When a leading bicycle parts distributor relocates to Carson City in late October, it will bring with it employees looking for affordable housing.
Josh Greenberg, managing director of Veltec Sports, said company executives narrowed the field down to five cities before they selected Carson City as the most desirable location for its 30,000-square-foot center.
Ultimately the area's lower housing costs, mild weather and proximity to Lake Tahoe and California prevailed.
According to records from the Carson City Assessor's Office, the average price of a home in Carson City was $347,800 in the second quarter. While this may sound high to some locals, it's nothing when compared to Monterey, Calif.
"The median price of a home here is $700,000," Greenberg said Monday. "We've been here for 25 years, but it doesn't allow any of our people to be able to afford to live, even on a good salary. It's people first."
The company is leasing 5070 Sigstrom Drive and plans to be fully operational by Nov. 1. It will service 3,000 bicycle specialty retailers in the U.S. and Canada.
Proximity to California was also vital in the decision because the company has many retailers there. Fourteen employees will relocate to the area. Another 14 will need to be hired here, he said. Veltec will need warehouse workers, managers, customer service and marketing professionals.
Carson City has long attracted manufacturers and distribution centers to its northeast industrial area. The Carson City manufacturing sector saw a .4 percent employment increase in 2003-04, according to a report issued by AngelouEconomics for the Northern NVision study. Those jobs pay an average annual wage of $41,000.
Veltec also considered Portland, Ore.; Denver; Galveston, Texas; and Nashville, Tenn.
"We looked at recreation, which is part of our business," the managing director said. "Our people cycle, ski and snowboard. They are young and very athletic."
After an employee poll, Portland and the Reno area were the top two.
"Of course, sun outweighed clouds big time," Greenberg said.
Veltec is a privately owned by a Dutch company.
The exact amount of Veltec Sports' contribution to the local economy is not yet known, said Larie Trippet, Northern Nevada Development Authority business development manager. He's working on the company's business incentive application to the Nevada Commission on Economic Development.
Veltec will be applying for the standard sales and use tax abatement, personal property tax abatement and modified business tax abatement.
"We welcome Veltec to Carson City to provide the additional new jobs, which will have a positive impact on the economy," Trippet said. "Veltec chose Northern Nevada for its outdoor quality of life, which is in alignment with their business of distributing bicycle parts."
• Contact reporter Becky Bosshart at bbosshart@nevadaappeal.com or 881-1212.