CARSON CITY, Nev. -- Nevada lawmakers negotiated a complex package of up to $1.3 billion in tax breaks and other incentives for Tesla Motors on Wednesday after Gov. Brian Sandoval ordered a special session he said is necessary to seal the deal to bring the electric car-maker's $5 billion battery factory to the state.
Sandoval urged legislators to seize an "extraordinary opportunity" to land the $5 billion "gigafactory" and tens of thousands of jobs he said would help pull Nevada from its worst economic crisis in state history.
Senators and Assembly members chatted in hallways lined with lobbyists, and the first signs of opposition to the corporate giveaways began to surface before the two houses formally began debate Wednesday afternoon on a series of bills aimed at bringing the plant to an industrial park east of Sparks.
A coalition made up of unions, teachers, environmentalists and minority activists urged lawmakers to slow their consideration of the unprecedented package.
The groups join in the excitement surrounding Tesla's plans, but their enthusiasm is tempered by any questions about the deal brokered in secret with the California-based company, said Bob Fulkerson, state director for the Progressive Leadership Alliance of Nevada.
Outside, backers of a Nevada film tax credit that would be gutted to help pay for unprecedented tax breaks for Tesla Motors protested with signs that read, "Keep Nevada Film Alive," and "Movie Industry Jobs Are Now."
Majority Democrats in the Senate and Assembly intended to open the session Wednesday to begin work on the package the Republican governor says would help further diversify Nevada's hard-hit, tourism-based economy through new and innovative technology.
The special session could last days.
Sandoval said the lithium battery gigafactory and its 6,500 workers would generate construction and other related jobs and billions of dollars for Nevada's economy over the next 20 year.
Little public opposition has emerged among lawmakers since Tesla Chief Executive Officer Elon Musk announced alongside Sandoval on the Capitol steps last week that Nevada had beat out California, Texas, Arizona and New Mexico for the factory expected to open in 2017.
Sandoval's proclamation doesn't name Tesla, but covers the seven categories in the blueprint his Office of Economic Development outlined on Thursday when Musk said Nevada was the best fit for his venture, which is critical to cutting costs for his next line of more affordable electric cars.
Lawmakers toured the expansive site at the Tahoe Reno Industrial Center along I-80 about 15 miles east of Sparks on Tuesday. And Assembly Minority Leader Pat Hickey, R-Reno, said he was prepping for "an all-nighter if necessary" after late-night briefings scheduled with the governor's staff.
Ralston Reports' Jon Ralston reported the proclamation wasn't signed until just before midnight partly because other Nevada companies were making a last-ditch effort to secure a way to win sales tax breaks similar to those being offered to Tesla.
Even before Sandoval signed the order, dozens of lobbyists had registered to represent more than 30 companies and organizations at the special session, including labor unions, chambers of commerce, school districts, auto dealers, health care organizations, utilities, manufacturing and other trade groups, and even Black Rock City LLC -- the organizers of the annual Burning Man counter-culture festival.
Business on 09/11/2014