Turf battle

The Nevada State Senate Committee on Taxation voted last week to approve a bill, already passed by the State Assembly, to prohibit a company from both blending and distributing liquor products.

The bill would effectively scotch the planned move to northern Nevada of a major distributor of liquors, many of which it blends as its core business.

The company, Frank-Lin Distillers Products, Ltd., purchased a 40-acre site at the Tahoe Reno Industrial Center in Storey County and was in the process of moving its company from San Jose, Calif.

Chuck Alvey, executive director of the Economic Development Authority of Western Nevada, said, "Frank-Lin says it is improbable, impractical and impossible to continue its relocation.

That's a $50 million impact on the economy that won't happen." Last week's hearing brought out the big guns from both sides to testify.

Among those speaking in favor of the bill were Alfredo Alonso, lobbyist for Southern Wines & Spirits, a major liquor distributor; and a host of other lobbyists.

Those speaking against the bill included Ron Weisinger, executive director of the Carson City-based Northern Nevada Development Authority; Ray Bacon, executive director of the Nevada Manufacturers Association; Tim Rubald, director of business development for the Nevada Commission on Economic Development and Scott Craigie, a lobbyist for Frank-Lin Distillers.

Storey County Commissioner Bum Hess, who attended a preliminary hearing the week before, said the committee was not supposed to hear the bill again until Thursday, but the hearing and vote happened suddenly on Tuesday.

"We were blindsided by it," he says, adding,"They were getting a lot of pressure from Larry Ruvo and Harvey Whittemore."

Hess said of Ruvo, the owner of Southern Wines & Spirits, "He has a powerful lobbying firm and that's what happens when you hire those guys."

Whittemore is a longtime lobbyist and Reno businessman.

Hess added, "We're disappointed that Frank-Lin can't come into Storey County.We'd love to see Larry Ruvo come into the county with a business.

Storey County would help him as well."

Weisinger says,"This could give us, the state of Nevada, a black eye.

Our elected representatives passed an anti-competitive bill in a state whose moniker has been, in the past, the free enterprise system.We just said to a profitable company,'no we don't want you here.' Those senators just threw out the window what we've been working toward for years."

Rubald says,"It's something that will cause us serious problems in the future.Word travels rapidly in this business.

I expect to hear direct repercussions from companies we're dealing with.

They'll wonder,will this happen to us?"

Senator Mike McGinness, who cast the only opposing vote, explained,"I was concerned this bill would prevent businesses from moving into the state in the future." The bill now goes to the Senate floor for a full vote.