The Henderson City Council unanimously approved a resolution Tuesday to sell land near St. Rose Parkway and Spencer Street at a significant discount to lure one of the nation’s largest safe manufacturers that would bring “significant economic benefits” to the city.
California-based Cannon Safe has expressed interest in purchasing 8.1 acres of vacant, city-owned land to move its corporate headquarters and manufacturing facilities next door to the Cashman Equipment facility.
Cannon would pay $750,000 for the land, a $926,000 discount from the average appraised land value. However, local financial analyst firm Applied Analysis said the project will bring an overall economic impact of $200 million with Cannon providing $35 million in annual payroll by the 10th year. Final approval of the sale would likely come at the May 6 council meeting.
Barbra Coffee, the city’s manager of economic development, said discounts on land prices are not common, but occur if the city can attract companies that fit “industry targets” the city is recruiting.
“Both headquarter operations and manufacturing facilities are important to Henderson,” Coffee said. “We have the opportunity to have both of those within this one sale.”
State law allows the City Council to bypass a public land auction, which would sell the city land for not less than the highest appraised value, in cases of economic development. The land will return to the city if Cannon doesn’t build.
Cannon plans to make an initial investment of $5 million in capital equipment investment and another $16 million in equipment purchases over the first 10 years, according to documents provided to the city. Cannon said it would grow its employees from 100 to 550 workers over 10 years.
Aaron Baker, Cannon Safe chief executive officer, said after the meeting the company plans to break ground on the 134,000 square foot manufacturing facility and corporate headquarters later this year, with a planned opening the end of 2015.
The city’s Economic Development Department has spent nine months recruiting Cannon, which currently has manufacturing facilities in Mexico and China. The company took office space in Las Vegas after closing its facility in San Bernardino, Calif. in December. The company was also looking at sites in Utah and Texas before choosing Henderson.
“We’ve been manufacturing in the United States since 1965,” Baker said. “As our corporate office, this will be the show piece manufacturing facility.”
The company manufactures home and personal security safes and products sold through retail chains such as Sam’s Club, Home Depot and Amazon, as well as private dealers.
Baker was greeted outside the council chambers by applause from nearly 30 employees and their families who have already moved from California and work in Las Vegas.
The City Council approved traffic signal construction contracts for three intersection with the majority of the funding coming from the Nevada Department of Transportation.
North Las Vegas-based Mc4 Construction won the $149,900 for the traffic signal at the intersection of Volunteer Boulevard and Via Firenze Road at the entrance to the Inspirada master-planned community. The city will contribute $7,495 to the project.
Mc4 will also won the $1.12 million contract to install traffic signals along St. Rose Parkway at the Bermuda Road and Maryland Parkway intersections. The city is contributing $55,944. The lights should be installed later this year.
GRANT FOR CRIME LAB APPROVED
The City Council unanimously approved the $70,000 Henderson Community Foundation grant to assess the programming needs of the Henderson police’s forensic crime lab, which is currently housed in a 4,500 square foot building on Lead Street across from the department’s headquarters. Henderson-based Tate Snyder Kimsey Architects will do the assessment, which should be completed by the end of summer.
Contact Arnold M. Knightly at email@example.com or 702-477-3882. Follow on Twitter @KnightlyGrind