The vote authorized the issuance and sale of a $500 million bond “to acquire, construct and equip industrial revenue projects to be located within the unincorporated portion of the county,” approximately 25 miles’ northeast of Carlsbad.
The county will proceed with a lease agreement, indenture and bond purchase agreement with Summit Midstream Permian LLC.
County Commissioner and Vice Chair Susan Crockett abstained from the vote.
Perry Bendicksen, an attorney with Albuquerque-base Rodey, Dickason, Sloan Akin & Robb, P.A., said the bond will be purchased in-house by Summit Midstream Permian Finance Corp., a Delaware corporation.
“The county will get gross receipts taxes on the construction portion of the project,” Bendicksen said.
Per county records, the project is expected to generate GRTs of about $500,000 in the first phase of construction, and create10 permanent jobs and 300 construction jobs.
Summit Midstream Permian will pay property taxes, which the county expects to receive 20 percent of, along with 100 percent property taxes to Carlsbad Municipal Schools and New Mexico State University.
The ordinance reads that there will be a 5 percent interest rate each year, paid semiannually beginning 2018 through December 2047.
County commissioners previously approved a resolution to issue the bond.
“These incentives are what help bring these strong businesses to Eddy County and it shows that we’re willing to work with these businesses for economic growth and development,” Crockett said. “The construction jobs (are) hard to find and they pay well and bring in a lot of gross receipts into the county.”