The highly controversial Innovation Zones proposed legislation skidded to a halt late last month when Governor Steve Sisolak hit the brakes on his idealized project. Amidst speculation, pushback from many concerned parties, and potential scandal, Sisolak recently decided to pull the bill and “establish a Joint Committee that will allow the continued analysis and exploration of Innovation Zones beyond the 2021 Legislative Session,” according to a press statement on April 26.
Unveiled in his 2021 State of the State Address, Steve Sisolak proposed Innovation Zones legislation. According to Sisolak, Innovation Zones will draw companies that are developing groundbreaking technologies to Nevada. “This will be done without tax abatements or public financing,” stated Sisolak in his January address. Largely behind the concept lies Blockchains, LLC, a major technology company now based in Sparks vying to lead the way in innovative cryptocurrency and blockchain technologies. With that technology, they plan to build Nevada’s first smart city.
Blockchains, LLC, purchased 67,000 acres in Storey County in 2018 in and surrounding the manufacturing and technology mecca in the Tahoe Reno Industrial Park. With 20,000 acres slated for a smart city, Blockchains terms the project their “Sandbox City” – which includes the concept of installing an independent government on par with Nevada’s other county governments. According to the Story County manager, Austin Osborne, “This would carve out a part of Storey County and create another county.”
This caveat to the idea of making the Silver State an appealing option for innovative tech firms has not been well received. Not only does Storey County leadership oppose the bill in its current form, but the Nevada Chiefs’ and Sheriffs’ and Nevada Association of Counties also expressed opposition, among others.
“I recognize there are limitations that come with a biennial 120-day session – never mind one taking place in the midst of a historic pandemic that requires state officials and legislators to direct their energies to the impact of COVID and the critical response needed,” said Sisolak in his press conference. “Innovation Zones is a bold proposal for our State that deserves additional attention and discussion – and not under the pressure of less than 40 remaining days in the current legislative session. I know that legislators, stakeholders, and Nevadans still have questions, and I want those questions to be discussed and answered. I want people to be enthusiastic about this opportunity, not skeptical about a fast-tracked bill. Nevadans deserve that, and I believe this Special Joint Committee is a perfect solution to explore this economic opportunity.”
Sisolak proposed a special joint committee comprised of members from each house representing the majority and minority parties. “This plan will allow for additional time to vet this proposal and include critical stakeholders, including tribal leaders, water authorities, environmental groups, labor organizations, economic development authorities, local jurisdictions, and interested tenants,” said Majority Leader Cannizzaro during the press conference. “This alternative proposal allows legislators and Nevadans the ability to fully vet and remain open to economic opportunities that can create high-skilled, high-paying jobs for Nevadans.” Echoing this, the Speaker of the Nevada State Assembly stated, “We understand that there are outstanding questions that deserve discussion and vetting, and this path forward will allow us to remain open to economic diversification while determining the full impact to our State.”
There is speculation that Sisolak’s decision to pull the legislation, which followed news of a sexual harassment lawsuit against Blockchains, LLC owner Jeffery Berns and his wife Mary, was strategic. “The governor, and our entire office, take any allegation very seriously,” said Sisolak’s Chief of Staff Michelle White, in a statement on April 22. “The policy, when we think of Innovation Zones in this legislation, is separate from any one individual or business.”
Despite the formation of the joint committee, Nevadans are closely watching Sisolak’s Innovation Zones and Blockchains, LLC. Both the company and its owners, Jeffery Berns and his wife, have made substantial contributions to Sisolak’s gubernatorial campaign, the Nevada Democratic Party, and other Nevada lawmakers in the last few years. While the governor and his chief of staff assert that the legislation is separate from Blockchains, Sisolak previously stated this legislation would lead to an infusion of jobs and revenue into Nevada’s economy. “Following passage of my Innovation Zone legislation, Blockchains, LLC has committed to make an unprecedented investment in our state to create a smart city in northern Nevada -- making Nevada the epicenter of this emerging industry and creating the high paying jobs and revenue that goes with it.”
The Innovation Zones bill may not have made it out of the 81st Legislation Session intact, however, that does not mean the concept died on the floor. Most likely, Nevadans can expect a lot more to come on its futurist Sandbox City. – by Leanna Lehman
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