Rio Rancho’s Ridiculous TIDD

Rio Rancho has done some very silly things when it comes to development recently. Take the money hemorrhaging Santa Ana Star Center…please!

Now, the City is seriously considering using tax incentives known as TIDD’s to spur construction of a 12-14 screen cinema. While the need for a theater is debatable and the use of TIDD’s for this project is questionable, the real kicker for taxpayers is that, as the Journal story points out,

The resolution is contingent upon final approval from city staff and Southern Sandoval County Arroyo Flood Control Authority of a plan to realign an arroyo that bisects the property. Jimenez hopes the arroyo plan will be approved by mid-January. Work to realign and build a diversion channel for the arroyo is expected to cost about $11 million.

So, let me get this straight, taxpayers will have to subsidize this project to the tune of $11 million, not to mention the TIDDs, in order to build a movie theater and potentially (there is no guarantee here) some office space and hotels. This certainly seems like the kind of project that is destined to cause additional financial problems for Rio Rancho. Hopefully, Rio Rancho City Council decides that this $11 million realignment channel is “a bridge too far.”

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One Reply to “Rio Rancho’s Ridiculous TIDD”

  1. The city is not liable for a single penny of the investment, 11 million dollars, for the infrastructure that will be publicly owned once it is completed. What the city has agreed to do is share some of the gross receipt tax generated by the development. If the development produces enough revenue then the TIDD will pay back the developer for the investment. How the developer makes the development work is up to them and the free enterprise system.

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