Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR Fidel

DATE TYPED 03/18/05 HB

SHORT TITLE Bonds for Santa Fe Parking Structure

SB

289/aSPAC/aSFL#1/a

HTRC

ANALYST Geisler

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

New Mexico Finance Authority (NMFA)

General Services Department (GSD)

SUMMARY

Synopsis of HTRC Amendments

The House Taxation and Revenue Committee amendments to Senate Bill 289 as amended:

1)

Strike Senate Floor amendment #1 but reinsert language providing that the completed park-

ing garage will be transferred to the legislative council service for operation upon comple-

tion.

2)

Insert language authorizing construction of a state laboratory facility in Bernalillo County

and expenditure of up to $18.1 million for that purpose.

3)

Amend the State Building Bond Act to allow acquisition of state buildings and related facili-

ties, or critical facilities located within the master planning jurisdiction of the capitol build-

ings planning commission.

4)

Authorize the New Mexico Finance Authority sell additional state office building tax revenue

bonds in compliance with the State Building Bonding Act in a total amount not to exceed $15

million upon certification by the property control division of the general services department

that bonds are needed for one of more of the purposes of the state building bond act.

5)

Authorize use bonds backed by cigarette tax proceeds distributed pursuant to Subsection G of

Section 7-1-6.11 NMSA 1978 for health facility related land acquisition and planning, de-

signing, construction, equipping and improvements. Authorize NMFA to issue and sell

revenue bonds for such purposes.

6)

Authorize NMFA to purchase revenue bonds issued pursuant to Laws 2003, Chapter 341, as

amended for projects with money in the public project revolving fund pursuant to the provi-

sions of Section 6-21-6 NMSA 1978.

Senate Bill 289/aSPAC/aSFL#1/aHTRC -- Page 2

7)

Authorize sale of bonds for $39 million in projects consisting of:

$10.3 million for improvements at the Southern NM Rehabilitation Center.

$11 million dollars for improvements at the Las Vegas medical Center.

$4 million for improvements at Fort Bayard Medical Center

$13.7 million for use of the property control division for design, construction, and

equipping of a state laboratory facility in Bernalillo County for use by the department

of health.

SEE ATTACHMENT FOR ADDITIONAL INFORMATION ON STATE BUILDING

BONDING ACT AND HEALTH FACILITIES COMBINED FINANCE PLAN.

Synopsis of Senate Floor Amendment #1

Senate Floor Amendment #1 to Senate Bill 289 as amended, transfers the parking garage and as-

sociated real estate to the New Mexico legislative council upon completion. After the transfer,

the legislative council shall operate and maintain the parking structure.

Synopsis of SPAC Amendment

The Senate Public Affairs Committee amendment to Senate Bill 289 exempts the parking garage

project from the purchase related requirements of section C as they should not apply to the

project, which is new construction on state-owned land.

Synopsis of Original Bill

Senate Bill 289 is Capitol Buildings Planning Commission (CBPC) sponsored legislation which

amends Laws 2001, Chapter 166 to authorize the Property Control Division (PCD) of the

General Services Department (GSD) to spend bond proceeds to plan, design, construct and equip

a parking structure in the central capitol campus in Santa Fe, contingent on approval from the

(CBPC) and in conformance with the CBPC approved master plan.

Significant Issues

The State Office Building Acquisition Act (Laws 2001, Chapter 199, Senate Bill 214) provided

for a $6 million dollar gross receipts tax revenue stream to pay for the issuance of up to $75 mil-

lion in bonds for state office buildings as authorized in Laws 2001, Chapter 166. In January

2002, the NM Finance Authority authorized $34.6 million in State Office Building Tax Revenue

Bonds, Series 2002A, to fund a number of projects including design and construction of a new

office building at the West Capitol Complex, purchase and renovation of the national education

association (NEA) building in Santa Fe, and purchase and renovation of the public employees

retirement association (PERA) building in Santa Fe. After construction of the West Capitol

Building and purchase of NEA, approximately $5.2 million remains in the program fund. Add-

ing a parking structure to the authorized use of the bond proceeds would alleviate the parking

shortage in the State Capitol area. The garage project would have to be in conformance with the

Santa Fe master plan, which is in the process of being updated.

FISCAL IMPLICATIONS

The average costs for a parking structure range from $5,000 to $12,000 per space, depending

upon design and location. A 500-car structure would occupy about 40,000 square feet. At a me-

Senate Bill 289/aSPAC/aSFL#1/aHTRC -- Page 3

dium-range cost of $8,000 per space, the construction cost would be approximately $4 million,

and total cost including design, contingency, taxes and administrative fee, would be approxi-

mately $5 million. It is not clear what the operating costs would be for this facility, and whether

the state would operate the facility or some other entity, perhaps the City of Santa Fe or Santa Fe

County.

OTHER SUBSTANTIVE ISSUES

GSD notes that there is sufficient state-owned land in the central capital campus area to allow

construction of a parking structure without having to purchase additional land. Therefore, the

requirement for property appraisal is not necessary (see proposed amendment).

ALTERNATIVES

NMFA adds that unused proceeds of bonds could be used to reduce the annual debt service on

the series 2002A bonds, but that the expenditure of the remaining bond proceeds for a parking

structure is more consistent with the original purposes for which the bonds were intended.

GSD provides that if the remaining bond proceeds are not used for this project, an alternative

funding source for the garage would be an appropriation from the general fund or severance tax

bond proceeds.

PROPOSED AMENDMENTS

GSD suggests that on page 3, line 2 strike the underscored words “and in Subsection B” since an

appraisal is not required for new construction on state-owned land.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

Parking shortages will continue for state employees and visitors in the central capitol campus

area.

GG/rs:yr:lg