Innovation Zonesarean idea to watch
Nevada Governor Steve Sisolak has introduced an interesting idea for a new form of local government: an “Innovation Zone” that would be a self-governing community, similar to a traditional city but focused entirely on the development of advanced technology.
Sisolak says the goal is to diversify Nevada’s economy without the need for tax credits, incentives or public subsidies. The proposal is a remarkable admission that government itself is an impediment to economic development. The only incentive this proposal offers is the freedom from the constraints and costs imposed by existing local governments.
Applicants would be eligible to create an Innovation Zone if they can demonstrate a track record in advanced technology and own at least 50,000 acres of undeveloped land that is not within an existing city or town. They’d have to agree to invest $250 million to start and an additional $1 billion over the next ten years.
Innovation Zones would be governed initially by a threemember board, with two of the appointees suggested by the applicant and one chosen by the office of the governor. Eventually the board would be elected by the voters. The board would have control over law enforcement, local taxation and land management decisions.
The proposal seems crafted to apply initially to Blockchains LLC, a company that owns 67,000 acres of land in northern Nevada’s Storey County. The company is seeking to build a city 12 miles east of Reno that would have up to 15,000 units of housing.
Storey County commissioners voted on Tuesday to “oppose separatist governing control” as described by the Innovation Zone proposal. The county’s 2016 master plan envisions only 3,500 homes, along with historical preservation and resource management. Blockchains’ concept of a “smart city” of 35,000 residents has also run into opposition over environmental concerns and water issues.
However, if the Innovation Zone proposal goes forward, some California technology companies potentially could be lured to the wide open spaces of more freedom from the constraints of traditional local government.
The proposal has not yet been formally introduced in the Legislature, and it may not succeed against what Sisolak called the “‘How
We’ve Always Done It’ manual.” However, it’s a useful illustration that government isn’t always the solution. Sometimes it’s the problem.