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Bernalillo council approves $2.5 million industrial revenue bond for Bosque Brewing, cites local hiring pledge
Summary
The Bernalillo Governing Body on May 13 adopted Ordinance 309 authorizing a taxable $2,500,000 Industrial Revenue Bond to finance equipment for Bosque Brewing Co., LLC; town officials said the issuance carries no municipal liability and the company agreed to hire 25 Bernalillo residents for 10 years.
The Governing Body of the Town of Bernalillo voted unanimously May 13 to adopt Ordinance 309, authorizing a taxable Industrial Revenue Bond in a principal amount up to $2,500,000 to finance the acquisition of equipment and other tangible personal property for Bosque Brewing Co., LLC.
Chris Muirhead, the town bond attorney with Modrall Sperling, described the ordinance as the second phase of an industrial revenue bond package for Bosque Brewing and said the facility expansion is intended to support the company’s manufacturing operations. "The Town will have no financial liability for the Industrial Revenue Bond. It is a tool for economic development," Muirhead said. He added that under the agreement Bosque Brewing will hire 25 Bernalillo residents for 10 years.
No members of the public spoke for or against the ordinance during the public hearing. After the presentation, Councilor Prairie moved to adopt Ordinance 309; Councilors Sisneros, Dominguez and Jaramillo seconded or joined the roll-call and the motion carried with all members voting yea.
Why it matters: Industrial revenue bonds are tools local governments use to support private investment and job creation without taking on debt for general municipal purposes. The council’s action formalizes the town’s participation as lessor and facilitator for the equipment financing while preserving that the town itself will not repay the bond from general revenues.
What the ordinance does: The adopted ordinance authorizes issuance and sale of the Town of Bernalillo Taxable Industrial Revenue Bond (Bosque Brewing Co., LLC Project), Series 2019B, in a maximum principal amount of $2,500,000; authorizes execution of related documents (indenture, lease, bond purchase agreement); and affirms that the bond proceeds will be used for equipment and other tangible personal property for use by Bosque Brewing. The ordinance text included findings about location and operator and states the lease requires Bosque to pay rent sufficient to cover debt service and maintain insurance and maintenance of the project property.
Next steps: The ordinance authorizes delivery of the bond to a purchaser identified in the bond documents and requires the company to make lease payments to cover principal and interest. The council did not set additional conditions at the meeting; implementation will proceed through the bond closing and the lease and related documents required under the ordinance.
Votes at adoption: Roll-call recorded all voting members — Councilors Sisneros, Dominguez, Jaramillo and Prairie — as voting yea on the motion to adopt Ordinance 309.
