New Mex­ico County Mulls Bonds for Wind Projects

The Bond Buyer - - Market News -

Lin­coln County, N.M., com­mis­sion­ers are con­sid­er­ing is­su­ing in­dus­trial rev­enue bonds for one or more of the com­pa­nies pur­su­ing de­vel­op­ment of wind farms in north­ern ar­eas of the county.

But be­fore they act, com­mis­sion­ers told a con­sul­tant last month they want to see an anal­y­sis of dif­fer­ent for­mu­las to de­ter­mine the value of the al­ter­nate power sources, de­lin­eation of the meth­ods of re­pay­ment and com­par­isons with other lo­cales in New Mex­ico that have ap­proved in­dus­trial bonds.

Erik Har­ri­gan with RBC Cap­i­tal Mar­kets, the county’s fi­nan­cial ad­vi­sor, said IRBs “ba­si­cally act as con­duit is­suance that al­lows for abate­ment of prop­erty taxes and pos­si­bly gross re­ceipts taxes. Since (the project) won’t be on the tax rolls, the taxes are ne­go­ti­ated be­tween the gov­ern­ment en­tity and com­pany that is ask­ing for the bonds.”

The school district within which the site falls must be in­cluded in dis­cus­sions.

“Noth­ing in state law says how much goes to the school district, only that it is in­volved,” he said.

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