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Council approves $5.6M industrial revenue bond for Geltmoor Karsten manufacturing project
Summary
The city passed an ordinance to issue taxable Industrial Revenue Bonds (IRBs) up to $5.6 million to fund renovation of a 56,000-square-foot building at 2810 Karsten Road for local manufacturers, promising job creation and reuse of an idle facility.
The Albuquerque City Council voted unanimously April 7 to authorize the issuance of up to $5.6 million in city-backed taxable industrial revenue bonds (IRBs) for a project to renovate a 56,000-square-foot building at 2810 Karsten Road into manufacturing space.
The ordinance (O-79) authorizes execution of bond documents, a lease/bond indenture and related agreements to support a private developerGetmore LLCand two local manufacturers as tenants. City staff recommended approval after a review that found the project meets the citys IRB evaluation criteria, complies with adopted plans and would remain tax positive under the proposed payment-in-lieu-of-taxes (PILOT).
Project details and public benefits: developer Paul Silverman and project representatives said the project will renovate a previously vacant industrial building, return it to manufacturing use and create jobs. Presenters estimated more than 80 new jobs over the first seven years when both tenants reach production. One tenant, Be Clean LLC, will manufacture organic beeswax-based hand sanitizer. The applicants said construction will use local contractors and that the project received a University of New Mexico economic impact analysis.
Tax and PILOT terms: the project would qualify under the state Industrial Revenue Bond Act and city enabling legislation. Staff said the PILOT would be 10 percent for real and personal property (a 90 percent abatement), and the IRB structure would be used as a financing tool to make the renovation viable.
Council process and vote: Councilor Baca moved the floor substitute that clarified language in the bond documents; the substitute passed and the IRB ordinance was adopted by unanimous vote.
Public comment: the council heard brief public comment from members of the development team and no opposition. The developer emphasized the projects local roots and plans to begin manufacturing operations in June.
Ending: the council vote authorizes the city to issue the bonds and execute the loan/lease documents and moves the project toward construction and tenant occupancy. Staff will return with final documents for execution under the terms authorized by the ordinance.
