85°F
weather icon Partly Cloudy

Sandoval seals deal to bring $1 billion electric car plant to North Las Vegas

CARSON CITY — Gov. Brian Sandoval sealed the deal Saturday to bring a $1 billion electric car manufacturing plant to North Las Vegas after Nevada lawmakers gave final approval.

Sandoval signed four bills into law shortly after the Nevada Assembly approved three Senate bills dealing with tax abatements, tax credits, water and infrastructure at the Apex site.

The Senate completed its work late Friday night.

Faraday Future, an upstart electric car maker with financial backing from Chinese billionaire Yueting Jia, said it will build a 3-million-square-foot factory and set an ambitious goal of producing cars by 2017.

At a bill signing ceremony, Sandoval said lawmakers strengthened the Faraday legislation during the four-day special session.

He noted the remarks of Assemblyman Lynn Stewart, R-Henderson, who said during one hearing that the Apex site has not changed in decades.

“And if you drive by, there is a sign that says Apex Industrial Park, and you see the hope and potential there,” Sandoval said. “But it’s always been just that. Hope and potential. Until now.”

Sandoval, who met with Jia during a trade mission to China this fall, said he was incredibly impressed with his vision and plan for Faraday. He said Nevada now has the opportunity to “build not only Faraday’s future, but Nevada’s future.”

“I honestly believe that it is going to change the trajectory and economy in Southern Nevada and the state,” he said. “This is one of those days we’ve done a good thing.”

For its part, Faraday released a statement saying it was “very excited” by the news.

“The State of Nevada and the City of North Las Vegas have been great partners, we look forward to continuing the relationship with them and bringing our $1 billion dollar investment to North Las Vegas,” the statement said.

To lure Faraday to Nevada, lawmakers approved $215 million in tax abatements and transferrable tax credits that will be available as the company meets investment benchmarks. Specifically, the tax credits total $38 million; the abatements $176 million over 10 years.

Similar deals will be available to other companies who come to Nevada and meet the $1 billion investment threshold.

But the bigger picture of the Faraday package involves developing and financing infrastructure at Apex, an 18,000-acre industrial park that has sat largely vacant because of a lack of water, sewer and utilities.

Steve Hill, executive director of the Governor’s Office of Economic Development, said several companies courted by the agency were interested in Apex but went elsewhere because of the lack of services.

State and local economic development officials said providing those services will be a boon to Southern Nevada’s economy, making available sites for large industrial users.

North Las Vegas Mayor John Lee, who watched the Assembly votes in chambers finalizing the deal, said he was “totally ecstatic” that the Legislature took up the Faraday deal, worked the bills and OK’d the deal. The city was instrumental in first catching Faraday’s interest in the site.

“I am very proud of them for helping all of Nevada with these bills,” Lee said. “I think this is not only going to be a big deal for North Las Vegas, this is going to be a major shift in Southern Nevada and how we’re perceived throughout the United States and the world.”

The Las Vegas Global Economic Alliance said at least 150 businesses visited the Apex site but could not wait for infrastructure demands to be satisfied.

“The Faraday deal has the capacity to jump-start our manufacturing sector, create thousands of high-wage jobs for Nevadans, and unlock of the full potential of the Apex Industrial Park in North Las Vegas,” said Jonas Peterson, CEO of the alliance. “This is a huge win for Southern Nevada and will have a positive impact on the entire region.”

Assembly Majority Leader Paul Anderson, R-Las Vegas, said the state lost out on revenue and jobs that would have been generated if Apex was developed earlier.

“Here we have the opportunity to have an anchor tenant willing to make a $1 billion investment in that park,” he said.

The bills passed the Assembly 37-4.

Only a handful of lawmakers opposed the deal.

“Passing this legislation is a victory for North Las Vegas and the entire state of Nevada,” said Sen. Kelvin Atkinson, D-Las Vegas. “We will finally have the opportunity to realize the potential of the Apex Industrial Park, and we will create thousands of jobs for Nevadans in the process.”

Faraday has yet to make a car, but the company says it has about 400 employees and will develop a car with unprecedented connectivity. Faraday said it will unveil its concept in January at the Consumer Electronics Show in Las Vegas.

The package of bills debated and approved over a four-day legislative session also authorizes up to $175 million in bonds to help pay for road improvements and a rail connection to the site.

Under the deal, property owners within the Apex site agreed to finance about half the bonds. The rest will come from a tax increment area, where a portion of property taxes will be used to make payments as property values increase because of the added infrastructure.

Should those revenue sources fall short, uncommitted general funds from the city of North Las Vegas would make up the difference, followed by the state if necessary.

Officials described the likelihood of Nevada taxpayers being on the hook as unlikely.

Another component of the package is workforce development. Assembly Bill 1 allocates $2.5 million to create a program sufficient to provide training for up to 4,000 automobile assembly workers at the facility. It would train up to 800 workers in any given 12-month period.

Faraday said it eventually will hire 4,500 workers and pay average wages of $22 an hour. Economic analysts say the plant will also create 9,000 indirect jobs, generating an annual economic impact of $87 million for the region.

— Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb. Contact Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801

Don't miss the big stories. Like us on Facebook.
Politics Videos
Clark County 2019 Election Results - Video
The 2019 Elections wrap up in Clark County including an upset in the Boulder City Mayor race.
Olivia Diaz talks about her win in Ward 3 - VIDEO
Las Vegas City Councilwoman-elect Olivia Diaz talks about her election win in Ward 3 and what lies ahead for her.
Greene discusses Read by 3 and Opportunity Scholarships - VIDEO
The Nevada Legislative Session is over and the results are mixed for Nevada students, according to Tom Greene, Senior regional legislative director, Excel in Ed in Action.
Bernie Sanders visits Las Vegas
Sen. Bernie Sanders made a stop at Roy W. Martin middle school on Thursday, during his campaign trail.
Kamala Harris campaigns in Las Vegas
Democratic Sen. Kamala Harris castigated President Donald Trump’s merit-based immigration plan, saying it was “short-sighted” and overlooked the cultural significance of family, during a campaign stop in Las Vegas. “We cannot allow people to start parsing and pointing fingers and creating hierarchies among immigrants,” Harris told Asian Pacific Islander leaders at a Chinatown restaurant, one of two appearances she made Thursday.
The Right Take New Education Funding Plan - VIDEO
On Monday, Senate Education Committee chair Mo Denis, D-Las Vegas, released a new education funding formula. For years, many Democrat politicians have criticized the current education funding formula, called the Nevada Plan. They claim it’s old and outdated. Their biggest beef is that it doesn’t allocate more money for students who are English Language Learners or live in poverty. The theory is that it’s harder to educate those students and so they need additional services, which costs additional money.
Kamala Harris campaigns in Nevada
California Senator Kamala Harris meets with One APIA Nevada, a nonprofit organization that advocates for policies empowering Asian Pacific Islander Nevadans. (Michael Quine/Las Vegas Review-Journal)
Ben Carson talks housing (Audio only)
Ben Carson discusses housing with the Review-Journal editorial board on Thursday. (Audio only)
Ben Carson visits the RJ (Full Audio Only)
Ben Carson discusses housing with the Review-Journal editorial board on Thursday. (Audio only)
Former Vice President Joe Biden campaigns in Nevada
After campaigning at the International Union of Painters and Allied Trades District Council 16 in Henderson, former Vice President Joe Biden spoke with the Review-Journal.
Student serenades Mayor Carolyn Goodman at swearing in
Students from the school she founded, The Meadows School, serenaded Las Vegas Mayor Carolyn Goodman during a swearing in ceremony for her third and final term. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Al Gore Speaks At UNLV About Climate Change - Video
Former Vice President of the United States Al Gore talks to an audience at UNLV about the effects of Climate change and how to switch to renewable sources of energy.
Forum on Wages and Working People Highlights - VIDEO
Presidential candidates Elizabeth Warren, Beto O'Rourke, Kamala Harris, Amy Klobuchar, Julian Castro, and John Hickenlooper speak in Las Vegas, Nevada.
Nevada Politics Today Valerie Weber - VIDEO
Valerie Weber sits down with Victor Joecks to discuss her policies and why she is running for Ward 2 of the Las Vegas City Council.
Cory Booker speaks at UNLV
US Senator Cory Booker speaks at UNLV during a Young Democrats meet and greet on Thursday, April 18, 2019. (Mat Luschek / Review-Journal)
May-Brown describes why some with disabilities need the subminimum wage - VIDEO
Eliminating the subminimum wage will end training and work opportunities for some members of the disabled community. Instead of doing something productive, they would be relegated to adult day care. That’s according to Tracy May-Brown, Opportunity Village’s director of advocacy, board and government relations.
Commission’s decision will delay Red Rock Canyon development
The Clark County Commission Wednesday rejected a developer’s request to approve a preliminary plan for 3,000 homes overlooking Red Rock Canyon before a federal agency grants permission for a roadway leading to the site.
Clark County commissioner calls on landlords to bring properties up to code
Clark County Commissioner Tick Segerblom has called on landlords in older parts of the valley to bring their properties up to code and keep them well-maintained or face the prospect of inspections, fines and citations. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Harry Reid speaks out against anti-Semitism
Unnerved by the rise in anti-Semitic hate speech and the general pervasiveness of bigotry, including in Nevada, former U.S. Sen. Harry Reid organized an educational forum at UNLV on Thursday as part of his call to unite people against it. (Shea Johnson/Las Vegas Review-Journal)
President Trump speaks to the Republican Jewish Coalition in Las Vegas
President Donald Trump spoke at the Republican Jewish Coalition’s National Leadership Meeting in Las Vegas and updated on Israeli relations. (Heidi Fang/Las Vegas Review-Journal)
Trump says border wall will have 'hundreds of miles' built by end of next year
President Donald Trump spoke at the Republican Jewish Coalition’s National Leadership Meeting in Las Vegas and discussed the progress of the border wall and the current relations there. (Heidi Fang/Las Vegas Review-Journal)
Protesters disrupt Trump's speech
Just as President Donald Trump started to make his opening remarks during his appearance at the Republican Jewish Coalition’s National Leadership Meeting, protesters disrupted his speech. (Heidi Fang/Las Vegas Review-Journal)
Roerink On The Problems With Taking Water From Eastern Nevada - Video
The Southern Nevada Water Authority wants to take billions of gallons of water that doesn’t exist from Eastern Nevada via a pipeline that would cost ratepayers $15 billion. Doing so would devastate the wildlife and people who live there. That’s according to Kyle Roerink, executive director of the Great Basin Water Network, which opposes the pipeline.
Las Vegas Election Night Wrap-Up
The Review-Journal's Politics and Government Editor, Steve Sebelius, wraps up election night. (Mat Luschek / Review-Journal)
Olivia Diaz Speaks To Ward 3 Supporters After Primary Election - Video
Olivia Diaz speaks to her supporters at a election party after results started coming in for the Ward 3 primaries.
Oscar Goodman Speaks On Behalf Of Mayor At Primary Win (edited)
Oscar Goodman spoke Tuesday night on behalf of his wife, Carolyn, who won the mayoral primary election. (Mat Luschek / Review-Journal)
Oscar Goodman Speaks On Behalf Of Mayor At Primary Win (Full)
Oscar Goodman spoke Tuesday night on behalf of his wife Carolyn, who won the mayoral primary election. (Mat Luschek / Review-Journal)
Gun Debate Shows Limits Of Government - Video
On Monday, the Assembly and Senate Judiciary Committees held a joint hearing on Assembly Bill 291. It would ban bump stocks and allow local governments to pass additional restrictions on firearms.
Lucy Flores speaks out about Biden incident
Former Nevada assemblywoman, Lucy Flores, expresses her feelings about an incident with former Vice President Joe Biden in 2014. (Michael Quine/Las Vegas Review-Journal) @Vegas88s
Harry Reid takes the stand in injury lawsuit
Former U.S. Sen. Harry Reid took the stand on Thursday in the product liability lawsuit brought against the makers of a resistance exercise band that Reid blames for blinding him in one eye.
Jurors hear opening statements in Reid personal injury trial
Opening statements were made on Tuesday in the product liability lawsuit brought by Harry Reid against against the makers of a resistance exercise band that Reid blames for blinding him in one eye.
Mayor Goodman delivers Meals on Wheels
Mayor Carolyn Goodman delivers Meals on Wheels to seniors on March 26, 2019.
Las Vegas City Council Ward 1 race
Candidates for Las Vegas City Council Ward 1. (Shea Johnson/Las Vegas Review-Journal)
Beto O’Rourke campaigns in Las Vegas
Democratic presidential candidate and former Texas congressman Beto O'Rourke addresses attendees during a campaign stop at Arandas Taqueria in Las Vegas on Sunday, March 24, 2019. (Chase Stevens/Las Vegas Review-Journal)
Beto O'Rourke House Party in Las Vegas
Democratic presidential candidate Beto O’Rourke delivered a message of unity inside a Las Vegas living room Saturday night, outlining a mission to bridge the divide in a polarized America and rally behind “big defining ambitions that we have in common.” (Shea Johnson/Las Vegas Review-Journal)
Presidential candidate Kirsten Gillibrand talks at Atomic Liquors
Democrat presidential candidate Kirsten Gillibrand talks to her supporters at Atomic Liquors.
Presidential candidate Gillibrand meets with UNLV Immigration Clinic student attorneys
Democratic presidential candidate Sen. Kirsten Gillibrand, D-N.Y., meets with UNLV Immigration Clinic student attorneys at her first stop in Nevada as a candidate Thursday, March 21, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Sen. Catherine Cortez Masto promotes the Rebuild America’s Schools Act
U.S. Sen. Catherine Cortez Masto, D-Nev., co-sponsor of the Rebuild America’s Schools Act, speaks at Hoggard Elementary School in Las Vegas to promote the bill that would provide $100 billion for infrastructure improvements at schools across the country. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Scholar Max Eden on how restorative justice decreases student achievement - VIDEO
Across the country, restorative justice is lowering test scores and increasing the number of students who feel unsafe at schools. That’s according to Max Eden, a senior fellow with the Manhattan Institute, who recently released a study discipline reform.
NV Dems Want To Gut Read By Three - Video
Nevada’s students have a major problem. They aren’t very good at reading. In 2017, just 31 percent of fourth graders were proficient at reading according to the National Assessment of Education Progress. The number proficient falls to 28 percent in eighth grade. Read by Three could change that. If a student can’t read at grade level by the end of third grade, he repeats the grade.
Presidential hopeful Tulsi Gabbard stumps in Las Vegas
Presidential hopeful U.S. Rep. Tulsi Gabbard, D-Hawaii, holds a meet and greet at the Asian Culture Center in downtown Las Vegas Monday, March 18, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
THE LATEST
Sisolak signs public records reform bill into law

Gov. Steve Sisolak signed a bill that strengthens Nevada’s public records law, making it easier and cheaper for people to get public records and providing for fines if public agencies willfully flout the law.

Nevada urged to OK $25M settlement in 2016 Reno-area fire

Nevada’s attorney general is recommending approval of a $25 million settlement with homeowners and others who sought more than $300 million in damages after fire destroyed 24 homes.