Massive development planned in Hawthorne
Escrow will close soon on a massive industrial, residential and commercial project to be built in Hawthorne that is expected to have a favorable impact on the economies of Fallon and Churchill County.
"We expect escrow to close sometime between now and mid-October," said Fallon attorney Mike Mackedon, who represents Mineral County in negotiations with project builder Peninsula Floors, Inc., of Livermore, Calif. The San Francisco Bay-area firm employs 1,300, 200 of whom work at PFI's offices and showrooms in Carson City, Reno and Las Vegas.
PFI, according to Bob Conner, it's chief executive officer and son of its founder, plans to construct a multi-building plant and distribution center for flooring and building materials, a shopping complex and upwards of 2,000 housing units on a site between the town of Hawthorne and the U.S. Army Ammunition Depot.
The initial phase of the construction, which Conner hopes will commence in January of 2008, will consist of four plant and warehouse buildings totaling 140,000 square feet and at least 30 homes for employees.
"We hope this first phase will be completed in six or seven months and we can open for business in the summer of 2008," Conner said.
He said he has promised Mineral County community leaders that initial employment will be between 150 and 200, adding the average wage will be $16.53 per hour.
Because housing, shopping and other services in Hawthorne at present are so limited, Conner said he expects a good number of employees will live in Fallon and commute to Hawthorne.
"There definitely will be a favorable impact on Churchill County. Our new employees will be purchasing cars and trucks in Fallon because Hawthorne no longer has any car dealerships. Our employees also will travel to Fallon for major shopping, dining and entertainment, he said, noting that Hawthorne is only a one-hour drive to Fallon while it takes two and two-and-a-half hourse, respectively, to travel to Carson City and Reno.
Following the completion of PFI's first phase, more homes, apartments and condominiums will be constructed as will a shopping complex. During a 10-year build-out, Conner expects the nearly 2,000 housing units to be completed.
He also foresees the development of a hotel and casino complex on the 539-acre site that occupies land where the former military housing complex of Babbitt once stood. The Babbitt housing was demolished long ago, but much work must be accomplished to remove the underground water and sewer lines before construction begins, said Conner, 48, the son of Jack Conner, who founded the firm in 1959.
The eighth-largest flooring contractor in the United States, according to Conner, PFI has 17 offices and showrooms in California and Nevada and is a supplier of flooring and other products for homes built by major builders such as Shappell, John Laing, Centex, Western Pacific, Pulte, William Lyon, Lennar and Toll Bros.
PFI's plans for its Hawthorne facilities include a ceramic tile manufacturing plant, a carpet-cushion plant, a structural insulated panel plant, and a plant to manufacture kitchen and bath marble counter tops.
Conner added he hopes to eventually move his corporate headquarters to Hawthorne, stating "doing business in Nevada is much easier than doing business in California, which has so many regulations and restrictions as well as high labor, living and land costs." He estimated costs less than half to do business in Nevada than in California.
If his project proves successful, Conner envisions the construction of a bowling alley, miniature golf course and movie theater to serve residents of the housing area, which is to be called "Hawthorne Village."
He said each of the homes will be equipped with solar power. Once all phases are completed in 10 years, the total cost will be between $175 and $200 million.
He said he has hired Lumos Associates of Fallon as PFI's civil engineering site manager.
When the PFI project is completed, it will be Mineral County's second largest employer, said Shelley Hartmann, executive director of the Mineral County Economic Development Authority. The largest employer is the Army Ammunition Depot, which has 504 full-time workers. The county currently has approximately 5,200 residents, of whom 3,900 live in Hawthorne.
Plans are also being discussed for other firms to build housing at Walker Lake and in the town of Hawthorne, Hartmann said. There also are ongoing discussions with the U.S. Department of Defense to increase the amount of desert training in the area now being held by the U.S. Navy, U.S. Army and U.S. Marine Corps, she added.
Mineral County Commissioner Jerrie Tipton said PFI's development will "breathe new life into our county."
She said the PFI project "will create a whirlwind, that definitely will be felt an hour north in Fallon."
Bob Conner said when the entire project is completed in about 10 years, it will encompass 1 million square feet of industrial and 500,000 square feet of commercial space.
"We are using the Hawthorne city water supply and have plenty of room to grow. Hawthorne is a great place to live and do business. The local airport is across the highway from our facility and the road system is excellent. We are responsible environmentalists and will be using solar power as much as possible.
"Our land costs are about $2,200 an acre, which is much less than found in California and other states in the West. The weather and recreation advantages in Mineral County are excellent, and I foresee the formation of a wonderful new community in Hawthorne which will not only serve our company but will draw new residents including senior citizens who want a good life." he said.