Sandoval County Commissioners on Sept. 11 finalized an agreement that will allow continued multibillion-dollar investments in Intel’s Rio Rancho facility and local economic development through 2030.
An initial amendment to a long-standing Industrial Revenue Bond agreement with Intel was approved at the Aug. 14 meeting. Afterward, it was sent to the county and Intel to be finalized and then to the county clerk and the commission for approval.
In 2004, Intel signed a 30-year bond agreement to invest up to $16 billion in its Rio Rancho facility. The agreement was amended in 2019 to extend the investment period by five years, adding $3 million in Payments in Lieu of Taxes (PILT) to the county. Intel completed this extension in four years, investing $4.2 billion and supporting local infrastructure and public services.
“What you guys have done in the community of Rio Rancho, working with Corrales on a lot of issues as well, the return on investment that you guys have done has been astounding,” Sandoval County Commissioner Jay Block said.
The newly approved amendment, which takes effect Oct. 25, has six major components designed to benefit both Intel and Sandoval County.
First, the investment period has been extended until October 2030, giving Intel more time to use the remaining $4.7 billion from the original IRB.
Second, Intel must report quarterly and cumulatively to the county Assessor’s Office, detailing how much money has been spent and where.
The third component introduces a new PILT program, under which Intel will pay $9 million over 10 years. Starting March 31, 2025, the company will pay the county $2 million in the first year, followed by annual payments of $777,777.78 from 2026 through 2034, with no additional payments required.
“[Intel] can spend as much of the remaining $4.7 billion,” Rob Burpo, Sandoval County financial advisor, said. “The county felt that it was a good idea to not put any kind of restrictions on their ability to spend, we’re trying to encourage them and spend as much money in the county as possible.”
The fourth component allows Intel to access federal programs under the CHIPS and Science Act of 2022, which provides grants and loans to enhance domestic semiconductor manufacturing. This could facilitate Intel’s expansion in Rio Rancho, potentially creating more high-paying jobs in the region.
According to Burpo, the CHIPS Act is intended to boost domestic chip development and manufacturing, ensuring a robust supply chain within the U.S. while countering the effects of China’s growing influence in the global chip industry.
The fifth component is economic development collaboration. Intel and the county will jointly work to attract and expand businesses within Sandoval County, benefiting both and promoting broader economic growth beyond their individual needs.
“We think that’d be really helpful for the town of Bernalillo, Rio Rancho, the Village of Corrales,” Burpo said.
Lastly, Intel has agreed to adhere to all legal and bond-related fees, ensuring compliance with state and local regulations.
Economic impact
Intel’s Public Affairs Director for New Mexico Frank Gallegos said the company employs over 3,000 full-time, permanent employees and 3,000 third-party contractors.
The commissioners questioned Intel representatives about employment, focusing on hiring and the layoffs reported by the company in August.
Block asked Gallegos whether Intel plans to continue expanding its hiring, ideally focusing on New Mexicans.
Gallegos said Intel will be seeking engineers, technicians and professionals in electrical, mechanical, civil and structural fields, as well as potentially in artificial intelligence and cybersecurity.
Sandoval County Commissioner Joshua Jones asked if Intel anticipates any layoffs coming to Rio Rancho.
Bob Auer, Intel’s corporate finance and government affairs representative, said that despite recent global layoffs impacting about 12% of Intel’s workforce, the company does not anticipate a net reduction in employment at the Rio Rancho facility “in any way shape or form.” He expects employment numbers there to increase as investment continues.
Auer said Intel has moved some of its technology development resources from Oregon to New Mexico.
“By the way, this is the largest advanced packaging facility on the planet,” Auer said. “More capacity than Taiwan, more than anywhere else.”
Get involved
The next County Commission meeting is at 6 p.m. Sept. 25 at the Administrative Building Commission Chambers, 1500 Idalia Rd., Building D in Bernalillo.