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A beverage distribution company’s plan to issue bonds up to $ 9 million with the cooperation of the City of Roswell received initial approval from a committee of Roswell City Council.
Members of the Legal Committee met Thursday afternoon at City Hall to consider 10 measures, including the request from Admiral Beverage Corp. issue industrial revenue bonds to finance its new warehouse and distribution site in southeast Roswell.
The committee voted 4-0 to recommend approval of the proposed bond issue, forwarding the draft resolution to the entire governing body for consideration at its next meeting, now scheduled for January 13. .
If city council and the mayor approve the resolution, the next step would be to announce a public hearing at a future city council meeting, where an ordinance authorizing the issuance of bonds would be considered.
Roswell Operations of Admiral Beverage, a Wyoming-based company headquartered in Albuquerque for its New Mexico operations, is constructing a 110,000 square foot distribution facility at 515 E. Brasher Road which is intended for to replace its 28,000 square foot site. at 1018 S. Atkinson Ave. When the new facility is operational, the company plans to add seven more employees to its current local workforce of 68, increasing its annual payroll by about $ 303,000, according to a letter from the company provided to the city.
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Admiral Beverage is asking the city to participate in industrial revenue bonds, which is a financial tool through which companies can transfer their properties to a local government entity, which is then the official issuer of the bonds. While the property is owned by the city for the life of the bond, in this case expected to be 30 years, the property is exempt from property taxes. The company then relets the property and its payment on the bonds constitutes the rent paid for the property.
Peter Kelton, Admiral Beverage’s bond lawyer, pointed out that a subsidiary of Admiral Beverage will buy the bonds and the city will not be responsible for the repayment or the debt. He also said it would not affect the city’s ability to issue other bonds.
Mike Espiritu, president of Roswell-Chaves County Economic Development Corp., expressed his support for the company and the bond issue, saying he has been working with the company at its new location for more than a year.
“We’re really excited about their ability to really transform this corner for the community – this beautiful building – but more importantly, create jobs,” he said.
He added, “It’s one of the few incentives we can offer here in Chaves and Roswell County to help a business.”
Admiral Beverage has discussed the payments in lieu of taxes with the city and county of Chaves, Kelton said. While an exact dollar amount of payments each year will not be specified until the bond ordinance is drafted, the company has given an initial estimate of providing around 10% of what would normally be property taxes.
Once paid to the city and then passed on to the county, the county would distribute the taxes to all entities that receive a portion of property taxes, which includes the county, city, and local school district.
Lisa Dunlap can be reached at 575-622-7710, ext. 351, or at email@example.com.