Faraday Bond Posting Helps State If Factory Fails
Electric carmaker Faraday Future says it will put up a $75 million bond so Nevada taxpayers aren't on the hook if the car factory goes belly-up.
The company sent a letter this week promising to help guarantee some of the $120 million in public investments in infrastructure at the Apex Industrial Park in North Las Vegas. Faraday would be released from that bond obligation once it builds 1.6 million square feet of its factory and starts making car sales.
The investments include road improvements and water service that's expected to attract other companies to Apex and raise new tax revenue to cover the cost of the infrastructure.
Nevadans could have seen their taxes rise to pay for the infrastructure in a worst-case-scenario in which insufficient tax revenue comes from Apex.