The City Council of Albuquerque, N.M., has approved a $45 million industrial revenue bond package to help Eclipse Aviation deliver on its Eclipse 500 very light twinjet. The Associated Press reported that the deal will give Eclipse a property tax abatement worth more than $777,000 over 10 years.
Albuquerque Mayor Martin Chavez said, however, that the city would see a net gain in taxes of about $2.1 million over the same period, mostly from spending resulting from the creation of 300 jobs the company plans to add in the next three years.
Eclipse also plans to build a manufacturing facility at Double Eagle II Airport in west Albuquerque that eventually could employ 2,000 people. The bond deal requires Eclipse to repay some or all of the tax breaks if it abandons Albuquerque within six years.
Perry Denker, Eclipse v-p for investor relations, said the bond approval “demonstrates another level of the great partnership that we feel with the city.”
Eclipse, which expects to start delivering very light jets in early 2006, claims it holds firm orders for more than 2,100 aircraft.