Nevada is betting on the future
And that bet is on: Batteries, Battery-Powered Vehicles, Unmanned Aerial Vehicles (UAVs), Driverless Vehicles, Data, Data Infrastructure, Education, Workforce Development, Clean Energy, and People Who Want To Build Companies Here
By writing this, I hope to give people confidence in the direction that the Nevadan government, education, and business is moving. I understand my friends and colleagues apprehension to “pick winners and losers” with economic incentive packages to large companies making investments in our area, but I share a different perspective
Our government is looking at the present situation in the totality of the circumstances. Technology is the future and Silicon Valley is expensive. By having an intimate knowledge of Northern Nevada, Governor Sandoval and local proven developers are extending that ability to ‘get sh*t done’ to outside projects
The first branch extended? To Elon Musk. In the venture capital and angel investment world, the primary factor focused on in whether or not a company gets funded are the people/the team. Teams who are motivated by passionate missions that supersede money ambition, such as, protecting the future of humanity and life itself, are also usually the ones who succeed. Our first team investment in this new phase of outreach and growth development? The high-value-output people of Tesla. As a represented constituent, I am really okay with this. It is an A+ move. We’re not only investing in proven winners, we’re contributing to a solution of a MASSIVE challenge for all living entities — See here for details
Instead of the legal taboo of brothels, divorces, and gaming, Nevada is leading the charge on legal freedoms for new industries like UAVs and driverless vehicles. We’re also supporting clean energy. We know that that the Internet of Things is going to increase data traffic on networks by an order of magnitude. Switch/SuperNAP is preparing for these increases in Nevada. The risk versus potential long term yield in partnering in with Switch in education, tax incentives, and jobs is a smart deal I’ll take. Tesla is not only leading the industry in the safest, cleanest, most technically advanced designed and manufactured vehicle in the world, they aren’t even competing in the vehicle industry. Tesla is now a battery company that sells the best cars on the planet. Patents? Oh here, you all can have them
I mean, after growing up racing combustion engine motorcycles with a dad who raced blown alcohol hydro flat bottom boats and NHRA funny cars, you’d think I’d scoff at electric propulsion. Well, I did. But then I drove the Tesla Model S. Serial No: 00000001 while working for Jason Calacanis. After that, Bye Felicia! Elon is just pulled a Steve Jobs iPhone move from 2007 with the Model S vehicle, in his spare time while spending +75% of it launching rockets into space. Nevada is special in its ability to construct multipart deals with partners like these
I read a lot about how this will burden our infrastructure disproportionately — i.e. Big businesses are getting tax breaks and we need those taxes to pay for schools. This is the heart of the problem, right here. We are still failing to ask — how much are these companies are going to pay with the tax incentives? Not how much will these companies will be saving
The issue involves the risk that companies coming to Nevada will burden the roads and schools more than they will add value to the community and ecosystem
I believe that they add more value
Lance Gilman has a model that works out at the Tahoe Reno Industrial Center. Nevada has space and we can move fast. We’re enticing specialized manufacturing to our back yard. We’re tying the incentives to revenue metrics and local hiring. This is a brilliant way to limit risk for the State. I want to create GDP for the State with a strong foundation industry leading companies
We must not forget that we, as a State, are making an investment to better our school system. We want students who attend our schools to create value for the world, emphasis in Nevada. Whether that means starting new companies, or getting great positions at established companies, our challenge would exist without the incentive packages and new companies moving into the region. However, these companies are here now and have been eager to donate and participate in curriculum redevelopment for practical relevant skills that drastically increases the rate of hiring. Successful private industry leaders with businesses at the pinnacle of state-of-the-art products are giving feedback to what works and is needed for the next generation workforce. Let the free market ring! 😉
My friends, we are pivoting away from a gaming-subsidized State budget. I love not having a state income tax too! We have to fund improvements and investments. How do you think deals got done for gaming licenses and casinos in this beautiful shining State of Nevada for the last 100 years? Or how real estate development deals were done? Tax incentives with education and hiring offsets sound much more transparent and measurable to me
Let’s be opportunistic and capture value as partners with these world-changing companies!
Let’s build more of our own! Options for strategic partnerships will only increase with the introduction of more companies building their respective part in the ecosystem!
Let’s analyze the data on the yield from education curriculum changes and where taxes captured are spent!
We can fine tune what works and learn from what doesn’t
Kyle Hess
