Nevada Briefs - May 2007

Nevada Briefs

Nevada’s Infrastructure Hurting Quality of Life

The American Society of Civil Engineers (ASCE) Nevada Section recently released the 2007 Nevada Infrastructure Report Card assigning a cumulative grade of C to the state’s roads, airports, drinking water systems and other essential public works. The 2007 Nevada Infrastructure Report Card assesses eight infrastructure categories. The grades range from a high of B-plus for wastewater systems to a low of D-minus for drinking water supply. To remedy the state’s current looming problems, ASCE estimates an investment in excess of $5 billion will be needed over a five-year period from all levels of government and the private sector. From 1990 to 2003, Nevada experienced a 92 percent growth rate, distinguishing it as the fastest growing state in the nation.

TREC Investment Realty Unveils New Whole Property Program

TREC Investment Realty, providers of commercial real estate investment opportunities, recently announced a new option for investors called the Whole Property program. The program was created in response to a growing market demand for turn-key, sole-ownership property investments. It offers an alternative to TREC’s 1031 exchange solutions for tenant in common (TIC) or co-ownership programs, which provides investors with a convenient method to own institutional grade commercial properties. The program is ideal for real estate investors and exchange buyers in search of well-located properties with stable cash flow.

Nevada State College Increasing Southern Nevada’s Nursing Workforce

To combat Nevada’s nursing shortage, the Nevada System of Higher Education (NSHE) has made it its mission to increase Southern Nevada’s nursing enrollment. Nevada State College already enrolls 550 pre-nursing and nursing students in its undergraduate program. As of March 2004, Nevada employed 604 nurses for every 100,000 residents – only California’s ratio was worse at 590 nurses per every 100,000 people – according to the U.S. Department of Health and Human Services. If this trend continues, the United States’ nursing shortage is expected to grow to a 36 percent demand shortfall by 2020. NSHE officials are already implementing strategies to combat those projections and have seen a 176 percent increase in enrollment in its undergraduate nursing programs since its base year in 2000-2001.

The Shops in Desert Passage Become Miracle Mile Shops

The Shops in Desert Passage at the Aladdin recently began operating as Miracle Mile Shops. The designation, assigned in part to promote the 1.2 miles of retail space the mall covers, signals the center’s transformation to a more urbanized space. The renovation and re-branding of the Aladdin Resort & Casino to the Planet Hollywood Resort & Casino will cost more than $1 billion. Gensler of Nevada, the Friedmutter Group and Studio B Design are the architecture firms. Flagship Construction Co. is the general contractor. The renovation is scheduled for completion in 2008.

Western Alliance and First Independent Merger Complete

Western Alliance Bancorporation recently announced the completion of its merger with First Independent Capital of Nevada. Privately held First Independent Capital owns First Independent Bank of Nevada. The Bank, which is headquartered in Reno, will retain its current name, management and board of directors. First Independent had assets of $428 million, deposits of $386 million, loans of $285 million and equity capital of $31.8 million as of December 31, 2006. To consummate the merger, Western Alliance issued approximately 2.5 million shares of its common stock and paid approximately $21.9 million in cash to First Independent shareholders.

Silver State Bancorp Files Registration for Public Offering

Silver State Bancorp recently announced that it has filed a registration statement with the Securities and Exchange Commission relating to the proposed initial offering of its common stock. All shares of the common stock are to be sold in the offering and will be offered by Silver State Bancorp. The company is seeking to raise net proceeds of approximately $80 million. Sandler O’Neill & Partners, L.P. will act as lead underwriter for the offering and Howe Barnes Hoefer & Arnett, will act as co-underwriter for the offering.