A pharmaceutical fulfillment company will expand to Las Vegas next year with 353 jobs and an employment pipeline to the University of Nevada, Las Vegas after winning a $3.4 million incentive package from the Governor’s Office of Economic Development.
Schaumburg, Ill.-based Catamaran LLC will build a 100,000-square-foot facility at UNLV’s Harry Reid Research and Technology Park at Sunset Road near Durango Drive, just off the Las Vegas Beltway.
Michael Shapiro, senior vice president and chief financial officer of Catamaran, said by locating the facility at the Reid tech park the company expects to tap students pursuing degrees in pharmacology through UNLV. Shapiro said the new facility would open its doors by the end of 2015.
The ten members of the Economic Development board unanimously approved a $2.5 million tax abatement and deferral plan as an incentive to expand to Nevada and the company also was awarded a $900,000 catalyst fund grant to help defray Catamaran’s all-in investment of $42 million.
Catamaran met all statutory requirements to be eligible for incentives. The company will start with 353 jobs — 1,312 percent more than the requirement — with average pay of $23.10 an hour, which is 12 percent more than required. The company’s application included a $23.3 million capital investment in construction and equipment, nine times more than the statutory requirement.
Catamaran’s 10-year plan calls for 474 jobs with a mix of pharmacists, technicians and customer service representatives. Shapiro said because his company works with specialty pharmaceuticals, there are specialized pharmacists required to communicate instructions to customers and doctors’ offices by mail.
The company’s incentive package includes a $1.4 million sales tax abatement of 2 percent, a $716,200 personal property tax abatement of 50 percent over 10 years and a $339,400 modified business tax abatement of 50 percent over four years.
The state calculates that direct and indirect new local and state tax revenue over 10 years will increase by $19.3 million with Catamaran’s presence.
Gov. Brian Sandoval, who chairs the Economic Development board, said he was impressed with the return on investment to the state as a result of the abatements — $168 per abated dollar.
In a separate matter, the board also unanimously approved an incentive package for Lancaster, Pa.-based Security Partners LLC, which will relocate an alarm monitoring complex to Las Vegas from Anaheim, Calif.
Company’s founder and CEO Patrick Egan said when the company lost its lease in Anaheim, it “forced an opportunity” to relocate and the company looked at New Mexico, Arizona and other locations in California in addition to Nevada.
Security Partners, which recently expanded by acquiring companies in San Antonio and Anaheim, Calif., is licensed in 37 states and monitors alarms at 200,000 sites. The company will provide 52 jobs with an average wage of $21.34 and the company will invest $1.4 million in its new facility on West Diablo Drive in Las Vegas.
The board approved a $166,600 incentive package that includes an $83,300 sales tax abatement of 2 percent, a $42,000 personal property tax abatement of 50 percent over 10 years and a $41,300 modified business tax abatement of 50 percent over four years.
The company also received a $37,500 training grant for 50 employees.
Egan said the company chose Nevada because it is home to thousands of shift workers who often work late hours.
Board members also approved a training grant of $75,750 to Consumer Portfolio Services of Las Vegas, which already has received tax abatement incentives.
Consumer Portfolio Services, a finance company that provides indirect automobile loans, expected to bring 75 employees to Las Vegas. The company has expanded to 101 employees and expects to hire 62 more.
Contact reporter Richard N. Velotta at email@example.com or 702-477-3893. Follow @RickVelotta on Twitter.