News and Events
Albuquerque Journal
Saturday, January 31, 2009
West Side Tax Deal Clears 1st Vote
By Dan Boyd
Journal Capitol Bureau
SANTA FE - A bill that would allow a major West Side developer to sell bonds backed by anticipated future tax revenue has passed its first hurdle.
The bill would benefit California-based SunCal, which plans to develop 55,000 acres on Albuquerque's West Mesa.
A special tax agreement with the state, known as a tax increment development district, or TIDD, would give SunCal the ability to sell bonds worth up to $408 million to finance the building of roads and other infrastructure.
Members of the Senate Corporations and Transportation Committee voted 9-1 Friday to move the agreement - officially known as Senate Bill 249 - forward.
The only committee member who voted against the measure was Sen. Tim Keller, D-Albuquerque.
"I think planned growth is good," Keller told Friday's hearing. "My question is, 'Is it appropriate for a state subsidy?' It seems like it should stand on its own feet as a private investment."
SunCal plans to eventually develop 55,000 acres just north of Interstate 40, although the nine TIDDs already approved by Bernalillo County make up only about 4,000 acres.
As part of the TIDD, the county has agreed to give SunCal about 30 percent of its gross receipts tax revenue from within each district and 10 percent of county property tax revenue for a length of time that's capped at 28 years.
A similar measure that would have allowed for the sale of more than $620 million in bonds stalled last year in the Legislature.
This year's version is being sponsored by Sen. Linda Lopez, D-Albuquerque, who represents a West Side district that's adjacent to the proposed SunCal development.
SunCal acquired the land in December 2006 when it was sold by heirs of the Atrisco land grant. The company plans a mixed-use development for the area that would include residential neighborhoods, businesses, restaurants and offices.
Proponents of the project testified Friday they expect new businesses that will set up in the development to generate the tax revenue to pay off the state's investment.
"If we don't hit a home run for the state, we don't get anything at all," said Dick Minzner, a former state legislator who now acts as a lobbyist for a SunCal subsidiary.
Friday's hourlong hearing included dozens of questions about TIDDs, but at least one lawmaker said he doesn't share a suspicion of the tax agreements that's led to what he described as a "cloud" of distrust.
"There is a misconception here ... that allowing the TIDDs to take place is going to adversely affect the finances of the state of New Mexico," said Sen. Phil Griego, D-San Jose, the chairman of the Senate Corporations and Transportation Committee.
The measure, which now advances to the Senate Finance Committee, is one of several dealing with TIDDs that lawmakers are expected to vote on during the current legislative session.
The others include Albuquerque's Winrock Mall and the downtown corridor of Las Cruces.