House Bill 276 (Rep. Silva, SunCal Tax Increment Project
Bonds), which would have authorized a $629 million state bond to a 55,000 acre
sprawling development on Albuquerque’s west side ran out of time Thursday,
failing to receive a Senate floor vote before the session ended at noon. The
bond would have diverted gross receipts tax revenues from the state for up to
25 years.
“Although originally used to promote urban infill
development, Tax Increment Development Districts (TIDDs) have been being used
to subsidize sprawling “greenfield” development, encouraging unsustainable
development that is contributing to global warming,” said Lauren Ketcham, an
advocate with Environment New Mexico. “Subsidizing sprawling development in
this way incentivizes development on the fringes and may hurt established
communities, as jobs move away.”
While the economic development potential is highlighted by
proponents of SunCal, businesses moving to the TIDD from within the state
(which could be as many as 90 percent of the businesses)—which currently
contribute 100 percent of their state tax revenue to the state—would redirect
half of their taxes directly into the pockets of developers.
“The tens of millions of dollars that would be diverted away
from state coffers could not be used for the environment, health care, public education
or other needed services,” Ketcham concluded.
