VIDLER WATER RESOURCES, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS 

03/22/2022 | 05:06am EDT

Northern Nevada

The majority of our water resource assets are located in northern Nevada at FSR and our Carson / Lyon project. FSR's water credits are able to provide a sustainable water supply in the North Valleys region of Reno, Washoe County, Nevada, and the Carson / Lyon water rights are able to provide a sustainable water supply in Lyon County, Nevada. As a result, we are dependent on new residential or commercial development occurring in these regions in order for us to monetize our water resources in northern Nevada. In turn, new development in these regions is highly dependent on the continued robust economic and job growth that is occurring in northern Nevada.

The economic development in the greater Reno region has been concentrated in the Tahoe Reno Industrial Center business park ("TRIC") which is a 107,000 acre industrial park proximate to Interstate 80 and 15 miles east of Reno, Nevada. Tesla Motors, Inc. ("Tesla") built its Gigafactory facility in this business park. Many other technology companies have also moved to the area including Apple, Google, Jet.com, Battery Systems Inc., Tire Rack, U.S. Ordinance, Zulily, Switch and Blockchains LLC.

According to a report by the Economic Development Agency of Western Nevada ("EDAWN") during 2021 the Northern Nevada economy was fueled by growth including the relocation to Northern Nevada of 59 technology and manufacturing companies, two of the fastest growing industry sectors in Northern Nevada. These two industry sectors comprised over 60% of all companies that relocated and expanded in the Reno area over the past two years during 2020 and 2021. The relocation of these companies along with the influx of 29 Corporate Headquarters into Northern Nevada is expected to result in 5600 new jobs over the next five years. Job diversification in the Reno region has led to less volatility in the employment base: at the end of 2021, the unemployment rate in the US was 4.8%, in Southern Nevada was 7.4%, but only 3.5% in Northern Nevada.

The economic growth in the region has led to strong demand for housing. According to University of Nevada (UNR), Reno Center for Regional Studies, year over year values of new single family home values across the greater Reno-Sparks area increased 15% in the fourth quarter of 2021 ($576,042). In the North Valleys region, where our FSR water rights are utilized, the median sales price of new single-family homes increased 28% year over year during the fourth quarter of 2021 ($453,575). As of the end of the fourth quarter 2021 a total of 6,447 approved housing units across 45 developments of all types of housing product remain to be constructed in the North Valleys. According to the same UNR study the total households are projected to increase by 7.6% and housing is unlikely to keep up with the same projected employment demand of over 5,600 new jobs as noted in the EDAWN report.

The Economic Development Authority of Western Nevada ("EDAWN"), comprised of Reno, Sparks, and Tahoe areas, released an updated forecast (RCG Economics, Technical Memorandum dated January 29, 2019) to its previous forecasts that includes the latest historical data and a new five-year forecast from 2019 through 2023.

This five-year forecast project a cumulative addition of 51,585 new jobs in the region which represents a 12.7% increase in employment. This job growth leads to population growth. The report also projects the region's population to grow to 686,737 residents by the end of 2023, an increase of 54,470 residents (8.6%) in that five-year period. We believe that this increased employment and population growth will create demand for new residential, commercial and industrial development in the greater Reno area and in Lyon County.

Current economic conditions have fostered new business openings, lower apartment vacancies, and greater absorption of existing housing inventory. This activity has resulted in multiple new housing projects entering the approval process with local governments in Reno, Sparks, Carson City, Lyon County and Fernley. Residential housing projects must demonstrate sustainable water supply to obtain final map approval, and many projects in the North Valleys of Nevada are currently in the process of seeking or have obtained master plan amendment/zone change approvals. The next step for these developers is to obtain tentative map and then final map approvals. Within the Reno-Sparks and Washoe County area of Nevada, according to EDAWN, in 2021 there were over 4,800 new housing permits issued. EDAWN's goal is for at least 6,000 new housing permits to meet the projected demand for housing. We believe the disparity in the issuance of building permits is due to an interruption of the permitting process due to the effects of the COVID-19 pandemic and the administrative process involved in approving new developments. We expect the building permit activity to increase in 2021, once the permit process is initiated on newly approved subdivisions. We believe this increase in activity will lead to demand for our water resources, as developers pursue their projects to provide housing for the population growth in the region. However, the increased activity has strained governmental agencies and has caused delays in processing permits as well as new projects' planning approval process.

The timing of future monetization of our water resources in northern Nevada is directly correlated to the time it takes residential developers to pursue their projects in the areas where our FSR and Carson/Lyon assets are located, and the time it takes for those developers to get the requisite planning approvals prior to obtaining final map approval or, in the case of commercial development projects, final regulatory approvals.

Novo Logistics becomes sole lease holder of 180,000 square feet of warehouse space, adding to its existing capacity in the optimally located Tahoe-Reno Industrial Center.

RENO, NEV. (PRWEB) MARCH 21, 2022

This month, Novo Logistics stepped in as sole leaseholder, of more than 180,000 square feet of optimal warehouse space located in the Tahoe-Reno Industrial Center, bringing the total square footage Novo Logistics operates in TRIC to 750,000 sq ft. Finalizing this lease with the building owner means Novo Logistics grossly improves its ability to offer its commercial clients dedicated warehousing and multi-client warehousing coupled with local delivery and transportation services.

The lease agreement comes at a time when vacant warehouse space is at a historic low in the Reno-Sparks area. According to Rofo, a research company that displays “commercial real estate listings from top brokerage firms and landlords in Reno, NV,” there are only, currently, 19 warehouse spaces for rent.

"Signing the lease on a space of this size really increases the value and scope we can offer our clients in a very competitive market. Reno-Sparks has always been “home” to us, but aggressively expanding our footprint here was imperative, as our clients value the access it gives them to other west coast markets,” said Ryan Peirce, CEO.

"Our addition of a second large footprint within the Tahoe Reno Industrial Center will allow us to find synergies by cross-utilizing our labor, leadership, and equipment, which will in turn keep costs down for our partners, allow us to be more flexible and creative in a very tight labor market, and maximize productivity. We are creating a Novo campus feel for our Team Members, while remaining adjacent to I-80, which is a major trucking artery for east-west transportation,” said Peirce.

As a location, the Reno-Sparks area offers significant advantages to third party logistics (3PL) companies and their clients. From a tax standpoint, Nevada boasts no corporate income tax, personal income tax, franchise tax, inventory tax or estate tax, to name a few. From a business perspective, having inventory in Reno-Sparks helps retailers get products to their customers quickly, in large part because of the area’s close proximity to western states and the sizeable populations calling the west coast home. With two major highways, Interstate 80 and Highway 395, and two of the country’s largest railroads, Union Pacific and Burlington Northern Santa Fe, retailers are able to drop-ship goods to consumers (or their brick-and-mortar stores) with ease.

About Novo Logistics
For more than 20 years, Novo Logistics (formerly RMS) has delivered customized logistics solutions to its commercial partners, helping them streamline their supply chain. 

As a Third-Party Logistics company, Novo teams with clients in the home improvement, tech, retail, construction, hospitality, healthcare, food and beverage, and manufacturing industries to provide warehousing, on-plant and manufacturing solutions, value-add services, yard and shuttle management, delivery and transportation support and contingent labor solutions. The company operates multiple locations across the country (Reno, Nev.; Columbia, S.C.; Indianapolis, Ind. and Ardmore, Okla).

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“Signing the lease on a space of this size really increases the value and scope we can offer our clients in a very competitive landscape, offering them access to west coast markets with ease."

Source:

https://www.prweb.com/releases/novo_logistics_becomes_sole_lease_holder_of_180_000_square_feet_of_warehouse_space_adding_to_its_existing_capacity_in_the_optimally_located_tahoe_reno_industrial_center/prweb18562582.htm

GRASS™ Opportunity Zone Fund’s SAMSARG Inc. Secures Funding Deal in Lyon County Nevada.

SAMSARG Inc. secures financing to complete construction of its first hangar at the Silver Springs Regional Airport

September 08, 2021 01:15 PM Eastern Daylight Time

CARSON CITY, Nev.--(BUSINESS WIRE)--Growth Resources, Assets, Safety, & Stability (“GRASS™”)—a qualified opportunity zone fund is pleased to announce that its subsidiary SAMSARG Inc. has secured financing of $5.04 million to complete construction of its first 

This aircraft hangar and all future hangars built by SAMSARG, Inc. will be strategically located within opportunity zones, which offer tax deferrals on capital gains taxes. Other investments by the GRASS fund focus on innovators in government and the private sector who are replicating and scaling aviation businesses in Opportunity Zones including General Aviation (GA) Hangars also being constructed by SAMSARG, Inc.

SAMSARG, Inc is involved in new construction of hangars at Silver Springs Regional Airport. Both GA Hangars and U.S. Government complaint hangars are within the Opportunity Zone. New facilities are designed to attract government, corporate and private clients. SAMSARG Inc’s new construction of GA Hangars is focused on providing Tahoe Reno Industrial Center (TRIC) businesses with nearby travel and logistics support at Silver Springs Regional Airport (as opposed to Reno International). SAMSARG Inc. will also provide client tailored and other high-margin services.

GRASS launched their Reg A+ funding round on June 15, 2021. While most opportunity zone funds and other tax-deferred investments are reserved for the very wealthy, GRASS™ is open to investors of all income and experience levels with a low minimum investment of only $500.

Investor considerations for GRASS™

• Our minimum investment is $500.00.
• GRASS™ is a diversified high-growth opportunity zone fund primarily investing in two areas: blockchain-based SaaS for regulatory compliance, and aviation innovations in government and the private sector.
• Offers multiple tax benefits to investors because it is both a Qualified Opportunity Zone Fund (“QOZF”) as well as an IRS designated Qualified Small Business Stock (“QSBS”).

   By Rob Sabo

Gilman reflects on 10 years of Tahoe Reno Industrial Center growth.

 

Gilman, seen here in 2013, is principal and director for L. Lance Gilman Commercial Real Estate Services, the exclusive brokerage firm for Tahoe Reno Industrial Center. 

What a difference a decade can make.

Back in 2011, unemployment across Nevada was around 13 percent as the state — Northern Nevada in particular — was extremely slow to shake off the effects of the recession that started near the end of the previous decade.

Employment at Tahoe Reno Industrial Center back then was just shy of 2,000. Ten years later, employment at TRI tops 15,000, and some of the world’s best-known companies have built world-class facilities at the massive industrial park in the Northern Nevada high desert east of Sparks in Storey County.

Along with the jobs, the buildout of Tahoe Reno Industrial Center and the addition of technology companies such as Tesla, Google, Switch and others, along with a host of advanced manufacturers and distribution and fulfillment centers, has provided a buffer against future recession and economic downturn that was lacking a decade ago.

Mike Kazmierski, president and chief executive officer of the Economic Development Authority of Western Nevada, said the industrial park was an important asset because it allowed his team to pitch shovel-ready land to prospective companies, many of which planted their flags here and have since helped diversify the regional economy.

“(TRI) was an amazing asset,” he said. “The land was available and (the developers) were very effective at selling the project. The community was ready to transition from gaming and tourism, and (TRI) allowed that to happen fairly quickly.”

While the nation hasn’t witnessed a financial downturn or correction that parallels the Great Recession, it did experience a nasty economic speedbump last year when the COVID-19 pandemic led to government mandated shutdowns of non-essential businesses.

Although brick-and-mortar retail came to a standstill, it was business as usual for most companies at Tahoe Reno Industrial Center.

And the ensuing nationwide shift to online shopping and ecommerce, hastened by the pandemic, further demonstrated the region’s numerous distribution and fulfillment centers, many of which are located at TRI, will help insulate Northern Nevada from economic hardship.

Tahoe Reno Industrial Center broker Lance Gilman, speaking on a video call from his vacation home in Florida last week, said many of the companies that do business at TRI are formidable blue-chip companies that are self-financed — they don’t depend on Wall Street to write checks, so they aren’t susceptible to bear markets.

“That culminates with an industry base that is insulated from recession,” said Gilman, who’s also an elected member of the Storey County Commission. “Those jobs will continue, and we have seen such wonderful growth in payrolls because there is so much competition.”

Kris Thompson, TRI project manager, said annual payroll at the center is about $750 million.

“When they first bought out there, everyone thought they were nuts — why would someone drive 25 minutes out of Reno or Sparks as opposed to getting a job in Reno?” Thompson said. “But we brought in Wall Street companies, and they have good pay, benefits and promotions.”

After Kazmierski landed here in November 2011, EDAWN retooled its marketing efforts to bring more manufacturing firms to the region. In the next three years, more than 140 manufacturing companies relocated to Greater Reno-Sparks, many of which planted their flags at TRI, Kazmierski said.

“We got aggressive,” he said. “Now, a third of the companies coming into this region are in manufacturing, and those jobs pay $60,000 to $80,000 a year.

“Our region and Tahoe Reno Industrial Center were a perfect fit. They were looking for low-cost facilities, a place where there is talent in the region, energy costs are reasonable, and they didn’t want inventory and other taxes.”

Developers Don Roger Norman and Gilman started the industrial center with a modest land purchase but ramped it up to a total of 107,000 acres by 1999.

Their first land sale was 200 acres to Dermody Properties, which built an industrial park at the Patrick exit off Interstate 80, and a short time later the developers sold a parcel of land to Walmart for a western region distribution center.

When Walmart inked its deal, there wasn’t even an access road to its property, Gilman recalled.

“They were way off the freeway up into the park,” he said. “There was no asphalt up there, no utilities. But they believed in us and bought on, and we guaranteed them road access before they got their building permit, and that’s what happened. That energized us to put in USA Parkway, and quickly, to fulfill that Walmart deal.”

Gilman said that with Walmart signing on, the developers felt other big companies would soon follow. However, 9/11 and the national recession a few years later stifled the pace of development. Businesses continued to trickle into the park, but nothing had a bigger impact on land sales than Tesla’s decision to build its Gigafactory in Northern Nevada.

In a meeting with the TRI team, Gilman guaranteed grading permits within seven days of submission and building permits issued within two weeks or less.

“That piqued their interest,” he said, “and their vision grew. Their first site was 100 acres, and then it grew to 1,000. They eventually took 3,330 acres because they found in Northern Nevada a culture that was very friendly to development.

“Nowhere else in America did they find that.”

Tesla proved to be a game changer that led to Switch canceling plans to locate in Arizona and moving its operations to Northern Nevada.

“Switch now owns more than 2,000 acres and will invest more than $20 billion in Northern Nevada,” Gilman said.

Technology firm Blockchains purchased the remaining developable land at TRI — more than 67,000 acres — back in 2018, which led the TRI developers to cast their eye toward Fernley. The duo already has assembled another large land package for a second large master-planned industrial park, called TRI II.

Gilman can seemingly talk endlessly about land development. And despite having most of his 70s in the rearview, there’s no slowdown in him.

Yet, rather than coast into their golden years, he and Norman, his development partner of nearly five decades, have their feet mashed on the gas and are in the midst of developing the 20,000-acre industrial park on the south side of Fernley.

“When you have had the kind of successes we have enjoyed, it is pretty hard to walk away,” Gilman said. “For Roger and I, it’s really not about the money; it’s about the game and playing on the chessboard.

“Being on the board and in the field of play, it is more satisfying than putting checks in the bank. And once you’ve learned how to do something, it is pretty easy to recreate it.”

https://www.nnbw.com/news/2021/dec/16/gilman-reflects-10-years-tahoe-reno-industrial-cen/