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By Jesse Jones, The Paper. — Bernalillo County is looking to make businesses seeking tax breaks from residents give more back through public benefits for taxpayers who fund it.
In a first for Bernalillo County, commissioners approved a $1.2 billion industrial revenue bond for DESRI, a renewable energy developer, to build a 400-megawatt solar and battery storage project on Albuquerque’s Westside. The project is the first to go through the county’s new Community Benefits Rubric, which requires the company to commit to specific public benefits in exchange for its tax break through a formal Community Benefits Agreement.
The new CBA rules connect public tax incentives to community priorities through structured payment in lieu of taxes (PILOT) and gross receipts tax payments. DESRI structured the project around the county’s new rules, with commitments to workforce development, small business support and environmental sustainability, company Chief Development Officer Hy Martin said in a county press release. The rules created a Community Benefit Fund that receives payments from companies getting tax breaks. A 10-member Economic Development Community Advisory Board, appointed by county commissioners, will help decide how the money is spent.
“This project represents an important opportunity to protect our environment, create jobs and strengthen our electric grid,” Commissioner Barbara Baca said in the press release. Baca sponsored the resolution creating the rubric earlier this year. Under the agreement, DESRI will contribute up to $2.9 million to a new Community Benefit Fund during construction. The company already operates or is constructing clean energy facilities in San Juan, Luna, Doña Ana and Sandoval counties. The project is expected to create more than 1,600 construction jobs and generate $93.7 million in construction wages, along with six permanent specialty positions averaging $101,000. After community members raised concerns at the Aug. 25 county commission meeting, DESRI also agreed to include an average 500-foot-wide wildlife corridor and animal-friendly security fencing across the 3,000-acre site near Atrisco Vista Boulevard, north of I-40.
“The county’s new Community Benefits Rubric gives developers a clear, consistent framework for demonstrating local value, and we’ve appreciated the opportunity to structure our project around it,” Martin said.
The new rules are meant to give residents a clearer picture of how large public tax incentives benefit the community. “Companies that are willing to invest in local workforce development, strengthen local supply chains and support environmental goals will continue to receive meaningful incentives,” Baca said. “The difference is that taxpayers will now have greater confidence that public dollars are producing public benefits.”
The county’s new benefits process could soon apply to another major Westside project. NextEra Energy Resources is negotiating a similar CBA for its proposed Magpie Energy Center, which, if approved, would be the second project to go through the process