Ray Hagar

rhagar@rgj.com

Here are six things to consider before the special session of the Legislature to consider a deal between Tesla Motors and Nevada starts Wednesday. Tesla is expected to build its lithium battery gigafactory at the Tahoe Reno Industrial Center, located about 17 miles east of the Reno-Sparks area:

IT'S NOT A DONE DEAL YET: Remember history. President Woodrow Wilson came back from the peace negotiations after World War I in 1918 with the deal to start the League of Nations. Congress never ratified Wilson's great dream. Will the same be said about Gov. Brian Sandoval's dream? Some Southern Democrats are asking, 'What is in this deal for us?' A Northern Democrat and union backer wants to make sure that a prevailing wage scale is used for construction workers hired on to build the facility. No state lawmaker has come out against the proposal but there have been some mummers of discontent.

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ICYMI: Democrats want Tesla to pay prevailing wage, hire locally



How the deal affects you: Nevada taxpayers, here's how the Tesla deal affects you

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POTENTIAL LOSERS: Sandoval is funding the Tesla deal, partially, in ways that hurt insurance companies and film productions in Nevada. Insurance companies with home offices in Nevada have enjoyed tax credits that are worth $27 million a year. Under the proposed Tesla deal, the insurance industry tax break would end and the new revenue would be diverted to the Tesla deal. That's a $27 million tax hike for insurance companies with home offices in Nevada.

Democrats in 2013 pushed and succeeded in passing a four-year $80 million film-tax incentive program. It now will be slashed by $70 million because of the Tesla deal. Also, the Tesla package would include a bill that would allow Tesla and other electric car manufacturers the right to sell directly to the consumer and bypass car dealerships. This was a major issue in Texas not landing the Tesla factory, according to news reports.

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Devil in the details: Is Tesla's $1.25 billion tax break worth it?

Last week: Inside Nevada's $1.25 billion Tesla tax deal

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DON'T LOSE SIGHT OF THE BIG PICTURE: Despite concerns from Democrats, insurance companies and car dealers, Sandoval's staff will hammer home the point to state lawmakers that this Tesla deal is going to be a big boost to all of Nevada. The deal will spur job growth in a still-struggling economy and jump-start a Northern Nevada construction industry that collapsed when the recession hit. Sandoval's staff will ask lawmakers to consider the ripple effect of any and all of the money spent in a $5 billion project.

'ONLY IN NEVADA' ANGLE: Lance Gilman, the major negotiator from the Tahoe Reno Industrial Center, is also the owner of the Mustang Ranch legal brothel. Gilman has been given credit as a major negotiator of the Tesla deal.

He's also a county commissioner in Storey County, where the industrial park is located. Last year, a Storey County jury awarded a $1.3 million judgment to investor Tom Gonzales, who contended Gilman and the Storey County government conspired to bamboozle him out of his share as as secret partner in the Mustang brothel. After winning the the jury's verdict, Gonzales called for the U.S. Justice Department to investigate Gilman and the Storey County government. Gilman is appealing the verdict.

LAWMAKERS BARRED FROM POLITICAL FUNDRAISING: All of the incumbents in the Nevada Assembly and 11 in the state Senate are running for re-election. They will not be allowed to accept any campaign contributions as soon as Sandoval signs the proclamation to begin the session. They will not be able to resume fund raising until 15 days after the special session ends. It may be a reason why some lawmakers want to hurry this thing along. Yet a rush-job may result in lawmakers approving a complex set of bills that they don't fully understand.

THE COST: The first day of the session will cost about $60,000, according to estimates from the Legislative Counsel Bureau. Each additional day will cost about $25,000. The estimates don't include cost of printing and potential overtime for LCB staff.