Temper Pedic, Bernalillo County Deal - by the numbers

Below are our numbers from the Temper-Pedic/Bernalillo County IRB deal. See the Journal's editorial.

(Yes, they will receive the infamous "double dip") The County hasn't provided an economic impact analysis as per their procedure as yet. The numbers below are simple conservative extrapolations based on what information is available to the public.

Sources say the deal will come to a vote tomorrow at the Commission meeting - Tuesday Aug 23, 2005, 5 PM - City Hall 5th and Marquette...

The County has assured SWOP that there will be some Payments In Lieu of Taxes (PILOTS) for UNMH and APS, as well as clawbacks. A few reps of SWOP met with the county manager, deputy manager and economic development director last week and, as per their request, sent them some language around reporting and disclosure that would tie the clawbacks to company reporting. (Click here to see what a company specific report looks like.) As it stands the clawbacks only take effect if the company packs up and relocates completely, and are really based on faith.

Things are getting better, but are far from perfect.

What do people think? Seems expensive to me. (see below)

Estimated Tax Abatements and Costs of Tempur-Pedic

Impact Fee Waiver	$991,000
Tax Abatement on Equipment	$1,500,000
Investment Credit	$1,500,000
Job Training Funds	$1,506,000
Property Tax Abatement (10 Years)	$5,047,158
Total	$10,544,158.00

$10,544,158/300 Jobs = $35,147 per Job.

If we place the entire $5,000,000 cost of the infrastructure on the project:

Impact Fee Waiver	$5,000,000
Tax Abatement on Equipment	$1,500,000
Investment Credit	$1,500,000
Job Training Funds	$1,506,000
Property Tax Abatement (10 Years)	$5,047,158
Total	$14,553,158.00

$14,553,158/300 Jobs = $48,510 per Job

Impact Fee Waiver - —Per County

Compensating Tax Abatement on Equipment 5% of $30,000,000

Investment Credit 5% of $30,000,000

Job Training Funds (($12/hour X 1004 hours)/2) X 250 Jobs

Property Tax Abatement - below

Year	Value	X 1/3	X mill/1000	Prop Tax
2006	100,000,000.00	33,333,333	0.018464	$615,467
2007	95,714,299.00	31,904,766	0.018464	$589,090
2008	91,482,500.00	30,494,167	0.018464	$563,044
2009	87,142,800.00	29,047,600	0.018464	$536,335
2010	82,857,100.00	27,619,033	0.018464	$509,958
2011	78,571,400.00	26,190,467	0.018464	$483,581
2012	74,285,700.00	24,761,900	0.018464	$457,204
2013	70,000,000.00	23,333,333	0.018464	$430,827
2014	70,000,000.00	23,333,333	0.018464	$430,827
2015	70,000,000.00	23,333,333	0.018464	$430,827
		Total		$5,047,15