[Editor's Note: This is part of a series of articles on the Grant County Commission work session of Feb. 8, 2022 and the regular meeting on Feb. 10, 2022. This report, at the work session, addresses the discussion on an update to the ordinance adopting an economic development plan and the county's ability to enter into joint powers agreements with local governments. This article next gets into an industrial revenue bond (IRB) ordinance for the Great Divide Wind Farm that had a hearing at the regular meeting. These are two different ordinances.]

By Mary Alice Murphy

At the Grant County Commission work session on Feb. 8, 2022, after county reports, the commissioners discussed an update to an old ordinance [O-07-02] addressing an economic development plan for the county.

County Manager Tim Zamora said the issue came up and "we need to update it with changes made to state statute since the plan was created."

District 3 Commissioners Alicia Edwards said the topic came up in a conversation with Louise Marquez of the Las Cruces office of the New Mexico Economic Development Department. "I had questions about mobile businesses."

County Attorney Ben Young of Mynatt, Martinez and Springer law firm said he looked at the ordinance, which was adopted in 2002. "There have been a lot of changes to statute since then, including the addition of four chapters to state statute. Chapter 14 addresses the economic development fund; 15 looks at the implementation of the delivery of funds; 16, which was adopted in 2021, provides rent/lease assistance; and 17 addresses how the state grows its funds through gross receipts taxes and compensating taxes. Your ordinance only goes up through Chapter13. The county's economic development plan was adopted in 2012, and it was only done by resolution. Did Ms. Marquez have a look at your economic development plan?"

"I think she only looked at the ordinance," Edwards said. "It occurs to me that we should probably also look at our economic development plan."

Young agreed that it makes sense to also look at the economic development plan, but it will increase the timeline. "Maybe we need to do a quick change to the ordinance and then have a discussion on the economic development plan. It needs to be done via the ordinance process. A couple of whereases to the original ordinance would address the new chapters to state statute."

Edwards said her preference would be to do the ordinance as soon as possible. "Then we can look at the economic development plan, which could take months."

Zamora said: "So we need to proceed with getting the ordinance for the March meeting. We have to have two weeks of notice ahead of the meeting."

Young confirmed the two weeks of notice.

In the review of the regular meeting agenda, the first item was a hearing and discussion regarding Ordinance O-22-01 entitled: "An ordinance amending and restating Ordinance No. O-18-01 Relating to the Issuance and Sale of Grant County, New Mexico Taxable Industrial Revenue Bonds (Great Divide Wind Farm, LLC Project) Series 2019; Authorizing the Issuance of Grant County, New Mexico Taxable Industrial Revenue Bonds (Great Divide Wind Farm, LLC Project) in One or More Series, in the Maximum Aggregate Principal Amount of $500,000,000 to Provide Funds to Finance the Acquisition, Construction, Equipping and Installation of Wind and/or Solar Energy Facilities and Battery Storage Facilities for the Purpose of Generating and Storing Electricity; Authorizing the Execution and Delivery of an Indenture, a Lease Agreement, a Bond Purchase Agreement, the Bonds, and Other Documents in Connection with the Issuance of the Bonds and the Project; Making Certain Determinations and Findings Relating to the Bonds and the Projects; Ratifying Certain Actions Taken Previously; and Repealing All Actions Inconsistent with this Amended and Restated Ordinance."

County bond attorney Luis Carrasco of Rodey Law Firm noted that the new ordinance replaces the deadline of 2021 for bond issuance and extends it to Dec. 2023. "The project will now also include solar storage and it has increased the bond amount from a limit of $400,000 to a limit of $500,000. We have discussed the PILT (payment in lieu of taxes) and negotiations are ongoing. This ordinance simply approves the issuance of bonds but gives the commissioners flexibility to review the final documents for the issuance of the bonds. The company, myself and the county will continue to review everything. If you choose, we will come back to the Commission with the review. The ordinance is standard in form for bond ordinances. The indemnification clause protects the county. This ordinance affirms the prior processes, and it sets the interest rates not to exceed 5 percent. It also directs the issuance of the bonds to the issuer. The ordinance sets up the funds and accounts at the maximum amount of $500,000 not to exceed 5 percent. The ordinance is irrefutable until the bonds are paid in full. It directs public notice that the county has authorized the issuance of the bond."

District 5 Commissioner Harry Browne said all the commissioners have expressed their support of the project and the issuance of the bonds, as well as to have an ordinance that will not change even if future statute changes. "It even addresses the specific statute and states that 'the pilot shall be subject to existing statute.' Is there a reason we should specify certain school districts?"

Carrasco said he respected the concern. "We can add 'or as subsequently amended.'"

Bob Karsted of Scout Clean Energy, the project developer, said via Zoom, the company is very happy to have the ordinance on the agenda for Thursday. "We will be in attendance."

Browne asked what was going on as a potential substitute for the compensating tax.

"We are researching that," Carrasco said. "We are also setting up a meeting with the company and we expect that we will detail what the payments should look like. The bond issuance documents will include the details, but they are not needed in the ordinance."

At the beginning of the public hearing at the regular meeting, Cindy Barris, associate superintendent of instruction at Silver Schools was sworn in to speak. "I support the wind farm because it will support our students."

Karsted was also sworn in. "I want to express our thanks for your extending the IRBs for critical support with this ordinance. We look forward to developing the project as soon as we have an outtake contract. We will continue with development."

Carrasco took a moment to cover the changes. "I want to again highlight that the language is flexible to take into consideration any future changes in statute. And the commissioners will have authority to deny items in the final documents for the bond issuance, including the lease agreements, if they are not to the satisfaction of the Commission."

Commissioners approved O-22-01 at the regular meeting.

The next article will get into the review of the regular meeting at the work session and the reports heard and the decisions made at the regular meeting.