The Grossest Love Story Ever Told

The way some media pundits tell this story, it's the greatest love story ever told. And perhaps it is for Carson City's top corporate lobbyists. In fact, we won't be surprised if they read this column by the fireplace tonight with a nice glass of vintage port paired with some luscious dark chocolate.

But for the rest of us, another column on the many wonders of Tesla's extra sweet sweetheart deal is just another reminder of all that's wrong with Carson City.



Down here in Southern Nevada, Clark County School District (CCSD) hit a new record high for enrollment last month. And up north, Washoe County School District (WCSD) is about to receive the rude awakening that Tesla isn't offering any kind of free lunch. Instead, the deal blew an immediate $195 million hole in the state budget and threatens to place an additional strain on state government by encouraging more demand for public infrastructure (such as schools, roads, and health care) without providing needed funding for it.

Boulder City High School and Rex Bell Elementary School are just two examples of our crumbling public infrastructure in this state. Kids attend these and other CCSD schools. And this is what they and staff must endure every school day.



When we take a closer look at the decaying state of our public infrastructure, the very foundation of our economy, "The Great Tesla Giveaway of 2014" makes less and less sense. How can we afford to subsidize a multi-billion dollar corporation while telling teachers and students we can't afford school repairs? How can we afford to continue shortchanging our roads, our health care programs, and our other basic community building blocks while we keep doling out corporate welfare hand over fist? It just doesn't make sense.

There's a reason why we had such a visceral reaction yesterday to the two Southern Nevada newspaper columns opposing The Education Initiative (TEI). They just don't make sense. They and their friends at the No on 3 campaign like to scream about impending doom & gloom every chance they get, yet they can't produce any tangible proof that TEI will hurt our economy. Instead, even their own studies have suggested that TEI will help Nevada's economy by providing our schools with the funding they've been going without for far too long.



It's been a time honored love story here in Nevada. The "bid'ness establishment" types have loved their legal tax evasion schemes and corporate welfare handouts. And why not? It's been a very sweet sweetheart deal for them.

But for the rest of us, we've been told for far too long to "do more with less". We've been told for far too long that "we can't afford" even basic fixes for our schools. We've been told "we can't afford" to take care of our own people while multi-billion dollar corporations continue laughing all the way to the "erotic gift shop" with gift cards that we essentially paid for.

This may be their "greatest love story ever told", but we the people have a chance to close this chapter of our state's history. And really, can we afford to keep buying them all that chocolate & wine?

Don't Expect a "Free Lunch".

Earlier this month, Carson City was in ecstasy... Or was Carson City on Ecstasy? We're still trying to figure that one out.

We're also still trying to figure out what we can actually expect of our state government's giant wet kiss to Tesla. Already, Northern Nevada "tourism executives are salivating" over magically full airplanes and wondrous conventions popping up all over Reno. And already, Southern Nevada must endure yet another round of navel gazing over "why we didn't get Tesla" and "what Reno got right that Las Vegas gets wrong".

But what if the navel gazing that's considered "analysis" today is wrong? What if it's not based on actual facts?

Last week, the Los Angeles Times' Chris Kirkham interviewed some actual economists who have done some real analysis on what Governor Brian Sandoval (R) and the Nevada Legislature gave Tesla. Here's some of what they had to say.

"To assume that the economic impact is $100 billion assumes that everybody who was ever going to work at that battery plant was unemployed," said Enrico Moretti, an economics professor at UC Berkeley.

Choosing a 20-year time frame to analyze also makes the projected economic effect look huge compared with any benefits given to Tesla. But that's misleading, said [David] Swenson, the Iowa state economist.

"It doesn't mean anything," he said. "Let's assume I made $50,000 over the last 20 years. Therefore, I'm a millionaire, right?" [...]

"They're treating all this revenue as if it's free profit that's just going to be sent back to everyone as a rebate," said Dan Rickman, an economics professor at Oklahoma State University who specializes in regional economic analysis and reviewed the Nevada studies for The Times.

Further, Tesla will collect benefits upfront, which could starve local governments of vital revenue, said Peter Fisher, an Iowa expert on tax incentive programs.

"They're giving back 99% of Tesla's direct taxes in the first nine years, yet there are going to be all these new workers with families and children," said Fisher, research director of the Iowa Policy Project and a professor emeritus of urban and regional studies at the University of Iowa. "One way or another, I think the locality is going to find themselves with a strain on local government services."

Hmmmm... We wonder where we've heard this before. Oh, yes. That's right. The Atlantic's Richard Florida and the LA Times' Michael Hiltzik were among several actual economic thinkers who were warning us not to buy into #Teslamania. And there's a reason why Good Jobs First has been criticizing the Tesla deal. While Tesla and its technology hold plenty of promise for the future, there's no guarantee that the State of Nevada's $1.2 billion corporate welfare gift card to this company will magically wash away all of Nevada's economic woes.

But hey, what do public policy think tanks and top-grade columnists (who actually know what they're talking about) know about any of this? According to certain local media pundits, they just don't know how to "play long ball" because they refuse to sit back and enjoy the bright & sunny "optics" emanating from The Governor's Mansion.

Even some local officials in Reno & Washoe County are now admitting there are indeed high costs to the Tesla deal. After all, this deal was never truly "free". Roads, schools, mass transit, and water infrastructure will be needed. And last we checked, those are never free.

And we'll eventually discover how much economic benefit the state will gain from this. Hopefully, it will eventually be enough to make this trade-off worthwhile. But now, it's becoming increasingly obvious that the Governor's rosy projections were way too rosy.

Economists often like to joke that there's truly no such thing as a "free lunch". Here in Nevada, it looks like we'll have to learn that lesson the hard way. Again. Even after we took a bite out of that rotten Apple.

Reno Is the New... No, Wait...

(In light of this latest round of navel gazing, we figure now's a good time to revisit this piece from March 2012 analyzing the truth behind the "Reno is the new Silicon Valley!!!" hype. And by the way, we'll have more on Tesla later.)

Yesterday, KRNV News 4 asked.

“The number one choice of why we're in Northern Nevada is quality of life,” says co-founder of Noble Studios, Season Lopiccolo.

For the diverse group of tech-savvy professionals at Noble Studios, Reno has something for everyone.

“Some snowboard, some like to dress up and pretend to be someone else, we have musicians, people with their own bands, all different walks of life,” says Lopiccolo.

Downtown Reno is in the midst of an image makeover, shifting from a place known for its bright lights and casinos to a world-renowned high tech hub.
And the supportive and entrepreneurial friendly environment within the biggest little city is making a big difference.

“One of the main reasons why we moved to Northern Nevada is that a handshake means something here,” says Lopiccolo.

I'll do my best to answer.

Is it possible? Sure. Is it probable? Perhaps when we get serious about investing in public infrastructure.

But then again, at least Reno has public infrastructure. Las Vegas doesn't have much of any left, so it's much more difficult to work on diversifying Southern Nevada's economy. Tony Hsieh is trying to do the same thing in Downtown Las Vegas. But if no one could even step up to save the Nevada Cancer Institute (which was ultimately gobbled up by a CALIFORNIA college), how can we really grow our own tech sector? As long as we fail to properly invest in our future, our economy will continue to suck.

At least Northern Nevada has UNR...



And to their credit, folks at UNR have been doing a great job in partnering with the greater communities around the Reno-Carson metropolitan area to work on economic diversification. This at least partially explains why Northern Nevada's economy hasn't been as devastated by continuing weakness in the gaming & tourism sector as Southern Nevada was when "The Great Recession" first hit.

However, the same set of data also shows that continuing gaming weakness IS harming economic recovery up north. Not even Reno is immune from it. And as we continue to see expansion of tribal casinos in California and online gaming worldwide, Northern Nevada will need to continue working on diversification to build a brighter future that isn't just based on fickle gamblers.

And again, we in Southern Nevada can't depend on fickle gamblers for our future, either. We also have to face the reality staring us down as Macau continues to grow, online gaming goes live, and new casino projects are being proposed everywhere from South Florida to Baja California (Mexico). While gaming will likely always be in our blood, there's no reason why we shouldn't look beyond physical casinos to start attracting new gaming technology companies, online gaming innovators, as well as infrastructure support and consulting services.

But as long as our schools suck and as long as the rest of our public infrastructure continues to lag, Southern Nevada will continue to suffer our addiction to the extreme highs and extreme lows of "the bubble based economy". I'm sure I sound like a broken record sometimes, but I nonetheless feel the need to continue talking about this until we finally see some real action and real solutions. We really do have the potential to bring more high tech jobs into this state, especially in sectors like gaming and renewable energy where we have natural strength, but we'll never realize that potential if we don't invest in our "human capital".

Reno is already seeing some success in bringing in new high tech jobs. They just need to finish the job in diversifying the economy up there. And Las Vegas still has plenty of catching up to do in that department. And ultimately, both ends of the state need more investment in public education to ultimately be successful.

(We Must Return) Back to Basics.

(In light of recent events, we felt it necessary to revisit this. We dug through the cavernous Nevada Progressive archives to find this gem from May 2013. How is it we can afford corporate welfare for Tesla, but not taking care of our own people? And now, we risk losing federal SNAP funds because we can't get our act together.

Maybe we should consider taking care of our own people's needs before we cater to every whim & fancy of any multinational corporation that whispers sweet nothings into our politicians' ears?)

So Former Assembly Member Steven Brooks is back in the news today. Brooks was supposed to be at a court hearing in Las Vegas today. He couldn't make it... Because he was at a court hearing in San Bernardino County, California.

Here's what's happened so far.

The lawyer for a former Nevada lawmaker charged in a car chase and a police confrontation is asking that his client go through a mental health court program.

Ex-Assemblyman Steven Brooks appeared in a San Bernardino County, Calif., court Tuesday after pleading not guilty to charges stemming from his arrest March 28. Prosecutors say there could be a decision Friday on whether he's eligible for mental health court.

Mental health courts divert people into treatment programs and hold them accountable along the way.

Late in March, Steven Brooks was arrested in Victorville following a dispute with a tow truck driver in Barstow and a dramatic car chase with police. His attorney is now requesting for the California case to be transferred to mental health court. This way, he can finally obtain the treatment he needs.

At least there's a chance of Brooks obtaining the treatment he needs in California. Just before his latest arrest, Brooks sounded eerily prophetic in his final interview with Jon Ralston.

In four brief, surreal conversations, alternately heart-wrenching and frightening, shortly after he was expelled from the Assembly, Steven Brooks said he is "the assemblyman of sorrow," wondered why his colleagues "hate me so much" and declared he was going to "break the state" with a lawsuit worth at least $10 million.

Brooks was alternately angry, with expletive-filled rants directed at Speaker Marilyn Kirkpatrick and Majority Leader William Horne, despondent, weeping and saying he was checking himself into Seven Hills, a Southern Nevada treatment facility, and suicidal, saying he had no other recourse. [...]

"I'm the assemblyman of sorrow," he declared. "Why do they hate me so much? Fill in the blank: I'm so angry I could (blank) myself."

Brooks told me he was "on my way to Seven Hills to check myself into the hospital. He began weeping when I asked why, adding, "I have no other resort. I'm going to kill myself if they keep this up. I have nowhere to go. I'm the assemblyman of sorrow." [...]

"You know why they hate me? You know why want to kill me because I know all of their secrets."

No one expected what was coming next, probably not even Steven Brooks himself. Yet in an incredibly bizarre way, he warned us. Just days after Brooks was sent to jail in San Bernardino County, another former Nevadan emerged in California.

After The Sacramento Bee began investigating the mysterious Greyhound bus trip that landed James Flavy Coy Brown in Sacramento, the Nevada patient dumping scandal steadily grew. Now, there's a strong chance of Nevada facing law suits soon over improper discharge of mental health patients and transport of them out of state.

And now, outrage is spreading to a new state. Last weekend, ABC 15 Phoenix looked into the 100 cases of Rawson-Neal mental health patients bussed into Arizona. And while investigating, they may have uncovered yet another horrifying scandal in the making.

Mark Holleran, CEO of Central Arizona Shelter Services, says it's hard to track those patients down. He says "patient dumping" happens more than you might think. "It just shows you how it's very easy to do this, and it's sort of under the radar. It's hard to detect," he said. Holleran says a few years ago, former prisoners from Nevada got dumped at the shelter. "They had been provided a bus ticket, a small amount of cash, a print out of a Mapquest that showed them how to get to CASS. And written on it was, 'ask for Howie,'" he said. Holleran says these cases often end in chronic homelessness. He says that stretches resources in other states, like Arizona. And it passes along the problem, instead of fixing it. "That might be something we might want to take a look at. Because if we can solve it for one place, I think we solve it for all the places," Holleran said.

So now, Arizona officials are reporting cases of Nevada patient dumping. And not only that, but we may have also dumped former prisoners on them as well! How about that for being a "good neighbor"? One would think this would light a fire under the behinds of the Governor and legislators to fix this glaring crisis. Come on, we're now facing law suits and loss of federal funding! But no, they were too busy kissing the behind of Nicholas Cage. No, I'm not even making this up. And Ralston was downright revolted by today's lurid display of misplaced priorities.

James Flavy Brown can be shipped out of Las Vegas, leaving with barely his wits about him, some meds and peanut butter crackers. But the star of “Leaving Las Vegas” can be treated like royalty, with the mayor of Las Vegas as his sidekick, and an offer pending of enough taxpayer money to buy a peanut butter cracker factory. These are the Legislature’s priorities – cut mental health funding, ignore English Language Learner money but give tax breaks to those who need them least. Brown gets a bus ticket to anywhere while Cage gets a national treasure trove worth of goodies and Apple gets a 90 percent tax break negotiated by the governor. That is tax policy in Nevada. This is the state we are in. I wonder if anyone stops to think: We may get Cage ghost-riding on the Strip, with his production company soaring and a Vegas backdrop for movies. But what does it say if that fake scene is juxtaposed a few miles off-camera in either direction with real tableaus of packed emergency rooms, overcrowded classrooms and jammed thoroughfares. If this is part of a master plan, I’d like to see the drawing because it seems like a blueprint for disaster to me. What exactly is the policy articulated by this approach that allows $80 million to be cut from mental health services in five years but in one bill lawmakers are willing to give half of that amount [$35 million] to prospective Nevada-based filmmakers? Lest you think my heart’s bleeding cuts off circulation to my brain, I get the job-creating argument, the economic diversification argument, the image-changing argument. But why is it a good idea for government to give incentives to anyone – movie producers, renewable energy companies – if offcials don’t provide incentives for people to really want to live here by supporting the quality of life, a culture that values higher and lower education, a political class that leads rather than follows?

He's right about this. It simply doesn't make sense. Honestly, there may be some merit to encouraging more film production here in Nevada. But when we can't even take care of our own, who wants to risk shooting a movie here? Think about it. Why is it that we always hear that "we can't afford" proper mental health care, decent schools, and repaired roads, yet our Governor and Legislature always seem to be able to afford corporate welfare to shower upon multinational corporations like Apple that neither need the help nor deserve it? Think about that as well. How on earth does this lead to a stable economy for our state? And how on earth does neglecting the most vulnerable in our society lead to a healthy economy? It doesn't. That's precisely the problem. Our "leaders" in Carson City keep chasing after mythical economic unicorns while failing to provide the most fundamental building blocks of a sound economy. Sure, luring Hollywood to Las Vegas sounds sexy. But ultimately, that won't mean shit for economic development if our schools keep bursting at the seams, our hospitals keep stuffing patients onto Greyhound buses heading out of state, and our roads are clogged with commuters while paved with just as many potholes. We seriously need to pay attention to the rude awakening we're now receiving. We must get back to basics, and we must do so before it's too late.

Goal?

Last night, the City of Las Vegas held its first of a series of six community town hall meetings at Centennial Hills Community Center. Why? Well... Goal!

Or at least, Las Vegas Mayor Carolyn Goodman (I) and some City Council Members are hoping they're about to hit a big goal with a proposed Downtown soccer stadium. However, not everyone seems to be sold on this. Las Vegas city officials looked ready to give a "pep talk", but a number of residents were ready to grill officials over the numbers behind this grandiose proposal.



Las Vegas city taxpayers are being asked to chip in nearly $130 million towards the estimated $410 million price tag for the new stadium. A number of financial experts are now stepping forward to explain the many risks the city will take if it decides to partially subsidize The Cordish Companies' and Findlay Sports & Entertainment's desired Downtown stadium. After all, the city will ultimately be on the hook for at least $82 million even if the stadium succeeds in attracting a well performing Major League Soccer (MLS) team and selling out plenty of games... And that's still a major if.

Over the years, Dr. Judith Grant Long has been crunching the numbers on the public costs of "public-private partnership" sports stadiums. She's revealed the hidden costs of these stadium deals, such as "free land", lease discounts, and tax exemptions. Yet so far, the City of Las Vegas isn't noting any of these costs in its "financial analysis" of the stadium plan.

In 2012, Bloomberg News revealed that Americans had spent $4 billion subsidizing sports stadiums since 1986. And what have we received in turn? Oh, about $10 billion in additional costs while sports team owners laugh all the way to the bank.

There are plenty of good reasons for Las Vegas city residents to be skeptical about this latest stadium proposal. Remember when the City of Henderson ran into trouble over a stadium plan that Chris Milam was never going to get off the ground? While the Cordish-Findlay Las Vegas soccer stadium plan doesn't approach that level of fraud (or at least, not yet), there are already a number of warning signs on the high costs the City of Las Vegas will have to incur for it. And so far, there's little evidence suggesting this stadium will actually "pay for itself". After all, no publically subsidized stadium ever truly has.

Perhaps now that Tesla scored the sweetheart deal of a lifetime from the State of Nevada, Cordish & Findlay now want in on the corporate welfare gravy train. What exactly is the goal of Mayor Goodman and the stadium cheerleaders? That's the key question that City Council Members and Las Vegas city residents must ask at the upcoming town halls.

"Play Long Ball"

Did you hear? Everything is coming up roses! We will be greeted as liberators! Just take a look on the bright side of life! And no matter what, always make sure to admire the bright & sunny "optics".

Last week, the mantra was supposed to be, "Ratification is different from rubber-stamping." But now that Tesla secured the deal it always wanted from Carson City, even the media pundit who uttered those words before the 28th Special Session of the Nevada Legislature is now upset because some legislators didnt rubber-stamp the Tesla deal quickly enough.

Wait, what?! Sadly, even some highly esteemed leaders of the Fourth Estate have caught #Teslamania.



Last week, The Atlantic's CityLab Editor-at-Large, Richard Florida, tried to warn those in Carson City of the risks of placing all of Nevada taxpayers' eggs in one "economic development" basket. And now, Los Angeles Times business columnist Michael Hiltzik is essentially calling our state's leaders "suckers" for approving the Tesla deal so quickly without analyzing the true cost of all the giveaways Tesla demanded along with the possibly way-too-rosy economic forecasts from the Governor's Office. Oh, and Good Jobs First continues to question the wisdom of allowing such a profitable company to operate in Nevada completely tax free for the next decade.

A cool $195 million is already leaving the state's coffers for Tesla corporate headquarters. And that's while Northern Nevada local authorities are just starting to realize the strain on local infrastructure that they just agreed to. How will we pay for the new roads and schools in Washoe, Storey, & Lyon Counties? And how will this affect state funding for the already overcrowded Clark County School District (CCSD), the already overburdened Southern Nevada transportation system, and still-in-need-of-some-TLC Southern Nevada economy?

Yesterday, the above mentioned media pundit used his Sunday Column to chide all the "ivory tower know-nothings and southern partisans" who dared to question Governor Brian Sandoval's (R) "play long ball"/"swing for the fences" strategy. Oh, really? What in any of this deal is "long ball"? How did Sandoval's "economic development team" "swing for the fences" by agreeing to the same old corporate welfare that this state has always tried to use to "diversify our economy"? How's that working out for us? The only difference this time is that the Tesla corporate welfare package is 14 times greater than the previous record setting Nevada corporate welfare package (cough- Apple -cough).

Look, we know Tesla likely has a bright future ahead. We even realize Tesla's potential role in a climate change/clean energy/human survival breakthrough. We can't understate the promise of the ground Tesla broke in Storey County.

We're just wondering why we're once again trying to substitute short sighted corporate welfare for long sighted economic planning. If we truly care about the well being of our state and our people, we know how to secure a far better bang for our buck. Yet in order for us to score this kind of real "long ball" deal, we'll need to approve it ourselves.

Done Deal: The #Teslamania Postscript

It's official. It's happening. And it's unanimous.

Late last night, the Nevada Legislature unanimously passed the Tesla deal. Governor Brian Sandoval (R) quickly signed it into law as US Senator Harry Reid (D) signaled his approval from DC.



Ultimately, Tesla got the $1.25 billion in tax credits it wanted. However, the final bill was slightly modified to ensure Tesla factory workers receive decent wages and health insurance benefits. The final bill also included more oversight should Tesla request a waiver for the 50% Nevada workers hiring requirement.

So it's a done deal. A bunch of legislators and media pundits are smiling as they await their return flights to Las Vegas. And of course, Tesla executives must be grinning from ear to ear this morning.



But what about all the rest of us? After the State Senate wrapped up their voting, they had just enough time for a few speeches. And yes, a handful of Senators actually addressed the 900 pound gorilla in the room.

Senator Tick Segerblom (D-Las Vegas) went even further in addressing the problem... And the solution. He pretty much channeled "The Original Gleaner" Hugh Jackson in pointing out the obvious. Why is it so damned easy for our state government to hand out corporate welfare like candy while failing repeatedly to properly fund public education?



It's a done deal. Tesla just got its sweetheart deal... But what about the rest of us? Where's our sweetheart deal?

Here's what isn't yet a done deal: this year's election. In particular, we have our solution: The Education Initiative (TEI). As Senator Segerblom and Hugh Jackson yesterday, we need to secure a good deal for our communities by making it happen ourselves.

Not. So. Fast.

Now, it's getting really interesting. Last night, we heard some more about the big move Switch is making in Carson City during the special session of the Nevada Legislature that Tesla initially thought it had all to itself.

Whoops. Apparently, a few legislators may actually be taking Steve Sebelius' advice to heart. Might this be music to Switch's ears?



Not so fast. SB 1 finally dropped last night, and the long awaited Senate bill requires at least $3.5 billion investment in this state before the state government starts offering tax incentives. The bill also requires at least 50% of the workers hired under this program to be Nevada residents. And the bill requires a $22 average hourly wage and health insurance benefits for factory workers.

So that leaves Switch up in the air for now. However, that also leaves the Nevada AFL-CIO as a possible "fly in the ointment". Nevada AFL-CIO Executive Director Danny Thompson has already said he also wants guarantees of fair wages for construction workers alongside guarantees that Tesla will hire local construction workers. We'll have to see how the Legislature assuages AFL's concerns.

But at least for now, it looks like a number of legislators are at least taking some time to digest this. And yes, they're looking at related issues like Switch, the best interest of Nevada workers, the film industry tax credits (that Governor Brian Sandoval [R] wants slashed by over 80%), and public education funding. Isn't this what so many of us were asking them to do? Isn't this even what a certain media pundit was asking for on the eve of #Teslamania?

So why is that media pundit now attacking certain legislators over taking their time to consider this proposal? The State of Nevada may actually end up with a $120 million deficit by the end of the year... And that doesn't even count the overcrowding and under-staffing issues plaguing Clark County School District (CCSD). Can we now afford to hurry up and pass something that pokes yet another hole into the budget while making a big bet on a company that demanded all these tax breaks to build a factory in Northern Nevada?



Not. So. Fast. Those are the three words Nevada legislators need to keep in mind today. While we understand the urge to hurry up, resume fundraising, and bask in the glow of #Teslamania, there are too many important questions that shouldn't be ignored just because one company wants an enormous sweetheart deal. Is this truly a fair deal? Is this a good deal for Nevada workers? Is this a good deal for Nevada schools? And will this deal break Nevada's budget?

Not. So. Fast. As we've said before, there are plenty of merits to Tesla's big move to Nevada. But must we break our bank in order to subsidize their business expenditures?

#Tesla Update(s)

And it's on! We knew this was eventually coming. But now, it's official. "The Tesla Session" is officially underway in Carson City.



And what have we learned since this morning? Perhaps there will be no Switch, after all?

Remember when we told you about the last minute move by the Southern Nevada data center company to land tax credits for a Nevada expansion? So far, Governor Brian Sandoval (R) is saying no. It remains to be seen how many allies Switch has in the Legislature Building.

In the mean time, Steve Sebelius notes the slippery slope this state will approach if the deal is approved. Why Tesla? Why Apple? Yet why not Switch? And why not any other company willing to tell us what we want to hear about "economic development"?

Also, PLAN made it official this morning. Folks there are concerned about the glossy numbers Governor Sandoval's office has released about the economic impact of Tesla's Gigafactory, as well as shifting the tax burden from Tesla to working families. Oh, and PLAN added this at the end: "One last question, which has been asked by others but only answered by silence: Why can’t the state of Nevada come together on a plan to raise revenues to fix our broken education system as enthusiastically as the rush to create a $1.3 billion package of corporate subsidies for a single company in one part of the state?" Ouch. (This is actually the reason why The Education Initiative [TEI] is on our fall ballot.)



At least now, we're starting to see the Tesla bills emerge. We're also continuing to see strong reviews for the very technology Tesla wants to bring to Northern Nevada. The Tesla Gigafactory may even end up producing 20% more renewable electricity than it actually needs.

The Guinn Center just endorsed the Tesla deal, provided there are benchmarks Tesla must meet in order to continue enjoying those tax credits. Reno News & Review's Dennis Myers, however, calls foul on what he sees as naked corporate welfare. And of course, NPRI is against anything that doesn't perfectly fit its ideological mold.

We probably won't have more #Tesla details until around 4:00 PM. We'll do our best to stay on top of it all. And if there's any critical breaking news tonight, we'll do our best to cover it here. So go ahead and stay tuned as #TeslaMania continues in Carson City.

Prelude to Tesla

Consider this a quick cheat sheet on "The Tesla Session" that will begin at high noon today in Carson City. Here's what you need to know about the 28th Special Session of the Nevada Legislature:

- The Tesla deal is now clocking in at about $1.3 billion cost to Nevada taxpayers.

- It still looks likely to be approved, but signs of discontent at the Legislature Building are starting to appear.

- Among those grumbling about Tesla are the "TEA" powered NPRI & AFP (fossil fuels forever!), progressive PLAN (worried about corporate welfare), car dealers (upset over the bill to authorize direct-to-consumer Tesla car sales), and the entertainment industry (Sorry, Nicholas Cage, but no more film tax credits for you!).

- Yet as Tesla keeps blazing trails in clean technology, Nevada now has the opportunity to lead the way in the clean energy (r)evolution.

- It's no secret that US Senator Harry Reid (D) pushed hard for this Tesla deal, as he's a big believer in the potential Tesla's gigafactory has to turbo-charge Nevada's economy.

- And he's not alone. From Northern Nevada business leaders to UNR & UNLV economists and state economic development officials, they're liking the $1.9 billion Tesla's gigafactory is expected to generate in tax revenue for the state, along with the roughly 21,000 jobs (directly and indirectly) that may result from Tesla's big move.

- But wait, there's more?! Perhaps Tesla won't have this special session all to itself. Last night, Jon Ralston reported that Enterprise (Southwest Las Vegas Valley) based Switch now wants to strike while the iron is hot. The data center company is now asking for its own tax credits for its proposed $750 million Southern Nevada facility and $250 million Northern Nevada project.

This is about to get even more interesting. Stay tuned here for more as the 28th Special Session of the Nevada Legislature commences.

"Ratification Is Different from Rubber-stamping."

No, we don't always agree with him. Yes, this only touches the surface of what's increasingly looking like an incredibly thorny issue. But yes, Jon Ralston's advice to state legislators on Tesla is very sound advice that they should pay attention to.



"Ratification is different from rubber-stamping." Just since the deal was announced last Thursday, the price tag has swollen from $400 million to $1.25 billion. Why? This gigafactory isn't cheap.

Ironically, Tahoe-Reno Industrial Center (& Mustang Ranch brothel) owner Lance Gilman claimed "no public money" has been used to develop Tahoe-Reno Industrial Center. Even if that statement was completely true last week, it certainly will not be going forward. If the Nevada Legislature approves the deal US Senator Harry Reid (D) encouraged and Governor Brian Sandoval's (R) economic advisers negotiated, Tesla will be exempt from paying sales taxes on construction materials and factory equipment for 20 years. That alone essentially serves as an estimated $725 million state subsidy for Tesla and Tahoe-Reno Industrial Center.



In addition, Tesla will receive $195 million worth of transferable tax credits along with $332 million worth of exemptions from property taxes. And on top of that, the State of Nevada will pay Lance Gilman $43 million for right-of-way so it can invest at least another $60 million to build a highway through Tahoe-Reno Industrial Center in order to connect the Tesla Gigafactory to US Highway 50 and Interstate 80 Freeway.

Oh, and this may not even be the end of it. Take a look at the growing list of registered lobbyists for the 28th Special Session of the Nevada Legislature. We can only wonder what may come next.

At least some legislators are demanding certain conditions for all these giveaways, such as guarantees for prevailing wage and Nevada workers being considered first for the new Tesla jobs. And quite a few legislators are insisting the tax credits will be tied to Tesla's progress in building the gigafactory (perhaps because they want to avoid another Apple boondoggle?).

Let's be upfront here. The reward will be quite high if this Tesla project succeeds. Nevada will have cemented our reputation as the hub of the 21st century clean energy revolution. And the Reno/Sparks/Tahoe region may finally have secured economic growth and diversification...

But at what cost? The Atlantic Senior Editor Richard Florida has already decried the $56,000-$300,000+ the State of Nevada may pay for each Tesla job that may or may not last into the distant future. Already, critics are accusing the state of overpaying for a "trophy". And opposition to the Tesla deal is already creating some very strange bedfellows, from the "TEA" powered NPRI and AFP to progressive stalwart PLAN.



"Ratification is different from rubber-stamping." At least one legislator seems to fully understand this. Pretty soon, we'll find out how many more also do... And/or how many simply don't.

Welcome, Tesla (?)

So it's official. It's finally happening. And of course, it's the talk of the town all over Reno.

Just moments ago, CNBC broke the news that Tesla has chosen Northern Nevada to house its new gigafactory. And already, a special session of the Nevada Legislature is being set for next week. And of course, we're already starting to hear all sorts of political spin and economic happy talk.

So what's the deal? We know Tesla is planning to spend $5 billion to build its 10,000 square foot gigafactory. What we don't yet know is how much Tesla is expecting the State of Nevada to kick in for construction.

We strongly suspect this deal will involve some Nevada taxpayer money, as a special session looks to be necessary. It's also been no secret that Tesla has demanded public subsidies for this gigafactory.

So how much will this cost us? Most likely, a cool $400 million.

And what are we getting out of this? Potentially 6,500 new jobs for the Reno/Sparks region, along with a breakthrough that may open the door to electric cars becoming more affordable for more consumers.

Here's the good news: This has the potential to actually make a dent in the long promised drive to diversify Nevada's economy. This also has the potential to kick-start the green tech sector and take it to new levels here in Nevada and nationally. Oh, and this can help quite a bit in our efforts to take on the challenges posed by climate change.

Here's the disturbing news: We're once again relying upon corporate welfare for any sort of economic development. And that's just not a sustainable business plan going forward. After all, take a look at how far Reno and Nevada have gone with Apple. Apple continues to laugh all the way to its offshore bank accounts while we're left holding the bag (full of holes, thanks to the many budget cuts we've endured over the past half-decade).

This is why we're experiencing mixed reactions now. On one hand, it's exciting to think that Nevada may be home to the next generation of transportation & energy innovation. But on the other, this achievement seems awfully tainted due to the $400 million we're having to bribe spend to convince Tesla to build the gigafactory in Northern Nevada. Is that money truly well spent? Or is it just more money being diverted from our already "grossly underfunded" schools and other critical parts of public infrastructure?

Right now, let's just say the 63 Nevadans who may soon have to head back to Carson City are about to step into a rather sticky situation.

Let's Talk Tesla

It's August, so we're spending the month time traveling. Today, we're heading back to this past April. Then, several states (including Nevada) were chasing after a new Tesla battery gigafactory.

Amidst all the talk of "Cleantech Crash", even Red States like Arizona and Texas were rushing to lure in Tesla and all those allegedly nonexistent green collar jobs. And now, rumor has it that Nevada, Texas, and California are the finalists for the gigafactory.

Excitement is obviously running high, especially in the Reno area. If Nevada is selected for the gigafactory, Tesla is expected to place it in the Tahoe-Reno Industrial Park in Storey County (17 miles east of Sparks). Already, speculation is running rampant over a possible special session of the Nevada Legislature being called to address the $400-500 million Tesla executives expect the winning state to chip in to build the gigafactory. (It may happen if Tesla guarantees Nevada the gigafactory, though Legislature leaders don't sound all that excited just yet.)



So why are so many people so excited about Tesla? Consider this: Electric car sales have soared over 70% both in the US and in Europe just over the past year. Over the past 3 years, electric & hybrid car battery sales have tripled. And now that mostly electric hybrid and completely electric cars are starting to enter the automotive mainstream, the growth potential for this sector is looking quite attractive.

And then, there's this. Tesla and other electric car manufacturers are pieces of the puzzle that illustrates our energy future. Tesla, General Motors, and the US Military have all been investing in the research and development of longer lasting batteries. In recent months, Tesla has teamed up with SolarCity to work on solar power storage for commercial buildings. And global investment in renewable energy just hit a 5 quarter high as new projects have emerged from Denmark & Germany to the UK & China to Wyoming & South Carolina (!!!).



So why again are we supposed to believe "we can't afford" meaningful action on climate change? If anything, we can't afford the very real life-threatening (& economy busting) perils of climate change. Meanwhile, we have all these very real economic opportunitiesclimate action.

So what gives? The usual (fossil fuel peddling) suspects are threatened by the future by renewable energy. They're feeling threatened by the progress of Tesla and other electric cars. And they're threatened by the ramifications of aggressive climate action.

Ironically, they don't care about the ramifications of unchecked climate change. They don't care about human survival. They're simply putting short term profits over long term peril.

In the coming days, Nevada Government leaders will need to figure out just how badly they want Tesla's gigafactory in Storey County. But wherever it ultimately lands, it may very well provide glimmers of hope for a brighter future. And Tesla shouldn't be alone in investing in clean energy technology.

Green Powered Future

We tried. We really tried. We sent out the warning. So no one should have been surprised by this latest FUBAR...

From "60 Minutes". Oh, yes. That's right. The once venerated "TV news magazine" managed to screw up another story.

This time, it involved electric car maker Tesla. "60 Minutes" ran a story on Tesla's Model S. The story included footage of the Model S engine roaring as the car accelerated... And immediately, fact checkers everywhere realized CBS "News" fell flat on its face yet again. The Tesla Model S' engine doesn't roar at all, since it's an all electric engine.

OK, so "60 Minutes" screwed up its Tesla story. Why should we even care about this? Perhaps because Nevada is a finalist in the race to secure a new Tesla battery factory? No really, Tesla is already eyeing Reno for its gigafactory.

And once again, we're reminded of the fact that there's no such thing as a "Cleantech Crash". There is such a thing, however, as protocol for fact checking. Maybe CBS "News" should try adopting one?

And perhaps so should G-O-TEA politicians? Texas is enjoying a "wind boom". Australia is benefitting from record renewable energy production. Mexico is building Latin America's largest "solar farm" to replace an old oil power plant. India nearly doubled its solar power capacity last year. And throughout this nation, 2013 broke records in solar powered job creation.

Yet even as Republican lawmakers here and elsewhere are chasing after the Tesla gigafactory, their "TEA" powered allies are trying to thwart the kind of progress that made Tesla possible. Apparently, they don't buy their own "free market" rhetoric. And they don't care about "JOBS!" like they claim to when they're out to kill any kind of positive climate action.

Once again, we're being reminded of the potential of charging ahead to a green powered future. Believe it or not, that future looks awfully bright... If we actually pursue it. Think about this: Do we really want to sit here 20 years from now, thinking of how we refused to listen to the warnings? Or do we want to sit back and enjoy that brighter future?