Proposed amendments for Philips 2000 IRB request

Philips should not be allowed to apply for a new IRB until after 2011 when their current bond expires or until the City has began to realize net economic benefits according to the analysis.

Payment in lieu of taxes

• SWOP proposes that half of the abatement under the 2000 IRB be rebated to the city via payment in lieu of taxes. A total of $10 million dollars.

• Philips should pay back $3.4 million in ITCs (if they were collected) from the 1995 IRB. These credits are provided to companies based on the number of new employees hired. Philips fired employees since being granted the IRBs.
• Philips should sign an agreement saying that the company will not collect ITCs on the new bond proposal.

• ACORN proposal (Philips pays back percentage of tax breaks based on percentage of jobs lost)
• A fair severance package or surety or performance bond for any future laid off workers.
• A 2% restriction on the amount of temporary workers. Philips pays back percentage of tax breaks based on number of temporary workers vs. permanent employees.
• Workforce must be comprised of local hires, defined as people who can show proof of New Mexico residence for one year or more. Philips pays back percentage or tax breaks based on number of non-local hires.

Annual report

Philips must provide an annual report to the City Council and the public which will detail the following:

• Employment - Philips must provide employment figures from the previous year, including information on hirings, layoffs and the number of temporary workers.
• Local hires - Philips must provide a definition of local hire, and report on the number of local residents that were hired over the course of the previous year. The company should also provide a breakdown of ethnic and gender statistics on its total workforce.
• Philips must list its contracts with businesses and identify those that are local vs. out-of-state.

Water and air

• Philips should provide data on its annual and daily water use and demonstrate compliance with all local, state and environmental regulations.
• Philips should be required to limit its water use to less than 1 million gallons/day.
• Philips should publish the list of chemicals used by the company and demonstrate compliance with all local, state and federal environmental regulations.

Proposed changes to City of Albuquerque IRB process

• No fast tracking of IRB proposals - 30 day minimum for public review before going to hearing before Albuquerque Development Commission.
• Form citizen advisory committee to review IRBs before going to hearing at ADC.
• Conduct impact study of Industrial Revenue Bonds to assess whether or not there has been a net economic benefit or loss to Albuquerque, the state and other governments over the past ten years.