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With Fanfare, Sandoval Announces Faraday Future's Arrival

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AP Photo/David Becker

Nevada Gov. Brian Sandoval shakes hands with attendees after a news conference. Thursday, Dec. 10, 2015, in Las Vegas. Sandoval announced plans for Faraday Future, a Chinese-backed electric carmaker's $1 billion manufacturing plant to be built in North Las Vegas, Nev.

Gov. Brian Sandoval announced Thursday morning that an electric car manufacturer had chosen North Las Vegas as the site of its production facility.

"Today, I am pleased to announce the latest chapter in the Nevada story," he said.

The company in question is Faraday Future, a California-based electric car start-up that hopes to have a vehicle to market by 2017.

Sandoval praised state lawmakers and North Las Vegas Mayor John Lee, along with officials from Faraday Future, for getting the deal done.

Robert Lang with the Brookings Mountain West, during an interview with KNPR's State of Nevada, also had high praise for Lee and his team.

"North Las Vegas went and hustled this deal," Lang said.

"North Las Vegas sought this deal out... The idea is that municipalities and localities and regions go out themselves and find their opportunity. Then, the state did its role." 

The governor said a special legislative session would be needed in order to ratify a series of incentives proposed for Faraday to the tune of $215 million.

But, he balanced that by saying the total fiscal impact of Faraday's presence in Nevada was more than $750 million in tax revenue over the 20 years, and $85 billion in over all economic impact.

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He also promised taxpayers the incentives were worth it for the state.

"And to the taxpayers of Nevada, I offer my commitment: this is a good deal for us," Sandoval said. "It had to be. This is a new era for Nevada. We are standing tall. With each passing week, our economy not only improves, but evolves into something new and unique."

Sandoval cited the job growth that would come from Faraday as a boon for the state.

"We anticipate the total number of jobs direct and indirect will exceed 13,000," he said. "Again: pause for a moment and think about 13,000 Nevadans."

Lang said the job numbers include direct, indirect and induced jobs.

"So, it's everything from who's working in the plant, who's working as a kind of a subcontractor in firms that are feeding the plant parts, to somebody who is giving you a haircut because you moved here or building a house because you moved her," he said.

The factory is set to be built at the Apex Industrial Park in North Las Vegas.

John Boyd, the president of the Boyd Company a site selection firm, told KNPR's State of Nevada that his firm has been recommending Apex to clients for some time, for a lot of reasons.

"A number of factors distinguish that site," he said, "Number one it has excellent transportation structure. It's proximate to both McCarran International Airport and Union Pacific's Intermodal Rail facility, which links the region directly to the ports of L.A. and Long Beach." 

Boyd also pointed to I-15 and the soon-to-be-built I-11, connecting Phoenix and Las Vegas, and possibly Reno and the Bay Area. He also said companies like Faraday Future like to hire former members of the military, which is why Nellis Air Force Base is important.

Sandoval said he felt Faraday's decision to build there would entice other businesses to do the same.

"Today's agreement will further enhance the infrastructure at the Apex site," he said. "Apex is the missing link to luring large-scale manufacturing operations to southern Nevada, where suitable commercial industrial space is lacking."

Lang agreed. He thinks all Apex needed was someone to "turn the lights on."

"I think there is a lot of excitement out at Apex," he said, "You're going to hear a lot more excitement out at Apex because a lot more companies are going to come in."

Boyd said with Tesla and Faraday Future calling Nevada home, the whole region should be prepared for even more development.

"Don't be surprised if Las Vegas can leverage now really being the center for gravity for this new electronic automobile industry," Boyd said. "If they can leverage that, it's really becoming a Mecca for head offices and regional offices." 

 

 

Guests

Robert Lang, Brookings Mountain West; John Boyd, president, The Boyd Company

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