HP In Alpharetta Costs Rio Rancho Jobs

HP Facility in Rio Rancho, NM

In 2009 HP took the jobs from Colorado Springs to open a customer support center in Rio Rancho. HP is taking 200 of those jobs and moving them to Alpharetta, Georgia. From the Rio Rancho Observer “HP cutting 25% of local workforce“.

Hewlett-Packard is moving almost a quarter of its Rio Rancho positions to Georgia.
HP spokesman Michael Thacker said the corporation is moving about 200 local jobs in the Customer Solution Center to Alpharetta, Ga. The announcement was made Monday.
Rio Rancho employees may or may not move with their jobs, he said. HP will decide who moves and keeps their jobs, but Thacker said specifics weren’t available yet.
Mayor Tom Swisstack said the positions would be moved by Oct. 31.
“That’s a hard hit, a hard transition for the city,” he said. “Their average jobs paid about $50,000 a year.”

HP will have to pay the city as part of a clawback provision.

HP must pay a penalty each year it fails to meet its employment requirement from now until the end of the 15-year agreement. The size of the penalty is determined by multiplying the average shortfall throughout the year by the annual value of the incentives.
For example, if HP maintains its current level of 860 full-time equivalent employees this year, it will owe the city $53,715.08 next January.

HP will have to pay Rio Rancho roughly the cost of a yearly salary for one employee. I’m sure that will be covered by one of HP’s layoffs.

What’s bad for Rio Rancho is good for Alpharetta. At no time has HP actually created any new jobs.

Advertisements

Why First Solar Built In Arizona Instead Of New Mexico Or Austin

First Solar was looking to built a factory in either Arizona, New Mexico or Austin. An azcentral.com article looks at what Arizona paid to get the factory built there.

The factory will employ 600 people in Mesa, but it signifies more than that. The facility, operated by an Arizona-based company that is a major international player in solar-panel production, will make Broome’s job of attracting more alternative-energy companies easier.

Had Arizona lost the factory to Austin or Albuquerque, it might have been impossible to attract other solar companies to Arizona, he said.

First Solar wrangled at least $51.5 million in potential incentives out of the state, county and city, bought its land at a steep discount, and – perhaps the clinching factor – scored a discount on its power bills.

“The incentive from New Mexico was staggering. It was, like, hundreds of millions of dollars,” Broome said. “New Mexico was even offering to finance the construction of the building. Texas was a good $20 million less expensive than us.”

The article mentions that they offered a discount on electricity to First Solar, a similar discount was offered to Intel to build their new factory in Chandler. It’s interesting to note that First Solar President Bruce Sohn is a former manger from the Intel Rio Rancho factory.

Rio Rancho City Government Gives Up On Green2V While The Rest Of Us Did Months Ago

Green2V logo

Here we are in December of 2010, where is Green2V which hasn’t broke ground this summer as promised? I was skeptical of Green2V from the very beginning. A company no one had heard of with no website (and still doesn’t have a website) decided to build a new factory in my hometown of Rio Rancho, New Mexico with a very aggressive schedule.

An article from Rio Rancho Observer says that the city is giving up.

On Dec. 15, the Rio Rancho City Council will consider two measures repealing the city’s incentives in trying to lure the green energy start-up company. “We think that based on where we are right now, it’s been eight months since we first received those assurances (of funding), the documents are a bit stale,” said City Manager James Jimenez. City Councilors are being asked to repeal the Green2V industrial revenue bond inducement resolution the city passed in April, and the city’s economic development act it had with Green2V.

The article goes on to say that the city was promised 3 times that the money was coming and that the city of Rio Rancho trusted former Intel executive Bill Sheppard. There’s a quote from City Manager James Jimenez that I think is true as well.

“We pride ourselves as being competitive when it comes to economic development and aggressively pursuing (projects). Frankly, I’m well aware that we would have been criticized heavily if Green2V had been able to get its financing together and locate in Arizona if we knew we had a chance to bring them here and didn’t – for whatever reason – aggressively pursue them.”

The Albuquerque Journal had an article in May titled “Betting on Solar … Again” about the poor track record of OCS capital who was supposed to originally finance Green2V.

OCS lists numerous clients and industrial revenue bond financed projects on its website that have never materialized, among them the $16.5 million Big Event Amusement facility and Beach Waterpark in Albuquerque; the $210 million Nuchick poultry processing plant in Artesia; and a $22 million project to build an aircraft manufacturing plant in Odgen, Utah. The website does not mention that none of these projects came to fruition. Although the OCS name appears on a letter included in the bond application Green2V submitted to the city, Housley said Green2V never paid OCS money and terminated its relationship because it found another company to work with.

Then Green2V switched from OCS capitol to GP3, Ltd. The New Mexico Watchdog couldn’t find that either OCS Capital or GP3, Ltd seem to exist.

New Mexico Watchdog has learned that no limited partnership called GP3 exists in California according to the records of the California Secretary of State. The only limited partnerships with the term “GP3″ in their titles have had their partnership status canceled. One was GP3 Asset Acquisition, LLC, which was formed in 2007. It traces back to an Ann Arbor, Michigan, address, but is no longer a recognized limited partnership in California. The other was entitled Walton 425 GP3 IV, and traces back to a Chicago address. But its status as a limited partnership in California has also been canceled.

I can’t blame the City of Rio Rancho going forward with this based on the recommendation of the governor but clearly all of those involved should have done more research on the company. It doesn’t appear that the city is out of a significant amount of money. Hopefully the City will do a better job in the future of bringing in high tech companies.

Solar Array Ventures Inc. Is Moving To New Mexico

What’s good news for Albuquerque is bad news for Austin. New Mexico offered the Texas company Solar Array Ventures Inc. (SAVe)such good incentives that they are moving the whole company, headquarters and all, to New Mexico. They wont say exactly what New Mexico offered.

The City of Albuquerque website says the factory will be built on the west side on Cordero Mesa near I-40 on Paseo del Vulcan and could employ up to 1000 people in 5 years. Assuming Texas doesn’t pull a Tesla and manage to keep SAVe in Austin.

Oddly, not a single Albuquerque TV news site has an article on the company coming to Albuquerque that I can find.