LVN Editorial: Think twice on Innovation Zones

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Every county government in Northern Nevada must take notice of what’s happening with the latest wave of technological innovations, especially when it comes to carving up more of this beautiful, rustic state.

A proposal endorsed by Gov. Steve Sisolak calls for the construction of an innovational city in the desert between Reno and Fernley. A blockchain technology firm has proposed an Innovation Zone and smart city which would be financed by private investment. Jeffrey Berns, founder and CEO of Blockchains, LLC., envisions “tens of thousands of good paying jobs” and said the state would reap billions of dollars in new taxes.

Nevadans and Legislature need to think twice on this proposal if a bill comes before the lawmakers for a vote.

Furthermore, Berns said the Innovation Zone will be developed on its own property and provide its own government. He vows it won’t be a company town.

“It will be run by an elected board of local citizens responsible to the state and Legislature in the same way every city and county in Nevada currently is,” he wrote in an opinion column.

Berns’ firm that partially depends on a cryptocurrency base owns roughly 68,000 acres or about the size of Reno.

The proposal also calls for building up to 15,000 units in Painted Rock, an area in northern Storey County currently dotted with a few ranches and homes along the Truckee River. A masterplan for the area is zoned for 3,500 homes. Storey County commissioners said it was not interested in re-zoning the area. Whatever the plan, pastoral land would be ripped up for development, and the encroachment of urban blight would spoil the Truckee River’s beauty.

That size of development would surely clog Interstate 80 with additional traffic, perhaps making the trip from Reno to Fernley an hour journey during certain times of the day. Churchill County residents have told us it takes 90 minutes or more to travel to Reno depending on the traffic leaving or exiting the Tahoe Reno Industrial Center.

Could you imagine the commute time, traffic and frayed nerves if more people are on the Interstate without any structural improvements such as the addition of another lane or a secondary route to the USA Parkway?

According to news reports, the city of the future would also gain power over law enforcement, taxation and land management decisions. A governing board would have two members from the company on it.
Needless to say, it isn’t a surprise that there’s opposition to the plan. The Storey County Commission has voted against “separatist governing control” and said it doesn’t want the county carved up. Sisolak, though, recently convened a panel to discuss Innovation Zones and how they can benefit Nevada.

Likewise, Lyon County commissioners also voted in early March to oppose separate government. This should be a warning for other counties that could face something similar.

Of note, Blockchains also donated $10,000 to Sisolak’s campaign for governor in 2018 and another $50,000 to a PAC to help him transition into new office.

First and foremost, while Innovation Zones may be the wave of the future, counties should not be 
usurped for providing services or their decisions. County governments report to all residents within their boundaries and must be responsible for overseeing the operation of schools and county services.
Second, water IS an issue. After all, this is the desert, and Blockchains LLC’s proposal is to tap into a water supply 100 miles away. The proposal is to take from the aquifers near Gerlach that are used for agriculture. Other news reports state many water transfers could face opposition from the Pyramid Lake Paiute Tribe, Washoe County, the Bureau of Land Management and the Sierra Club.

Water rights usually take the various courts years to rectify.

Could the Orr Ditch Decree, which gives the federal government control of the Truckee River and ensures parties follow the legal order on water usage, come under fire? Water is diverted from the Truckee River at Derby Dam, and, therefore, the Truckee Canal provides water to the Fernley-area and then empties into the Lahontan Reservoir for use downstream in Churchill County.

Could Churchill County face something similar? After all, tech firms are eyeing the land near Hazen for a massive technological development. Would Churchill County commissioners be anxious to turn over government control to Innovation Zone-type communities? We hope not. Commission Chairman Pete Olsen said he favors planned growth. Any innovation proposal, though, is looking more like growth in the fast lane.

We’re not on board with the proposal at this time.

While technological cities of the future require more scrutiny, studies must be completed on the effects of growth along the Truckee River and the inadequate infrastructure of Interstate 80; self-governance as opposed to county oversight; and available water sources. Until those issues are fully resolved, we also oppose the full throttle approach to the project, and if the studies come back against the Innovation Zone, then the project should be abandoned.

This editorial is the opinion of the Lahontan Valley News, a member of the Nevada News Group.

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