Nevada business recruiters try again in Golden State

Nevadans aren't too subtle, at least when it comes to wooing California business.

Dressed in bear suits outside the state Capitol, the state's business recruitment team chose tax-filing day to pass out gummy bears and hoist signs telling their neighbors that it was "Time to Feed the Bear."

Behind the high jinks was serious business for the Nevada Development Authority, which trumpets its success at luring away Golden State business owners frustrated by taxes and regulatory burdens despite a study that brings balance to this boast.

"When we talk to California companies, they're looking for a business-friendly state" and responsive local government, said Somer Hollingsworth, president and chief executive officer of the Las Vegas-based economic development organization.

The Nevadans recently announced a decision by Palo Alto-based solar firm Ausra to install a 130,000-square-foot solar assembly facility near Las Vegas.

But John O'Donnell, an Ausra executive vice president, said it's not quite fair to suggest Ausra is fleeing the Golden State. Ausra plans several facilities in California larger than the one near Las Vegas, he added.

Indeed, most California businesses stay within the state when they relocate rather than head across state lines, according to a recent report by the Public Policy Institute of California.

Between 1992 and 2004, California had a net loss of just 11,000 jobs out of 18 million, the PPIC found, and nearly as many business came to California as left.

"The findings … provide more evidence from PPIC that business relocation and job loss are not straightforward evidence of a hostile business climate in the state," PPIC officials said.

Yet, the Nevadans contend their staged events and advertising blitzes are luring prospects, and Hollingsworth said his team will be out in force at June's BIO International Convention in San Diego.

"We're not shy about making our intentions clear, and our intention is to bring California businesses to southern Nevada," Hollingsworth said in a statement prior to Tuesday's event.

Such efforts underscore the need for state government and business to work together, said California Chamber of Commerce President and Chief Executive Allan Zaremberg.

The staged demonstration inspired impassioned responses from chamber officials and at least one passer-by.

"We're the Golden State. They're the Silver State. That's what they call themselves, right? You have to do desperate things when you're in second place," said Michael Faust, vice president of public policy at the Sacramento Metropolitan Chamber of Commerce. "California is where innovation happens for the world. Dancing bears are great, (but) business goes to where the talent is. If you want a safe place to do business with an educated work force, you'd better be in California."

Outside the Capitol, a curious Davi Rodrigues of Sacramento videotaped the proceedings.

"Looking at it as a California resident, you don't want others exploiting your weaknesses. And Las Vegas? What do they have? It's the desert, for goodness' sake," Rodrigues said.

He paused for a moment, musing on California's budget deficit, and added: "They put on a good show. Maybe we should hit them up for a loan."

About the writer:

• Call The Bee's Darrell Smith, (916) 321-1040. The Bee's Bob Shallit contributed to this report.