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

SPONSOR Miera

ORIGINAL DATE

LAST UPDATED

1/26/08

HB 436

SHORT TITLE Albuquerque Retail Business Recruitment

SB

ANALYST Propst

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$50.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Economic Development Department (EDD)

SUMMARY

Synopsis of Bill

House Bill 436, Making an Appropriation for the Recruitment of Retail Businesses to Downtown

Albuquerque, appropriates $50.0 thousand from the general fund to DFA for the purpose

recruiting businesses.

FISCAL IMPLICATIONS

The appropriation of $50.0 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY09 shall revert to the

general fund.

SIGNIFICANT ISSUES

EDD notes that the Mid-Region Council of Government (MRCOG) is a multi-county

governmental agency that is helping the region plan responsibly for the future, in light

of anticipated growth in New Mexico's mid-region. Representing the counties of Bernalillo,

Valencia, Torrance, and Sandoval, they provide planning services in the areas of transportation,

agriculture, workforce development, employment growth, land-use, water, and economic

development.

House Bill 436 – Page

2

MRCOG has been partnering with the Economic Development Department (EDD) for many

years. MRCOG has been a long time supporter of EDD assisting us with the marketing or state

economic development programs, services, and activities.

The 4-county Mid-Region Council of Governments area is designated by the U.S. Department of

Commerce, Economic Development Administration (EDA) as an Economic Development

District. As such, MRCOG prepares a summary of the region’s economic conditions and

recommended activities for growth and development in a report known as the Comprehensive

Economic Development Strategy (CEDS). The CEDS can be used by the general public,

government officials, and business investors to understand the regional economy and take

actions to improve it.

MRCOG also assists with preparation of EDA funding applications and staff is available to

conduct EDA grant administration.

From July 2006 - July 1007, MRCOG has actively assisted several local projects with EDA

funding. The EDA only invests in projects that have a high probability of contributing to local

economic growth.

From July 2006 - July 2007, the total EDA investments in this region were $4,950,000:

•

MRCOG: $150.0 thousand Planning Grant for three years (2007-2009).

•

Sandia Science and Technology Park: $1.1 million for infrastructure improvements to

enable more retail and services

•

WESSTCorp: $1.2 million to construct a business incubator in downtown Albuquerque

•

University of New Mexico: $1.1 million for construction of the 3rd bay of a cleanroom at

the Manufacturing Technology Training Center.

•

All Indian Pueblo Council: $1 million for sewer and water infrastructure at the historic

Indian School site to spur job creation and private investment in an underdeveloped area.

•

New Mexico Community Capital: $350.0 thousand for the Impact New Mexico Business

Growth Services program--providing entrepreneurial support for small businesses in rural

and underserved areas of New Mexico.

MRCOG provides technical assistance to local governments to identify community development

needs and to obtain funding for water, sewer, transportation, and other community development

projects.

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