NV awards Ames $76M contract to extend highway to Tesla gigafactory

Dive Brief:

The Nevada State Board of Transportation has awarded Ames Construction a $76 million design-build contract to extend an existing road 12.5 miles to improve access to the Tesla "gigafactory" battery plant, currently under construction in northern Nevada, according to the Las Vegas Review-Journal.
NDOT said Ames, which negotiated a contract with the agency, was the "apparent best value" compared with three other short-listed contractors. Ames' proposed price tag was $2 million lower than the next-lowest bid.
NDOT commissioner Len Savage called the project a "lifeline to the new Nevada," the Review-Journal reported. The USA Parkway currently connects I-80 to the Tesla factory, but the extension, scheduled for completion in 2017, will continue the road south to another major highway to provide access from Lyon County as well.

Dive Insight:

NDOT officials said the state had planned the extension before Tesla’s move to the Tahoe Reno Industrial Center, located along the USA Parkway, but decided to expedite the project in advance of an anticipated surge in construction worker traffic, the Review Journal reported. The road will also provide better access for the many employees of the 110 other companies in the area who live south of the park.

Nevada Gov. Brian Sandoval, who is also the NDOT board chairman, called the project a "game-changer" for the region and state and said it has the highest economic return of any project he has seen while on the board, the Review-Journal reported.

Tesla has also been a game-changer for the region, attracting development and significantly contributing to the economic boom in northern Nevada. The area has seen a 41% increase in business licenses since construction on the factory began, and state officials report they no longer have to try to draw business to the area.

Tesla has also helped spark a housing boom in the area, and state officials predict 11,000 new workers in Nevada over the next five years will lead to an unprecedented 80,000 new residents, requiring 40,000 additional housing units.