Las Cruces moves forward with $17.6 million plan to attract Canadian steel manufacturer

The company will also make payments in lieu of taxes to the Las Cruces Public Schools equivalent to what the school district’s mill levy rate would be for the property, per the lease agreement. 

SEATTLE (Scrap Monster): A Monday vote by the City Council appeared to clinch a deal that would bring Canadian steel company Endurance Technologies to New Mexico and build a manufacturing facility in Las Cruces. 

The council unanimously approved an ordinance authorizing the city to issue $17.6 million in industrial revenue bonds for the project. The IRBs will finance the acquisition and rehabilitation of a vacant industrial building on Venture Drive in the city’s west side industrial park. 

The U.S. arm of Alberta-based Endurance Technologies plans to establish a steel pipe manufacturing, processing and enhancement facility at the former location of the Liberty Engineered Wire Products plant, close to Interstate 10 and the Las Cruces International Airport. 

Such proximity to logistics was among the criteria Endurance said it was using earlier this year in considering its new U.S. facility, with Las Cruces among four finalists in three states as of September. 

State Economic Development Secretary Rob Black announced in September that Las Cruces was the leading candidate. Landing the project, he said, would represent “a clear vote of confidence in New Mexico’s future, recognizing the strength of our workforce, our strategic location, and our commitment to smart, sustainable growth.”

Endurance signaled it would invest over $18 million in the project, with $11 million in the first three years, while the state projected the facility would employ 40 people and generate $50 million in economic activity. City staff said the average anticipated annual salary would be $58,000. 

The vote was unopposed. Councilor Bill Mattiace was absent from the meeting but expressed support for the project when the IRB ordinance came before the council for its first reading. 

The IRBs do not commit the use of any city funds, but use property tax and GRT exemptions to support private industrial investment. The funding is for acquiring buildings and equipment and improving property only. The city will lease the property to Endurance Technologies, which will make payments against the principal and 4% annual interest. 

The company will also make payments in lieu of taxes to the Las Cruces Public Schools equivalent to what the school district’s mill levy rate would be for the property, per the lease agreement. 

“IRBs are one of New Mexico’s strongest and most fiscally responsible tools for attracting investments and jobs,” Mesilla Valley Economic Development Alliance CEO Davin Lopez told the Journal after the vote. “We believe this investment will also be a catalyst for growing attraction to the Las Cruces Innovation and Industrial Park and the opportunities it offers.” 

The lease provides for recovering abated taxes if Endurance ceases operations within six years or if it fails to employ at least 36 full-time positions by the end of 2030. The terms include a pledge by the company to favor local hires “to the extent consistent with its business needs and the proper construction and operation of the Project.”

The agreement gives Endurance the option of purchasing the property for $1 after the bond has been repaid. 

No estimate was presented of how soon construction would begin once the bonds were issued. Endurance did not respond to a query from the Journal. 

Courtesy: www.abqjournal.com