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Mexico approves public hearing on $15 million industrial revenue bonds for Spartan project
Summary
Council opened and subsequently approved ordinance to issue industrial revenue bonds (IRBs) up to $15 million for Spartan Light Metal's industrial development project; company representatives said the project will add workers and include new equipment to increase recycling and technical roles.
The Mexico City Council on Aug. 25 opened a public hearing and later approved an ordinance authorizing industrial revenue bonds not to exceed $15 million to finance equipment for Spartan Light Metal’s manufacturing project in the city.
Community and economic development director Gigi McAvery told the council the bonds would be issued for the benefit of Spartan LNP LLC and Spartan Light Metal Products to purchase personal property equipment at the company’s manufacturing facilities and would be repaid from lease payments made by the company to the city. “The City of Mexico intends to issue industrial revenue bonds in a principal amount not to exceed $15,000,000 to finance the cost of the industrial development project for the benefit of Spartan LNP LLC and Spartan Light Metal Products,” she said.
McAvery said the project is expected to promote economic development and increase employment. The company has committed to increase its workforce to 375 employees and to maintain employment levels; some new positions will be dedicated to workforce development, she said. Spartan representatives at the meeting included company executives and bond counsel; Phil Rinkmeyer, who identified himself as a Spartan CFO, described the initiative as “an exciting project” and said the company expects to install a central melt system and other equipment that will allow more recycling in-house and bring in more technical staff.
City staff recommended moving forward with two readings and passage of the ordinance authorizing issuance of the bonds, Series 2025 A and B, and the council approved the ordinance after the readings. City staff clarified during discussion that the bonds would be repaid from Spartan’s lease payments and would not be supported by the city’s full faith and credit; the city has no obligation to repay the bonds if Spartan defaults, staff said.
Council also discussed projected employment increases tied to the project and an expected equipment installation timeline: an initial phase by year-end and a larger machine planned for the second or third quarter of next year, according to company remarks.
The council approved the ordinance authorizing issuance of the bonds after two readings; staff said the bonds will support equipment purchase and workforce development as described in the developer’s presentation.
