Nevada economic development officials hope a decision by a small California high-tech company to relocate to Las Vegas will result in similar companies joining it.
"I'm going home to pack," said Vito Longo, president of Equipment Management Technology, after the Nevada Commission on Economic Development approved a $23,750 incentive package to assist the company in moving to the state. "I'll be back in a couple of weeks."
Commissioners last week unanimously approved EMT's request for $15,750 in sales and use tax abatements, a $2,000 business tax abatement and $6,000 sales and use tax deferral.
EMT promised an initial capital investment of $1.55 million and wages that are 68 percent higher than the level required by statute for the approval of economic development incentives.
Longo said the Silicon Valley company, which sells, trades and repairs electronic test equipment used by the aerospace and electronics industries, will relocate its corporate headquarters from San Carlos, Calif., to a five-acre site on Spencer Street, just south of McCarran International Airport.
EMT will move into an existing 12,200-square-foot building and build on adjacent vacant land. Longo said he plans to build two new buildings by the end of next year and two more by the end of 2004, investing $10 million to develop a campus providing an additional 28,000 square feet.
Longo said he hopes to expand his existing work force of 10 people to 25 as the company grows and that the entire support staff would be recruited in Las Vegas. Specially trained staff will move with the company to Las Vegas. In the company's application for incentives, Longo said the average wage for the new jobs that are being provided average $26.06 an hour -- well above the $15.48 an hour mandated by statute to qualify for incentives.
Longo said Nevada's incentives and the state's tax structure figured prominently in the decision to leave California.
"I'll finally be able to take some of our profits instead of seeing them to go the state of California," Longo said after winning the commission's approval. "A review of our operating costs has shown that we will have lower costs in Nevada than we have at our current headquarters in San Carlos."
Longo said EMT is in its eighth year of operation and has annual revenues of $50 million. The company has access to billions of dollars worth of used and refurbished electronic test equipment.
The company's three largest customers are Boeing Co., Lockheed Martin Aeronautics Co. and TRW Inc. Longo said the company also has relationships with several wholesale companies in the aeronautics industry.
The company plans to ship equipment by air freight through McCarran.
Somer Hollingsworth, president and chief executive officer of the Nevada Development Authority, which is helping EMT to relocate, said although the company is small, its move may pay dividends in the future if the company successfully develops the campus it is planning.
"It's a really high-quality technology company, but if we can recruit other companies that work with them and cluster them around their headquarters, it would be even more substantial to us," Hollingsworth said.
"This is exactly the kind of company we envisioned attracting with the incentive program," added Commissioner Peter Thomas.
Commissioners noted that EMT has no direct competition in Nevada for the types of products it provides.
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