On Tuesday, Feb. 7, Mesilla Valley Economic Development Alliance guests filled the Tuscany Room at Lorenzo’s de Mesilla during the organization’s monthly luncheon. During the luncheon, Davin Lopez, MVEDA CEO and president, gave a mid-year update on MVEDA’s activities.

“The past six months has had a lot of positive momentum,” Lopez said. “In fact, we have had the fastest start ever in regard to job creation.” Lopez said in the organization’s first half of its fiscal year, MVEDA has helped create 484 economic-based jobs. “I don’t see this slowing down,” he said.

In the past 18 months, MVEDA has brought $550 million in investments to southern New Mexico as well as 3,000 construction jobs that have already started and 1,000 permanent jobs have been announced. “We only announce a job if the investment is on the ground and work is being done,” said Lopez, adding that of the 1,000 permanent jobs, 700 of them are already in place.

MVEDA judges its success based off of leads, prospects and growth of existing businesses. Since last year, Lopez said leads have been up 120 percent and prospects have increased by 500 percent.

“We talked to existing business in southern New Mexico and asked them if they were planning on hiring more people in 2012. And 55 percent of them said yes,” Lopez said. “Overall, the demand in southern New Mexico has increased because of international trade and expansion of government companies.

Again, we are seeing a lot of momentum.” Though the government is a contributing factor, Lopez said the private sector is also playing a big role. “They are the ones creating those jobs I talked about,” he said.

Some of MVEDA’s biggest projects include Union Pacific, which has subcontracted 10 businesses for its phase I of construction. Seven of those 10 companies are from New Mexico.

Another big accomplishment has been in border logistics, creating an overweight zone that allows trucks from Mexico to come into the U.S. within a few miles and drop-off loads. “I can’t say the names because I will leave that for Gov. (Susana) Martinez to announce, but two companies have committed to moving to southern New Mexico because the over­weight zone bill was passed,” said Lopez, adding that MVEDA is also focused on marketing North America to other countries because of its unique shipping advantages from Union Pacific and overweight zone.

Other areas of interest for MVEDA include unmanned aerial vehicles, Spaceport America, areas of high technology and the New Mexico State University Physical Science Laboratory as well as renewables, such as bio-mass, water conservation and recycling.

“Over the last 18 months, there has been a $1 billion investment in southern New Mexico. We want you to know things are happening here,” Lopez said.

MVEDA’s upcoming events include the Southwest Aerospace & Defense Trade Compliance Forum April 4-5 at Hotel Encanto de Las Cruces. For more information, visit www.mveda.com.

This month’s meeting will be held in the Tuscany Room at Lorenzo’s de Mesilla, 1750 Calle de Mercado in Mesilla. The meeting will begin with a hot entree buffet.

Luncheon cost is $20.00 per person, payable by cash, check or major credit card. Due to space limitations, reservations are required. Please confirm your attendance no later than Thursday, February 2^nd by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

By Todd G. Dickson

State Higher Education Secretary Jose Garcia and Public Education Secretary-designate Hanna Skandera say they intend to make the public schools and higher education work together to provide a better trained work force.

Speaking before the Mesilla Valley Economic Development Alliance (MVEDA) Tuesday, Jan. 3, Garcia and Skandera said they also will make the educational system more accountable. Their appearance in Las Cruces was followed up by Gov. Susana Martinez meeting with a large group of regents, governing board members and post-secondary institution presidents in Socorro to discuss the state’s new higher education funding formula.

The new formula will reward New Mexico’s higher learning institutions based on outcome measures that reflect student achievement and preparedness for New Mexico’s work force, as opposed to basing the allocation of funding on measurements like the size (square footage) of each institution. Also, the current formula funds colleges and universities based on courses and degree programs started. The new formula would be based on courses and degree programs completed.

Garcia said this is about more than making better use of the state’s support of higher education. The idea is to put the money into where there are gaps, especially in skill sets needed in high-tech professions.

At the MVEDA luncheon, Garcia noted that Intel decided to expand its Arizona operations, but not its plant in Rio Rancho. Yet, New Mexico spends more per graduate than Arizona, he said. Garcia said he took it as signal that New Mexico is not producing the kind of work force that is needed for the United States to be competitive globally.

“The central goal of New Mexico’s higher education institutions should be to graduate the students New Mexico’s economy will depend on for decades,” Martinez said. “In an increasingly competitive global economy, this formula will help us deliver the graduates we need for the jobs of tomorrow, and it serves to intently focus our attention on the achievement of our students.”

Under the formula, institutions would receive funding for graduating students in “STEHM” (Science, Technology, Engineering, Health Care and Mathematics) fields. A recent study disclosed that New Mexico’s economy will require nearly 50,000 employees with STEHM degrees by 2018 and nearly 95 percent of those jobs will require post-secondary education. “For the first time in the history of New Mexico, the younger generation is less educated than the generations before,” Garcia said. “This new formula is our opportunity to make sure today’s students are tomorrow’s successful employees.”

Meanwhile, Skandera said the schools will be changing, too, with a focus on making graduates better prepared for the work force or higher education once they complete school. Skandera said the schools will be more realistically assessed than the guaranteed failure rates offered by No Child Left Behind standards, which she said has only resulted in schools putting resources into helping borderline students rather than helping struggling students.

“Education is about setting up our kids for success,” Skandera said. “Let’s honor the successes we see and work on the areas we need to.”

At the MVEDA luncheon, a local success story was also highlighted. The Arrowhead Park Early College High School (APECHS) on the New Mexico State University campus will get a boost from a $345,090 W.K. Kellogg Foundation grant for the public-private workforce development advocate. The school, created by a school-business partnership called the Bridge of Southern New Mexico gives students the chance to learn in a higher education environment and earn college credits.

APECHS can tout that none of its students have dropped out, said Tracey Bryan, president and CEO of The Bridge. She said the cooperative efforts between the public schools, higher education and the business community is what spurred Kellogg to give the significant grant.

Distribution of the grant money includes $45,000 to NMSU’s Enlace Program that helps minority students succeed in higher education, $45,000 to NMSU and the University of New Mexico education research centers, $37,090 to the Arrowhead Center where the school is housed and $10,000 to the Service Learning Program at the NMSU College of Education. But the bulk of the Kellogg grant will be used to increase the student capacity at APECHS and to begin work on setting up four more early college high schools in Doña Ana County, according to the grant announcement.

Bryan said the Kellogg grant is a significant award, but The Bridge also has been getting grants from other private foundations and local businesses to help the APECHS effort. Through APECHS and other efforts, Las Cruces Public Schools is seeing good progress on reducing its dropout rate overall, Bryan said, “and the sky’s the limit” for future progress.

Skandera touted APECHS as an example of how to improve schools. “We didn’t point fingers in Las Cruces,” she said. “We sat down and said how do we get there, and we partnered.”

MVEDA, the Greater Las Cruces Chamber of Commerce, the Hispano Chamber de Las Cruces, and the Bridge of Southern New Mexico are pleased to kick-off 2012 by co-hosting a conversation with the Cabinet Secretaries on their work in building a strong, well-prepared workforce.

Secretary Skandera

Previously, Skandera served as Florida’s Deputy Commissioner of Education under former Governor Jeb Bush, working to advance middle and high school reforms that instituted greater accountability, incentives for high performance and the end of social promotion. Her work led to scores that improved dramatically across ethnic groups, with Hispanic students outperforming all students in 31 other states. Florida has been recognized nationally as one of the only states to narrow the achievement gap for poor and minority students. She also served as a senior policy advisor and Deputy Chief of Staff at the U.S. Department of Education and as former California Governor Arnold Schwarzenegger’s Undersecretary for Education.

Secretary Garcia

Jose Z. Garcia has been on the faculty at New Mexico State University for more than three decades.  He has conducted research and lectured throughout Latin America, specializing in questions of political instability.  Dr. Garcia directed the Center for Latin American and Border Studies at NMSU for 13 years.  In recent years his research has focused on the U.S.-Mexico border.  He is one of the founding members of the Paso del Norte Water Task Force, a non-governmental, tri-state, bi-national organization created in the late 1990s, grouping together irrigation district and water utilities managers with environmental groups, citizens, and academics, to stimulate greater cooperation toward more efficient regional water management in the Paso del Norte region.  Dr. Garcia was chair of the organization from 2010-2011.  He has also taught a course in New Mexico politics for many years.  After receiving a BA from Occidental College, Dr. Garcia was awarded a Fulbright fellowship to Ecuador.  He received an MA from the Fletcher School of Law and Diplomacy at Tufts University, and a PhD from the University of New Mexico.

The vital link between education and workforce and economic development has been highlighted by The Bridge of Southern New Mexico.  The Bridge is working alongside Secretary Skandera and Secretary Garcia to create stronger linkages from public education to post-secondary education to give New Mexico a prosperous, sustainable future for business by building a strong, well-prepared workforce.

Luncheon cost is $20.00 per person, payable by cash, check or major credit card. Due to space limitations, reservations are required. Please confirm your attendance no later than Thursday, December 29^th by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

Sean Jodoin

Sean Jodoin, Virgin Galactic Supply Chain Manager, will be the featured speaker at the December meeting of the MVEDA Business on the Border Forum. The luncheon will be held on Tuesday, December 6, 2011 from 11:30 AM until 1:00 PM at the Hotel Encanto de Las Cruces, 705 S. Telshor. The meeting will begin with a hot entree buffet followed by a brief update by MVEDA staff.

Sean focuses on developing a strategic supply chain plan from the ground up for Virgin Galactic. In addition, he is working on Spaceport America activities and with The Spaceship Company to deliver a technical supply chain for the spaceflight system.

Sean brings with him experience from Lockheed Martin, Raytheon and KBR where he worked in Iraq and Afghanistan as a Procurement Manager. He served in Operation Enduring Freedom as an Air Force Combat Rescue aircrew member. He has earned an MBA from Embry-Riddle Aeronautical University and holds CPIM and C.P.M. designations.

Luncheon cost is $20.00 per person, payable by cash, check or major credit card. Due to space limitations, reservations are required. Please confirm your attendance no later than Thursday, December 1^st by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

Christopher A. Erickson, Ph.D.

Dr. Christopher Erickson will be the featured speaker at the November meeting of the MVEDA Business on the Border Forum. The luncheon will be held on Tuesday, November 1, 2011 from 11:30 AM until 1:00 PM at the Hotel Encanto de Las Cruces, 705 S. Telshor. The meeting will begin with a hot entree buffet followed by a brief update by MVEDA staff.

In his “Update and Outlook for the Las Cruces Economy” Dr. Erickson will discuss the outlook for Las Cruces next year and beyond. He will also discuss the outlook for the state and national economy.

Dr. Erickson has served on the faculty of the NMSU Department of Economics and International Business since 1987. He is a frequent speaker on financial economics, macroeconomics and the border economy. His primary teaching interest is money and banking. He is the author or co-author of numerous articles on financial economics, including supplemental money and banking text that has been adopted on more than 100 college campuses. He is the Executive Editor of the New Mexico Business Outlook, the e-newsletter of the College of Business at New Mexico State University.

Luncheon cost is $20.00 per person, payable by cash, check or major credit card. Due to space limitations, reservations are required. Please confirm your attendance no later than Thursday, October 27 by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

By Todd G. Dickson

Part of the state’s spaceport deal with Virgin Galactic is that the company set up its headquarters in New Mexico, and Las Cruces appears to be that place.

Carolyn Wincer, Virgin Galactic’s head of travel and tourism, told the City Council Monday, Oct. 3, that the company will soon be opening an office in Las Cruces as the base of its operations in New Mexico.  A location has been picked, but Virgin isn’t releasing it yet.

Virgin is ramping up its preparations for when the company begins flying tourists into suborbital space 70 miles above Earth’s surface, perhaps even as soon as next year. The company is currently testing the carrier flyer and spaceship, which is launched in mid-air.

Wincer said more than 70 flight tests have made of Virgin’s first spaceliner, including 16 solo glide flights of SpaceShipTwo, a six-passenger version of the two-seater that was the first piloted rocket vehicle to reach suborbital space in 2004. The hybrid rocket engine that will be propelling the passengers and pilots is going through a series of tests, which Wincer said she wasn’t allowed to say much about for proprietary reasons.

Some 500 experienced test pilots have applied to fly for Virgin Galactic, she said. Meanwhile, more than 500 potential passengers have put down deposits for the $200,000 tickets, totaling close to $16 million, she said.

British business magnate Richard Branson is investing more than $200 million into development of the Virgin Galactic fleet, while the total start-up budget for Spaceport America is $209 million. Located 45 miles north of Las Cruces, Spaceport America has a two mile runway ready for the flights and work is near completion on the Hangar Terminal Facility that will house Virgin Galactic’s fleet of spaceliners.

Wincer said Virgin has already hired more than 100 people, many of them Americans, because large-scale rocketry falls under the International Traffic in Arms Regulations passed after the 9/11 attacks.

As work continues to make sure the spaceliner is safe for its passengers – with Branson and his family to take the first non-test flight – the company is now focusing on preparing the on-ground experiences, said Wincer, who has worked for Branson’s resorts in the past.

Virgin plans to fly at least twice a day with each passenger arriving two days before their flight. Those passengers also are expected to bring family, friends and others during their visit, she said.  Virgin is currently assessing what kind of “tourism infrastructure” is available, she said, and talking to its future passengers about what kind of experiences they would like to have during their stays.

Wayne Savage, who chairs the Greater Las Cruces Chamber of Commerce’s Commercial Space Committee, said his group is working on issues, such as supporting the tourism experience, but even more critical is trying to make the city a central location for providing supply chain services and other support of the spaceport operations and the companies like Virgin Galactic.

“The good news is that our spaceport is quickly becoming a functioning reality,” Savage said. Operational contracts have recently been awarded to companies that have done work with White Sands Missile Range, he said.

The next day, Pat Hynes, director of the New Mexico Space Grant Consortium, talked about the upcoming International Symposium for Personal and Commercial Spaceflight (ISPCS) to the Mesilla Valley Economic Development Alliance (MVEDA). More than 500 people – including those key players in developing the private space industry – are expected to attend ISPCS Wednesday and Thursday, Oct. 19-20, at the New Mexico Farm & Ranch Heritage Museum, 4100 Dripping Springs Road.

Hynes told those attending the MVEDA luncheon Tuesday, Oct. 4, at the Hotel Encanto de Las Cruces, that there are a number of opportunities for local businesses to make connections at ISPCS.

 Prior to the conference, there will be a Growing Community Partnership Luncheon Tuesday, Oct. 18, at the Commercial Space Exhibit Hall, which will be located inside the museum. The $50 luncheon includes a talk by Allan Lockheed, son of the aviation pioneer who created what is now Lockheed Martin. Hynes said Lockheed will talk about how the space industry will coalesce around Spaceport America – an industry that is currently supported by $60 billion just in government spending. Though a “heavy business conference” attracting attendees from all over the world, ISPCS also will hold panels on creating the supply chain support, Hynes said.

So important is the question of establishing reliable sources of materials, equipment and facilities near Spaceport America that Virgin Galactic also is holding a supply chain meeting the day before ISPCS, Hynes said. “The supply chain is an indicator of the growth of the industry,” she said.

Because ISPCS has become the main annual gathering for those trying to open up this new industry, Hynes said she makes a point to expose them to local and New Mexico products, from its chile to its wines.

One in-state resource that the conference will look at is a center for gliding at Moriarty. Many of the spaceport’s vehicles will glide in for landings, such as Virgin Galactic, she said. Also, research has been conducted at Spaceport America’s sounding rocket launch facilities on winged rocket boosters that glide back to the ground for potential reuse, instead of simply falling away.

The two-day ISPCS costs $649 with discounted rates for active military – $329 – and students – $150. Last year, ISPCS brought in more than $1 million of local economic activity, Hynes said. “That’s a lot of economic impact for this area and this year’s conference will be three times that,” she said.  The proceeds from the conference pay for launches from Spaceport America of student experiments, which Hynes said is very expensive.

The good news is that our spaceport is quickly becoming a functioning reality.

By Brook Stockberger/Business Editor

How difficult is economic development in southern New Mexico? For one thing, liqueur licenses are too expensive, some with purchase prices as high as $700,000, said Mike Espiritu, executive director of the Otero County Economic Development Council.

“I cannot get a grocery store in Alamogordo because of the price of a liqueur license,” Espiritu said. “A liqueur license is an economic development issue, (but) the legislation hasn’t been changed since the early 1980s.”

Davin Lopez, CEO and president of the Mesilla Valley Economic Development Alliance said that competition is intensifying in the Southwest.

“Arizona has put its flag in the sand and said, ‘We’re back in business,’” Lopez said. “And, on the other side, we have Texas (working hard.)”

So what should the state with the lowest population in the Southwest do to build momentum in job creation? Here in southern New Mexico, a spirit of cooperation has taken hold among competitors. And while it’s not exactly Macy and Gimble shaking hands in “Miracle on 34th Street,” Lopez, Espiritu and John Mulcahy, executive director of the Sierra County Economic Development Organization, have made the effort to work together for the good of the region.

The three men spoke about economic development during MVEDA’s monthly luncheon on Tuesday at Hotel Encanto de Las Cruces.

“We devote time to regional development,” Lopez said. “While I’d rather not lose a deal, I’d want to lose it to these guys rather than Arizona or Texas.”

Lopez said that MVEDA has recently finished one of its best fiscal years ever for capital investment and in other areas. Still, there is a lot of work to be accomplished, including efforts for Spaceport America.

“Virgin Galactic has been using our office for a series of companies they’ve been meeting with,” Lopez said.

“Davin and I have been working on spaceport needs,” Mulcahy said. “We met with contractors last week.”

Brook Stockberger can be reached at (575) 541-5457

Featured panelists will include:

Davin Lopez is the President/CEO of the Mesilla Valley Economic Development Alliance (MVEDA), in Las Cruces, New Mexico.  Davin serves on the board of directors of New Mexico Partnership, the private economic development business attraction arm of the State of New Mexico.

John Mulcahy is the Executive Director of the Sierra County Economic Development Organization (SCEDO) in Truth or Consequences, New Mexico. John is currently the Co-Chairman of the Spaceport America Regional Economic Development Group working with Dona Ana County and the Spaceport America Director and staff.

Mike Espiritu is the President/CEO of the Otero County Economic Development Council (OECDC) and the Alamogordo Chamber of Commerce in Alamogordo, New Mexico. Mike serves on the board of directors of the New Mexico Industrial Development Executives Association (NMIDEA).

Luncheon cost is $20.00 per person, payable by cash, check or major credit card. Due to space limitations, reservations are required. Please confirm your attendance no later than Thursday, September 1 by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

On Thursday, Aug. 11, the Mesilla Valley Economic Development Alliance met with community members to discuss the 2010-11 fiscal year for the organization.  Though the economy may be in distress, MVEDA showed growth in the Mesilla Valley.

“I am proud to present the results of MVEDA’s 2010-11 fiscal year, which by almost all accounts has been a record setting year,” said Davin Lopez, president and CEO of MVEDA. “Not only has it been MVEDA’s second-best performing year in terms of job creation and square footage absorption, but the organization also far exceeded any past operating year in terms of capital investment and wealth creation.”

Charged with bringing companies to the Mesilla Valley and increasing the wealth of Doña Ana County, MVEDA works with other entities such as the City of Las Cruces, Doña Ana County, local chambers of commerce as well as a diverse group of leaders from the business community.

“With an additional three solar projects in Doña Ana County with total investments upwards of $100 million, a recent groundbreaking for a major multi-unit residential development in Santa Teresa, and the future industry potential that Spaceport America offers, should make us all stop and wonder whether or not national headlines are accurate … or, at the very least, relevant to our region,” Lopez said.

Over the past fiscal year, 45 companies actively looked into relocating to Las Cruces with several of them completing the process and moving into vacant buildings. Some of these companies include Vangent, Samson, NRG, L&M Radiator, Products USA and NextEra Energy.

In early June, MVEDA hosted an open house for L&M Radiator, a manufacturer that recently announced its move to Las Cruces. L&M plans to transfer or hire more than 100 employees, Lopez said.

“Less than a year ago, Alaska Structures expanded in Las Cruces’ West Mesa Industrial Park and now occupies more than 300,000 square feet in two facilities and employs more than 300 workers,” Lopez added.

The year generated more than 580 jobs, contributed to more than 270,000 square feet in commercial real estate absorption, with capital investments totaling more than $540 million. The average salary for the new jobs exceeds $47,000 per year, which is almost 28 percent above average wages for Doña Ana County.

Since January 2003, through the most recent fiscal year, MVEDA has assisted in the expansion or location of 68 projects in Doña Ana County – including Union Pacific – creating more than 3,200 jobs with an annual payroll in excess of $96 million.