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

SPONSOR Silva

ORIGINAL DATE

LAST UPDATED

2-1-06

HB 502

SHORT TITLE

BERNALILLO COUNTY REDEVELOPMENT

PROGRAM

SB

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$50.0

Non-Rec

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

House Bill 502 appropriates $50 thousand from the general fund to the Local Government Divi-

sion (LGD) of the Department of Finance and Administration (DFA) in FY07 to provide a com-

munity redevelopment program on West Central Avenue in Albuquerque in Bernalillo county.

FISCAL IMPLICATIONS

The appropriation of $50 thousand contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert to

the general fund.

SIGNIFICANT ISSUES

DFA noted that the primary purpose of the Albuquerque Redevelopment Agency is to remove

blight from the three project areas that make up the Program on West Central Avenue. Addi-

tionally, the Program aims to utilize under-utilized and under-developed property. The city of

Albuquerque has participated in redevelopment projects such as the old Albuquerque High

School on Central Avenue and the International Market Place downtown.

House Bill 502 – Page 2

DFA also indicated the city has invested $3,000,000 in land acquisition for the redevelopment

program in addition to $300,000 for the "neon gateway"---neon arch over street--- on West Cen-

tral Avenue. The city anticipates that it will take approximately three years to complete the re-

development program , which consists of three project areas. The three project areas include,

Unser and Central, Atrisco Plaza, and Old Cross and Central. DFA noted that voters did not ap-

prove the last bond issue, which was for the redevelopment of these areas.

ADMINISTRATIVE IMPLICATIONS

The administration of the appropriation would fall under LGD/DFA in FY07. LGD would coor-

dinate the administration of the program with the city of Albuquerque through a grant agreement.

DH/nt