Albuquerque Journal (Albuquerque, NM)

Local Business Back To Seek Rejected IRBs.(Final)(Editorial)

EDITORIALS

The city's re-examination of its policy toward industrial revenue bonds appears to have a test case waiting in the wings.

MCT Industries, a home-grown company that manufactures trailers, garbage trucks and other equipment, failed to win City Council approval in February for $4.3 million in IRBs. The deal would have refinanced at today's lower interest rates a similar bond issue approved in 1997.

The council's insistence on "clawback" provisions and other conditions, which led to the rare rejection, had less to do with MCT than with the city's experience with Philips Semiconductor.

Philips is pulling a chip manufacturing line updated with the help of an IRB out of Albuquerque, relocating it and 600 jobs in New York. …

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