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Celebrating Nevada's 144thFive Silver State businesses discuss where they came from, how they got here and where they're goingNevada marked its 144th year of statehood on Friday, and the Business Press thought it would be a good time to take a look at some of the businesses with rich histories in Southern Nevada. Some of them have deeper ties to the state than others, but all are operated by die-hard members of the business community who foresee nothing but prosperity for Nevada businesses in the future. Below you will find snippets about Boyd Gaming Corp., Nevada State Bank, Cashman Equipment, law firm McDonald Carano Wilson and Terra West Property Management -- all are models of business success. Each has a unique tale and a unique place in Nevada’s past, present and future. Happy Birthday Nevada! BOYD GAMING: A 'can-do’ attitude
In recent months, the gaming and resort industry has taken it on the chin from several angles, with the near-term outlook bleak. "I think we’re going to have a rough couple of years," Boyd predicts. For the company, that has included halting work on the $4.8 billion Echelon project in midstream. Still, he remains confident that the core industry that has sustained Las Vegas for decades will win out over time. "We seem to have a 'can-do’ attitude here that is lacking in other cities," he said. "It is something that we started many, many years ago and it just became part of the culture." Three decades ago, many observers predicted the decline of Las Vegas when gambling was legalized in Atlantic City, only to have the city reinvent itself and trigger a run of growth that has built it into the resort and convention behemoth it is today. He expects the cycle to repeat itself once again and ultimately bring back the area stronger than ever. Boyd came to Las Vegas with his parents in 1941, when the population was just under 9,000 and there was only one resort on what would later be called the Strip. Starting with his father, Sam Boyd, the business that evolved into Boyd Gaming became a pioneer in building places aimed at locals. It started with Sam’s Town in 1979. It included not only a casino but also restaurants, a bowling alley, a movie theater and other amenities. "We provided something for the residents," he said. "We see plenty of customers five or six days a week. It is practically a second home." Who they are: A publicly traded casino and resort operator. How many they have: 23,000 employees at 16 locations in six states How they grew: Sam Boyd arrived in Las Vegas in 1941 with $80 to his name and started work as a dealer. In the 1950s, he worked his way into a position to buy an interest in the Sahara. After other stops, Sam Boyd opened the California on Fremont Street in 1975, then opened up the Boulder Highway Strip with Sam’s Town in 1979. Sam’s Town in Tunica, Miss., was the first Boyd property outside Nevada in 1994. Current Chairman William Boyd joined his father in the casino business in 1973 after a career as an attorney. The two started the company the next year. It went public in 1993. NEVADA STATE BANK: Funding the entrepreneurial spirit As a banker, Dallas Haun has been all too close to the tsunami of foreclosures that has crashed over the Las Vegas Valley. With the inventory of homes for sale or in foreclosure still exceeding a year’s supply, heavy debt loads weighing on gaming companies, and the financial system struggling nationally and internationally, Haun, the president and CEO of Nevada State Bank, expects a recovery could be a couple of years off. "Collectively, there are a lot of moving pieces," he said. "We had a perfect storm here." But after that, watch out. "We are very bullish on Nevada," he said. "This will remain a destination resort and a nice place to come to live, work and retire." When the worst passes, he suspects Nevada will come back much more quickly and strongly than many other regions of the country. "The basic economic engine is stronger here than a lot of other areas," he said. Looking to that future, the bank in September assumed the insured deposits of Silver State Bank after it was seized by federal regulators. Banks with strong capital bases often use recessions to build market share. In particular, the Las Vegas Valley has an entrepreneurial base that has formed the core clientele for Nevada State, a subsidiary of Salt Lake City-based Zions Bancorp, during its 49-year existence. It is in this sector that Haun believes the bank has made its lasting mark on the community. "Nevada is known as an entrepreneurial state and we have played our part in funding thousands of entrepreneurs," he said. Who they are: Oldest state-chartered bank in Nevada, now a subsidiary of Salt Lake City-based Zions Bancorporation. As of June 30, Nevada State held $3.8 billion in assets and generated $17.6 million in profit during the first six months of 2008. How many they have: 926 employees in 77 branches, including those involved in the takeover of Silver State Bank. How they grew: Opened in late 1959 after 12 businessmen raised $600,000 in initial capital. First ATMs were brought on line in 1983. By the following year, the 25th anniversary, the branch network had grown to five. In 1985, Zions purchased Nevada State. Pioneer State Bank was merged into Nevada State in 1999. The bank won bidding for $737 million of insured deposits held by Silver State Bank after it was seized by federal regulators last month. CASHMAN EQUIPMENT: From Hoover Dam to Henderson Front loaders and backhoes move earth in what is now an increasingly rarer site: New construction in the Las Vegas Valley. Despite an economic downturn that is threatening to be one of the worst recessions in a generation, Cashman Equipment remains strong. The supplier of heavy equipment since 1931 is moving into its new 308,000-square-foot campus in Henderson. The location, near Eastern Avenue and St. Rose Parkway, is a far cry from the company’s headquarters for almost 30 years -- on Craig Road in North Las Vegas. The city used eminent domain to take seven acres of the 23-acre Craig Road site for the planned Craig Road interchange. A rental operation will remain to serve customers on the valley’s north end. Cashman Equipment Chairwoman and Chief Executive Officer MaryKaye Cashman said the new complex was planned a few years ago. "When we started, it wasn’t a tough time," she recalled. "I would imagine (today) I wouldn’t have designed such a large complex." Cashman Equipment’s customers are having a tough time, and that’s resulted in a 30 percent to 35 percent drop in business since "the peak years of ’04, ’05 and ’06," she said. But sitting in what will be the new rental office on site, Cashman is confident the company she’s headed since 1995 will continue at a comfortable pace during what may be lean times ahead. An inventory reduction is part of the cost-cutting for the company founded by James Cashman 77 years ago to aid in construction of Hoover Dam. The CEO is letting attrition trim the number of employees and doesn’t expect layoffs. She credits sensible growth in the boom years as part of the reason Cashman Equipment is not struggling today. Diversification into Northern Nevada mining also has proved a great move as construction continues to fall in Southern Nevada. Strong gold mining, she said, is still helping her Nevada company. And if she ever needs guidance, she reflects on her late husband and Cashman heir, James Cashman III. "I ask myself, 'What would James III do?’" she said. She is projecting a comeback for the economy in 2010, but found recent comparisons to the recession of the early 1980s amusing. "Did they ever admit there was a recession in the 1980s?" she asked. Who they are: The equipment sales, and now also rental, company formed to help in the building of Hoover Dam in 1931 by the legendary Nevadan James Cashman. How many they have: about 750 (with close to 375 of those in Southern Nevada) How they grew: From 20 workers in 1931 to an operation that now includes equipment rentals and mining. MaryKaye Cashman was the only female CEO of a Caterpillar dealership in the United State when she took the helm for her late husband, James Cashman III, in 1995. He died suddenly of a heart attack at age 45. MaryKaye Cashman is the majority owner. Leah Benjamin and Rhonda Evans (James III’s sisters) are minority owners. Cashman’s new 308,000-square-foot headquarters is scheduled to open today. TERRA WEST PROPERTY MGMT: Managing through it all When Deborah Ogilvie and Katherine Matheson began managing residential properties three decades ago, the homeowners association was still a new and exotic creature. "There were about 20 HOAs back then, so most people didn’t know what they were doing," said Matheson, who was among them. When drafting their first management agreement, she and Ogilvie checked out a sample from the public library and basically followed it. With an estimated 2,000 HOAs now in the area, the Terra West Property Management that they co-own has grown with the industry. And they like to think that they have helped bring some order to HOA management. "We’ve been pretty much on the forefront of establishing policies and procedures," said Matheson. "Before, it was the wild, wild West." But with the environment came the opportunity that allowed them to forge ties to the local builders that once dominated the market here. They built their presences so that they made the transition from handshake deals in the era when local builders dominated the market to the low-bid contracts sought by large national developers. While Terra West has continued to thrive during a toxic market because of its focus on management instead of brokerage, the partners have divergent outlooks on the region’s future. "We’re a service our clients have to have," Ogilvie said. Matheson added: "This city has been through tough times before, in the ’60s, ’70s, ’80s and ’90s and came back every time. It’s a given that this city will overcome the current downturn and will grow again. This town’s going to be fine." Who they are: Property managers in both Las Vegas and St. George, Utah. One division manages about 170 homeowners associations with close to 50,000 units, including master planned, townhome and condo communities. A second division manages about 1,000 single-home rental properties. How many they have: 125 employees in four offices How they grew: Started in 1979 as a division of Americana Group Realtors, when Deborah Ogilvie and Katherine Matheson began managing 15 single-family homes and one association. The two went on their own in 1982 as KGDO Holding Co., growing steadily with the area. They opened a Henderson office in 2004, a northwest office in 2006 and one in St. George in 2007. McDONALD CARANO WILSON: Homegrown and resilient The scenic view from the 10th floor of the U.S. Bank building on West Sahara Avenue is striking as the backdrop to McDonald Carano Wilson’s managing partner’s office. The traffic and buildings below demonstrate just how much the state has grown since Bob McDonald and then-Sen. Alan Bible opened the law firm in 1949. The firm began as a Reno-based law office only but in 1986 moved into Las Vegas and evolved into the McDonald Carano Wilson of today. That evolution also resulted in the additions of more long-time Nevadans such as its managing partner, George Ogilvie, who’s been with the practice since 1992. He discussed the metamorphosis from a general practice into a specialized business firm. "Back in the early 1950s, the firm wasn’t as sophisticated as it is now. They did estate planning and divorces," Ogilvie said. "Divorces were a significant part. They started with two employees, including (McDonald and Bible)." Divorces were a big part of the firm’s early years in the office that also housed the Reno Gazette-Journal, co-founder Bob McDonald recalled in a 2003 interview with the Business Press. "Reno, at that time, was a big divorce town, McDonald said. He added that the demand for divorce declarations was so great that many lawyers would meet clients at the airport. McDonald’s attorneys didn’t do business that way, however. The early 1950s brought changes. A federal law prohibited senators from practicing law privately. That measure meant Bible had to leave the firm. He was replaced by Thomas "Spike" Wilson and Don Carano. Between the mid-1970s and mid-1980s, the firm began to become what people recognize today as McDonald Carano Wilson, Ogilvie said. Government affairs and regulatory work were complemented by gaming and contractor clients, and now employment law, while the firm maintained its general practice roots, the managing partner said. McDonald Carano’s lawyers and lobbyists have been at the forefront of some hot-button issues, including the Coalition for Fairness in Construction’s successful legislative push for the so-called "right to repair." The firm also plans to add a renewable-energy practice area. To that end, McDonald Carano Wilson has just hired longtime Southwest Gas general counsel Thom Sheets, Ogilvie said. The economic turmoil gripping Southern Nevada and the nation hasn’t dampened business for McDonald Carano Wilson, Ogilvie said. Revenue is still good for the law firm, which serves clients, including Nevada State Bank, Boyd Gaming and Herbst Gaming. Ogilvie remains bullish on the valley’s future. "As soon as the national economy turns around and people feel less fearful of spending their discretionary income, they’ll return to Vegas like they always have," he said. One thing that won’t change is the Nevada firm’s "no mergers" stance, its managing partner said. In spite of the changes and influx of out-of-state law firms into the state, Ogilvie vows to keep the company homegrown. "It is our long-range plan that we will remain a Nevada-based firm," he said. Who they are: One of the state’s oldest law firms; one of its founders was former lawmaker Sen. Alan Bible, who eventually was forced from the practice by federal law. How many they have: 50 attorneys How they grew: First started as a general practice firm in Reno in 1949 that specialized in areas such as divorce, McDonald Carano Wilson has successfully branched out into Las Vegas in 1986 and has developed gaming, real estate, construction and government affairs practice areas. Most recently, the firm added renewable energy to its menu. McDonald Carano Wilson represented the Nevada Tax Commission in a lawsuit brought against the commission by then-Nevada Attorney General George Chanos for allegedly violating the open meeting law. The longest-actively practicing partner is Thomas "Spike" Wilson. The longest-standing partner in the firm is co-founder Robert McDonald. |
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