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Deming Headlight Newspaper

Tax increment financing district may bring vitality

By Matt Robinson Headlight Staff, 07/14/2008

During a Luna County Board of Commissioners special meeting on Friday, Robby Richards, of Richards Development New Mexico LLC, made a proposal for a tax increment financing district in Luna County.

According to Richards' proposal, his company owns approximately 2,000 acres of land in Luna County.  Phase one of the proposal calls for 200 acres of development.  First, a motor racing facility with approximately 1,000 seats would be built.  Establishing a TIF district and building the motor sports facility within it would allow Richards Development, as the proposal outlines, "To obtain the legal authority to develop and sell tax-exempt municipal bonds."

His proposal added: "The bonds will be developed and sold under the sole authority of the newly formed TIF district alone, and will not at any time become a financial obligation for the government entities of Luna County, N.M., or the City of Deming, N.M."

A TIF district would allow the company to collect funds within their district.  Funds raised within the district must be, "allocated and utilized for very specific uses."

Specific uses include public improvements and overall tax increment development projects.  New Mexico Statute 5-15-3 includes various systems and forms of infrastructure that may benefit from the TIF district funds.  One of which includes, "electrical transmission and distribution facilities."

The fourth point of development-after a proposed industrial park and "affordable housing" development-will be a renewable energy generating plant.  In partnership with Copernicus Energy of Colorado, a facility will be built to utilize, "solar-thermal conversion"

The proposal explains the process: "Our system will collect heat energy from the sunlight hitting our plant and convert that heat energy into wind flows that will spin conventional wind turbines and generate electricity."

County Commission Chairman, Rick Holdridge said, "I think it's very interesting."

He added that he believes proposal needs more study, but that he "hopes it works out."

Energy produced would be used to power the motor sports facility, industrial park and housing development, with any remainder being fed back into the electrical grid.

"We want to create as much economic impact as possible," said Richards. "We want to bring jobs and bring good things to Luna County."

No action was taken at the meeting, it was only a proposal for the County Commission.  Richard plans on gathering more information for a later meeting with the county, to be announced.

Matt Robinson can be reached at mrobinson@demingheadlight.com