New Facility to Produce Renewable Diesel at Tahoe-Reno Industrial Center

The new facility will create more than 60 jobs.

City awarded $25 million grant to complete Nevada Pacific Parkway project

Robert Perea, The Fernley Reporter

 August 10, 2022

Since the idea was first conceived, the plan to construct Nevada Pacific Parkway to connect Interstate 80 with U.S. 50A has had more stops and starts than an air conditioner on a hot day.

What’s never been available is the funding to actually build it.

Until now.

On Wednesday, U.S. Senator Catherine Cortez Masto announced that the U.S. Department of Transportation has awarded the city of Fernley $25 million from the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grant program for the Nevada Pacific Parkway project. The award, to be managed by the City of Fernley and Mark IV Capital – a privately held real estate firm that owns the 4,314-acre Victory Logistics Industrial Park, will be applied to funding the needed construction of the NPP project.

The funding allows for the complete construction of the project, with a two-year estimated timeline.

“This RAISE grant represents the largest single grant award in the history of the city,” said Mayor Roy Edgington. “We are very happy to see the Nevada Pacific Parkway project move forward. The city of Fernley recognizes the critical infrastructure enhancements needed for the Victory Logistics Project and Fernley to be successful. In addition to improvements in safety and traffic operations with the connection, this project will be transformative to the local and regional economies.”

The Parkway will serve the Victory Logistics District, but will also alleviate the often heavy traffic on Main St. and through the roundabout.

Nevada Pacific Parkway was first planned sometime after Wade Development purchased 4.200 acres from Lyon County in 1994 and began developing what was then called the Crossroads Commerce Center. Wade Development had an agreement with Lyon County to build the parkway, but the recession in the early to mid-2000s scuttled those plans.

The I-80 interchange was completed in 2009 at a cost of $10,885,329, and the northern portion of the parkway was completed in 2012 a cost of $2,859,552. The project was included in the 2014 Nevada Department of Transportation plan with construction slated for 2019, but funding for the project never materialized. Then Mark IV Capital bought the Crossroads Commerce Center in 2019 along with other adjacent and nearby lands and renamed it the Victory Logistics District.

In 2020, the city annexed 170 acres of county property south of the end of Nevada Pacific Parkway to allow for the extension of the parkway to U.S. 50A.

The project includes the completion of the Nevada Pacific Parkway road and bridge over the railroad tracks which will connect Interstate 80 to U.S. 50A.

“Mark IV Capital is very proud of our Victory Logistics District project and our partnership with the City of Fernley to facilitate significant job growth in northern Nevada while putting the city on the map as a leader of new manufacturing, distribution, logistics and data center projects for industry-leading companies,” said Evan Slavik, President of Mark IV Capital. “We are especially thankful for the assistance of Senator Cortez Masto in her collaboration with the Department of Transportation and the support of Senator Rosen and Congressman Amodei. Due to their leadership and cooperation, this grant award will accelerate the creation of tens of thousands of jobs in northern Nevada.”

Under the terms of the grant, the grant funds in combination with a local match, provided by Mark IV Capital, will be used to fund the road and bridge elements to the Nevada Pacific Parkway. This road/bridge improvement will enable the city of Fernley to accommodate the expected increase in truck traffic to Victory Logistics. The total cost of the project is $52.4 million.

The city worked with several agencies in applying for the grant including Mark IV Capital, Nevada Department of Transportation, and the grant writing firm, Kalbacher Associates, LLC.

The project began in 2020 as a collaborate effort with the city of Fernley and Mark IV Capital, spearheaded by Mark IV.

“I supported the Bipartisan Infrastructure Law because I knew it would bring good-paying jobs to Nevada, including to rural parts of the state,” said Senator Cortez Masto. “I worked to help secure this funding for Fernley to make sure that we’re spurring our economy, supporting our manufacturing industry, and creating thousands of new jobs in the region.”

Lyon County Airstrip Projects Aim to Serve Private Sector, Government Clients

The new owner of the small airport in Fernley has plans to transform the airstrip into a modern regional aircenter serving private and government clients.

The “Growth Resources, Assets, Safety, & Stability” opportunity zone fund (GRASS for short), helmed by Chief Executive Office and President Don Harmer, acquired the former Tiger Field airport from the Bureau of Land Management over the summer and is currently working on a plan to improve the airstrip and construct modern hangars for public and private clients.

“We had the opportunity to acquire the old Tiger Field, which is now SAMSARG Field, along with roughly 250 acres adjoining the airport,” Harmer said in an early December interview with the NNBW. “We saw an opportunity to acquire the airport and surrounding areas and try to make a positive impact with an expansion of what we can do if we owned our own airfield.

“Fernley is booming, but it’s still considered an underserved area. We are focused on investing in opportunity zones, and we are very heavily invested at the Silver Springs Airport.”

To that end, the fund and its subsidiary company, SAMSARG Inc., are separately constructing a 24,000-square-foot specialized hangar at the Silver Springs Airport in Lyon County for Department of Defense contracting work, thanks to $5.04 million in financing SAMSARG secured in September.

Don Harmer, president and CEO of Corporate Services of Nevada, serves as president and CEO of GRASS.

SAMSARG has 15 acres under lease at Silver Springs and is trying to lease additional land for an eventual 40-acre campus that would have a mix of hangars to serve private and Department of Defense clients, Harmer said.

Ranger Construction has already poured a 24,000-square-foot pad at Silver Springs Airport, and steel for the hangar should be erected this month, Harmer said. Dirt work for the apron and taxiway from the runway is expected to start soon as well, he added.

The project also includes a one-mile extension of a municipal water line that will add water capacity for nearby residents. The hangar has a target completion date of late second quarter or third quarter of 2022, Harmer said.

Meanwhile, development of additional infrastructure at SAMSARG Field will depend on user demand, Harmer said. Immediate improvements include widening and improving the current runway.

Ideally, he added, hangar construction will be build-to-suit for tenants, but GRASS expects to develop some speculative hangar space as well.

“(SAMSARG Field) will have to be improved to bring it up to a standard that meets the expectations of the demographic that’s moving into that area,” Harmer said. “But timelines are fluid. Right now, we are developing a plan and getting some cursory approvals and making sure everyone is on board with the vision.

“We are trying to incorporate a short-, mid- and long-term optic to show what the planned expansions are. And we are still trying to acquire a couple more parcels. But it’s all contingent on capitalization and approvals. I think we will offer such a great product that hopefully we will have a lot of allies to help us.”

 

Kris Thompson, project manager for Storey County’s Tahoe Reno Industrial Center and TRI II, a new 20,000-acre industrial development slated for the south side of Fernley, said TRI II and SAMSARG’s recent acquisitions actually share some property boundary lines.

Thompson said expanded services at SAMSARG Field and Silver Springs Airport could prove beneficial to corporate executives and likely would become a part of marketing efforts for the new industrial park.

“It would be great having an operational airport right next to our new project,” Thompson said. “It would be wonderful because commuter and executive flights are becoming more popular, especially coming out of the Bay Area because of the traffic.

“We have long been supporters of the airport at Silver Springs. The fact that they are upgrading the airport just shows how Fernley is becoming the next epicenter of development along the I-80 corridor and Northern Nevada as a whole.”

Based in Carson City, GRASS is a Qualified Opportunity Zone Fund (QOZF) and an IRS-designated Qualified Small Business Stock (QSBS) that invests in aviation, regulatory technology, aircraft hangars and drones. It announced in June the opening of its Reg A+ funding round after receiving federal approval; the minimum investment is $1,000.

GRASS fund logo.

SAMSARG Inc. is an aircraft parts, manufacturing and maintenance company headquartered in Lyon County that focuses on modifying U.S. government aircraft for specialized missions. It also secures hangar facilities that require focused specifications to service transport and cargo aircraft, including security system installation, additional maintenance and complex compliance documentation.

The company has received significant tax breaks from the state of Nevada to do business in the Silver State.

In September, the Nevada Governor’s Office of Economic Development approved $180,750 in tax abatements over 10 years for SAMSARG for its Tiger Field project in Fernley. The company will be required to create 25 jobs in its first two years of operation at an average weighted wage of $32.88 per hour.

“The company expects its workforce to reach 147 employees in five years,” according to a GOED press release. “SAMSARG will make $1.2 million in capital equipment investment within its first two years of operation and generate $6.1 million in tax revenue over the next decade.”

Go here to view SAMSARG’s September 2021 application with GOED.

Meanwhile, in December 2020, GOED approved an additional $126,646 in tax abatements for SAMSARG for its entry into Silver Springs, in exchange for producing $6,417,240 in tax revenues over the next 10 years.

According to a Dec. 2 GOED press release, the company will initially create 25 jobs at an average wage of $53.88 per hour for the Silver Springs project, which notes that the estimated economic impact over the next 10 years is $725,722,245, which includes “180 jobs in addition to an estimated 46 construction jobs.”

Go here to view SAMSARG’s December 2020 application with GOED.

NNBW Editor Kevin MacMillan contributed to this report.

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).

__________________________________________________________

“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/