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SunCal New Mexico Plan Might Not Generate as Much Tax Revenue as Promised

The Albuquerque Journal is reporting today that New Mexico critics of a plan to subsidize SunCal with $408 million of tax revenues for their West Mesa project are asking why a state analysis of the deal omitted major concerns that were documented last year. Here in Alameda, SunCal has indicated that they will seek a similar tax increment financing mechanism to subsidize their estimated $700 million in infrastructure costs to develop Alameda Point.

The Albuquerque Journal article is here. In 2008, SunCal tried to push a $629 million tax subsidy through the New Mexico state legislature (it failed) and an analysis of the bill then said that SunCal’s planned development might not generate nearly as much tax revenue as SunCal claimed. Also:

Last year’s analysis also said that according to one of SunCal’s own studies, most of the demand for industrial space in the giant new development would come from firms already doing business in the Albuquerque area rather than new, out-of-state firms – a top concern of critics who warn the tax break amounts to “cannibalism.” The issue could have a “potentially huge impact for the state,” the 2008 analysis said.

These criticisms are not included in the 2009 analysis of the $408 million bill. SunCal and their subsidiary have done substantial lobbying and made significant campaign contributions in New Mexico since their defeat last year.

And folks in Alameda wonder why we are so skeptical of SunCal’s claims and promises about bringing in jobs and solving transportation problems.

2 comments to SunCal New Mexico Plan Might Not Generate as Much Tax Revenue as Promised

  • Jayne Smythe

    I think that SunCal is facing some lobby law problems in NM for its ad campaigns on the Albuquerque project. Funny how the developers spend a ton o’ cash on PR but none on the actual project. Must mean the bond business is big biz (read: a rip off of tax payer funds)!

  • They’re certainly taking some heat in the press and in the blogs: (See “Cash behind TIDD ad blitz should be public now”)

    The bond business IS big business…. wasn’t it in New Mexico that the muni bond pay-for-play scandal broke, and ruined Richardson’s chance to join Obama’s cabinet?