I’ve avoided posting about the Tesla decision to build the Gigafactory here in greater Reno until the term sheet was revealed. I had been warned that the announcement would be jaw dropping. But nothing prepared me for the magnitude of the $1,250,000,000 package on the table. My first thought was of being sodomized with Playa Dust and no lube.
That’s when I started my deep breathing exercises. Here is a pie chart of the tax breaks I stole from the RGJ (god knows how many things they have stolen from this website so no guilt):
The property and sales tax abatements are on tax income we don’t currently get, so I can live with them (with reason, more later). I need to hear a lot more about $120M in “transferable tax credits”. Transferable to whom and what kind of taxes? Related businesses or can Pignic Pub and Patio buy some on the black market? Same questions on “transferable job credits.
I am infuriated at the forced purchase of the USA Parkway connecting TRIC to Silver Springs for $43M. HERE is the NDOT report on the project. I’d comment that Lance is whoring himself on that one, but it would probably be taken as a complement.
$7.5M per year “gift” to “schools” for 5 years. Whose schools and for what? This won’t even cover Washoe County’s legal expenses they are facing for firing the superintendent behind close doors. $35M per year might get my attention.
The out of pocket expense to NV is pretty limited. Swap film production tax and insurance headquarters tax breaks for Tesla tax breaks.
My biggest concern is the impact of 6500 workers and their rugrats on the Washoe County school system. We are overcrowded and underfunded today, and I have no clue whatsoever how we can accommodate 10,000 or so new students. I had really hoped that Tesla would have addressed this in their “package”, and the $35M over 5 years is pure sop. How this region can accommodate growth (any growth, not just Te$la) had to be seriously and rapidly addressed.
In the retail world, it is common to land your anchor store for free and make your rents off the ancillary stores that follow. I hope this is the case for Tesla – Nevada cannot give away the ship to every company that “wants” to locate here. Those “transferable” entitlements really bother me for that reason.
So is the extent of Elon-Gate or is there more below the surface? SolarCity manufacturing panels at TRIC has been mentioned and not denied. Is UNR working to prototype the Hyper Loop out at Stead as I’ve heard rumored?
Some neighbors and I were joking around that our property values went up 10% at 4:15 this afternoon. Do you think we shot low?
So deep breaths. Think hard about what the Tesla deal means for our region and the state of Nevada. And please air your comments!