Mayoral hopeful Tom Tatro said future development agreements with Douglas County could help ensure Carson City's economic stability in the future.
With the capital's limited land resources and dependence on retail sales tax dollars, the city needs to look at way's to limit the threat of losing potential big box retail just because there is an invisible border marking county lines.
Development in northern Douglas County has threatened to pull vital sales tax dollars out of Carson City. Target and Home Depot had looked at locations in Carson City, but ultimately took up space off Jacks Valley Road, giving them a Carson City address but sending all their sales tax dollars to Douglas County. About 40 percent of the city's budget is made up of sales taxes.
"Our tax structure forces us to attract retail trade," Tatro said. "We want to keep our property taxes low. We want to provide a certain level of service. Sales tax is the one thing you can't influence. I think there's a strong enough interest for us to work together. (Douglas County) really needs the infrastucture. Should water service stop just because there is a county border? Maybe we can find a way to let them buy into our sewer and water and find a way to benefit from the deal. You don't do it if you can't break even, though. It would have to be a cooperative effort. It would be a lot of work, and it may not materialize, but I don't think it is just something to ignore.
"The alternate is they're eventually going to develop, and we're either going to be in a position to help, or they'll be ahead of us and we'll fall short. We need to work with our partners, but we need to make them our partners first. "
Tatro doesn't take credit for the idea to work with Douglas, and it's not an unfamiliar concept to incumbent Ray Masayko.
"Does it make sense because you see the county line that you don't extend infrastructure to the sphere of influence?" Masayko said. "I certainly know what feeds city services. It's sales tax. We need to think outside the box. It doesn't have to be an 'I win, you lose' process. There is an approach out there for both counties to participate in a joint cooperation sharing of sales tax revenue. Whether we come to a conclusion that works for both political subdivisions remains to be seen. But we are willing to talk about it. We need to set aside political boundaries, and I think Douglas County might be more willing to do that since I took office."
Both Masayko and Tatro agree that government's main role is not bound to economic development.
"The mayor and the Board of Supervisors create an environment where business can develop," Tatro said. "The city manager is the CEO of the company, the mayor is the chairman of the board. He needs to help set priorities and policy. Our economy depends on having an intelligent level of regulation."
In rural Nevada where economic development is stagnant, government needs to step in, Masayko said, but Carson City has "enough people motivated enough to turn their land into something viable."
"People want to come here," Masayko said. "We have low taxes, we're easy to work with. We have an image. I'm part of that image and so are the Board of Supervisors and (City Manager) John Berkich. Businesses want to know, are we professional? Can we speak with them? We try to present the best image we possibly can."
While Masayko said he feels the city's economy is "good," Tatro said he sees a brewing sense of stagnancy.
"Government is a major employer, and you're not going to see a lot of growth there," Tatro said. "Gaming - the Pinon Plaza is expanding, but the Ormsby House is going to close. Supply One is out, Lowes is in. there's not any really significant gains in any area."
Masayko said gains in the capital's manufacturing center has been a little stagnant, but there's not a lot the city can do about it.
"Low taxes, low regulations, these are the things we can do something about," Masayko said. "I think we're doing what we need to do."
Both Tatro and Masayko noted that working with the Northern Nevada Development Authority and the chamber of commerce is one of the best ways the city can encourage economic development. Tatro said he wants to see business locate here because of the excellent quality of life. Both also said they'd like to see more high-tech business come to Carson City.
"What do they need to help bring in higher paying jobs, higher technological companies?" Masayko asked. "I say higher end, not the highest end, because that's what's attainable. Would we encourage the NNDA to focus on getting manufacturing and a low of low paying labor jobs? No. We want the to raise the bar to something that is attainable."