SunCal Wants It Up Front & All At Once

Sounds kinky.

The NM Biz Journal parrots the promise of SunCal without question.   

“Our investment in New Mexico so far has been more than $250 million. It would not be a stretch to suggest that SunCal has already had a positive impact on the local economy,” said SunCal Vice President David Soyka. “What we will really need to create the jobs is a demonstration to prospective employers that we can provide immediate infrastructure. To do this, we need support from lawmakers to enable tax increment financing so we can complete the needed infrastructure in a quality, right-sized way, all at once and up front.”

Times-a-wasting!  Fab high tech companies are banging on the SunCal door!   Infrastructure, and a little legislative TIDD love, is all we need.  Giddy-up front and all at once.

Never mind that recession thingy. 

To sincerely buy into this is a stretch-and-a-half and requires believing these falsehoods:

1.  Real estate development is a sound primary engine for sustainable economic growth.

2.  There is a strong demand for new industrial infrastructure.

3.  SunCal will be successful with industrial recruitment where the well-funded efforts of State, City, County and private "economic development" offices haven't been.  (So can we get rid of them now?  Please?)

4.  Albuquerque has no water supply issues and never will.

5.  Albuquerque will defy larger economic trends.  (For awhile. So hurry up.)

The Alibi coverage of City Council noted Councilor Cadigan's failed effort to require some semblance of order to SunCal sprawl - a phasing plan for the water service.  This is not an unusual requirement for development of this scale - especially where a massive public infrastructure subsidy is at play.

Cadigan’s resolution said SunCal must actually build 70 percent of the homes in each phase before developing the next phase west up the hill. A water development plan previously approved by the Albuquerque Bernalillo County Water Utility Authority allows SunCal to move to the next phase of development when 70 percent of the first three phases are platted, not built.

Silly bear. That would constrain real estate speculation and land flipping -  getting the next sucker to pay more for vacant land than they did.

(Cross-posted at DCF just cuz I can.)

Comments

[Liana]

What has SunCal done to deserve being called a ‘snake?’ Seems to me they’ve been nothing but up front and transparent in what they are out to accomplish. Don’t believe me? Try reading through all the documentation they have posted at tiddfacts.com

And isn’t the West Side where we have been saying all along we wanted to locate more jobs?

Also, such a dire assessment of our economic prospects doesn’t say much for our faith in President-elect Obama, who takes office in just a few days now, does it? Fact is, ABQ’s economy has largely been spared the tanking that has occurred elsewhere in the country. And these guys just might be able to claim some credit for it.

SunCal has already injected a quarter billion dollars into our local economy. They’ve pledged a million dollars per year for a hundred years (and so far made good on that pledge) for Atrisco heritage education and preservation. And they want to front load their project with employers, rather than just cul-de-sacs.

The warm New Mexico welcome and thank-you we give them in return reminds me of the old saw, “no good deed goes unpunished.”

[coco la boca]

Hsssssss.

[Hunter]

“Our investment in New Mexico so far has been more than $250 million. It would not be a stretch to suggest that SunCal has already had a positive impact on the local economy,”

The stretch here is to suggest that an equity buy-out flows through to the local economy. It's possible that someone holding only a few shares took their proceeds and ran down to Baillos and bought a plasma TV. But stories of the purchase reported that ownership of the 700,000+ shares was spread across the country. Anyone holding Westland shares as an investment likely took their proceeds and reinvested the funds. There is no evidence or basis to assume those equity interests or proceeds remained in Albuquerque or even New Mexico.

The only documented economic impact is any money spent locally to facilitate the sale (broker fees, title insurance) and meals bought by lobbyists pursuing TIDD approvals.