The Sandoval County Economic Development Assessment and Strategy was formally adopted by the Sandoval County Commission at their January 9, 2014 meeting
Economic Development Fund
In June of 2017, Sandoval County adopted and enacted two (2) Economic Development Fund Resolutions, specifically 6-1-17.7A and 6-1-17.7B, committing unrestricted funds from certain accounts for use by the County to assist funding various projects designed to further economic development endeavors within the county and improve transit for its citizens. Both resolutions state “prior to any distribution of funds from the accounts, the County Commissioners must be presented with a comprehensive plan for the use of any of the funds and the County Commission must approve of such distribution in writing.” Click here to view the Economic Development Fund Process and Policy document.
Local Economic Development Ordinance (LEDA)
The enactment and utilization of LEDA allows public support of economic development to foster, promote, and enhance local economic development efforts while continuing to protect against the unauthorized use of public money and other public resources. This empowers communities to embark on economic development projects tailored to their LOCAL needs. In essence, LEDA is used to enter into a “public private partnership” for an economic benefit. Click here for local ordinance.
Industrial Revenue Bond
An Industrial Revenue Bond is a TYPE of revenue bond organized by a state or local government. The bond issue is sponsored by a government entity but the proceeds are directed to a private, for-profit business, made to compensate a local government for some or all of the tax revenue that it loses because of the nature of the ownership or use of a particular piece of real property. Usually it relates to the foregone property tax revenue. IRBs are a tool to encourage business expansions and locations, job growth and capital investment. IRBs are an “inducement” and must be issued before a project is started
An IRB is a loan from the bond purchaser to a company where the loan proceeds and repayment flows through a governmental issuer. Instead of purchasing a facility directly, companies can enter into a lease with the issuer, provided the company will lease the facility from the issuer and, at the end of the lease, purchase the facility from the issuer for a nominal amount. IRBs can also be used when a developer is involved. A separate series of bonds is issued to finance the developer’s real estate and building costs, and the tax savings of the IRB can flow through to the ultimate user through a sublease.
The benefit of remaining property tax exemptions can be passed on to the new owner or flow through a lease in event of a sale or lease to a new user, under certain qualifying conditions. The Sandoval County Board of County Commission must vote to induce an IRB, and the community does not lend its credit to an IRB. The company must secure its own purchaser of IRBs or the company can purchase its own IRB.