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October 23, 2014

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New company to raise shrimp in middle of desert

Two Southern Nevada companies, including a new arrival to North Las Vegas that will grow shrimp for food outlets in Las Vegas and abroad, on Tuesday received tax and training grant incentives from the Nevada Commission on Economic Development.

Ganix Biotechnologies Inc. will open a plant in North Las Vegas’ Kapex industrial area north of the city in March. The company will receive $128,397 in incentives following Tuesday’s unanimous vote.

Commissioners also approved $69,355 in incentives for Pop Culture Graphics Inc. for an expansion of the company that opened its doors nearly a year ago in February.

“It’s hard for some people to grasp, but we will be raising shrimp in the middle of the desert,” said Scott McManus, CEO of Ganix.

McManus said that while the company will have tanks with hundreds of thousands of gallons of water, the shrimp-raising process will use less water than the average household once the facility is set up.

McManus said Ganix has a research and development facility in Newburg, N.D., and has developed a process that is sustainable, organic, uses no chemicals or growth hormones and produces shrimp of varying sizes that taste like lobster. The shrimp will be grown indoors without effluent in recaptured and reprocessed water in a closed-loop system.

“In the United States, we import about 88 percent of our seafood,” McManus said. “We hope to change that.”

McManus said initially half the shrimp manufactured would be sold to Las Vegas outlets and the other half exported domestically and internationally, leveraging the city’s strong air freight hubs.

Ganix will hire 25 employees, most of them tech and lab workers and animal husbandry experts, who will undergo five weeks of training to run the plant. The company also will provide 50 construction jobs to build the plant.

The company will have an exclusively licensed aquaculture facility, but it also has other commercial agriculture products — turf management and home, lawn and garden retail products for soil rejuvenation.

McManus said he is optimistic that he could set up a similar facility in Reno once the North Las Vegas operation is running. He also plans to export shrimp to California, Arizona, Utah and portions of Colorado.

Ganix qualified for the incentives by offering average wages of $21 an hour, 6 percent over the statutory requirement, and the company will invest $1.3 million in the area, 31 percent more than the requirement.

In return, the company will have its sales tax abated to 2 percent for a year, a $79,654 savings, and its modified business tax by 50 percent for four years, a savings of $20,743. The company also qualified for $28,000 in training grants for 14 employees.

The company also will get a 60-month deferral on sales tax of $26,116.

“This was a very tidy presentation and appears to be an opportunity for Nevada,” said Commissioner Tony Dazio.

Commissioners also gave the green light to Pop Culture Graphics for incentives for an expansion for the company, which produces high-quality posters with an HP Indigo digital printing process and serves as a fulfillment center for companies like Amazon.com and eBay.

The company does 96 percent of its business outside the state, making it a major exporter.

President and CEO Rusty Bridges said the company was started in a garage in Las Vegas nearly a year ago. Today, it has grown into a 29,000-square-foot building at Sunset Road and Valley View Boulevard and has 29 employees. It generated $3 million in revenue in its first year of operation.

The expansion will enable Pop Culture to grow larger, and Bridges hopes to drive $300 million in revenue within 10 years.

Pop Culture qualified for incentives by providing 11 new jobs, 83 percent more than the statutory requirement, an average wage of $21.68, 9 percent over the requirement, and will invest $184,170, 110 percent over the requirement.

In return, the company will see its sales tax abated to 2 percent for a year, saving the company $11,234, its modified business tax to 50 percent for four years, a savings of $7,561, and personal property tax to 50 percent for 10 years, a savings of $2,559.

The company also qualified for $44,000 in training grants for 11 new employees and will get a 12-month deferral on sales tax of $3,683.

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  1. It escapes me why, if these & other businesses are financially viable, they need any taxpayer $s. Either they can make it on their own or they cannot. If they can, fine; if they cannot, who needs them?

  2. Remember the old, timeless adage:

    "If Mohammad cannot go to the shrimp, then bring the shrimp to Mohammad."

    AND...this is a tricky way to get Mohammad into the casinos, to cash his paycheck, right?

    Seriously, we must think of the 25 new jobs that comes with this deal.

    And with the current unemployment, this company should get a GREAT DEAL hiring Shrimp Handlers.

    First: turn the 25 full-time jobs into 50, maybe even 60 part-time jobs, making even MORE jobs.

    No benefits for the workers that way, but lots of shrimp salads for US!

    And don't forget old Mohammad, emotionally manacled to a slot machine in the new City Center!

    Gentlemen, I think we have a winner!!!

  3. Interesting. Has the Apex area been re-named?

  4. "Ganix will hire 25 employees, most of them tech and lab workers and animal husbandry experts, who will undergo five weeks of training to run the plant. The company also will provide 50 construction jobs to build the plant."

    Offering a very modest incentive to bring a NEW company to Southern Nevada that is going to directly put 75 people to back to work is an absolute no brainer!

    Of course the jobs this company are bringing to Southern Nevada will also indirectly support dozens of other local businesses (who pay taxes) as well.

  5. Shrimp boats is a-comin'
    Their sails are in sight
    Shrimp boats is a-comin'
    There's dancin' tonight
    Why don't-cha hurry, hurry, hurry home
    Why don't-cha hurry, hurry, hurry home
    Look here! The shrimp boats is a-comin'
    There's dancin' tonight

    Recorded by:
    Jo Stafford, Pete Fountain; Claude Gray; Dolores Gray; Abdullah Ibrahim; The Orioles; Buddy Tate.

  6. Apparently the Fink wants these jobs to go elsewhere.

  7. Welcome to Las Vegas. I think they made great decision coming to Las Vegas. Will the public be able to purchase directy from them? I love shrimp. 25 decent paying jobs that should be around forever. Good luck guys

  8. New business here, new jobs. There's everything right and nothing wrong with that news. All the best to those companies.

  9. The shrimp in the desert is also a PROVEN idea- It's been going on 60 miles west of Phoenix for 20 years.

  10. Uh, Jerry to Jerry: No. I want the company to stand on its own 2 feet and compete fairly. Once we let bureaucrats decide whose business to save and whose to let fail ... wait, hasn't that happened already?

  11. Fink - This isn't bureaucrats "saving" businesses. This is bureaucrats "ensuring" that these companies don't take their business to other regions (city, state, or country) that are aggressively pursuing new business.

  12. Remember when the people tried to raise crayfish/lobster up in Mina? Fish and game "raided" the place and shut them down. Aren't the fish and game goons worried that the shrimp will "escape" into the wild?

  13. Don't mean to carp,however, Mr. Fink, I am non plussed by this opinion that entities stand on their own 2 feet but not giving them a hand up.
    Does this extend to countries as well? Would you advocate cutting off aid to Israel, in a similar vein?
    Or would you rather use taxpayer money to pay Israel and not support American business?
    Good point, if it extends to Israel as well.

    "It escapes me why, if these & other businesses are financially viable, they need any taxpayer $s. Either they can make it on their own or they cannot. If they can, fine; if they cannot, who needs them?"
    Can you the same about Israel?
    Well, to answer that query, I need 'em, I think this is taxpayer money used at it's best, a smart move. Should we make Israel stand on it's 2 feet as well, sir? I applaud your stand. Next year in Jerusalem.

  14. All states, counties and cities are competing for jobs. Any potential employer has dozens of suiters. The modest enticements offered here will be paid back many times.

    I haven't had good shrimp (seafood) since I came west. The nauseating crap imported from unregulated, chemically tainted and unsanitary commercial farms in Thailand, Viet Nam etc. isn't inspected by USDA and often not safe to eat. Many exposes' have been done and still we import this crap.

    Thank god I can get US produced shrimp at the commissary. Even then frozen seafood is never as good as fresh and farmed isn't as good as wild. At least none that we've tasted.