Highest and Best Use Study of the Babbitt and Schweer Properties in Hawthorne, Nevada, 1998

Highest and Best Use Study of the Babbitt and Schweer Properties in Hawthorne, Nevada, 1998
Highest and Best Use Study
of the Babbitt and Schweer Properties
in Hawthorne, Nevada
Prepared by the Center for Economic Development University of Nevada, Reno for the Board of Mineral County Commissioners Table of Contents
Part 1 Introduction
Highest and Best "Re"-Use Definitions .... . ... . .. .. ... . ...... . .. .. ........ 1 1.1
Private Sector/Real Estate Definition
A Proposed Study Definition
Key Development Opportunities
Reuse Strategies
Physical Description of Properties .. .. . ... . ........... . .. . ... . .. . ... . . . ... 3 2.1
Babbitt Housing Site
Schweer Drive Housing Area
Conveyance Background . ... ...... . ... . ... . .... . .. .. .. . . ... . .... . ..... 5
Babbitt Housing Site
3.1 .1 AuthOrizing Legislation
3.1.2 Authorizing Language
3.1.3 Conveyance Issues
Schweer Drive Housing Area
3.2.1 Authorizing Legislation
3.2.2 Authorizing Language
3.2.3 Conveyance Issues
Part 2 Market Context for Highest and Best Reuse
External Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Population Trends ..... . ................... . ...... . ...... . ....... .. ..
Negative Historical Population Growth Rates: 1969-1994
Positive Growth Rates: 1990-1996
Negative Long Range Growth Forecasts: 1990-2015
Population Counts and Forecasts: 1930-2015
Population Market Segments ....... . ........ .. .. ... .. ............ . . . . .
Hawthorne's Market Segment Shares: 1997
By Population
By Households
Hawthorne's Market Segment Types
Young Frequent Movers
Older Settled Married Couples
Senior Sun Seekers
Baby Boomers With Children
Rustbelt Neighborhoods
Heartland Community
Low Income Young and Old
Newly Formed Households
Industry Linkages .... ......... .. .. .. .. ..... .... . . ... ........ . ... ....
Final Demand Multipliers
Employment Multipliers
Income Multipliers
10 12 25 Hawthorne Army Depot (HWAD) ........... .. ... . .. . ...... . ... . ....... . . 27 5.1
Economic Impact
Current Context: National Defense Panel
InstaHation and Facility Consolidation
Depot Maintenance
Ammunition Tiering Plan (1)
Tier 1 - Active Core Depots
Tier 2 - Cadre Depots
Tier 3 - Caretaker Depots
Manufacturing Opportunities: Proximity and Trends .. . .. . . . .. . .......... . ... 31 6.1
Manufacturing: Nevada #1 in Employment Growth 6.2
California's 21 st Century Economy 6.3
California Regional Clusters (1)
Sacramento Valley
San Francisco/Silicon Valley Area
Southern California Region
San Diego
Export Base Proximity (1)
Export Trends
Small and Medium-Sized Exporters
Nevada: A Fast-Growing Export Base
Proximity to Exporting Metro Areas
Proximity to Pacific Rim Ports
Manufacturing Market Proximity (1)
Manufacturing Areas within 1-Day "Just-in-Time" Delivery
Manufacturing Areas within 1-2 Day "Just-in-Time" Delivery
Manufacturing Industry Sectors by Functions (1)
Design and Prototyping
Manufacturers and Distributers
Custom Manufacturers
Sales and Logistics
Consumer Market Proximity 6.8
Transportation (1)
Reno Airport
Proximity to Pacific Rim Ports
Telecommunications . .... . ............ . .. . ..... .. . .... . .... . .. . ... . . . 41 7.1
Infrastructure 7.2
Business Tasks Supported by Advanced Telecommunications 7.3
Information Processing Industry 7.4
Telework Centers 7.5
Telecommunity (1)
Nevada, Missouri: America's First Telecommunity
Teleconferencing Center 7.7
Electronic Commerce 7.8
Image Warehousing 8.0
Entrepreneurs ....... . .. . .. . . . . . . . . .. ..... . .... . .. . ..... . ... . . . . ... . 51 8.1
"Indiginous" Entrepreneurs 8.2
Equity Retirees "Lone Eagles" 8.3
Retirees . . . . .. . ... . ... . .. .............. .. .... . ....... . .... . .. . .... 55 9.1
Rural Resort Dwellers 9.2
Retirement Communities 9.3
Former HWAD Workers and Families 10.1 10.2 10.3 11.0 Current Conditions Affordable Housing Subsidized Housing Demand Congregate Housing Commercial/Industrial Property ..... .. ........... . . ............ ... .... . . 60 11.1 Commercial Property Supply 11.2 U.S. 95 Traffic Patterns 11.3 Industrial Property Supply Part 3 Babbitt Highest and Best Use
1.0 Highest and Best Use Recommendation . . ..... . ... . . .. ... . .... . .. .. . .... . 61 2.0 Conceptual Site Land Use Plan . . .... ... .. . ... . .. .. .... .. .. ..... . . .. .... 62 3.0 M-1 "Highest and Best" Conceptual Use Plan . . . ......... . . . .. . ........ .. . . 63 3.1 Market Opportunities and M-1 Use Strategies 3.2 M-1 Land Use Allocation Plan 3.3 New Limited C/M-1 Overlay 3.4 Conceptual "Highest and Best" Users of M-1 Property 4.0 Residential "Highest and Best" Conceptual Use Plan ..... ......... .. .. . ..... 68 4.1 Residential "Highest and Best Use" Strategies 4.2 New R-1 HO Home Occupation Overlay Zone 4.3 Summary of Residential Conceptual Plan Part 4 Schweer Highest and Best Use
1.0 Highest and Best Reuse Recommendation .... . ... .. .. .. . .... . .. ... ....... 70 1.1 Market Segments (1) Short Term Seasonal Retirees
(2) 2nd Home Seasonal Retirees
(3) Year-Round Retirees
1.2 Marketing Proximity to Recreation 1.3 Housing Uses 2.0 Achieving "Highest and Best Use" ... .... . .... . . .. . . .... . .... . . .. ..... .. . 70 3.0 Alternative Conceptual Uses for Schweer .. .. ..... . . ... .......... . .. . ..... 71 4.0 Potential Reuse Financial Potential ... . .. ... .... . .... . . ... . .... . .... .. . .. 72 4.1 Schweer Rent Revenue Potential 4.2 Schweer Sales Potential 4.3 Schweer Assessed Valuation Estimate Appendix
Part 1 Introduction
1.0 Highest ang Best <ORe"-Use: Defil)itions
The purpose of this report is to provide "infonnation as 10 highest and besl use
for business!induslriallhousing/recrealion opportunities for the Babbitt end
Schweer properties" as provided in a May 1996 letter agreement between
Mineral County and the Center for Economic Development at UNR.
Highest and best use is usually a real "stat" term traditionally defined as:
· .. the use or utilization of real property that provides the most profitable
return on investment. It is that use, selected from reasonably probable
and legal alternative uses, which are found to be physically possible,
appropriately supported and financially feasible to·resull in the highest
possible land value . .. The optimum use of a site as used in appraisal.
1.2 A P!'QpoSQd Study Definition
For this study, highest and best "reuse" shall mean the use or utilization of
real property conveyed to Mineral County by the Army which will generate
the highest possible land value which, in public sector terms, means
reuses which generate the highest possible development potential. This
study takes the approach that highest and best reuse scenarios should
also consider reuses which also implement community and economlc
development strategies such as job creation, new private investment,
expansion of the tax base, economic diversification, generation of housing
which meets local market gaps, etc.
1,3 K!rLP..!IY1!lopment Questions
Can reuse offset and/or even leverage a turn-around in the
historical and forecasted negative population growth trends for
Mineral County?
Can reuse meet the socio-economic needs and opportunities of
existing local market segments?
Can reuse scenarios be adopted to complement and not compete
with the downtown commercial district?
Can reuse scenarios complement and not disrupt the existing
housing market?
Can reuse support the development of commercial property which
could reduce retail leakage to the Reno/Carson City/Fallon area? Is
there a way to promote Hawthorne as a regional trade center for
northern Nye and Esmeralda Counties?
How can commercial development be targeted to draw on the
almost 1 million vehicles which pass Babbitt annually on US 95
which are estimated to be '1hrough-traffic"? How can the
appropriate commercial mix be used to get through-traffic to stop in
Hawthorne and especially those vehicles using the US 95 by-pass?
Is there a way to tie Mineral County's wealth of minerals into local
manufacturing inputs?
' . How can the recyclables from the demil program at HWAD be
leveraged to recruIT resource recovery/material refining operations
to Hawthorne or be leveraged as inputs andlor raw feed stock for
local manufacturing?
Are there opportunities to recruil mining technology R&D and
services firms to Hawthorne?
How can Hawthorns'S proximity to California, the 8'" largest
economy in the world, and its 21" century-po.moned manufacturing
base be leveraged to develop an enclave of small manufacturing
How should an occupant or occupants be recruited tor the
property? Who should do it? Issue an RFP for reuse proposals or
head-hunt for targeted uses?
Who should pay for property improvements?
What reuses would be consistent with the desires of County
Lease the entire site in whole or in part? For how long? Who would
the lease be with? The County? An intermediary?
Does Hawthorne have the labor force and housing to support the
recruitment of a 150-employee company for Babbitt?
What is the appropriate role of Mineral County and Ihe private
sector in the redevelopment of Babbitt and Schweer? How sMould
the redevelopment process be managed and financed?
1.4 Reuse §trategiel!
The following lis! of "highest and best reuse strategies" support an overall
approach to the reuse of Babbitt and Schweer in relation to current and
future industrial development at the airport industrial park and in relation
to private activity WIThin the commercial and residential areas of
Creale new jobs and expand the tax base by supporting private
sector reuse of conveyed HWAD property
Diversify the local economy by supporting new HWAD missions
and new 3"'-party work by the HWAD contractor
Identify off-base initiatives to support a marketing focus for
Hawthorne which emphasizes the advanced recycling and
environmentallechnologies employed al HWAD
Maximize opportunnies for year-round reuses of conveyed
Maximize opportunities to attract new private investment
2.0 .
Expand Ihe supply of developed land for planned subdivisions to
meet gaps in the Hawthorne housing markel
Provide incentives for private seclor redevelopment that meets
social and economic needs of the community and that accelerates
the creation of new jobs and new private sector investment
Physil'al Description of properties
2.1 Babbitt lioltsing Site
Consists of 440 acres located between the Town of Hawthorne and
the HWAD
2.2 •
Contains 5,900 feet of prime highway frontage on US 95 which is
the main artery between Reno and Las Vegas
Provided low income housing for as many 2,000 persons who were
HWAD employees and family members
Includes: 1 well at 300·600 gpm capacity; 1 elevated water tank:
and 1 surface water tank with 1 million gallon capacity.
All structures have been removed from the site except for the
bowling alley; Roads and underground water and sewer lines
remain in·place
On May 31, 1995, the Board of Mineral County Commissioners
declared the Babbitt site to be blighted pursuant to Chapter
279.388 of the Nevada Revised Statutes.
Drive Housing Area
Located on 33.1 acres of land just north and west of the base
headquarters on Black Beauty Road
The property contains 25 duplex structures built in 1969 and served
as middle class housing for HWAD employees and their families
The stte was last occupied in Odober 1989
The 25 duplexes contain 50 units with a total of 70,672 sf of
dwelling floor space
All units are l·fioor and are of wood construction with car ports
Per Unit :
Sq.Ft. !
Structures Units Bedrooms
Wof Duplexes
130 ~2.bedroom units
1,310 I'
#3·bedrooms units
~.bedroom§ uniL~~5_ _~._40 _ _1Moj
Water, sewer and electricity is provided by the base and is
3.1 •
A large central LP tank is located at Schweer and supplies the 25
duplexes through unmetered supply lines
The Schweer site was vandalized in 1990 and since then all doors
and windows have been boarded and the area fenced in 1994
The lack of grounds maintenance and watering of landscaping and
trees since 1989 has left the SITe in a blighted ccndition
Babbitt Housing Site
3.1.1 Authorizing Legislation
The conveyance of Ihe Babbftl Housing Site from the U.s. Army to
Hawth.ome County was authori;ted by,the 103'" Congre~s in P.L.
103-337 which was enacted on October 5, 1994. Senator Reid
introduced the Babbitt land conveyance by an amendment to
8.2182 Na1ional Defense Authorization Act for Fiscal Year 1995.
3.1.2 Authoril;l!:l9..1al1gyage
The authorizing language for the Babbitt Housing Site as contained
in S.2182 National Defense Authorization Act for Fiscal Year 1995
is as follows:
(a) CONVEYANCE AUTHORIZED- The Secretary aftha A!111y may
convey, without consideration, to Mineral County, Nevada, a/l right,
title, and interest of the Unfted states in and to a parcel consisting
of approximately 440 acres located at the Hawthorne A!111Y
Ammunition Plant, Mineral County, Nevada, and commonly
referred to as the Babbitt Housing Sae.
(b) DESCRIPTION OF PROPERTY- The exact acreage and legal
description of the real property to be conveyed under subsection
(a) shall be determined by a sUivey satisfactory to the Secretary.
The cost of the sUivey shall be borne by Mineral County, Nevada.
require such additional terms and conditions ih connection with the
conveyance under this section as the Secretary considers
appropriate to protect the interests of the United States.
3.1.3 !'onveyance Issu!!l>
There are many outstanding issues which have the potential to
affect "highest and best reuse" of the Babbitt site. The impact of
these issues will remain unknown unlillhe Environmental
Assessment and the final conveyance documents are reviewed.
Preliminary issues which Mineral Counly may want to review follow:
Conve~ance Restrlctio_nl" It is unciear what restrictions the
Secretary of the Army may place in the conveyance deed of the
Babbitt property to Mineral County. There are certain standard
restrictions that attach to all conveyances which will likely not affect
any reasonable reuse of the sHe by Mineral County, It is likely that
certain sile-specific restrictions will be attached to the Babbitt sHe.
Utili!>: Ownersl]m: Transi!ioning utilities between military bases and
local governments is always one of the more complex issues in
reuse implementation. It seems likely that HWAD may retain
ownership of parts or all of the existing water and sewer lines which
connects the HWAD Industrial Area to the bowling alley, to the
elementary school, and south to the 100,000 gallons water tank
No.7. Retention of parts or all ofthess lines by HWAD would retain
the existing looping of lines for overall system pressure and
operational efficiencies. The following is an estimate of existing
water and sewer lines now in service at Babbitt:
Water lines (12",10" + 6")
Sewer lines (6")
13,600 4.100 It is also unknown 8S to what the disposition of the electrical
services will be. It is understood that the Board of Mineral County
Commissioners has established a task force which is focused upon
assurtng that, once the conveyance for Babbitt is finalized, utility
service supporting the elementary school and the bowling alley will
·6· be maintained with no interruptions of services, The coordination of
this task force with HWAD will likely identify more detailed
information as to the likely plans for HWAD transHioning and/or
disposing all or part of the existing utility infrastructure as part of
the conveyance action.
Utility Rates: If HWAD retains all or parts of the existing utility
infrastructure then it is not premature to confirm the terms and
conditions of utility service and utility rates with HWAD. The nature
of these arrangements will have an impact of highest and best
reuse scenarios for Babbitt
Environmental Issues: The Environmental Assessment (EA) for
Babbitt is expected to identify several areas of environmental
remediation which are believed to at least involve lead-based paint,
asbestos, PCBs from the electrical transformers, and the previous
10 acre landfill/bum site. It is assumed that these issues were
known previously and will not represent a delay in conveyance. It is
unknown as in if, and/or to what extent, HWAD will remediate any
outstanding environmental issues identified in the EA and if any
remediation actions will delay constructive reuse by Mineral
County. It is also important to confirm if the Army will retain liability
for any future environmental liabilities discovered at Babbitt.
3.2.1 AythQrizing Legislation
As of August 11, 1997, the 105'" Congress is in the final stages of
authorizing the conveyance of the Schweer Drive Housing Area to
Minerai County. S.936, 'the National Defense Authorization Act for
Fiscal Year 1998", contains the authorizing language for the
Schweer conveyance. S. 936 has been passed by the Senate and
the House version, H.1119, contains identical language regarding
the Schweer conveyance.
3.2.2 AltlhQrjzing kanguage
(8) CONVEYANCE AUTHORIZED- The Secretary ofthe AI711Y may
convey, without consideration, to Mineral County, Nevada (in this
section referred to as the 'County,), all right, title, and interest of/he
United States in and /0 a parcel of excess real property, including
improvements Ihereon, consisting of approximalely 33, 1 acres
localed al Hawthome Army Ammunition Depot, Mineral County,
Nevada, and commonly referred to as the Schweer Drive Housing
(b) CONDITIONS OF CONVEYANCE· The conveyance authorized
by subsection (a) shall be subject to the following condHions:
(1) That the County accept the conveyed property subject to
such easements and rights of way in favor of the United
states as the Secretary considers appropriate.
(2) That the County, if the County sells any portion of the
property conveyad under subsection (a) before the end of
the IO-year period beginning on the date of enactment of
)his Act, pay to the Unne,d Stat'!s an amount equill to the
lesser of­
(A) the amount of sale of the property sold; or
(B) the fair market value of the property sold as determined
without taking Into account any improvements to such
property by the County.
(c) DESCRIPTION OF PROPERTY- The exact acreage and legal
description of the real property to be conveyed under subsection
(a), and of any easement or right of way granted under subsection
(b)(l), shall be determined by a survey satisfactory to the
Secretary, The cost of the survey shell be borne by the County.
require such additional terms and conditions in connection with the
conveyance under subsection (a), and any easement or right of
way granted under subsection (b)(l), as the Secretary considers
appropriate to protect the interests of the Unlled states,
3,2.3 Conveyance Issues
There are several outstanding issues which have the potential to
affect the "highest and best reuse" of the Schweer site.
Conveyance Restriction§: It is unclear whal restrictions the
Secretary of the Army may place in the conveyanee deed of the
Babbitt property to Mineral County. There are cerlain standard
restrictions that attach to all conveyances which wililikeJy not affect
any reasonable reuse of the site by Mineral County. It is likely that
certain site-specific restrictions will be attached to the Babbitt site.
Utility Ownershig: Given the location of Schweer being several
miles norlhwest of the Town of Hawthorne, it is not likely that
Schweer would be annexed to the Town in the near future or that
the municipal water and sewer services will provided, It is
understood that the existing on-site water, sewer and electrical
lines within the 33.1 acres of the Schweer site will be transferred
and owned by Mineral County. HWAD will maintain ownership of
the water, sewer and electric service lines which go to the Schweer
property line. Water is supplied to Schweer from the Black Beauty
Reservoir, It is likely that HWAD may in the near future repair by
reRlaeemen! the current 4.74 miles of 10" high pressur~ water line
which runs from the Black Beauty Reservoir past Schweer to water
tank No.5.
Utilijy Rates: For the foreseeable future, it is assumed that HWAD
will continue to provide water, sewer and electrical service to the
Schweer properly line and that utility fees will be charged at
comparable rates currently charged for non-military uses by the
utility systems. It is not premature to confirm the terms and
conditions 01 this on-going utility service and the utility rates with
HWAD. The nature of these arrangements will have an impact of
highest and best reuse scenarios lor Schweer.
Environmentallssue.s: If no Environmental Assessment (EA) is
prepared by the Army for Schweer, then Mineral County will have
no technical environmental baseline document to measure any
liabilities which the County may assume in the property
conveyance. It is important to confirm if the Army will retain liabilny
for any future environmental liabilities discovered at Schweer.
[End of Pari 1]
Part 2 Market Context for Highest and Best Reuse
"Trends. like horses. are easier to ride in the direction they are already
going" - Megatrends
1.0 ExternatFactors
Various socio-economic and market-focused trends will impact reuse
opportunities for Babbitt and Schweer. The economy of Mineral County is
dependent upon the activity of its mining and service industries. These sectors
provide the majority of export growth in the county and have significant local
economic linkages. A more detailed analysis of the local economy is described in
"Economic Linkages in the Economy of Mineral County". Technical Report UCED
96197-06, which was prepared and submitted to Mineral County in August 1997
by the Center for Economic Development. The future level of economic activity
and stability in Mineral County remains uncertain because of Mineral County's
economy is vulnerable to external factors such as:
Proposed reciassification of the Hawthorne Anny Depot (HWAD) from Tier
1 to Tier 2 designation
Possible closure of HWAD under a new round of defense downsizing that
is being promoted by the Secretary of Defense
A lower world gold price
A depletion of mineral resources
Changes in Federal land management poliCies
Other external trends impacting reuse scenarios are:
2.0 Corporale Outsourcing
Privatization of Army Depots
Advanced Telecommunications
Distributed Production
Global Competition
Export T cade
"Jusl-in-Time" Delivery
POllylat~n Trends
Though there was modest population growth from 1990 to 1996. Mineral
County's negative annual population growth over the past 25 years is forecasted
to continue over the next 15 to 20 years. The mid-range population forecast by
the Nevada State Demographer lor 2015 is 5,780 which is less than the county's
population during the 1950's and a 10% decline from 1990.
2.1 Negativ'LHlstgrical Growth Rales: 1969-1994
During the 25 year period of 1969 t01994, Mineral County ranked
lastamong Nevada's seventeen counties in average annual
percentalllUlrPwt!J while it ranked second highest in population
During this 25 year period, Mineral County experienced a negative
average annual population growth rale of -0.38%.
2.2 Positive Growth Rates: 1990-1996
There was ,86% annual average population growth in Mineral
County from the 1990 Census figures to estimates for 1996,
The population grew from 6,475 in 1990 to 6,810 in 1996 which is a
5% growth rate over the 6 year period,
2.3 Negative Long Range Growth Forecasts: 1990·20111.
In a July 1997 report, the Nevada State Demographer forecasts a ­
10,67% population decline for Mineral County from a 1990 count of
6,475 to a 2015 estimate of 5,780, These forecasts go on to
estimate a .27% long range growth rate from 1990 to 2000 followed
by a ·7% decline from 2000 to 2010,
The State Demographer's forecasts are based upon various
employment scenarios which generate low, middle and high
population estimates, The annual range from low to high is from
506 in 1997 to almost 3,000 in 2015.
The 'low" population estimate is based upon:
• The ammunition plant scaling back operations
• Candaleria mine closes, losing 100 jobs
• Rawhide mine closes, 150 commuters lose jobs
The "middle" population estimate is based upon:
• No unexpected jobs afe added
• Current stable trends continue
• Natural gas distribution adds Jobs
The "bigh" population estimate is based upon:
• The ammunition plant unexpectedly adds 100 jobs and
contracts increase
• An unnamed mine located on the west side of Walker Lake
adds 100 employees
• The Rawhide/Denton Mine pulls commuters from
neighboring counties
• Walker Lake maintains its recreational employment
POllulatlQn !;;oun!§ lind FSll:icast~J930-20_1Q
Counts &
s· ale
to Low
Ran e
POIlYllltiQn MII[ket Segments
Reuse scenarios for Babbitt and Schweer need to be considered in context with
opportunities to meet social, economic and housing needs which vary among the
market segments of Hawthorne's existing population base.
The Center for Economic Development maintains annual updates to county- and
zip code-level demographic and consumer data on market segments which are
compiled by CACI Marketing Systems, an Internationally-recognized information
technology firm. CACI has crsaled a powerful proprietary market segmentation
system -- ACORN -"A Classification Of Residential Neighborhoods". CACI
releases annual and 5-year projections of key population and income variables
which provides the most accurate demographic information for population,
households. families, income, race. age. and spending potential for various
products. The ACORN system identifies over 226,000 neighborhoods. or Census
block groups. by one of 43 market segments. 40 residential markets and 3
nonresidential groups. Each neighborhood is profiled by 61 characteristics of
consumer behavior-~such as income. home value, occupation. education,
household type. age-and then sorted into one of 43 market types. The following
market segment data and characteristics is from the recently released 1997
update. The Hawthome data is for the 89415 Ha,,1horne zip code area.
Hawthorne's Market !!!'gment Shares: 1997.
(1) By Popylatlon
Hawthorne has a relatively well balanced mix of markel segment
types with ·Young Frequent Movers" comprising 21% of the
tl.wtIlQm~ Pogulajion;.1JlilI
Estimate of
Zip 89415
oung Frequent Movers
lder Settled Married Couples
aby Boorners With Children
ow Income Young & Old
entor Sun Seekers
eart!snd Community
us'.beJt NeIghborhood
NewtX' Formed Households
Hawthorne CumulatIve
Zip 89~15
(2) J2y
l:I?wthgme Households: 1997
lV'oung frequeni Movers
ptder Settled Married Couples
~nior Sun Seekers
Baby Boomers With Children
~ustbelt Nelghborhood
~e.rtland Community
ow Income Young & Old
Fon:ned !:"louse,hoIQs
Hawthorne Cumulative
Zip 88415
(3) .Bll Household Size
- - - - - ----Household
IYW Income Young &. Old
aby Boomers With Chlldren
Ider Settled Married Couples
Dung Frequent Movers
eartland Community
ewly Formed Households
ustbe!t Neighborhood
Hawthorne's Market Segment TYP2s
Hawthome has a well balanced and diversified mix of market segment
types and contains 8 of the 40 residential market segments tracked by
CACI. More than half of Hawthorne's households are "Young Frequen1
Movers', "Older Settled Married Couples" or "Senior Sun Seekers", The
following is a general profile of each of these 8 markel segmentsl
(1) YQung F!!IQuenl Movers
21,7% of Hawthorne's households is identified as "Young Frequent
Movers" which is high compared to the Nevada average at 8,9% but
low compared to non-metro Nevada where the average figure is 33%,
It is assumed that the transient nature of mining migrations acoount
ror the large "Young Frequent Mover" figures in non-metro areas, In
Mineral County, 3 out of 4 "Young Frequent Mover" households are
located in Hawthorne,
Compared to other rural Nevada communities, Hawthorne's lower
percent of "Young Frequent Movers" represents more slability and is
much less than the figures for Schurz and Luning:
Percentages of Householgs of "Young Frequent Movers"
Luning (89420)
Schurz (89427)
CAJ;LlLescflQ!iQn: Young Frequent Movers are young families with a country style and a bit of wanderlust. Typical of their youth, this population is mobile, including their homes. Lifest)!\!;: As young families, Young Frequent Movers are more likely to have loans than investments or savings, Most are personal or auto loans, for pickups, four-wheel drive vehicles--and motorcycles, Most households have two or more vehicles, Their purchases portray their family life: "heavy" grocery expenditures, baby products, children's ·15­
apparel, and electronic games. This is also the second-ranked
market for pet ownership.
De!lJ09raphi£: Young families are the majority in this market. Children make up 30 percent of the population. The population is 85 percent Anglo (white, non-Hispanic), but also includes black, American Indian, and Hispanic families. Characteristic of their youth, this population tends to move frequently. Socioeconomic:
Young Frequent Movers include almost three percent of the U.S.
population and a 2.6 percent share of disposable income. These
families earn low to moderate incomes. Median household income is
526,600. Labor force participation is above average; most of the
workers are employed in skilled or unskilled blue coilar jobs in
farming, manufacturing, mining or construction. Unemployment and
poveljyrates are comparable 10 natio.nal averages ..
Mobile homes outnumber single-family houses in these
neighborhoods. Over 45 percent of the housing stock are mobile
homes (six times the nalional average). The majority of homes are
newer, owner-occupied, and valued below average, $81,000.
Most olthe Young Frequent Movers are located in nonfarm rural
areas. Only 35 percent of the population live in towns. Half are in the
South, although the states with the highest concentrations of Young
Frequent Movers are Western: Nevada, New Mexico, and Wyoming.
(2) Qlder Settled Married Couples
At 14.6%, "Older Settled Married Couples" represent the second
largest share of Hawthorne's households. Hawthorne's figure for this
stable market segment is almost 4 times higher than the Nevada
average of 3% figure and clearly separates Hawthorne from other
non-metro Nevada communities which had less than 1% (0.38%) of
its households comprised by "Older Settled Married Couples".
Interestingly, ail Mineral County households representing this
segment are localed in Hawthome.
CACI Description: Older Settled Married Couples are residents of established suburban neighborhoods. Residents are middle-aged and middle-income. Lifesjyle: The market is upscale and domestic. They vote, but do not participate actively in civic groups. Memberships in religious clubs are popular. Leisure activities include bird watching, bowling, golf, and domestic vacations. Spending is home-oriented: improvements and furnishings. They read newspapers, businessltinance and senior magazines. Demographic: Older Settled Marned Couples are middle-aged and settled into their neighborhoods and surroundings. Many households include school-age or adult children, but the age profile is slightly older than the U.S. average. Socioeconomic:
The income distnbution reffects a degree of comfort earned by
working couples aged 45-64 years. Almost a third earn $50,000 or more: median household income is $38,500. These couples emphasize savings over investments. Almost 20 percent of the households are drawing retirement income. Residential: Older Settled Married Couple neighborhoods are older, single-family homes-owner occupied with an average value of $94,000. Location: The distribution of these neighborhoods is national, with higher concentrations evident in the Midwestern states of Michigan, Illinois and Ohio. (3) liflnlor Sun Seekers
At 13.2%, "Senior Sun Seekers" represents the third largest market
segment of Hawthorne households. Less than 1% separates this
group from the second largest segment -- "Older Settled Married
Couples". As a percentage sMre, Haw/hornell/.Ii more "Sen/oc Sun
Seeker"IlQuseholds than FloridfJ. and Arizona neighborhOQds which
average 12% of hou§ehQlds IJI.presented bv this segment.
Percentage~~llio~~~eholds of "Senior Syn Seekers"
Silver Springs
Virginia City
Luning (89420)
ghC! Dej!cription:
Senior Sun Seekers are retired and have moved South. Mobile down to their homes, these consumers have sought the warmth of SunbeR ,states and the companionship other retirees. at
Life.'!!Y!sl: Senior Sun Seekers have income and time at their disposal, and they spend it golfing, reading, traveling (foreign and domestic), and socializing-playing games, dining out or cooking and entertaining. They have credit cards, but use them sparingly. Although home owners, they do not spend a lot on furnishings or home projects, except crafts and hobbies. Aside from their leisure pursuits, expenditures include a car, usually a standard-size or luxury model, and mail ordered shoes and clothing. Demographic: The oldest segment of the Retirement Styles group, more than half of the householders are over 65. Most of the households are married couples and recent retirees, although there are also a number of single~person households. Socioecpnomic: Although most Senior Sun Seekers households earn less than $25,000 annually, most of their income is disposable. Their primary
sources of income are Social Security, interest, dividends and
pensions. This is one 01 the top-ranked markels lor investments and
savings. It is also one of the top markels for lottery tickets.
Residential: Mobile and single-family homes account for most of the housing of Senior Sun Seekers, They own homes in newer areas, with an average home value of $90,000, Neighborhoods also include seasonal housing for visiting snowbirds, plus congregate housing and nursing homes. Location: Almost 90 percent are in the South or West, including about 12 percent of Florida and Arizona neighborhoods, (4) Bapy Boomers With Children
At 11,5%, Haw1horne has a much higher share of "Baby Boomers
with Children" households than the Nevada average of 7.3% and is
> .twice as high as the
. non-me1ro state figure' of 6%,
Percentages of Household. QI "Babv Boorrulrs with Children"
Carson City (89705)
Henderson (89012)
Luning (89420)
11 %
Qt&1 Description: Baby Boomers with Children make up a homogeneous consumer type who spend their time and money on home and family oriented activities and goods, Lifestyle: This group represents family and home oriented consumerism, There is little time for civic activities, except writing opinions. Leisure time includes home projects, crafts, and hobbies; entertainment includes bowling, video rentals, picnics and barbecues, Fast food is also popular. They own pets and spend their money on vehicles, minivans or pick-ups, home furnishings and improvements, children's apparel and toys, and video eqUipment, cameras, and camcorders. -19­
Two thirds of the Baby Boomers with Children households are
marned couples; most have children at a proportion 50 percent higher
than the national average. Over a third of this population is under the
age of 20; 58 percent of the householders are between the ages of 25
and 44 years. Typical of this consumer type, many are migrants and
are still moving to find the best jobs or location,
Like the Younger Baby Boomers, Baby Boomers with Children have very high laber force participation rates, including a high proportion of families with two workers. However, they are not as affluent; median household income is $37,100. Postsecondary schooling is evident, but this group is less likely to have completed a four-year degree. Residential; Single·family homes buill during the 1970s are typical. Most homes are owner-occupied and valued at $89,500, about 20 percent below the U.S. average. j,.ocation; Neighberhoods are found within the urbanized fringe of metropolitan areas..in smaller towns and in rural nonfarm communities. Western states, especially Utah and Alaska, are prominent in the distribution of Baby Boomers with Children, harking back to westward migration of Baby Boomers in the 1970s. (5) BYstbelt Nelghborhojld
At 11.3%, "Rustbelt Neighborhood"-Iype households comprise about
the same percentage of Hawthorne households as do "Baby Boomers
with Children". More than 33% of these types of households in
Nevada are located in Mineral County. The only zip code sharing this
household segment is 89015 in Henderson.
CACI Description;
Rustbelt Neighborhoods are an older population who generally reside
In the older, industrialized cities and towns of the Northeast and
Midwest. Although some of the industnes in these old cities have
long since gone, the residents remain.
Rustbelt Neighborhoods spend money on their homes, and their
home teams: home improvements, tools, furniture, and tickets to
professional sporting events, Civic pride extends to volunteering and
belonging to veteran's clubs and fraternal orders, Other non-essential
budget items include vitamins and lottery tickets,
The Rustbelt Neighborhood population is stable, but aging, Younger
householders are leaving the areas and older residents remain, The
median age is 37 years despITe the concentration of householders
over 55, The households are also typical of an older population:
married couples, some with adult children still at home, and
single-person households.
The economic Vitality of these industrialized areas has waned. Almost 40 percent otthe popUlation have retired. La.bor force participation is below average. The remaining jobs are mainly blue coilar, skilled, unskilled, and service occupations, Manufacturing remains the chief industry. Wages and Social Security yield a median household income of 525,100. Residential: Rustbelt Neighborhood homesteads are located on older, urban streets in metropolitan cities and smaller towns. Most of the homes are owner-occupied, single-family houses, but town-and rowhouses or duplexes are also common. Average value is low, S59,000. Location: These communities can generally be found in urban areas throughout the Unfted States, although they are concentrated in the Northeast and Midwest, or states like Ohio, Pennsylvania and West Virginia, (6) [email protected] Community
At 10.5%, "Heartland Community"-type households comprise almost
the same percentage of Hawthorne households as do "Baby Boomers
with Children" and "Rustbelt Neighborhoods". Hawthorne far outpaces
the rest of Nevada at 0.7% and non-metro Nevada at 4% in the
percentage of "Heartland Communijies" households.
CACI Desgiption: Heartland Communities are small towns and communities that dot the interior of the country. Their citizens are older, lifelong residents; their children have moved away. Life'iMJl: Heartland Communities are civio-minded consumers, active in their communities through fund raising, attending local school games, and participating in civic and religious clubs. Their leisure includes aduR education, crafts and hobbies, plus wilderness sports, hunting and fishing. Expenses for all but the smallest horne improvements are average; however, this is a good mail-order market for clothing and shoes. Demggraphic: Heartland Communities ara older with half the householders over 55. There are few Y0l!ngar householders or children in this markel. As • the population ages, the dependency ratio of young [less than 15 years] and old [greater Ihan 65 years] to the working age [15-64 years] population is increasing. Households are still predominantly families, but married couples with no children at home and singles are increasingly common in Heartland Communities, Socjoeconomic:
Median household income is $19,400. Labor force participation is low, !,speciallyforwomen, less than 40 percent. It is due, in part, to retirement. Over 40 percent ofthe households are receiving Sociat Security income. Lack of opportunity contributes to lower participation, 100. One-third of adults have not completed high schooL Half are employed part-time. However, wages and salaries are not the only source of income. About 16 percent are self-employed in farming or othar business. Heartland Communities are active financially, with inveslments, savings and loans. Residential: Homes are older, single-family and owner-occupied for the most part. Single-family houses account for almosl75 percent of the housing. Almost 70 percent are owner-occupied; over 10 percent ofths housing is vacant. Average home value is iess than $50,000--60 percent lower than the nalional average. -22­
Location: These neighborhoods are located in rural communities and towns outside metropolitan areas. Although scattered throughout the United States, Heartland Communities are concentrated in Midwestern and Southern states: Arkansas, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nevada, North Dakota, Oklahoma, South Dakota, and West Virginia. (7) ~ncome Young & Old
At 8.9%, Hawthorne has a significantly larger share of "Low Income
Young and Old"-type households than Nevada at 0.4% and non­
metro Nevada at .94%.
CAel DescriQtion: The Low loco,me: Young & Old consumer type ,incorporates the extremes of the age distribution, the very young and the elderly. This is reflected in their lifastyles. Lifest£le: The Low Income: Young and Old lifestyle is both young and old, Their pastimes are dancing, nightclubs, hunting, fishing and bowling. They own pets and buy baby products. Their expenses extend to low-end home repairs and footwear. Media preferences include television, with video rentals, and women's magazines.
Low Income: Young &. Old neighborhoods encompass the very young
and the old, who are supported by a relatively young working age
population. Almost half of the households are single-parent or
single-person. The median age, 30 years, represents the gap
between householders under 25 and over 75 years. These
neighborhoods are also racially diverse.
Median household income is $16,100. Almost 70 percent of these
households earn less than $25,000. They have rates of
unemployment and poverty that are twice the national averages.
Labor force partiCipation is below average. Thirty percent of the
households receive Social Security, and 20 percent receive public
Residential: Most of the housing is older, built before 1950. Vacancy rates are high, over 10 percent, and home value is low, $44,000. Single-family units, duplexes and quads account for most of the housing in these neighborhoods. Half are renter-occupied. Locatio!!: These neighborhoods are urban, located within metropolitan areas and smaller cmes throughout the country, wIIh the highest concentration in the Midwest. (8) NewlY Formed Households
SummarY: At 8.3%, "Newly Formed Households" comprise about the same percentage of Hawthorne households as do the "Low Income Young and Old" seg,!,en!. Hawthorne has mo~e of th,!,se types of hqusl'hOlds than Nevada at 3% and non-metro Nevada at 6%. CACI Description: Newty Formed Households offer affordable housing that attracts young householders. This is a moderate income market that features an active lifestyle. Lif"style: Newly Formed Households are physically active-in bowling, wildemess sports and winter sports. Most are one-car households, but they are as likely to own a motorcycle as a hatchback. They belong to veteran's clubs, visit museums and zoos, and enjoy crafts
and hobbies. Spending is home-oriented: on furnishings and improvements. Media preferences reffect the young and old households in this market: radio for the young and two or more daily newspapers for the old. bl"mographic: Young, Newly Formed Households are characteristic of this market: however, the neighborhoods are in transition and include older households, too. The mix of household types represents young families and single parents plus married-without-children and single-person households that are lypical of young and old alike. -24­
SocioElQonomic: This is a large, moderate income market: over five percent of all U.S. households, earning 4.5 percent of U.S. disposable income. Median household income is $26,600. Unemployment and poverty are low. Half of the work force is employed in the manufacturing and service industries. Residential: Newly Formed Households are in neighborhoods which offer affordable housing: older, single-family homes, and duplexes. Average home value is $67,700, 40 percent below the national average, and average rent is $430, 12 percent below average. 4.0
Industry Lin!lages
Final Demand Muitillliers
Final O!"mand.Multipliers are th~ total of interindustry (direct, indirect and
induced) effects per $1 change in sales to final demand. If the final
demand mumplier for a given industry is 2.5524, then for every $1
increase in sales to final demand by a given sector, the total county
economy would increase by $2.55.
Ranking of Final blemand MuHipliers for Mineral Count~
- - _ .. FJnal
Economic Sector
1 Livestock
2 Health
3 Loca! Government
4 Services
5 Hotel, Gaming, Recreation
6 Trade
7 A!fa~a Hay
8 Other Hay
9 Transportation. Communication
10 Construction
11 Gold Mining
12 Eating, Drinking, lodging
13 Other Mining
14 Manufacturing
15 Utilities
~_!? Finance, .!!1surili!!!ce, Real E:s~ .__ ~_ 1.40S€! __ ~
Emp!QYmen! Multipliers
Employment Multipliers indicate the number of jobs increased in Mineral
County when a given sector increases employment by 1 employee. If the
employment muttiplier is 2.2807 for a given sector, then total employment
in the county increases by 2.2807 for every 1 job increase in a given
Ranking of Employment Multipliers for Mineral County
Economic Sector
1 Gold Mining
2 Olifer Mining
5 Loca! Government
6 Allalia Hay
3 Livestock
4 Utilities
7 Construction
8 Other Hay
9 Hotel, Gaming, Recreation
1.6591 1.4931 10 Finance, Insurance, Real Estate
11 Eating, Drinking, Lodgjng
12 Manufacturing
13 Health
14 Services
1.4399 1..4325 1.4199 1.4129
L~_;~i~:~_~rt8~n, C~nl~Uy!.!£51~jOrL_____~J_~~~_~~ _ ~J
Income Myltipliers
Income Multipliers indicate the amount that household income in Mineral
County increases when a sector increases by $1. If the income multiplier
is $2.0297 for a given sector, then the county household income would
increase by $2.03 for every $1 increase in the given sector's household
Ranking of :ocoma Multipliers for Mineral
Mu ltiplier
Econorr::ic Sector
1 Livestock
2 Local Goverr,ment
3 Constmction
4 Alfalfa Hay
5 Finance, Insurance, Rea; Estate
6 Hotel, Gaming, Recreation
7 Other Hay
8 Manufacturing
9 GQld Mining
10 Other Mining
11 Eating, Drinking, Lodging
12 Transportation, Communication
13 Uti!i1ies
14 Trade
1 3716
15 Health
~~rvice~ ~ __ ~ ~_~~ ~~ _~~_ ~1~~60~~
Hawthorne Army Depot (HWAD)
As local officials are aware, previous defense-downsizing and the need for
another round of base closures makes HWAD and Mineral County's economy
extremely vulnerable.
Economic Impact
For more than 65 years the Mineral County economy has been dominated
by Ihe Hawthorne Army Depot (HWAD) and during 1996 some 27% of the
county workforce was directly employed at the depot. Since 1930, HWAD
has been the county's largest employer and was once the largest
conventional ammunition depot in the free world. During World War II was
the nation's largest ordnance staging area with a peak employment of
5,625. During the Vietnam War, From 1961-1973, HWAD manufactured
more ammunition than what all allies dropped on Germany during World
War II. During Operation Desert Storm, HWAD shipped more than one­
third of the ammunition used by U.S. forces.
.current Context; National Defense f'anal
In December 1997, the National Defense Panel delivered its report on the
challenges and opportunities of US defense in the next century. The
report, "Transforming Defense - National Security in the 21st Century",
anticipates very different threats to the US by the year 2020.
The Panel calls for a comprehensive reshaping of the skills and
capabilities of our armed forces, and urges that the process begin
immediately. The report makes several recommendations as to how this
transformation can be brought some which will have a direct impact upon
Installation and Facility Consolidation
The National Defense Panel recommends two additional Base
Realignment and Closure Rounds (BRAC) to further reduce the
cost of maintaining the defense infrastructure. The Department of
Defense must minimize the number of surplus facilnies and
installations under its direct control.
While four previous base realignment and closure (BRAG) rounds
have reduced installation capacity by twenl}:-one p~rcent, base .
consolidation has not occurred as rapidly as the reduction of force
structure, personnel, or workload. Recurring savings from previous
closure rounds have averaged about $1.4 billion, with up-front
investment costs (relocalion, environmental clean-up, etc.) totaling
about $4 billion per round.
As Ihe Defense Refonm Iniliative stated, recent analyses indicate
that there is sufficient surplus capaony for two addnional BRAe
rounds, equal to the average of the previous rounds. However,
these calculations are based on the continuation of a service­
oriented base structure Ihal maintains extensive duplication across
military departments, The Panel strongly endorses the conclusion
that the move toward joint installations-such as the development
of joint industrial activnies, R&D facilities, or test ranges-would
make possible further major consolidations of the defense
infrastructure. This movement should be expanded to include jOint
operational bases (e.g., joint air bases), which we believe will result
in the Identification of even more over-capacity.
Recently, Congressional concerns regarding the integrity of the
base-closure decision process have precluded further
consolidation. The Panel strongly urges Congress and the
Department to move quickly to restore the base realignment and
closure (BRAG) process. The next round might be preceded by an
independent, comprehensive inventory and evaluation of all
facililies and inslallations located in the continental Uniled States.
This review would provide the basis for a long-term installation
master plan that aligns infrastructure assets with future military
requirements, and provides a framework for inveslment and reuse
strategies. This approach would depolilicize the base-closure issue
to the extent possible and establish a common reference point for
future closure decisions, Ihus enabling base closures earlier than
the current 2001/2005 Department proposal.
peam Malnten!!nce
Industrial and engineering support, the largest infrastructure
category, includes the naval shipyards, maintenance depots,
research laboratories and test ranges operated by the military
departments. This category also includes Ihe supply depots
operated by the military departments and Defense Logistics
Agency (DLA).
The National Defense Panel found that the Department of Defense
is not an efficient or effective manager of industrial activities and
should get out of this business to the extent possible. The Panel
urges the Congress to provide legislation that removes statutory
barriers to a greater private sector role in Defense depot
maintenance. For example, the Panel recommended lhatthe
Department should continue to seek the revision of 10 U.S.C. 2464
and 10 U.S.C. 2466 to allow capable and reliable contractors to
perform mission-essential depot maintenance work. Restrictions,
such as the 50150 requirement, should be removed because these
mandates result in inefficient allocation of Defense maintenance
resources. The Panel recommends that the Department of Defense
should accelerate public vs. private competitions for existing
systems, ensuring a level playing field for all bidders, and move to
contractor logistics support for new systems. Some residual,
organic depot capability should be retained to maintain legacy
weapon systems, which the private sector can or will no longer
Ammunition Tiering Plan
Any new realignment of defense facilities will likely be based upon the
implementation of an ammunition tiering plan by the U.S. Department of
Defense. In 1996 000 reduced the status of HWAD by classifying ij as
Tier 2 ammyuiliQn depot. Hawthorne receives, issues, stores, renovates,
inspects, tests, demilitarizes and disposes of conventional ammunition.
The Western Area Demilitarization Facility located at HWAD is the
premiere resource recovery and recycling center of conventional
ammunition. HWAD has an ammunition sUlVeiliance program and, as a
ner II cadre site, maintains additional war reselVe stocks.
With the end of the Cold War, the nation's need for a large conventional
munitions stockpile decreased. A 1993 study recommended a smaller,
safer, better quality stockpile with a reduced workforce and fewer storage
installations. Since the major peacetime use of conventional ammunition
is for training. the plan that resulted from the study divided the continental
United States into east, central and west regions. Each region received a
ner I facility to reduce transportation costs for training ammunition. Due
to the large number of military units In the eastem US, that region has two
TIer I facilities. Factors considered in ranking the installations were: the
capabilities to outioad, inspect and test, ship, store, maintain and
demilaarize ammunition; the costs of operations; and location relative to
training sitas ?nd ports.
The Army has adopted the framework for an l![!lmunition depot liering
[email protected] to reduce infrastructure, eliminate static non~required ammunition
stocks, decrease manpower requirements. increase efficiencies and
permit the Army to manage a smaller stockpile. The tiered depot concapt
reduces the number of active storage saes and makes efficiencies
possible. The tiering plan began to be implemented in 1996 and is
expected to take six years. The 8 ammunition depots would be classified
in three tiers:
Tier1 - Active Core
Tier 1 facilities are fully-staffed and store ammunition for training
and the first 30 days of War ReselVe ammunition.
East Central West(2)
Blue Grass Army Depot, KY
Crane Army Ammunition Activity, IN
McAlester Army Ammunition Plant, OK
Tooele Army Depot, UT
lier 2 - Cadre Depots
Tier 2 facilities store War ReselVe ammunition to be used after tha
first 30 days. Thay are partially staffed in peacetime, but would
increase staffing when needed. Thess installations will have
minimal staffs unless a contingency arises.
Eas! Central­
Anniston Army Depot, AL
Letterkenny Army Depot, PA
Red River Army Depot. TX
Hawthorne Army Depot, NV
Nols: Annislon, Letterkenny and Red River operata as Tier I
facilities for missiles.
Thlr 3 • Cargtaker Depots
Tier 3 installations have minimal staffs and store stocks no longer
required until demilitarized or relocated. The Army plans to
eliminate stocks at thase sites no later than year 2001.
Easl Central­
Senaca Army Qapol Activity, NY
Savanna Army Depot Activity, IL
Sierra Army Depot. CA
Manufacturing Opportunities;
6.1 Prox!mit~
Manyfacturing; Nevada #1 in
& Trends
In terms of manufacturing employment growth, Reno is ranked #1 and Las
Vegas is #2 as the fastest growing of some 310 melro areas in the United
States. As published by Industry Week in its April 1997 issue, Reno
increased manufacturing employment by 37%, and Las Vegas by 34%,
over a 3-year period. In terms of Qverall manufacturing strengtb against
310 metro areas, Reno ranked #3 and Las Vegas #12.
Nevada's emerging wand-class position as a manufacturing base is driven
by firms producing products 10 support the "booming" construction and
casinos of Las Vegas and Reno. This growth is driving
construction-related manufacturing, food processing, food equipment,
electronic gaming eqUipment, etc,
Reno and Las Vegas are becoming choice locations for companies that
want to escape Ihe high cost of doing business in California. (A recent
Grant Thomton study indicates that the cost of doing business in Nevada
was 33% lower than in southern California.) Nevada's 24-hour service
economy attracts companies who want 24-hour-a-daylshift operations.
More than 500 U.S. and international companies have either a regional or
national operations center in the Reno area; more than 100 companies in
the region provide mining and mining·related services.
Manufacturers can ship products out of Nevada for 40% to 50% less in
cost than transportation expenses in other areas because 70% of the
trucks bringing goods Into the state leave empty.
.Californla's 21" Century Econom't
Mineral County shares a 55 mile border with the State of California which
has lLtrilll®·d.9lLar economy making it the 7'" largest economy in the
world. California is the industrial powerhouse of the West, providing over
13 percent ofthe.1l.S. Gross Domestic Product and generating more
goods and services than all of the other western states combined.
California is the largest and most diverse state in the nation. With 32
million geople, California is home to 12.2 percent of the U.S. population,
. ,,!ore than any other state. The state has grown rapid(y in recent years, its
population increasing by 20 percent between 1986 and 1996.
In 1996, California businesses exported $104.5 billion in products, leadirm
the nation in exports. California is a major center for foreign trade,
handling three-fourths of goods shipped through West Coast ports and 40
percent of all U.S. trade with Asia.
Because of its size. the California has a diversified econom¥ which is not
based on any single industry. The more important manufacturing
industries are technology·based, such as electronics and aerospace.
Tourism is a Significant source of jobs, and the film and entertainment
industries are major forces in the state's economy. California is the
nation's leading agricultural state, exporting produce all over the world
and producing much of the nation's supply of fruits and vegetables.
However, many other enterprises, ranging from fashion design to oil
refining, also contribute to California's prosperity.
California has emerged from its worst recession in 60 years by reinventing
its industrial base to off·set the post.cold war's defense downsizing which
significantly reduced military spending to defense contractors and closed
28 bases. California is considered to have a model_2J~ century economy
with II strong position in all major growth industries over the next 25 years.
J;acramento Vall~
While many of the firms have other locations outside the
Sacramento region that are involved in manufacturing, research
and development, design, and distribution, most of the
manufacturers do perform research and development at their
Sacramento region manufacturing site. The key to successfully
getting tihe product to market the fastest is to have close
collaboration between manufacturing and research and
development. Most facilities perform both manufacturing and
assembly work, with very few involved in assembly alone.
Traditional manufacturing has been replaced with computer
controlled machines that have made the area very competitive.
Unlike many regions that have a strong concentration in
manufacturing, the Sacramento region has grown rapidly in the
past f~w years which has resulted in th~ latest equipment and .
manufacturing practices being incorporated into these new
facilities. Many other regions are dealing with the capital costs of
retrofitting older equipment to today's standards.
The manufacturing cluster has enjoyed tremendous growth in the
Sacramento region in recent years and is within 230 miles of
Hawthorne. Three industries sectors in particular have contributed
to this growth: (1) food processing. (2) electronic components and
(3) medical equipment manufacturing:
The food processing sector is comprised of the following: ice cream
and frozen desserts; fluid milk; canned specialties; canned fruils
and vegetables; dehydrated fruits. vegetables, and soups; pickles,
sauces, and salad dressings; cereal breakfast foods; rice milling;
bread, cake, and related products; cookies and crackers; beet
sugar; salted and roasted nuts and seeds; animal and marine fals
and oils; wines, brandy, and brandy spirits; bottled and canned soft
drinks; and food preparations. The electronic components
manufacturing sector is comprised of the following: computer
terminals; SWitchgear and switchboard apparatus; vehicular lighting
equipment; printed circuit boards; semiconductors and related
devices; engine electrical equipment; electrical equipment and
supplies; and space propulsion units and parts. H§_alth-related
manufacturing is concentrated in medical and dental equipment.
supplies, and drugs.
J'!,m Francisco Area
Electronic components and accessories, computer and office
equipment, measuring and controlling devices, communications
equipment, and guided missiles, space vehicles and parts,
collectively, had a total payroll of almost $10,5 billion during 1994,
Some manufacturing industries grew during the recession ofthe
early 1990's including makers of communications equipment,
medical instruments and supplies, motor vehicles and equipment,
special industry machinery, and products using purchased glass,
§.outhern California Region
Almost half of the jobs in Calffomia-49,3%-are found in Los
Angeles and Orange Counties, The manufacturing sector is
strongly based in high technology and is focused within five prime
industries: aircraft and parts; search and naVigation equipment; and
el~ctronic components andacces~ories; a large apRarel cluster;
and a large miscellaneous plastics products sector which provides
a diverse array of inputs to the region's manufactures,
ApprOXimately 38% of the state's information em~loyment was
found in Southern California, The largest number of jobs are found
in the infcrmation hardware and transmission components of the
cluster, However, the highest concentration of jobs is found in
information systems management, and data processing, Almost
half the state's employment in this field can be found in the
Southern California region,
San DieqQ
San Diego has a large concentration of industries that are among
the lea~ding export-Qriented R[oducers in the country. Over half of
the industries with high concentrations in San Diego are in
manufactUring, And among these, the industries are quite diverse,
ranging from books and sporting goods to engines and turbines
and communications equipment.
The telecommunicatigns cluster is comprised of three components:
equipment, telecommunications selVices! and engineering and
research services, Of these, San Diego has a particular
speCialization in engineering and research selVices.
The health care products and services cluster contains several
distinct components, including biotechnology; industrial and
medical chemicals; biomedical instruments, equipment, and
supplies; pharmaceuticals; and medical services,
Export Base Proximil\(
Export Trends
Export growth is one of the major engines of the US's long
economic expansion, Exports of US goods have increased 24
percent from the fall of 1996 to the fall of 1997 which represents a
surge that accounts for almost half of the overall growth in the US
economy over that time period, say economists, If US trade is a
street, then traffic is increasing, Exports and imports of goods and
services accounted for a record 28.4 percent of gross domestic
product (GDP) in the second quarter of 1997, according to US
Commerce Depar.!ment figures, Five years ago, the comparable
figure was less than 21 percent.
and Medium-Slzeg Ex!;!Orters
Although exports are dominated by a few large companies, there
are many active small and medium-sized exporters (those
employing fewer than 500 workers), Almost 96 percent of all
exporters are small or medium-sized companies, Companies wtth
fewer than 20 employees accounted for roughly 59 percent of all
exporters, but were responsible for only 11 percent of the known
export value, Such companies make up about one third of
exporting manufacturers, 75 percent of wholesalers, and 72
percent of "other companies."
A Fasl-GrQwing El'port Ba§lL
Nevada, and espeCially Reno, is a fast growing exporting base,
From 1993 to 1996, Nevada's exports grew from $503 million to
$691 million, an increase of 37%, During this same period, exports
from Reno increased twice as fast at 70% with a total of $315
million in 1996, up from $184 million in 1993,
Proximity 10 EXQortinjj Metro Areas
Hawthorne is within a 1-day "just-in-time" delivery schedule to more
than 35 metro areas that exported more than $115 billion in
products in 1996.
gXRorts by Key Product Clusters.
Electric & Electronic Equipment
Industrial Machinery & Computers
Transportation Equipment
Scientific & Measuring Instruments
Mineral County is located within 600 miles of, and an 8-10 hour,
"just-in-time" delivery schedule to, 23 major metropolitan areas with
"booming" manufacturing bases which are driving the thriving US
and New West economy. ,
Yuba City
Las Vegas
San Francisco
Santa Rosa
San Jose
Santa Cruz-Watsonville
Riverside-San Bernadino
Los Angeles-Long Beach
Santa Barbara-Santa Maria-LompocCA
San Luis Obispo
Salt Lake City-Ogden
San Diego
132 215 217 227 297 308 311 318 320 347 358 377 378 380 387 405 418 425 430 467 506 517 596 (2)
Areas witbin 1-2 Day "Just-in-Time" QelivePL
Mineral County is located within 700-1000 miles of, and a 1-2 day
"just-in-time" delivery schedule to, 7 more major metropolitan areas
which are also world-class, high tech centers driving diverse and
"booming" manufacturing bases,
Santa Fe
Manyfacturing Industry Sectors bv Functions
Mineral County's proximity to all of the West's manufacturing centers
creates significant opportunities to stimulate the development of a cluster
of small to medium-sized manufacturing firms which could niche around
one or several functional parts or subparts of the manufacturing industry
such as: (1) design and prototyping; (2) manufacturers and distributers;
(3) custom manufacturers; and/or (4) sales and logistics. Mineral County
offers small and medium-sized suppliers of primary and secondary
products proximity to large manufacturers and numerous channels of
Design and
Service firms providing design, product protolyping and testing
services during the product design slage,
l'JeGlronic/Software Design - Board-level design fur eleclnonic
products, including digital, analog and RF,
[email protected]@phjclMultimedia Design - Design for multimedia, including print,
CD-ROM, and Web-based.
IndustriallMechanical Design - Product design including mechanical
and industrial.
Packjlging D~ign - Design for product retail packaging and
indusmal use packaging.
PCB layoyt an_d_12e~ - Providers of printed circuit board layout
and design services.
PrototypelModeling - Service bureaus providing product modeling
and rapid prototyping.
T estino Services - Service bureaus providing product testing for
compliance, function, and safety
(2) Manufacturers and Distributors of raw materials and components
used in product manufacturing.
Adhe.sjy.l'JL&_$!'L"Jenl§ - Adhesive and Sealant materials used in
product assembly.
Coatings - Coating materials including protective, conductive and
cosmetic products.
Componenl§.,sJectroniclElectrical - Active and Passive Electronic
and Electrical Components.
ComllQ!1ent§.: 'vl.ech?nical- Mechanical and Electro-Mechanical
Customj:)i.!LCut Product§ - Products made through die-cut process,
used for gasketing, EMlfRFI shielding, packaging, and labeling.
)"abeli!Jlll'fQdu.cts - Products used for labeling, including
nameplates, logos and graphic overlays.
Packaging Products - Products used in retail and industrial product
PI§sl~Besins - Manufacturers, compounders and distributors of
Commodity, Engineering, Elastomeric and Thermoset resins.
plastics -filQ1, She!!t /j, Shapes - Plastic materials in film, extruded
sheel, or slack shape forms, including plastics and elastomers.
Shielding Products - Products used for EMIIRFI shielding, including
metal stampings, coatings, components, assemblies, die cut
products, and tapes,
(3) Custom manufacturers of components, enclosures, assemblies
and finishing selVices,
Contract Assembly - Printed circuit board and electro-mechanical
assembly selVices,
Enclo§yres - Manufacturers and Distributors of custom and stock
electro-mechanical enclosure products,
Metal - Castings - Providers of custom die and investment casting
Metal - Soeel M?lal FaQrication - Providers of custom sheet metal
fabricated components and housings,
Metal - Stamping - Providers of stamped metal components and
!:Q8 Fabrication - Providers of printed circuit board fabrication
services including PCB's, flexcircuits, backplanes and PCMCIA.
Plastic Blow Molding - Providers of plastic blow molding selVices.
Plastic Extrusion - Providers of plastic and elastomer extrusion
services for sheet, film, tubing and other shapes.
Plastic Injection Molding - Providers of plastic and elastomeric
injection molding services.
plastic Injection MQld Tooling - Manufacturers of molds for the
injection molding industry.
Plastic Rotational Molding - Providers of plastic and elastomer
rotational molding services.
plastiC Thermoforming - Providers of plastic thermoforming and
vacuum forming services.
Printing Services
Shielding & Coating Application - Applicators of protective,
conductive and cosmetic coatings,
(4) Sales and Logistics: Providers of services for the marketing, sales
and distrtbution of products.
Direct Mail/Direct Response - Providers of direct mail services tor
Transportation & Logistics - Providers of shipping, warehousing,
distribution, and turnkey logistics services.
6.7 Consumer Market Proximity
Hawthorne is also within a 1 day "just-in-time" delivery radius to 35 million
people with an effective buying income of $585 billion and within a 2-day
delivery radius to 52 million people with an effective buying income of
$848 billion. By the year 2010, Hawthorne will be mid-way between a
population of some 2.4 million in Reno and Las Vegas. By the year 2020, •
California will have 50 million people and be larger than France.
6.8 Transportation
Hawthome has access to significant transportation resources which can
enhance the competitiveness of manufacturers locating at Babbitt.
(1) Truck
Nevada is considered to be a freight "consuming state", More
freight is delivered to Nevada than leaves the state. An empty
outbound capacity of approximately 40%·70%, coupled with a large
number of carriers and deregulation of the trucking industry. has
created a competitive atmosphere which allows for negotiating
excellent rates and realizing tremendous cost savings for outbound
shipments. Manufacturers can ship products from Babbitt for 40%
to 50% less in cost than transportation expenses in other states.
(2) Reno Alrngrt
RenofTahoe International Airport completed a state-ot-the art
2-way runway and terminal addition in late 1996. It is the major air
hub for westarn Nevada and eastern California offering
commercial, scheduled, charter, and cargo flights. The rapid
passenger and air freight growth over the last five years has made
Renoffahoe International the 44'" largest air carrier airport in the
U.S. Since 1990, passenger traffic has increased more than 73%.
And in 1995, over 5.8 million passengers were selVed which
represented a 11.9% growth from 1994.
Hawthorne is within 2 hours of the Reno Airport which offers over
220 daily Hights to more than 50 North American markets including
22 non-stop destinations, a level of service usually reserved to
communmes five times the size of Reno. The Renoffahoe
Intemational Airport cargo activity in 1995 was 2,348.3 U.S. tons,
up 20% from 1994. The seven all·cargo airlines include: Airborne
Express, AmeriHight, DHL, Emery Worldwide, FedEx, Union
Flights, and United Parcel Service.
Hawthome is also well positioned for manufacturing andlor staging
export merchandise and products destined from the East roast to
Pacific Rim-destination ports such as San Diego, Los Angeles, San
Francisco, Portland and Seattle. Opportunities existing for using
Hawthorne's i-day proximity to California's ports, which account for
40% of all trade to Asia, for developing 'l warehousjng clust<;lLfQr
staging pacifr",dm-bound products frgm..rnid-wesl aJ:).d east coa§.!
Nevada's early adoption of fiber optics, ISDN, and digital switching
technologies has made it one of the sought·after locations in America for
companies seeking competitive advantages in the information age.
Extending inlo the most remote regions of the state, Nevada's
telecommunications infrastructure is one of the most sophisticated in
North America. Nevada Bell provides The network, which is virtually 100%
digital, possesses the speed and bandwidth necessary for satisfying
today's business needs.
Nevada Bell system engineers report that in 1999 a new fiber optic trunk
line will be originated from the Hawthorne Central Office (just north of EI
Capitan) and run along US 95 to Walker Lake.
Business n.sks SupportedJrl Adv.!!!!l'jll'tI..mcQmmuoicatlons
As previously explained, each job within a company can be broken down
into tasks. The following list identifies a few tasks which can be completed
using advanced telecommunications.
• •
Birth announcements
Business cards
Business contracts
Logo/letterhead design Mailing Lists
Membership directories
Party invitations
Press releases
Term papers
Wedding invitations
S,p£!ladShllet Tasks
Accounts payable
Accounts receivable
Amortization schedules
Billing schedules
Cash flow schedules
Depreciation schedules
Financial statements
Fixed asset tracking
Inventory control records
Insurance/real estate comparison
Payroll reports
Tax schedules
Drawing Program Ta§K§
Drawing and renderings
Logo/letterhead design
Party Invitations
Sales brochure creation
Desk Top publishing Tasks
Birth announcements
Advertising layouts
Computer-Aided Drafting Tasks
Aircraft designs
Architectural designs
Design advertising displays
Machine blue prints
Ch_aracter General9.fS & Film Editor Tasks
Film editing
Home TV broadcasts
Video creation
Dala Base Management Tasks
Accounting system
Mailing lists
Programming systems
Telephone directories
Vldeoconferencing TasKI
Conference center
Internet Task~
Home page service
News clipping service
Sales catalogs
Sales retail
Bull!!!!n Board Tasks
Message center
Inform.alion Processing 11LtjUs!1Y
The information processing industry is a rapidly evolving sector that is
focused on meeting the needs olthe expanding information-based
The significant employers of data processing activity in the region are
usually large service sector firms in the areas of insurance, financial
services, health care, and communications providers, These companies
are involved in diverse markets serving thousands of customers both in
and out of the Sacramento Valley. They centralize information and data
processing activities to achieve economies of scale,
These industries employ Significant numbers of people in areas wtih
considerable key entry work, In general these activijies can be broken out
as follows:
Internal support (such as payroll)
Customer service
In financial services, activities include information intensive work such as
mutual fund management (Franklin Resources) and middle-market
lending (Wells Fargo). In both the health care and insurance industries
(e.g., Foundation Health and USAA) considerable data processing work is
done to facilitate claims, appraisals, adjustments, underwriting, and client
intake and follow-up. In communications-related industries considerable
information-intensive work is required for customer services and ethnic
targeted marketing.
Telecommunications-based, information-intensive companies such as:
"800" telephone service companies which answer calls under
contract to other businesses across US
Account servicing or data processing companies for insurance or
finance firms
Multi-state travel agent
Marketing research companies
1.4 Tele)llfoJ:k Centers
Locating a Telework Center at Babbitt would serve as a key anchor
enterprise which can further leverage telecommunication's and work.
Telework Centers, or telecen!ers, allow for the partial substitution of
computers or telecommunication technologies in place of a typical
commute to work by employees. Rather than telecommuting from a home,
workers would go to the Telework Centers which would be equipped with
various telecommunications technologies to allow residents to conduct
business, go to school through video distance learning, provide
businesses a means to interact with national and International clients, etc.
-- all through cyberspace. California is experimenting with telecenters as a
potentialland-use strategy. with telecenters placed throughout
communmes to allow residents to work and shop close to home. The rural
variation would be for a rural workforce to telecommute at a telework
center to a remote urban workplace.
The urban model focuses upon employees saving money on gas, auto
maintenance, etc. while employers get happier, more productive
employees, Business can save on travel expenses and lost time away
from the office while also exploring ways to expand their customer base
through the use of videoconferencing and distance education. As a result,
fewer freeways need to be built with improved air quality. Generally,
workers use a telecen!er 1-4 days a week if you have a job that does not
require you to be onsite or in the field. Through the use of a telephone,
computer and other telecommunications technology. you can work cioser
to home a few days a week. cut down your commute time and be closer to
your family. Telecenters provide you with a professional work space as
well as a computer and other equipment to perform your job and stay in
touch wfth your main office. Residents currently working at the telecenter
have saved time and money. They have experienced productivity
increases due to fewer interruptions and belter planning of tasks.
Employers like that, and they like that telecommuting benefits the whole
commuting by reducing traffic and smog. Workers can reserve a
workstation and Ihe only cost is the direct expense of telephone, fax, and
copies, which can be billed 10 the employer.
At a Chula Vista Telecenter In California, the marketing approach to
business has a definITe appeal as evidenced from the following excerpt
from a marketing message:
Discover the opportunities for your business at fhe te/ecenter,
where your business can save time and money by utilizing the
cutting-edge technology at the Chula Vista Telecenter:
Settle into the telecenter's convenient, comfortable
videoconfeience room and attend a meeting across the
country. communicate with customers anywhere in the world
from the telecenter through the electronic Information
Provide your out-of-town employees or clients with a
complete office to use for work or meetings.
Send your employees to the telecenter's interactive video
classroom for a training or class which ortginates in another
Te/ecenter services are tailored for businesses;
Executive suites: furnished and includes computer, modem,
and phone
Full or part time rentals
Computers: IBM compatible or Macintosh with word
processing, spreadsheet and graphics software
Conference rooms and classrooms
Internet access
Distance learning in interactive video classrooms
Another approach, being developed by the Kentucky Science and
Technology Council, Inc., is the "televillage." These televillages ere
virtual communities of people, finns, government agencies,
schools, libraries, health-care providers and others who are
connected through a common vision or need and linked through
telecommunications, information resources and shared services,
Televillages can be for-profit or not-far-prom operations that serve
a specific community or geographic area. This model is also being
used by other rural communities in the United States and in
Eastern Europe.
The Lincoln Trail Televillage in Elizabethtown, Kentucky, which
serves en eight county area, became the first operational
televillage four years ago. It links colleges and public sChools to its
electronic network, and partiCipants are exploring ways it can
support emergency services, agricunure, government, and persons
with physical disabilities. The televillage is currently bringing
doctors' offices and libraries on-line and is demonstrating to local
businesses the benefits of video conferences, EDI, bar coding, and
doing business on the Internet.
The Lincoln Trail Televillage links colleges and public schools to its
electronic network, and participants are exploring ways It can
support emergency services, agriculture, government, and persons
with physical disabilities.
America's Eil'$! Telecommunity
Nevada, Missouri, is a rural community of 9,000 located 90 miles
south of Kansas City and is the site of America's first
"telecommunity". This community's approach to leveraging
telecommunications has implications for developing Hawthorne's
The Telecommunity project will capitalize on home-based
businesses dependent on modern telecommunications
technologies. On January 23, 1996, the Nevada City Council
approved a contract for 560 acres of land it owns to be developed
as a residential televillage project. The development will be
targeted at home-based business owners, and its amenities and
design will create a "community of kindred spirits:
Housing units in the televillage will be linked with fiber optic,
coaxial, and twisted-pair copper cabling to provide for
state-of-the-art telecommunications capabilities for home-based
businesses and entrepreneurial enterprises. The housing units will
be situated within a few blocks walking distance of the Nevada
TeleCenter, which is available for the entrepreneurs' more
advanced technology needs and logistical support services. Plans
to develop a related teleincubator and office facility in close
proximity to the televiJIage and the TeleCenter are under
The World's First Televillage Development Company
Acorn Televillages, Ltd., an English development company with a
Missouri affiliate, broke ground on a fifty-acre televillage in Nevada
on September 4, 1997. The lirst phase of the Nevada project,
Lakewood Village, has thirty-one home sijes, and the second
section will add an additional thirty-two lots. All home sites are
adjacent to lakes or open commons areas. A networ/< of walking
trails is being built throughout the tract. The company also has an
option to acquire an addilional 500 acres of property adjacent to
the first phase. Plans are to develop that property as an extended
televillage overthe next several years.
Acorn has nearly completed work and sales on its first major
televillage project in Crickhowell, Wales. That project and its sister
development in Nevada are the first two unils in a network of
affiliated televillages the company expects to build in the United
Kingdom, the Unijed States, and other English-speaking countries.
The televillages provide unique working and living environments for
home-based business operators and residents. In addition, the
network of affiliated projects will facilitate the formation of
international virtual corporations" by televillage residents.
Teleconferencing Center
Interactive videoconferencing technologies permit the dynamiC, visual
communication between individuals or groups within a community, region,
nationally and internationally that normally only occurs during direct,
face-to-face communication, Consequently, interactive videoconferencing
has proven to be one ofthe major means to overcome the geographic
boundaries experienced by many rural communities, Interactive
videoconferencing is also an opportunity to share limited resources or to
make greater use of resources when face-to-face, dynamic
communication is required.
Examples of interactive videoconferencing abound throughout the United
States, Most ofthese examples have concentrated on using interactive
videoconferencing to increase access or reduce traveling and resource
replacement expenses through distance education and medical
applications, including provider and patient education and medical
consultations, As greater familiarity is achieved with interactive
videoconferencing and the technology changes to fit within other existing
technologies, creative approaches are being explored, For instance,
insurance agents have begun to expand their market territory and ability
to provide remote services by using interactive videoconferencing to meet
clients or to remotely view damage claims to automobiles, Telecommuters
'can now attend meetings from their homes or a telecommuting center
even though their colleagues are located in an urban corporate office or
distributed throughout the country. Home health providers can make more
frequent vistls to a patient using in-home videoconferencing technologies,
while providing the home bound patient quicker response to an
emergency, Judicial systems are using interactive videoconferencing to
arraign inmates directly from a jail, Community groups are directly and
frequently communicating with their state and national legislators even
though thousands of miles may separate them, As individuals and
communities come together newer uses of interactive videoconferencing
are being found, each providing economic opportunities through additional
revenue generation or cost savings,
Electronic Commerce
Electronic Commerce is a broad term describing business activities with
associated technical data that are conducted electronically, Through the
use of compuler technology and standards, informalion and activities can
be remote, automatic, and electronic, Electronic Commerce (E Commerce
or EC) is the exchange of business information using electronic formats,
including Electronic Data Interchange (EDI), Electronic Mail (a-mail),
Electronic Bulletin Boards (EBBs) and Electronic Funds Transfer (EFT), E
Commerce Technologies are designed to replace traditional paper-based
work flows with faster, more efficient and reliable communications
between computers, To conduct business in the current environment
using E Commerce technologies requires that a business have access to
a computer and a modem.
Electronic Commerce leads to enterprise integration by molding the vast
network 01 small businesses, govemment agencies, large corporations,
and independent contractors into a single community with the ability to
communicate with one another seamlassly across any computer platform.
Integration means more than coming together externally. Internal
integration is as vital, indeed, even more vital, than linking wtth the
outside. In an internally integrated organization, incoming orders are
received electronically and the information goes not only to production,
but to shipping, billing, and inventory systems automatically-without any
human intervention. Internal integration also means critical data is stored
digitally in fonnats and on media that permit instantaneous retrieval and
electronic transmission.
Image Warehousing
There may be polential for Hawthorne to ~go afier" imaging warehousing
services which playoff lhe new multimedia technologies being developed
in Silicon Valley. A multimedia service-focused company which processes
paper documents into electronic and interactive documents would be a
viable operation that could be supported in Hawthorne with the
appropriate and on-going skill lraining. One of the greatest enhancements
to occur in computer technology in the last five years is the abiltty to
manipulate more than traditional text and numbers. Today inlonnalion is
shared in a variety of fonns: text and numbers, sound, and stalic and
dynamic visual representations. Information sharing today requires
"multimedia" technologies, Unfortunately, many entities within rural and
urban communities still continue to process information in a manual,
paper based environment. One of the opportunities presented by the RTC
is for these entities to share the technology, a microfilm or optic disk
jukebox, that permits the progression from this manual, paper based
environment to computerized, multimedia infonnation sharing,
For some the imaging warehouse will permit the storage and retrieval 01
lonnally paper mediums. For instance, an insurance agent can exchange
several file cabinets for computer access to the same information stored
as images in the warehouse. City and county governments can provide
access to government documents, property descriptions. and historical
material through computer access to the imaging warehouse while also
protecting these materials from nalural disasters. The virluallibrary is
possible by allowing complete access to library matenals stored on
microfilm or CD-ROM.
For others in the community and region the imaging warehouse will serve
as the means to integrate formally paper based mediums with existing
computer based information managed by a variety of entities into a more
comprehensive understanding of a situation. For instance, the current
dnving force in rural health care delivery is to provide eartier, preventative
care close to the palient's home. Community and Regional Health
Information Networks will prove to be successful as greater integration of
information occurS. The imaging warehouse and the expertise provided by
these technologists make it possible, in a secured and confidential
environment, to provide aggregated, multimedia information about a fural
citizen to a health care provider from the various clinics, hospitals, home
health agencies, or nursing homes in a region who may have participated
in the delivery of health care to that individual in the past. This ability to
aggregate information through the imaging warehouse also allows the
health status of the community and region to be evaluated easily and
• quickly. This enhanced access and ability to manipulate munilnedia
information will quickly reduce the economic burden placed on rural
communities while also further insuring the protection of the information.
8.0 Entrepr'lOeurship
Supporting entrepreneurship is a growing rural economic development strategy
and is seen as being increasingly important to Nevada in creating new wealth,
new job opportunities, meeting unmet needs for goods and services, creating
new markets for existing businesses, and contributing to economic base
diversification. Entrepreneurship is growing due to:
Life style changes - i.e., people are moving in from urban areas for a
better quality of life
Technology advances and improvements in telecommunications have
allowed many people to be footloose in terms 01 business location
Corporate downsizing has created a cadre of skilled professional people
who are opting to become entrepreneurs as a solution 10 job loss in urban
Changes in the way markets work; some companies do not now have to
be located close to their markets.
8.1 "lnd!genQYs" Entreprnneyrs
These are people already living in the area and are often home-based
andlor small business operators, These include: repair persons; farmers
and ranchers involved in "cottage-industries", tourism and food and
beverage products and retail selvices, They respond to existing and
emerging market needs, Some may be dislocated workers or early
retirees, They have a good sensa of unmet needs for local goods and
services and a good network of contacts, They tend to lack adequate
capital and knowledge of technical assistance resources. and lack certain
business skills,
8.2 "Equity Refugees"
These tend to be either early retirees with money from cashing out a
house andlor a business in a urban area, or people who cash out and
move to a rural area while moving their businesses with them or starting a
new business, Both types are making explicit life style changes, However,
the retirees often do not intend to start or buy and operate a business.
They intend to retire but often find they are bored or they are creative
people who end. up creating a product, Move-in entrepreneurs often find it
difficult Ie make the transition Ie operate a business in a seasonal
economy and need to learn how to operate with peaks and valleys of cash
flow, People who move to a rural area to start or buy an existing business
offen lack adequate business experience, and experience failure. What
some of these entrepreneurs do have are skills, cash, contacts, and
market relationships outside of the region. This is important for
businesses which sell goods and services outside of the region,
8.3 JJLone Eagles"rNew Pioneers~l
"Lone Eagle" is the Center for the New West's name for the
burgeoning group of knowledge workers who are abandoning life in
large cities and the 9-t0-5 world and moving to small town America
or rural areas, The Nevada State Demographer has identified the
need to conduct a "new pioneer" survey by contacting new
residents Ie find out who they are, what their households are like,
and the skills and resources they bring Ie the state,
Lone Eagles are knowledge workers. Many are entrepreneurs -­
people who are comfortable with risks and like to run businesses.
Many are professionals ~~ writers, analysts l brokers, accountants,
attorneys, management consultants, financial advisors, engineers,
manufacturers' reps - who live by their wits and are tethered to the
outside world by faxes, modems, express mail and airplane tickets.
The Center for the New West calls Lone Eagles "a special breed of
knowledge workers" for they liye ang work away from the markets
they servE;. Some live in urban America yet many move to smail
towns and to rural America. Most work at home. Lone Eagles are
the pioneers of the SOHO (Small Office/Home Office) movement,
trailblazers on the Electronic Frontier.
Lone Eagles are persons who have "Iocational flexibili\'l in where
their work can be performed and use information technology to sell
products or services to a non-local market" and are ·significantly
more likely to have a higher income than other employed people."
Lone Eagles and telecommuters are more likely than other workers
to use computers, modems, fax machines and voice mail
are, therefore heavily dependent on digital swttching and other
modem telecommunications infrastructure which makes using
many of these products possible. •
According to studies, pull factors like good environment. outdoor
recreation opportunities and tile ab~,,"ce of state incomeJl!x were
Significantly more important to Lone Eagles and telecommuters
than push factors like undesir"ble ciim"te, crime and high stale and
local taxes in their previous IDeations.
The Center for New West has identified segments \0 the Lone
Eagle market including: Payrollers: Freelancers; Planters:
Gardeners: Piggybackers; Trustfunders: Golden Eagles; Bald
Eagles; and Country Hawks.
P~yrollers: People who are tethered as full time employees
of a corporation, law firm or other organization which,
typically, provides professional or business services. Many
Payrollers work for virtual corporations or for firms with
virtual operations, such as the "hoteHng" arrangements used
by Arthur Anderson in San Francisco. Other Payrollers are
off-site homeworkers (telecommuters) in order to enhance
productivity, optimize distances for those who travel, or offer
a nonwage benefit to a valued employee.
Freelancers: Independent consultants, advisors and other
professionals who sell their services to a variety of clients.
Many Freelancers are refugees from corporate
re-engineering. Many are urban refugees who move to small
town America to escape the violence, gridlOCK, pollution, bad
schools and. expense of big cities.
Planters: Entrepreneurs who move to small towns and rural
areas to start their own business, such as Great Plains
Software (North Dakota), Gateway Computers (South
Dakota) and Rocky Mountain Chocolate Factory (Colorado),
Planters like to grow and run a variety of businesses ­
including specialty manufacturing, business and professional
services, software businesses, mail order houses and so
Gardeners: Freelancers who cultivate business
relationships with former corporate employers. As many as
one-third of corporate staff and middle managers who were
laid off in the recent recessi"n ended up being re-hir,?d as
consultants and advisors to former employers.
Piggybackers: Sometime-writers, analysts and other
professionals who live off their spouses' incomes and, in
some cases, have "long distance" marriages in which lhe
Lone Eagle lives in the mountains or by the sea while the
spouse toils away at a corporate job in the city,
lrustfun.der».: Sometime-wliters, analysts and other
professionals who are still trying to find themselves as they
live off the achievements and savings of their parents or
grandparents. Rich Trustfunders are found in Aspen and
Jackson Hole. Midscale Trustfunders are everywhere.
!;lolden Eagles: Upscale Lone Eagles; this type has been
around for a long time. Golden Eagles span the aduH age
brackets -- some old, some young and many in between.
Some are Trustfunders, who are trying to figure out what
they are going to do with the rest of their lives. Others made
it on their own and simply want to "smell the roses" or
otherwise change the way they are living, Whatever their
source of wealth, Golden Eagles typically have net worths
exceeding $1.0 million and are focused as much on easy
living as on hard working.
(H) Bald Eagles: Migrant retirees. They seek a nice and safe
place to live -- a place where they can sink roots and get
more for their money than in the Big City. Pre-boomer Bald
Eagles flocked to Florida and Arizona. Today's Bald Eagles
seek a well-rounded town with a normal distribution of age
groups. Bald Eagles bring a new wealth to a community -­
including savings, investments, pensions. They are also an
important human resource to small communities.
(I) CountrY Hawks: -- differ from Lone Eagles chiefly in
motivation. Lone Eagles move to a small town or rural area
to continue their work in a different setting. The Country
Hawk is motivated primarily by a desire to live in the country.
The primary challenge for Country Hawks is to find a way to
make a living in the place they want to nest. Country HaWKS
typically are searching for a new life and, in the early stages,
may be adlift: They know where they want to be, but not
what they want to do. Lone Eagles, by contrast, already
know what their business is and where their markets are.
Many Country Hawks are earty retirees who will soon
become Bald Eagles. Most will start small businesses -­
typically a back-office operation, a home business, a retail
business or a tourism-related
9.0 Retirees
Hawthome has opportunITies to use its existing retiree base as leverage to
recruitment more "Senior Sun ~,,!lkers" as well as other retiree markets such as
"Rural Resort Dwellers" and seniors looking for "Retirement Communities". As
noted above, Hawthorne has more 'Senior Sun Seeker" households as a
percentage share (13%) than Florida and Arizona neighborhoods which average
12% of households represented by this retiree segment. The Babbitt and
Schweer properties can become important assets in the development of the local
infrastructure to support the recruitment of retirees as an economic development
9.1 Rural Resort Dwellers
Rural Resort Dwellers are the locals who reside in rustic getaways; this
consumer type includes retirees who have opted for fresh air and the
great outdoors. Remote and rural, these communities depend upon
seasonal trade to sustain the local economy.
Rural Resort Dwellers love the great outdoors. Four-wheel drive vehicles,
hunting, fishing, and wilderness sports re~ect their lifestyle. Pastimes also
include antidotes to cabin fever, indoor activities such as arts, crafts and
hobbies. Typical of retirees, they also do volunteer work. Spending is
likely to include cameras and women's apparel.
Local, full-time residents are older, in contrast to the seasonal population.
Many of the householders are concentrated in the 55-plus age groups;
almost 45 percent of householders are over the age of 55 years. Families
are predominantly married couples and include many recently retired to
the areas.
Over half of the households earn less than $25,000, but their poverty rate
is the same as the national level. Ru ral Resort Dwellers earn a modest
living from seasonal employment and farming. Over 20 percent receive
retirement income; 35 percent receive Social Security. Most of the labor
force are employed part-time. Median household income is $24,700.
Residences are single-family or mobile homes and owner-occupied. Sixty
percent of the housing is for seasonal use and remains vacant during
mas! of the year. Average value is low, $100,000 for all owner-occupied
units, but comparatively high for rural areas.
Over 90 percent of the Rural Resorts are in rural villages. These
neighborhoods can be found in most states, but Rural Resort Dwellers are
concentrated in the North around the Great Lakes or in New England,
especially Maine, New Hampshire, and Vermont.
R\7lirement Communities
Retirement Communities are the sites of congregate housing for
well-to-do retirees. Neighborhoods also include more expensive
single-family homes, condominiums, and some nursing home facilities.
This is a diverse group as regards lifestyle and spending.
The lifestyles and spending in this market are as diverse as the
households in these areas. The preferred automobiles are subcompact or
lUXUry cars. leisure activities include court sports and golf, picnics and
dining out (especially in family restaurants). Travel is popular--foreign
more than domestic. Spending includes not only investments, but also
luxuries like fUrniture. sports equipment, VCRs. and apparel. This is an
excellent mail order market.
The age profile is older, but not exclusively elderly. This market segment
is actually the youngest of the Retirement Styles group because the
communities are situated in mixed residential neighborhoods.
Householders aged 75 and older represent almost 20 percent of the
household distribution. but so do householders aged 25-34 and 35-44
years. Single-person households are 35 percent of the total, followed by
married couples without children at 27 percent.
This is a small. but prosperous marnet with a median household income of
$32,500. Sources of income are varied by the large number of retirees:
pensions (20 percent), Social Security (33 percent), interest and dividends
(over 50 percent) and salaries. The labor force is also small, but
well-educated and employed professionally.
Congregate housing, where meals are included with rent, accounts for 70
percent of the housing in Retirement Communities. Average gross rent is
over $650, which is well above the national average. Surrounding
neighborhoods include single-family homes valued at $133,000. Most of
the housing is relatively new, almost 40 percent buHt in the last decade.
Retirement Communities may be found in any state, but Sunbelt locations
are popular, accounting for the higher mobility of this group,
9,3 Forn,!!, HWAD Workelli and Families
At least several thousand of former military personnel and civilian
employees who have worked at HAWD since the 1960's are approaching
retirement Many former workers who have moved on have fond feelings
toward Hawthorne and consider it as one of their "homes". These former
workers who have retired or who are approaching retirement are "warm"
targets to recruit for seasonal andlor year-round retirement living since
they already know what it is like to live in Hawthorne and have probably
already lived at Babbitt or Schweer at some time. A secondary appeal can
be made to the children who grew up at Babbitt or Schweer during the
1940's and 1950's and who are approaching retirement. A "reunion"-type
. event in Haw,thorne would be a effecti)'e waY,to market to for"!,,r workers
who are seniors andlor pre-retirees.
10,0 Housing O!!!lortunities
10.1 Cllrrent !:,ondlJions
Babbitt and Schweer were previous housing sites which at one time
provided as many as 640 housing units that supported a resident
population of as many as 2,500. Reuse of parts of Babbitt and all of
Schweer for housing is an inevitable consideration but must be carefully
considered in relation to the existing housing stock in Hawthorne,
There is a lack of new housing in Haw1horne. The last new home
was built in Hawthorne about 4-5 years ago
In mid-1997, there were approximately 60-100 housing units for
sale or rent in Hawthorne. Most of these units are in substandard
There has only been 1 new subdivision platted in the Town of
Hawthorne over the past 5 years. This subdivision has a residential
building capacity of 6-10 units.
Average monthly fair market rents in the Haw1horne area for units
in substandard to standard condition are estimated at
2-bedroom un~
3-bedroom unit
4-bedroom unit
$300 per month
$350 per month
$400 per month
HUD's FY97 figures for monthly fair market rents in Mineral County
under the Section 8 subsidized housing program are much higher
,. 320 $ 437 1-bedroom
$ 582 2-bedroom
$ 763 3-bedroom
$ 955 As described above, Hawthorne has a disproportionately higher share of low income households, Housing units "affordable" to I.gw in!,ome
The income groups are based on a percentage of the median family
income for an area. The first type of record contains data for households
in five income groups: 0-30%, 31-50%, 51-80%, 81-95% and 96%+. The
second type contains data for the incremental group of housing units
affordable to the households at one of four income levels: 30%, 50%, 80%
and other,
"Affordable" units are defined to mean units for which a family - at one of
three specified pOint on the low income scale - would pay no more than
30% of their income for rent and no more than 2,5 times their annual
income to purchase,
Household data are grouped into three classifications: (1) eldeny
,households are one or two member (family or non family) households with
head or spouse age 62+; (2) small related family households are non
elderly family households with two to four members; (3) large related
households are family households with 5+ members, Other households
may be derived by subtracting these three groups from total households,
Households with Housing Problem"
More than 31% of all housing unlls in the target area have housing
problems (#: 93,226 housing units). These are households in units
which lack complete plumbing, having more than 1,01 parsons per
room (overcrowded) or paying more than 30% cost burden for
More than 47% of all households with housing problems live at
50% or less of median family income (# = 44,219 of 305,045
housing unils),
10,3 Subsidized l:!2!,1lling Demand
As of September 1997, Ihere is a waiting list for 58 rental units of
subsidized housing under the HUD Section 8,
Householg Characteristics:
45 units 7 units 4 units 2'unils Bedroom Size Reauirements:
1-bedroom unils
2-bedroom unils
3-bedroom unils
4-bedroom unils
30 19 10 0
11.0 Commercial Prope[!y
11.1 SUPl?iy
The Town of Hawthome has approximalely 83 acres of "C"-zoned
commercial property which comprises approximately 29 city blocks in Ihe
11.2 U,S. 95 Traffic Patterns
The Babbitt property contains 5900 feet of prime commercial highway
fronlage on US 95 which is the main artery between Reno and Las Vegas,
This mile pius sirelch of road certainly has the highest traffic flows in
Mineral County with 700 plus residents of Hawthorne commuting daily
between the Town of Hawthorn to HWAD and with through traffic on U,S,
95, In 1996, approximately 1,533,000 vehicles, or 4,200 daily, passed Ihe
Nevada Department of Transportation's traffic count station at Babbitt.
ApproXimately 84% of this traffic was passenger vehicles with the balance
being trucks and buses. In 1996 as much as 63%, or 967,000 of these 1.5
million vehicles, was tI1rough traffic which also passed the other traffic
count station south of SR-362.
U,S, 95
967,250 .
12,0 Industrii\1 Property Supplll
There is a lack of developed M-l property available for sale in Hawthorne. There
are approximately 200 acres of "M-1" zone-type industrial property in and
immediately around Hawthorne, The Town of Hawthorne contains approximately
106 acres which comprises approximately 29 city blocks in the aggregate. The
existing airport industrial park on US 95 consists of 19 developed parcels in 2 to 5
acre sizes comprising approximately 54 Iotal acres which are available by "lease
only" which is a barrier for development. The relatively small parcel size and
"lease only" use is a barrier to many kinds of larger, facility-intensive industrial
development. Some 14-16 oltha parcels, comprising 41-48 acres or 77%-90% of
the industrial park, appear to be currently leased andlor are being held for use by
speCific businesses, The Town of Hawthorne provides water and sewer to the
park. These utilities run along US 95.
Industrial Park: Current CapacITY Analysis (Estimate)
Number of Parcels:
Total Acres:
Total Leased Acres:
76.54% occupied/committed
[End 01 Part 2]
Part 3
1.0 Babbitt Highest and B!,lst Use
Highest and B'i!§! Reuse Recgmmendation
This study recommends that Mineral County redevelop Babbitt with a reuse
master plan that provides for, and encourages, mixed uses such as commercial,
light industrial, residential, educational public use, recreational public use and an
open highway corridor. Within each of these use areas, targeted industries and
specific market segments have been identified. These targeted industries are
based upon their potential: (1) to take advantage of regional and national market
forces and opportunities, (2) to exploit locational and site-specific advantages;
(3) to create new jobs and new private investment; & (4) to expand the tax base.
It is suggested that, after public comment and modifications, this "highest and
best use plan" can serve as Mineral County's "development strategy" for Babbitt
It is recommended that the next steps in developing Babbitt's "highest use" are:
Given the size of the Babbitt property, it is recommended that the property
be developed in phaSe!' with Phase 1 consisting of areas tnat can be
§erviced by the existing water and sewer lines which connect and service
the bowling alley and elementary school and which are operated by
It is recommended that Mineral County proceed with the ,!nnexatlon
process as rapidly as possible and that a process be implemented to
develop a land use master plan at least for Phase 1 as soon as possible.
It is recommended that Mineral County design and implement an
aggressive marketing program and ao incentive program which could be
conducted during the annexation, land use planning and zoning process,
It is recommended that the marketing program be a "rifle approach" to
industrial recruitment rather than a "shot-gun approach".
It is recommended that Mineral County develop a medium and long-term
infrastructure plan for capital improvements at Babbitt which provides
technical approaches and cost estimates regarding water. sewer, streets,
etc. be developed by an engineer.
It is recommended that Mineral County proceed with a Technical
Assistance grant to the U.S. Economic Development Administration (EDA)
for an Implementation Planning grant rather than a grant to develop an
Economic Development Strategy as proposed in August 1997,
Conceptyal Land Reuse Plan
The intent of the conceptual reuse plan is to provide Mineral County with a
baseline planning document to guide the county's actions to achieve "highest
and best use" of the Babbitt property. The annexation olthe 440-ecre Babbitt
Housing Area to the Town of Hawthorne would increase the town size by 54%.
The current Town of Hawthorne contains 1 square mile plus 160 acres.
Town of Hawthorne
Originar Townsfte
Past Annexations
Babbitt Annexation
Post-Annexation Size:
% Increase to Town size
The 440-acre Babbitt property has approximately 5900' of highway frontage on
US 95. The intenor roads at Babbitt stjll exist with a series of roads mnping
parallel to US 95. These interior US 95-parallel roads provide a potential reuse
layout consisting of a senes of adjacent rectangular areas with mixed uses
separated by openibuffer areas. The following conceptual land use plan
proposes the following allocation of uses by size:
Commercial1Light IndustriaJ
CIM-l Limited
p-open Space
R~ 1 Single
Family Residailoo
R·1 Home Occupation
R~2 Umited Multi-Family
R-3 Multi-Family
Southwest Undevelop&d Parcel
Tota) land>
1- II
-~-.~., 'C'
-, " - - ~ ..- ~-~ •.'
. '\;'\,,/~ • ~
. ,.'</....
.,'-.i> ~¥ I
f. I
~ :-~~ .~
111111 1111 11 11 1'1
~ ~
bb© ~
b C
F F ~ @!Coo <f'»
~ ~ ~ m
<n ~
m ~
~ (\))
~~ Om:n(\))
3.0 M·1~HIghest !I1ll1Besl" Conceptu,'
3.1 Plan
M·l "Highest and Best Use" StratQgies
(1) Exploit Hawthorne's proxlrnily to major economic centers by
providing a low-cost productive base for "just-In-time" primary
component, subas'!eJ)'ljlly anrt§8condar. supplier!! at Babbitt which
can support the "booming" manu1acturing centers of Reno. Las
Vegas, Sacramento, San Francisco/San Jose, Los Angles/San
Diego, Boise, Salt Lake, Phoenix and the Portland/Seattle corridor,
Capitalize upon Babbitt·s strategiC geographicallocalion to serve
the entire West Coast w~h a sophisticated transportation system,
by the competrtlve cost of doing business, and a superior quality of
(2) California is Ihe #1 producer of agricultural goods in Ihe US,
Opportunities exist for using Hawthorne's location 10 fresh
agricullural goods frorn California's Sacramento and Central
Valleys for supporting a nichel!Jlrd sgecialt~ (ood processlQg
manyfacturlf]gJ)luster to serve regional markets in Reno, Las
Vegas, and Northern California and olher domestic markets In the
mid-west and easl coast.
(3) Exploit Hawthorne's proximity to the S850 billion-pius In consumer
markets located wtthin a 1-day "just-in-tlme" delivery schedule in
Reno, Las Vegas and California by providing a low-cost productive
base for niche and "Recially manufacturers of ",nBumer products.
(4) Leverage telecornmunlcatlons to close the gap between
Hawthorne's rural geographic location and the workplaces of major
urban areas by nurturing the growth of niche service seclor
industries at Babbitl to provide "ba&~;:-"l!!i~.c-':realli~.!nfQrOlatioo
(5) Use telecommunications. a scenic nalural environment and
opportunities for ouldoor recreation to leverage Hawthorne's
competitive advantage to attract 10 Babbitt the new lool-Ioos",
self:[email protected]" knowleqge workers (a.k.a. "Ion,,~agles:
lelepreneurs) who can live and work anywhere.
(6) Support the development of a '~elec9mmuler cluster of knov~!i!dg!!
workers" by establishing a muHi-lenant "telework cent!!r" to support
individuals who are full-time and/or part-time "telecommuters";
Develop as an amenity to
new residents who can
telecommute to Reno and Carson Ctty and still be close enough 10
once or twice a week.
(7) Create a mUlti-tenant "teleIQcugatQr" with flexible workstations and
office rentals to support "talepreneu",", InfOrmation technoJQgy
startu~ companie§, and traditional incubator tenants who need
access to office, light assembly and light manufacturing space.
(8) Support the development of priyate.real estate investment
opportunities to develop "build-la-suit", "spec", leasable and "for
sale" professional "Office Buildings" and shell industrial buildings to
provide quality space for companies with manufacturing,
wholesaling, or distribution needs. (Ideally with the capability of
building 20,000 to 60,000+ square feet with celling heights in 24 ­
28 feet range and constructed of fabricated metal and concrete
Establish a video confererycinglwQrlsforce training center to !I.evelog
the ."'J11"I,,1 County ""orJsjorg; by linking to Western Nevada
Community College's distance ed~s and 1- '!!1d~
y~ar, voca\lQDal degree Ilrograms as well as providing access for
busjD_esses to shorj;!elm'§!l(twslomize;:UJlg~stry trai]1io.g.
(9) (10) Develop the infrastructure to support develop a "telecommuter
cluster of knowledge workers" who can live and work at Babbitt and
occasionally drive to the workplace in Carson City or Reno once or
twice a week.
(11) Use HWAD and Day & Zimmerman Hawthorne Corporation's
(DZHC) reputation for productivity, quality, high tech and
environmental excellence to leverage a clu'!!&KJlf.mLa.ted, high tem
manufacturing. 'servjce and envir.onlTlef'!ial porppany §xpanfLion~ to
(12) Support DZHC's strategic vision to be "the preferred major operator
of ammun~ion depots, the leader in worldwide demil~arization of
munitions, and the operator of a national munitions recycling
(13) Support DZHC's future business lines and local spin-off
opportunities in: ammunition logistic management; resource
recycling and disposal of munitions; logistics management; and
emerging munitions demilftarizalion technology.
(14) Promote lan,Q.Q.eyfflgJ'I11"tnillQligie§. for Babbitt which support
sustainable development and eea-industrial primjllies which would
position marketing efforts to leverage companies wanting to 00
identified wit~ such "cutting-edge' practices in a scenic
wildernesslfron!ier location; Examples of such companies would
be: wilderness/high altitude product research, development and
manufacturing; resource-recovery manufacturing; educational
training; athletic and endurance training; environmental services
such as monitoring, software development. analytic laboratories
and testing facilities; high altitude nurseries for growing native
plants for mine remediation projects; etc.
(15) Develop a niche §ervice industry clyster of d~E!QQ!J!.uPllliers,j'lnQ
brokers to support the primary and secondary products, services
and "odd-ball" needs of the military and especially for the 8
munilions depots; Support the development of a company or
Cluster of companies which offers a physical 'and virtual "logistical
support center" with warehousing, distribution and transportation
services along with telecommunications and electronic commerce
to "service" this specialized industry which is increasingly out­
sourcing functions and selVices due to down-sizing and
privatization efforts.
(16) Develop a high tech resource recovery Industry cluster al Babbitt
by leveraging HWAD's international repulation for .QQJ]lIenljQDil.l
munitions recycling at the Western Area Demilitarization Facility
(WAD F); Establish an industrial area at Babbitt which could be
affilialed with WADF as an "oulside-the-fence" recycling facility;
Market Ihe recycled malerials from Ihe HWAD demil plant to
support the formalion or expansion of a manufacturing company at
Babbitt which could use the recycled roglerials and metal. fOr
[j!manufaQlured..QQllt-consymer products, for reprocessing
recycled m~terials for manufacturing process'!§,.,and/or forlhe
milling of interim Q[oducts,; Market the ability to recycle and
remanufacture recovered explosives for the mining industry and
other industrial uses; etc.
(17) Develop a warehousELclu:;ter and truck tr"nSROrtation,.mstribytioo
hub for "jyst-in-time" deliveries by-and-betweeI1 California/East
Coast and RenolLas Vegas markets by leveraging a favorable tax
structure and the large volume of heavy interstate trucks making
deliveries to HWAD and leaving empty; Manufacturers can ship
products from Babbitt for 40% to 50% less in cost than
transportation expenses in other states because between 40% to
70% of the trucks bringing goods into the state leave empty.
(18) Develop an industlY cluster focus to reyru;! mining services and
mjnillQ-related manufacturing to Babbitt to exploit Mineral County's
cen!rallocation to the industry as well as its name and vast mineral
reserves; Promote opportunities for developing niche valued-added
manufacturing andlor mineral processing for industrial applications;
Support an on-going market research effort to match the
requirements of new industrial and technological products and
processes, such as new composite materials, to the abundant
mineral reserves In Mineral County.
3.2 M,1 Land Use Allocation Plan
. Per
3.3 Total
Acres' Number
By Parcel Size 2.5
40 40 1
40 4
30 165
New Limited CIM·1 Overlay'
The above strategies can be enhanced by establishing a new and limited
CfM-l overtay which would support ccmpatible commercial,
manufacturing and residential uses (See Appendix for a full description).
3,4 Conceptual "Highest and Best" Users of M·1 PropertY.
The following page provides a sample of the types of companies that
could be users of the M-1 property at Babbitt;
Conceptual "Highest and Best" Users of M·1 Property at Babbitt Employees
1, A small manufacturer of construction products for high
growth areas In Reno, Las Vegas and CalifornIa
buys a 2-4 acre parcel and constructs a 12,000 SF facility
2, A specialty supplier to the med]cal manufacturing industry
1n Sacramento buys a 3 acre parcel and constructs a
10,000 SF facility
3, A contract maniJfacti.lrer to the electron'cs industry bullds a
10,000 SF facUlty to provide subassemblies for electronic
gaming manufacturers in Reno and Las Vegas
4. A boat manufacturer establishes a production and research
facility at BabbItt in order to be close to Walker Lake In
order to test prod'...!c!s and still be Close enough to Lake Tahoe
for special event marketing events
1. A service bureau for several Reno casinos establishes a
Back~Office teleservice center to handle 1-800 reservaTIons;
The company rents approximately 2,000 SF of space in
the small business Incubator and builds a 5,000 SF office
at Babbitt after the 1st year operations prove profitable
2. A market research company establishes a call center at
BabbItt to handle new contracts for consumer information
in California and Nevada markets; The company starts off
in the
incubator at Babbitt in
1,500 SF and after the first year enters lnto a 5-year lease
In a shared-office buildIng next door which was built by a
3. An early retiree from HWI\O starts a new company to act flS
a broker to supply defense depolS a:ld faciUties using the Internet
to arrange for drop sh\pMents
1. A medium sized mid~west manufacturer establishes a
now 25,000 SF distribution center utilizing a 5 acre parcel
to servo west coast and Pacific Rim mar'"ets
2. A trucking company expands into Nevada in anticipation of
new all-cargo airport opening in southern Nevada; the company
establishes a distribution hub at Babbitt and builds a 35,000 SF
facility on 15 acres at the north end of Sabbitt
Residential "Highest and Best Use" Strategies
Establish a residential overlay area for an "entrepreneur-zone" in R­
1 areas that promotes the location and clustering of "Cottage" and
"Home-based" businesses.
Establish a residential overlay area for a "telecommunity-zone" in
R-1 areas which would promote the development of an up-scale,
telecommunications-"smart" residential area with a variety of types
of housing which would offer fiber optics and other communications
amenities to attract "Lone Eagle"- and telecommuter-househOlds;
Target Hawthorne "Baby Boomers" who have establishes careers
in cities and out-of-state; reverse the exodus of educated young
Increase the number of affordable, multi-family rental units with 2-3
bedrooms for subsidized low income households.
Increase the number and types of unils of senior housing and
especially for households with members who are disabled and frail.
Diversify the housing stock by supporting new subdivisions with
townhouses and condominiums.
Establish a "homeownership" zone to increase the supply of
"starter-homes" for 1"-time home owners by supporting
"affordable", detached, single-family dwelling subdivisions.
Establish a retirement community for former HWAD workers and
family members.
Support multi-unit housing options which provides the aging
population in the region WITh an alternative living arrangement and
a service package which allows them to remain in an independent
living arrangement longer.
The following paragraphs present a descriptions of a new overlay zone for
Low-Density single family detached housing that would support home
occupations (See Appendix for a full description):
IDten! and PurposE!. Provisions of the "Home Occupation Overlay
Zone" would allow limited commercial and industrial·type
enterprises in areas with mixed residential, commercial and
industrial uses. These provisions would protect the rights of
residents to engaga In new, and expand existing, home
occupations while limiting incompatible and conflicting land uses.
These provisions would also reduce traffic on arterial streets by
allowing uses which permit residents to work attha!r dwellings.
Importantly, home occupations are not Intended to change the
character or adversely affect the residential uses w~hln the
permitted zone.
Definition. "Home occupation" would mean any use primarily
conducted within an enclosed area of a dwelling or in an accessory
structure, provided that the dwelling is the principal domicile of one
of those practicing the home occupation.
Symman'-ClfJ'{esidential ConceplUl!lPlal1
i'/.1 Single Family
jMedlum Income
Income/Wealthy Retirees
Empty~NestersiNew Retirees
1st~Time Homeovmers
Owner- RenterOccupied Occupied:
~-3 Multi·Family
Manufactured homes
Townhouses/Condos (2~3
r'!edium-!ncome Apartments (2-3 bedrooms)
Apartments {2-3 bedrooms)
~. ixed_._.~~":ior Housing (Studios)
___ 30 _ _.~_.....1Q_._l~O~J
[End of Part 3]
Part 4
Schweer Highest and Best Use
Highes1 and Best Be!!%9 Recommendation
This study recommends that Schweer be developed as an "active senior"
retirement community which is in close proximity to numerous destination draws
for retirees and which has a favorable tax structure for retirees with no state
income tax and Significantly less property taxes when compared to California.
Until the market clearly expresses a preference, it is recommended that the
housing use strategy for Schweer target multiple markel segments by promoting
seasonal and year round occupancy. Any strategy adopted to achieve "highest
and besl use" should be flexible to respond to market pull.
Market Segments
It is recommended that the following reliree market segments be targeted:
This group would be looking for a 3 to 6 month short-term
residen~al vacation in a western rural setting. Members of this
group may be "weat!!~r !'!1fugees" escaping extreme heat and cold
or older households "adventuring into the wesf' from the north or
east This group may also be "l!I'!>!!!!JYlugees" getting away for a
season from their primary homes in urban settings.
"Sun!!im.'!" from r~rement centers in southem
Nevada, Arizona such as the Phoenix Metro area,
and southern California; there may be a potential
appeal to provide a "western" seasonal retiree
experience (access to wilderness, gaming,
entertainment, etc.) for new retirees in the southeast
and Florida; "f!!ore!ir<te~" with extended and
accrued vaca~ons "trying-out" potential retirement
"Snpwllakes" from the north such as Alaska,
Mantana, Minnesota, the Dakotas, and Canada which
consider winter in Hawthorne as "mild"
The "shoulder' seasons could be marketed to
Sunbirds andlor Snowflakes
2nd Home Seasonal Retirees
The wealth of opportunities for recreation and entertainment for
mobile and active retiree households
Year-Round Retirees
As profiled in Part 2 above, the year-round units could be marketed
to "Senior Sun Seekers" as well as other retiree markets not yet
represented significantly in the Hawthorne area such as "Rural
Resort Dwellers" and seniors looking for "Retirement
Communities" .
Mark,tlng Proximity to Recreation
As a retirement community, Schweer can market proximity to numerous
amenities with such as: living within 1000' and a short golf cart ride to a 9­
hole golf course with conceptual plans for an additional 9 holes; Walker
. Lake is a few miles north for boating and fishing with Lake Tahoe just 3
hours away; the world-class gaming and entertainment centers of Las
Vegas and Reno are within short drives; access to world class skiing at
Lake Tahoe and Mammoth is within a half-day drive; and the Sierras, and
Yosemite and Death Valley National Parks are also within a half-day
drive; Los Angles and San Francisco are within a 4 to 8 hour drive; etc.
Housing Uses
Until the market clearly expresses a preference, it is recommended a
housing use strategy for Schweer be considered which targets multiple
market segments by promoting seasonal and year round occupancy. An
allocation of units could be configured that the (15) 2-bedroom duplexes
(30 units) be leased to seasonal retirees andlor to pre-retirees and that
the (10) 3- and 4-bedroom duplexes (20 untts) be leased to year round
retirees. This approach reserves the additional bedroom space for
storase which long-term residents using Schweer as a home and
retirement base would likely require.
Achieving "Highest and Best Use"
It is realistic to believe that Mineral County could attract a bona fide developer to
redevelop Schweer into a retirement community with private investment It is
recommended that Mineral County request letters of interest from potential
developers in order to determine the nature of the market potential of Schweer
as a retirement community. It is understood that there has been interest to
expand the 9-hole golf course 1018 holes. It is recommended that a conceptual
layout for the additional9-hours be designed. Proximity to an 18 hole golf course
will attract bona fide developers from California, Reno, Las Vegas anellor from
local parties.
Structures Units
of Duplexes -bedroom units
3-bedrooms units
bedrooms units
3.0 #
Per Unit
1,310 I
1..640 I
Alternative Conceptual Uses,for Schweer
A Regional Juvenile Detention Center . '" "Boot-camp" style youth camp
A year-round residential preparatory school for youth
A seasonal residential training camp or educational center that exploits
the high-altitude location and proximity 10 wilderness and mounlains
A university-affiliated, residential science center offering proximity to the
extraordinary diverse mineral and geothermal resources in the area
Rental Housing Complex marketed to one or more of the following
potential segments:
A short- to medium-term Elder andlor Youth Hostel
Year-round single families to meet current and projected housing
OWner-Occupied Housing Complex marketed 10 medium-income
households from one or more of Ihe following polential segments:
• Seasonal second homes 10 non-residents
Year round homes to residents
Condo-Style mu~i-family close to golf course
potential Reuse Financial Potential
Schweer Rent Revenue Potential
Units Monthly
By Unit
2·Bedroom Units
3-Bedroom Units
4·Bedroom Units
$ 42,000
$ 48,000
$ 198,000
4.2 Schweer Sales Potential
By Unit
Unit 2-Bedroom Units
3-Bedroom Units
4-Bedroom Units
Potential Annual Rent Revenue
. Schweer Assessed Valuation Estimate
25 Duplexes
$ 147,800
[End of Part 4J
Site Total $1,050,000
$ 400,000
$ 450,000
Appendix •
New Limij..d CIM-1 OVllrlav
Intent and purpose. This zone would be intended for light
industrial and limited commercial uses wherein operations are such
that they be compatible with adjacent residential environs of the
Uses. permitted. Within the area covered by the terms ofthis
section, all buildings, structures and land shall be used and
buildings and structures shall hereafter be erected, designed,
structurally altered or enlarged only for the following uses:
(Al (8) (el
Ught Manufacturing:
(a) Auto painting (conducted wholly w~hin an enclosed
(b) Auto upholstery
(c) Bakery (wholesale)
(d) 80at building and repairs,
(e) Cabinet shop
(I) Ceramic products manufacture
(g) Ught electronic manufacturing
Food products manufacture
Garment and shoe manufacturing
Lumberyard, including milling
(k) Sign manufacturing
(I) Textiles
(m) Tire recapping, retreading and rebuilding
(n) Upholstery
(0) Welding shop
(p) Compounding, assembly or treatment of articles or
merchandise from the following previously prepared
materials: Bone, cloth, cellophane, cork, feathers, felt,
fiber, fur, glass, hair, horns, leather, metal, paper,
plaster, plastics, shellS, stones (precious or
semi-precious), textiles, tobacco, wood and yams
(1) Blueprinting or photocopying
(2) Carpet and rug cleaning plant
(3) Cleaning and dyeing plants
(4) Dairy products
(5) Food processing
(6) Laboratory (chemical or scientific)
(7) Water softening
Greenhouse (no retail sales)
Wholesaling, warehousing and storage (all outdoor storage
(D) (E) (F) including machinery and equipment shall be enclosed within
walls or fences):
(1) Wholesaling and warehousing facilities
(2) Distribution agencies
(3) Contractors storage yard
(4) Building materials
(5) Feed and fuel
(6) Lumber yard
(7) Machinery and equipment rental
(8) Draying and freight yard
(9) Bus storage
(1) Distribution plant or subsection
(2) Service yard
Commercial and Services:
(1) Automotive body repair
(2) Automotive sales and services
(3) Commercial uses customarily incidental to and
directly relaled 10 Ihe operation of permitted light
industrial uses
(4) Administrative or sales office related to a permitted
industrial use
(1) Small animal hospttal
(2) Printing and publishing
(3) Research
(4) Motion picture studios, including video and
photographic studios (excluding retail sales) when
conducted within an enclosed building
(5) Uses incidental to industrial uses such as infirmary,
dispensary, lunch room, employee recreation facilities
and residential uses for plant security personnel;
Property Development Standards. The following property
development standards shall apply to all land and struclures
in the Limned C/M-l zone:
(Al (B) Lot Area. Each lot shall have minimum of seven
thousand five hundred square feet;
Lot Width. Each lot shall have a minimum width of fifty
(C) (D) Building Height. No building or structure erecled in
this zone shall have a height greater Ihan thirty-five
Yards. To be determined.
B·1 HO Home Occupation Overlav Zone
Intent and Purpose. Provisions of the "Home Occupation Overlay
Zone" would allow limited commercial and industrial-type
enterprises in areas with mixed residential, commercial and
industrial uses. These provisions would protect the rights of
residents to engage in new, and expand existing, home
occupations while limiting incompatible and conflicting land uses.
These provisions would also reduce traffic on arterial streets by
allowing usas which permit residents to work at their dwellings.
Importantly, home occupations are not intended to change the
character or adversely affect the residential uses within the
permitted zone.
Definition. "Home occupation" would mean any use primarily
conducted w~hin an enclosed area of a dwelling or in an accessory
structure, provided that the dwelling is the principal domicile of one
of tho~e practicing the home 09cupati9n .
Minimum Conditions. Any home occupation would be required to
conform to minimum conditions such as the following:
(1) All home occupations are to be conducted within or as an
accessory use to a residential use unless as provided for in
this section.
(2) There shall be no unsightly exterior evidence of the conduct
of a rural home occupation. In uses where outdoor storage
is pemnitled, fences or landscaping shall screen any
materials from adjacent properties.
(3) Electrical or mechanical equipment which creates visible or
audible interference in radio or television receivers or causes
fluctuations in line voltage outside the dwelling unit is
(4) A Home Occupation shall not adversely impact vehicular or
pedestrian traffic in the district in which it is located.
(5) Signage shall be limited to six square feet per sign with no
more than two signs per property. Said signage shall be
subject to an administrative use pemnit.
Minimum Performance Standards.
Any proposal shall be required to adhere to the Performance
Standards of the Mi·A Zone at a minimum.
Additional standards may be imposed to protect the residential
character of the neighborhood.
Uses permitted subject 10 II \?ondilionill \I!!!! P!lnmit. The
following list contains permitted home occupations subject to the
approval of a conditional use permit In addition, remodels of
structures containing Home Occupations Which result in more than
a ten percent expansion of the structure will require a Conditional
Use Permit to continue the home occupaTIon activity.
Ceramic products and kiln, other than a shuttle kiln
Sign manufacturing
Textiles (craft) manufacturing
Custom dress making, millinery and tailoring
Arts and handicrafts
Greenhouse, nursery and landscaping storage area
Artist's studio
Classes in conjunction with the permitted use, limited to 6
students, four hours per week
Consultants, professional and personal services
Cabinet shop
Assembly and repair of small items
Storage and use of business records
Kennels and Catteries
Boarding and training of horses
Such other uses as the Planning Commission may deem,
after conducting a public hearing, to be similar to and no
more obnoxious or detrimental to the public health, safety
and welfare than the above listed uses
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