... We don't use the Mississippi river to grow food in the gulf of Mexico!
rejco 100..... you are the biggest joke. Those people are already here and have been for 30 years.
Like DUH...you don't need to be a Brain Surgeon or Rocket Scientist to figure out that Nevada needs to diversify its economic base...
Instead of hitting the reset button, Nevadan's have to push the flush button and get rid of all the local pols, pundits and power brokers and return the power to the people of the state and not the monied elite.
pmmart
Don't you think the Pacific Ocean, which is less than 400 miles from Las Vegas, is a BETTER source of water for Nevada, Arizona and the rest of the desert Southwest????? All that is needed are desalinization plants to be built and at a cost a lot less than piping in water from the Mississippi River thru half a dozen States!!! Yeah, the River ends up in the Gulf of Mexico. But it also flows thru quite a few states before it gets there.
PS Vegas is expecting heavy rain today; maybe you should get out some buckets and catch some of that rain and then sell it. Yeah - I know - just as stupid an idea as getting Mississippi River water piped into Vegas.
PS to pmmart
There are also tributaries from the MIssissippi that are used to irrigate farmland here in the Midwest.
lmao.
my only desire in life is to see the colorado river dry up?
huh?
wow. i thought my only desire in life was a paid off car and some good thai food.
While the water talk is fun (and mostly useless due to water pacts etc.), how about diverting some of the $90M that goes to Billy V's pocket through the LVCVA and use it to do something but make BV and the gang rich? That company has had a monopoly on the LVCVA's money and hasn't delivered much lately other than tired, re-cycled ads. Nobody called them on the carpet when the whole Texas ad was a bust and it didn't cost them a dime.
Until Oscar and the other cronies retire and somebody finally sees the light of day, a lot of money will continue to be wasted. That cost should be taken in house or bid competitively. It is typical of the old-school mentality that exists in too many public sector agreements. Now we have Maxfield getting paid $150k+ to monitor water quality? Come on!
Yeah, jobs are tough right now, and yeah, there is a shortage of water right now, but if you don't like it here, try living in California. The liberals have really screwed that state up and they are looking to do the same here!
Nevada has long been a state where people can make it if they try and if they don't want to try they can move to California and live off of the state. What we need are fewer school administrators, fewer government workers, and fewer people telling us what to do. Make schools competitive and the problem will be solved. Can you say School Vouchers?
Rejco,
That won't happen, the ticket price for the bullet train will be twice as expected, and out of the price range for low income people. Bullet trains are for the wealthy - at least, that seems to be the case around the world.
PMmart,
Spending hundreds of billions of dollars on a big dig would increase the desire of living in Nevada. After all, Nevadans would be subsidized by everyone else. But that only leads to the unsustainable growth we experienced to get us to this point in the first place.
If you want sustainable development, let the free market work. Don't try to subsidize the heck out of everything you like.
"There are also tributaries from the MIssissippi that are used to irrigate farmland here in the Midwest."
Det
Last time I looked the Mississpiipi river and its tributaries all flow south and the Gulf of Mexico is the end of the water flow, not the start.
The bottom line lies in the fact that you really aren't well enough versed on the potential of the river or on the logistics of desilanization to comment on either...
No offence intended ... but you might Google these topics before you comment on them.
As for Stevenm .. You might want to click on your name .. someone has been posting anti Las Vegas garbage under it including the drying up of the Colorado river and the demise of the L V valley.
Are you living in las vegas pm? Pal the place is drying up. Severe shortage of water coming soon.
And above that, the $$$$ req'd to put that Mississippi plan into effect. Who was the clown that designed a place in the middle of a desert?
This is really sad. It is sad because Las Vegas cannot prove itself as recession proof, rather it is now recession prone.
Demolition is the industry that needs to propogate in Las Vegas. That used to be an alluring concept ... "knock it down"
i've never posted anything about the colorado river drying up, genius.
The NPRI and Gibbones crap is why we are in trouble. We have the second lowest taxes next to Alaska (taxfoundation.org) and the second highest unemployment next to Michigan. We need to kick the gambling sleaze balls and their toady politicians out of the state.
Texexnv....Las Bugsy...nice post lmao...shalom
pmmart
WHY should the Mississippi River water be transported to the DESERT????? Before Las Vegas, and all of the DESERT Southwest, became overbuilt and over populated at the hands of the greedy politicians and those who needed their golf courses and grass in their backyards and trees imported from the Midwest and East coast - they should have thought about that silly little issue called water.
It HAS been brought up time and again about building desal plants in California, but there has been one issue after another why this never has been done or even gets past the discussion stage (I read several years ago that it is the "liberals" who want to save the planet and marine wildlife having something to do with it). It is the most logical thing to do since most of the Colorado River water goes to California even though they have that huge ocean right there.
I bet if you brought your idea up about piping water from the Mississippi to the DESERT southwest to the federal gov't - they would get a good laugh about it!!! Not when the ocean is so close and a more viable solution.
No one in the States bordering the Mississippi care that there is a water shortage in the DESERT. Because, well...it is THE DESERT. I emphasize DESERT because that is what it is and has been for a real long time. There was no guarantee to those who bought property in the Southwest that Las Vegas, Phoenix or any other city in the Southwest was going to have a perpetual supply of water. Too bad there is a possibiity it will run out of water some day. Deal with it.
It's not just Vegas it's the whole SW is drying up.
Yeah, rejco. Now that the little LV Strip monorail is in bankuptcy, I wonder if that will decrease enthusiasm for the bullet train from Disneyland to LV. And incidentally, when I go to LV I take the Greyhound bus (round trip fare from L.A. is $60). Bus service on Greyhound has improved quite a bit, and I don't see too many homeless looking people riding.