Portales-based Dairiconcepts is asking the Portales City Council to increase a multi-million dollar bond for additional equipment needed for the company’s growth.
The New Mexico Industrial Revenue Bond, which will increase to $58 million from $38 million, should become official at the next city council meeting on Dec. 2, city officials noted at Tuesday night’s meeting.
The original bond last year was for expansion projects at Dairiconcepts, but the company asked for approval of an extra $20 million for extra equipment related to milk processing.
The bond is not a loan from the city, but allows Dairiconcepts to add the $20 million to the city’s payroll and repay the debt tax free, city attorney Stephen Doerr said earlier this month. Doerr added that the city is not obligated to either find the bond money or repay any of the loan.
Originally, the increase in the New Mexico Industrial Revenue Bond was approved by the city council on Nov. 4, but because of a formality the bond needs to be approved again.
“It was approved on Nov. 4,” Perry Bendicksen, attorney at law representing Dairiconcepts. “There was a miscommunication between my office and the city of Portales attorney’s (Stephen Doerr) office and it wasn’t on the agenda for the last city council meeting. We will present the same ordinance for adoption in the next meeting.”
The extra $20 million will go toward equipment, Bendicksen said, and will not go toward operating costs.
Officials at Dairiconcepts would not discuss the bond issue in detail, but said their business has been growing.
Since 2000, Dairiconcepts has doubled their work force — the company now employs over 100 people, Dairiconcepts officials said.