Elko business and economic development leaders are taking the city's message on the road in hopes of spurring development in Elko County.
The inaugural Elko Regional Economic Opportunities Summit is slated for Wednesday at the Reno's Atlantis Casino Resort grand ballroom.
The pitch: Elko County is unlike any other part of Nevada. Whereas high unemployment, foreclosures and record vacancy rates in all segments of commercial real estate have depressed the economies of the state's larger metropolitan areas, Elko is in dire need of new housing and industrial and retail development.
Representatives from the Elko County Economic Diversification Authority, City of Elko, Newmont Mining Company and Barrick North America hope to spread the word of Elko's pressing need for growth to builders, bankers, developers and others during the summit, says Jim Winer, owner/broker with Coldwell Banker Algerio Q-Team Realty.
Winer and six other business and civic leaders will try and paint a clear picture of the many development opportunities that exist in Elko through a series of presentations and breakout sessions.
Instead of trying to lure developers and lenders to make the trip to Elko, Winer says the team from northeastern Nevada is hitting the streets to help spread its message. A similar summit is in the works for the Las Vegas area this fall.
"We are not Reno; we are a smaller, niche-type market, and attracting developers here been an issue," Winer says. "We are taking our message and telling people that there are opportunities here for lenders, developers, financiers, private equity firms."
Elko County's large gold mines are in various stages of growth, which has led to hiring increases and a flock of new mining service industry businesses to the area. As a result, Winer says, vacancy for new or rental housing and industrial properties has fallen to practically zero, while retail vacancy in the town is under 5 percent. Office vacancy stands at about 7 percent, he says.
By way of comparison, office vacancy in Reno stood at about 20 percent at the end of 2011, and retail vacancy was at nearly 16 percent at year's end.
"We are woefully low on industry property, and that is actually hurting us," Winer says. "We have got users that want land and, we haven't got any land. Our base employment is the mines those are our core jobs but we have companies that would expand if could find land."
Much of the land surrounding Elko is owned by the Bureau of Land Management, he says, and private land at the city's border has no infrastructure leading to it. Getting that land ready for future development with water and sewer lines would require a cost-sharing plan with a firm or developer with deep pockets.
"It is going to take capital or cost-sharing to make that happen," Winer says. "It is going to take a company with knowledge, ambition and financial resources partnering with the community.
Employment growth at the region's mines has been hampered by limited housing available for new workers to the area, Winer adds. Trailer parks, weekly motels and hotels are full, and there simply are no rental homes available in the city limits.
Pam Borda, executive director of ECEDA, has spent the past year trying to spread word of the development opportunities that Elko presents, but she says the financial industry is hesitant to loan money to any new development that has "Nevada" attached to it.
"You say Nevada, and first thing people think is foreclosures," Borda says. "We have to educate them that foreclosures are not in Elko. The next thing they think is mining, and they think boom and bust. We have to educate them that we don't do bust. Elko is a booming area with lots of opportunities and really no risk."
In order to spur new retail to the area, Borda has invited site selectors from several companies to the upcoming economic summit. The goal is to break the current logjam, she says, and eventually see some new developments proposed in coming months.
The summit is free, but reservations are required. Email Kevin Jones at First American Title at kejones@firstam.com to RSVP. The event runs from 8 a.m. to 5 p.m. and includes breakfast and lunch.
