Sandoval County Commissioners voted at the Aug. 14 meeting to amend an Industrial Revenue Bond (IRB) agreement with Intel, aiming to support the ongoing upgrades at the company’s Rio Rancho facility.
The commission approved the resolution to finalize the agreement before the current one expires in October.
The amendment, which is the second requested by Intel, extends the 30-year, $16 billion IRB agreement originally established in 2004. Under the new terms, Intel commits to investing $100 million annually for the next decade and to making $9 million in Payments in Lieu of Taxes (PILT). This extension aims to support Intel’s expansion and foster local economic development, intending to attract supporting industries, suppliers and vendors to Rio Rancho and Sandoval County.
“It’s very clear, it’s very straightforward, it’s very simple,” County Manager Wayne Johnson said. “That PILT is $9 million over 10 years, with a $2 million payment next year at $777,777.78 a year for nine years.”
Check out previous coverage from the Signpost for more information on PILT.
The original agreement allowed Intel to invest up to $16 billion over the first 15 years to upgrade its Rio Rancho facility. As of Oct. 24, 2019, the company had invested just over $7.8 billion and paid the county more than $82 million in PILT. In 2019, Intel requested a 5-year extension to continue its improvements, resulting in an additional $3 million in PILT payments. The company completed this extension in four years, investing $4.2 billion.
“You have absolutely no idea how effective your County Manager Wayne Johnson and Deputy County Manager John Garcia were in these negotiations,” Rob Burpo, Sandoval County financial advisor, said.
Burpo, who presented the amendment to the commission, said Johnson emphasized the need to include economic development collaboration in the agreement during face-to-face meetings in Chandler, Arizona.
According to Johnson, it is good for Intel for two reasons. First, it spreads out the payments. Second, from the county’s perspective, it incentivizes them to use all of the remaining money in the 2004 IRB over that 10-year period.
According to Burpo, the final amended agreement is expected to be completed before the current terms expire on Oct. 25. Once both parties finalize the details, the agreement will be submitted to the county clerk and the commission for publication. Approval of the final agreement is expected at a September meeting.
Earlier this month, Intel announced plans to layoff more than 15% of its workforce. However, it remains unclear whether the layoffs will affect the Rio Rancho facility.
Get involved
The next County Commission meeting is at 6 p.m. Aug. 28 at the Administrative Building Commission Chambers, 1500 Idalia Rd., Building D in Bernalillo.