CITY OF RENO NEWS RELEASE
In keeping with the Reno City Council’s goal to promote a sustainable and vibrant economy, the Council has approved two measures to spur economic development in Reno. The Council approved a Catalyst Fund Reimbursement Agreement between the Nevada Governor’s Office of Economic Development (GOED) and the City, and the City and Lincoln Cutting System, Inc.
In the proposed Agreement, GOED, acting through the City, will reimburse Lincoln Cutting System, Inc. up to $125,000 ($5,000 per job up to a maximum of 25 jobs). Lincoln Cutting System, Inc. currently operates an advanced manufacturing facility with corporate offices in Reno. Lincoln is investing approximately $1,145,500 to relocate certain operations from Oceanside, California to Reno. The funding will be used to partially offset the costs of (1) expanding and renovating the current facility, (2) purchasing equipment and (3) relocating key staff. Lincoln will be adding 25 new jobs to its existing 86-person operation.
The 2011 State Legislature established the Nevada Catalyst Funds and a process through GOED to provide incentivizing grants or loans to support economic development throughout Nevada.
In other action, the Council also approved performance measures that will move a new City economic catalyst program forward. The Reno Accelerator Fund will allocate funds for early-stage startups with the ultimate goal of creating new jobs. In October, Council approved contracts with Valley Economic Development Center (VEDC) and NLRK, LLC for economic development services. The companies will partner with the City to allocate $475,000 in Federal Community Development Block Grant (CDBG) dollars
The new measures include milestones and timelines to show the funds are being used effectively by VEDC and NLRK to create jobs and meet other criteria. Through VEDC, larger loans will be provided to more established businesses. The contract with NLRK will support entrepreneurs participating in approved accelerator programs, which are oriented more toward technology based initiatives.