On Dec. 2, the Nevada Governor’s Office of Economic Development Board approved $1 million in tax abatements for indoor farming technology company Local Bounti Corporation to expand operations to Douglas County. Based out of Hamilton, Montana, the controlled environment agriculture (CEA) company will be required to create 65 jobs in the first two years of operation at an average weighted hourly wage of $26.69, according to a Dec. 2 press release from GOED.
Local Bounti will make a $10.5 million capital investment within the first two years of operation and generate $10.7 million in net new tax revenues over 10 years. Local Bounti plans to construct a roughly 300,000-square-foot greenhouse facility on a plot of land at Heybourne Road and Johnson Lane in Minden, according to the company’s application with GOED. At full buildout, the project would include 10 greenhouses, in addition to office, storage, nursery, transplant, harvesting and cooler space, according to the application. Estimated construction cost could reach $40 million, depending on final facility size, in addition to the company investing roughly $10 million on automation and IT equipment, storage racking, and production equipment. The land purchase is expected to close by the end of 2021. Construction would begin in Q1 2021 with the goal of being operational by the end of 2022, according to a Nov. 3 letter from Kathleen Valiasek, chief financial officer of Local Bounti, which is included within the company’s GOED application. “It is estimated that approximately 80% of this project’s revenue would be derived from outside the State of Nevada,” according to the letter, which notes that the economic development incentives will help “offset significant capital investment and ongoing operational expenditures” in order to expand to the Silver State. Per its website, Local Bounti grows non-genetically modified produce without pesticides or herbicides while using less water than conventional outdoor farming methods. Local Bounti was among nine new or expanding companies to Nevada to receive the latest round of tax breaks from GOED on Dec 2. Two others are based in Northern Nevada — LiniCo Corporation and Stericycle, Inc., both in Storey County. “We have had a very productive year coming out of the pandemic,” GOED Executive Director Michael Brown said in a statement. “After having 16 companies approved for abatements in September, the GOED Board approved nine more companies (on Dec. 2). The companies choosing Nevada are making a major investment in our state. I am also encouraged by the quality of the jobs they are creating.” Just before Thanksgiving, Local Bounti announced the closing of an approximately $1.1 billion business combination with Leo Holdings III Corp., a publicly traded special purpose acquisition company. As a result, Leo Holdings was renamed Local Bounti. The common stock and public warrants of Local Bounti began trading on the New York Stock Exchange on Nov 22 under the ticker symbols “LOCL” and “LOCL WS,” respectively. “We are incredibly fortunate to have found and to partner with a leading agtech business like Local Bounti, which is pioneering the field of sustainably grown produce,” Edward C. Forst, Chairman of Leo, said in a Nov. 22 statement. “Local Bounti’s top tier management team and differentiated business model make it well-positioned to enter the public market and launch into this next chapter. We are truly excited to support the company’s future growth as it continues to disrupt the agriculture industry and drives to maximize shareholder returns.” Below is a breakdown of the abatements each of the other eight companies will receive in exchange for doing business or expanding operations in Nevada, according to GOED. To learn more about each company, go to goed.nv.gov/about/notices-agendas and click on the Dec. 2 GOED Board Meeting attachments to access their applications. STOREY COUNTY NEW BUSINESSES LiniCo Corporation, a new lithium battery recycling company in Storey County, will receive $618,836 in tax abatements. It will be required to create 30 jobs in the first two years of operation at an average weighted hourly wage of $35.96. It is expected to grow to 72 jobs in five years. This company will make $6 million in capital investment within the first two years of operation and generate $4.1 million in net new tax revenues over 10 years. Stericycle, Inc., a new company that specializes in disposing medical waste and other regulated medical substances in Storey County, will receive $974,795. It will be required to create 38 jobs in the first two years at an average weighted hourly wage of $22.71. It is expected to grow to 42 jobs in the first five years. This company will make $25.2 million in capital investment within the first two years and generate $5.6 million in net new tax revenues over 10 years. CLARK COUNTY NEW BUSINESSES Envases Commerce, LLC, a new metal cans manufacturing (food and beverage) company in Clark County, will receive $7.5 million. It will be required to create 73 jobs in the first two year at an average weighted hourly wage of $24.05. It is expected to grow to 150 jobs in five years. This company will make $75.5 million in capital investment within the first two years and generate $13.6 million in net new tax revenues over 10 years.
Evanesce, Inc., a new manufacturer of compostable food packaging containers (molded starch products) in Clark County, will receive $1 million. It will be required to create 54 jobs in the first two years at an average weighted hourly wage of $24.19. It is expected to grow to 114 jobs in five years. This company will make $10.1 million in capital investment within the first two years and generate $6.9 million in net new tax revenues over 10 years.
Rapid Response Monitoring Services, Inc., a new data and security monitoring company in Clark County, will receive $213,183. It will be required to create 118 new jobs in the first two years at an average weighted hourly wage of $22.75. It is expected to grow to 148 jobs in five years. This company will make $1 million in capital investment within the first two years and generate $7.1 million in net new tax revenues over 10 years. CLARK COUNTY EXPANDED BUSINESSES
Smithfield Foods, doing business as Saratoga Food Specialties, is an expansion of an existing company in Clark County that will receive $938,727. It will be required to create 56 jobs in the first two years of expansion at an average weighted hourly wage of $20.02. This company will make $16.7 million in capital investments within the first two years of expansion and generate $4.6 million in net new tax revenues over 10 years.
Purtec, Inc., an expansion of a company in Clark County that designs, develops, markets and sells cybernetic purification technology, will receive $66,866. It will be required to create 25 jobs in the first two years at an average weighted hourly wage of $40.56. It is expected to grow to 75 jobs in five years. This company will make $87,000 in capital investment within the first two years and generate $4.8 million in net new tax revenues over 10 years.
The Design Factory, LLC, the expansion of an existing specialized design services company in Clark County, will receive $14,351. It will be required to create 10 new jobs in the first two years at a weighted average hourly wage of $27.14. It is expected to grow to 13 jobs in five years. This company will make $94,800 in capital investment within the first two years and generate $1.4 million in net new tax revenues over 10 years.
