A high-tech company with high-paying jobs is setting up shop Rio Rancho.
Stolar Research Corporation, which designs and manufactures radio imaging equipment that detects structures and anomalies underground for use in industries such as mining and geological mapping, plans to expand its Raton operation to Rio Rancho, according to information from the City of Rio Rancho. The company made the decision last month.
Stolar will employ at least 25 people with an annual payroll of $1.5 million, or an average of $60,000 per employee, according to the information. The company picked Rio Rancho construction and architecture firms to design and build its planned $4 million, 23,500 square-foot facility on Innovation Way, near NM 528 and US 550.
The city’s Financial Services Department estimated the construction of the facility and related infrastructure will have an economic impact of more than $4.3 million, and the payroll will have an indirect economic impact of $375,300, translating to 5.8 jobs. The department also estimates that expected sales of $4.5 million in Stolar manufactured goods will add $500,000 to other sectors of the city economy.
The impact calculations assume that Stolar employees spend their money in Rio Rancho and the company uses local businesses for manufacturing support.
Stolar leased temporary space in the AMREP Southwest building at Quantum Road and NM 528 in August.
Stolar and its investment partners plan to construct the building, and then the new investment entity, Innovation Partners LLC, would lease it to Stolar, according to city information. In addition to Innovation Partners spending $4 million on the land and building, Stolar plans to buy about $2 million in equipment as circumstances warrant.
As part of the agreement for Stolar to locate here, the city would build infrastructure, including a road and water and wastewater line extensions.
According to the city, the work would cost about $440,000, with $125,000 directly benefitting Stolar. The rest would help neighboring properties and city streets and utilities as a whole.
Also, if Stolar’s annual payroll falls below $1.5 million from 2014-19, the company would repay a part of a fifth of the $125,000 in infrastructure work. The exact amount would be determined by multiplying $25,000 by the percentage by which the payroll fell short.
The Local Economic Development Act Ordinance, a budget adjustment to build the infrastructure and approval of the issuance of $4 million in Industrial Revenue Bonds are on the Rio Rancho Governing Body agenda tonight. Innovation Partners would be responsible for repaying the bonds.