When is a deal done?

It is always exciting when a company expands or relocates to create new jobs for the Capital Region. The question is, when it is appropriate to announce the new project to our members, the Nevada Commission on Economic Development and the media? These specific audiences receive the information at different times, for different reasons.

When the client is ready, and is comfortable with sharing the new information, we announce the facts to our membership first. These sponsors always receive first priority. Because we are a private organization, the new information is announced to the media, the general public and the Nevada Commission on Economic Development at the same time.

But, when is a deal done? Is it complete when escrow closes or a lease is signed? · The check is in hand or clears? The new enterprise opens a bank account, or applies for permits, licenses and pay fees? Or is it complete when they hire their first employee or cut the ribbon with the Chamber of Commerce?

I don't know. You tell me ...

According to Andie Wilson, broker and principal with Coldwell Banker Commercial Premier Brokers, "It depends on who you ask. As a broker, the deal is done when escrow closes or when the lease is fully executed. But from an economic development standpoint, those dates won't work. We've seen potential new manufacturers fail to move forward in Northern Nevada after land is purchased, and I saw a company that would have employed 100-plus fail to move forward after signing a 5-year lease (that they're still paying on!)."

"Business is like a revolving door, it's never done as long as your door is open" notes Marty Kostelny, owner of M&K Builders.

Brian Coldony, managing partner of Kohn-Colodny CPAs, says, "When the paperwork has been filed and the doors open for business, the first part is done; when the business is established and the owner communicates to us that they are thrilled to be in Northern Nevada, the second part is done."

"A deal is done when the land acquisition has closed and construction of the business facility has a fully committed loan," explained Roger Kadz of Plumas Bank. "If the deal is a purchase of an existing building, the deal is done when the buyer and seller enter into escrow and if not a cash purchase, the buyer has a committed loan to consummate the purchase. Both of these situations are expected to result in an operating business that will generate jobs in northern Nevada."

The deal is done "When the first paycheck clears ... just look at Sportsman's Warehouse," says Dennis Smith, Coldwell Banker Commercial Real Estate.

"It's never done. It's always ongoing. Hopefully, in the right direction," said Jack McQuick, retired longtime banker in Carson City.

According to Jim Nickerson, Century 21/Clark Properties, "Never! Never!! Never!!!"

You tell me ...

- Kris Holt is executive director of Nevada Business Connections.