White Sands Missile Range is home to the US Army’s premier test center that provides services to the Department of Defense and others top quality “experimentation, test, research, assessment, development, and training in support of the Nation at war, according to the WSMR official website.”  Successful support of these customers requires strategic planning that focuses on understanding who the customers are, what they need and how to best provide service.  Mr. Bond will present an overview of some of the initiatives currently being conducted at WSMR and will try to answer questions about the skills and requirements that are needed from the high  tech community in southern New Mexico.  Projects that he will discuss include the Joint Urban Testing Capability, Joint Land Attack Cruise Missile Defense Elevated Netted Sensor (JLENS), energy scavenging, and renewable/alternative energy initiatives.

Mr. Bond is a native of Clovis, NM and has worked at WSMR since 2007.  He graduated from the United States Military Academy in 1982 with a Bachelor’s Degree in Basic Science Interdisciplinary. He was commissioned in the Field Artillery and served in Europe and Honduras. When he returned from overseas, he earned a Master’s Degree in Operations Research/Systems Analysis from Kansas State University. He left active duty in 1992 and worked for Ford Motor Company as a Production Supervisor, Industrial Engineer, Manufacturing Efficiency Specialist, and Production Engineering Manager. Phil returned for Retired Reserve status to serve in Iraq in 2004 and 2005. He moved to Las Cruces in 2006 and has worked at White Sands since 2007.

For more information contact Richard Majestic, rmajestic@msn.com or (575) 521-0018.

Writer: Justin Bannister, 575-646-5981, jbannist@nmsu.edu

Contact: Dawn Hommer, 575-646-5213, dhommer@nmsu.edu

New Mexico State University’s Arrowhead Center has agreed to work with White Sands Missile Range to pursue potential business development opportunities in the fields of national security, space and aerospace, alternative energy initiatives and technologies with both military and civilian applications.

“This agreement between NMSU and White Sands Missile Range will not only allow collaboration between two of the largest economic development engines in Southern New Mexico, but also establish the groundwork for new and exciting economic development opportunities,” said Garrey Carruthers, NMSU’s vice president for economic development and dean of the College of Business.

The memorandum of understanding will help the Arrowhead Center and WSMR work in concert in pursuit of potential business development opportunities. The goal is to complement assets, expertise and capabilities of both entities. The collaboration will support the Arrowhead Center’s mission of economic development and WSMR’s mission of research, development, testing and evaluation.

The Arrowhead Center specializes in accelerating economic development within New Mexico, providing enhanced directed learning experiences for students and diversifying the funding base for NMSU. Since its inception in 2004, the Arrowhead Center has completed more than 200 business research projects involving more than 300 graduate and undergraduate students.

NMSU and WSMR have informally worked together for the past few years. This move allows that relationship to continue more effectively.

By Samantha Roberts

More than two dozen Mexican investors will visit Las Cruces as part of a Foreign Investment Trade Mission organized by the Hispano Chamber of Commerce de Las Cruces and New Mexico Economic Development Department Office of Mexican Affairs from 2 to 7 p.m. Friday, March 1 8, at the Las Cruces Convention Center, 680 E. University Ave.

This event marks the first trade mission in Las Cruces and the first bi-national event at the new convention center, said Peter Ibarbo, organizer of the trade mission and newly appointed chair of the Hispano chamber’s Economic Development Committee.

Ibarbo said he wanted to bring the event to Las Cruces as an effort to fulfill the chamber’s mission to promote culture. “I have been involved in numerous (trade missions) before in Albuquerque,” Ibarbo said. “There has never been anything like this in Las Cruces. There are a lot of great opportunities Las Cruces has to offer. I hope the event captures additional businesses and showcases the region’s assets.”

Trade sessions will be held from 2:30 to 5:30 p.m. and include the following:

•Table 1: Real estate development – This table consists of prospects interested in viewing investment opportunities in projects involving hotel development, townhome development, condominium complex development, apartment complex development, gasoline station-convenience store development and other similar commercial real estate opportunities.

•Table 2: Restaurant and café development – This table consists of prospects interested in viewing viable commercial properties to develop restaurants and cafes.

•Table 3: Import and distribution – This table consists of prospects interested in identifying joint-venture partners to expand their marketing channels and establish distribution centers. The products include wooden dowel, plugs and bungs manufacturing looking to partner with a U.S. company to establish a consolidated distribution center; infectious disease and environmental health hazard control kits; a buyer looking for a U.S. supplier for national distribution in Mexico; corrugated cardboard packaging manufacturing looking to develop a market to possibly establish a processing plant in Las Cruces for local and international distribution; and a supplier development center looking to make contacts with potential maquiladora suppliers in the realm of metal stamping, machining, plastic injection and packaging.

•Table 4: Tourism and special events – This table consists of prospects interested in partnering with travel agencies to promote weekend getaways to Copper Canyon, promote tourism in Chihuahua, Mexico as well as looking to coordinate special events in Las Cruces and identify vendors from Las Cruces that may want to showcase products at special events in Chihuahua, such as the Chihuahua Balloon Festival, ExpoAlimentab, ExpoMaquila, etc.

•Table 5: Commercial space supply chain – This table consists of commercial space supply chain coordinators interested in viewing potential suppliers for the commercial space industry. Areas of interest include construction of commercial space facilities, common area maintenance suppliers for commercial space facilities and tier 1/2 commercial space production inputs.

•Table 6: Sister City agreements – This table consists of four municipalities interested in establishing sister city agreement discussions with potential cities around the Las Cruces region. These cities include Guerrero, Cuauhtemoc, Meoqui and Chihuahua.

With a multi-faceted group of investors, Ibarbo said he is also inviting a wide range of businesses to the event. “We are inviting the business community in Las Cruces to come with established products that are looking to expand and make new contacts,” he said. “Companies who want to grow their market, such as real estate developers who would like to partner and bring hotels and condominiums. “We are also reaching out to local agencies that are active in economic development and want to provide a platform in foreign investment.”

Registration for tables includes: $500 for logo presence, an exhibitor’s table and an access pass for two persons to participate in the private lunch, business-to-business sessions and dinner; $250 for an exhibitor table and an access pass for two persons to participate in the business-to-business session dinner; and $100 for a banner sponsorship that will be positioned in a prominent place during the event. Admission tickets can also be purchased for $17.50 to $35 per person.

In addition to the tables, the event will also host a dinner at 6 p.m. and offer different levels of entry fees to cater to everyone’s needs. Tickets can be purchased for the business-to-business marketing session, dinner or both.

The dinner will include keynote speakers from the Commercial Space Committee, who will talk about the commercial-supply chain for Spaceport America; Sacred Power, which will discuss alternative-energy developments; and Jose Louis Mauricio, who comes from the El Paso-Juárez area and founded La Red, a company that has helped to establish more than 100 businesses in El Paso.

“The Hispano chamber is partnering with the New Mexico Economic Development Department, the Mesilla Valley Economic Development Alliance and the Greater Las Cruces Chamber of Commerce,” Ibarbo said. “If you are a member of any of these groups, then you can get more information from them, or anyone can contact the Hispano chamber.”

For more information or to register, contact the Hispano chamber at (575) 532-9255.

Our guest speaker on Tuesday was Fred Mondragon, the Cabinet Secretary of Economic Development, who shared some economic data on the status of New Mexico and Southern New Mexico’s economies, and also provided some words of advice as to how we might keep the momentum moving forward in Dona Ana County.  The Secretary outlined and highlighted several success stories for Dona Ana County that included (click on graphic to view presentation):

• A September 2010 unemployment rate in Las Cruces 2% below the national average and more than ½ percent below the State’s average,
• Site Selection Magazine and Business Facilities ranked New Mexico in their Top 10 nationally for:

o    #2 in Solar Energy Manufacturing Leaders,

o    #3 in Workforce Training Leaders,

o    #5 in Alternative Energy Industry Leaders,

o    #6 in Cost of Labor, and

o    #8 in Economic Growth Potential.

• Regionally, Las Cruces ranked in the following areas:

o    5^th in U.S. in projected 2009-2011 employment growth rates.

o    8^th in Milken’s 2010 Best-performing small cities,

o    #9^th in Business Week’s top recovering job markets for 2010, &

o    Dona Ana County ranked 14^th Best County in the nation for job growth over the last nine years by Money Magazine.

The Secretary also praised many of the strides Southern New Mexico has made with respect to:

• The aerospace industry, where he cited Spaceport America and the selection of NMSU as an FAA Center of Excellence for Commercial Space Transportation as the anchors that will spur this industry forward in New Mexico,
• The alternative/renewable energy industry with three new solar projects taking place in the County, the announcement of Johnson Plate and Tower this past January and with Sapphire Energy located at the West Mesa Industrial Park.
• And of course our Borderplex growth at Santa Teresa which has seen cross border goods increase by 256% over the past five years.

Finally, his words of advice to local leadership moving forward were to:

1.    Continue our economic diversification,

2.    Build on regional and local strengths,

3.    Think globally, and

4.    To support less unfortunate communities in the region.

Given that Tuesday was Election Day, it is only appropriate that we discuss both the success we have had in economic development and job creation, but more importantly to focus on the future building blocks we need as a region so that we may continue to grow our economy.   As I have mentioned many times in the past, Southern New Mexico is blessed with some very strong assets by which we can grow upon.  But we need to assure that the tools and legislative support is available to do so.  This includes maintaining a strong State economic development marketing effort, maintaining existing incentives, as well as expanding those incentives to support Southern New Mexico growth in the areas of aerospace, border logistical support, alternative energy, and food processing.   And although in Dona Ana County, we look towards the State to support us in many of these efforts, we must also realize that as a community we are equally responsible for taking steps to prepare ourselves to attract growth and that comes in the form of education, infrastructure, and capacity building.  In this respect, MVEDA continually provides assessment and analysis on the challenges facing economic development in our region.  Although MVEDA’s primary focus is on marketing and attracting economic-based jobs to the region, we nevertheless find it necessary to engage in capacity building activities that will assist us in our long-term goals.  Currently, MVEDA is implementing and working on several capacity building directives that include:

• Colonias/Rural Area Labor Assessment:   With the support of an intern from NMSU, MVEDA has designed a bilingual workforce survey which we will be distributing to residents in rural areas.  We are receiving support from PICO to assist us in survey response.  Our first effort will take place in November in Anthony, NM.  We hope to expand this to Sunland Park and Chaparral before the end of the fiscal year.
• Labor Identification Program for Santa Teresa based Employers:  Working in conjunction with DACC, we will be marketing employment services offered through DACC to Santa Teresa based employers.  MVEDA’s analysis through conversations with employers indicates that 60% to 70% of the existing workforce in Santa Teresa comes from El Paso.  We are hoping to offer employers a one stop solution and first point of contact through DACC when they have future labor needs.
• Investment Interest in Santa Teresa:  A second challenge with the workforce in Santa Teresa is the ability to convert them to New Mexico residents.  This is due to lack of housing that is within proximity to the employment base.  We have begun collaborating with the Border Industrial Association, the Building Industries Association, and the Las Cruces Association of Realtors to potentially identify new programs that could be offered to promote and encourage more development in the area.
• Spaceport America Economic Development Strategies:   Finally, MVEDA has been involved with Spaceport America and their consultants in trying to identify clear strategies that we can jointly implement that will assist our efforts in developing business opportunities revolving around the Spaceport and the aerospace industry.

We are hopeful that some of these efforts lay additional foundation for growth leading into the next administration and MVEDA will continue to work closely with the Economic Development Department and the New Mexico Partnership as partners in this endeavor.  Again, MVEDA thanks the Secretary for his time and for all the support he has provided to economic development in Dona Ana County.  We wish him well in his retirement from state government which was announced by Governor Bill Richardson earlier today.

By Marvin Tessneer

Alternative energy companies are conducting research and development projects directed toward a solar-thermal power plant to be located a mile east of the border town of Santa Teresa in Dona Ana County. The eSolar power technology company is designing a 5-megawatt project in Lancaster, California, as a plant research project for NRG Energy.

“It’s a small version of what we’re going to build in Santa Teresa,” said David Knox of NRG Energy. “It’s a process that we go through before starting actual construction. And from that project we are gaining a lot of insight that will support the building and operation of our Santa Teresa project.”

NRG is planning on breaking ground for its solar-thermal power plant later this year. It plans to have the plant operational by 2011. The Dona Ana County Commission has already approved land-use and building permits for the site.Construction is expected to bring about 400 jobs during a 14- to 16-month period and create 20 permanent jobs when the plant is fully operational, NRG officials said. NRG is planning to build its plant on 450 acres using eSolar’s concentrated solar power (CSP) technology and will be the first commercial solar-thermal power plant in New Mexico.

The technology is made up of a field of flat mirrors, called heliostats, that direct and concentrate sunlight to thermal receivers mounted on towers about 180 feet high. The concentrated sunlight heats the water in the thermal receivers to produce steam that turns turbines to generate clean electrical power. The mirrors track the sun with a calibrated system that can follow and gather the sunlight throughout the day and achieves one of the highest power-to-land ratios in the industry.

NRG plans to develop a project that, at peak capacity, will produce 92-milowatts of electricity that could supply power to about 74,000 homes. The plant will be connected to an existing 115-kilovolt El Paso Electric Company transmission line, and the company has a 20-year power purchase agreement.

The plant also would bring a new tax base and economic benefits from purchases of goods and services during construction. NRG also expects the solar-thermal plant to use same amount of water that would be consumed in a residential development.

New Mexico elected officials are pleased with the solar plans. Governor Bill Richardson said of the NRG project, “With 300 days of sun every year, a highly skilled labor force and a friendly business environment, New Mexico is well-positioned to lead the nation in solar energy production. eSolar, NRG and El Paso Electric are helping us make New Mexico’s renewable energy a potential a reality.”

U.S. Senator Jeff Bingaman said, “This plant is an excellent example of the kind of projects New Mexico and the rest of the nation need to further diversify America’s energy portfolio. I compliment El Paso Electric, NRG and eSolar for working to create green jobs in New Mexico that will help to responsibly meet our growing demand for electricity.”

We started 2009 with what I believe were a greater amount of “unknowns” than “knowns”;  fears following a stock market crash, government bailouts, mass foreclosures, growing unemployment rates, and discussions of a recession was the topic of many conversations.   These were the challenges over the past year that all communities, businesses, and economic development agencies had to deal with, not just MVEDA.  As a region, Dona Ana County was not immune to this crisis.  We began the year at 5.5% unemployment and ended the year hovering around 7%.  However, compared to a 7.8% unemployment rate at the State level and a 9.4% rate at the national level (as of November), Dona Ana County actually fared pretty well.  And although we experienced the loss of a large employer with the Frontier Airlines’ reservation center closing here in Las Cruces, we were also balanced by increases in hiring by other service centers including Sitel, CyraCom, and Convergys.  We also experienced some decline in production/manufacturing jobs and the loss of Multi-Plastics.  However, we also experienced an unprecedented level of interest by companies in the emerging alternative energy sector which has led to some key opportunities; earlier in the year eSolar and NRG Energy announced a 92 megawatt solar project for Santa Teresa and earlier today, Johnson Plate and Tower announced their plans to build a wind tower manufacturing facility, also in Santa Teresa.    Sapphire Energy has invested $8 million in its research and development facility at the Las Cruces West Mesa Industrial Park and will invest another $100 million in Southern New Mexico to produce biofuel from algae.  Along with other alternative energy groups who have identified the region for their projects, Dona Ana County could realize up to 200 new jobs and up to $300 million dollars in new capital investments in the years to come as a result of 2009 activity.

At MVEDA, we enter 2010 optimistically.  After dropping out of the top five rankings of the best performing small cities by Forbes and the Milken Institute between 2002 and 2006, the Las Cruces NM MSA has again made the list of the Milken Institute’s top ten “Best Performing Small Cities.”  As Spaceport America comes on-line and if some of the other projects in our pipeline materialize, it should lead to regaining a top five position in the near future.

But we also realize that we have not yet fully escaped the economic crisis of the past year.  We know that economists are now beginning to talk about a recovery.  We know the current holiday shopping season experienced a 3.5% increase over last year’s holiday season illustrating an increase in consumer confidence.  We know from reports that foreclosure numbers will decrease from the levels experienced in 2008 and 2009.   We also know we have a pipeline of projects and companies that we are working with who are considering the region for growth.  We know that there is a growing alternative energy industry with its eyes on New Mexico and that MVEDA has been aggressive in gathering the attention of this industry.  But we also know that we still have a lot more to do.   But at least we enter the New Year with a few more “knowns” than the “unknowns” of 2009.

To date during the current fiscal year, MVEDA has created 36 new leads, representing over 3,190 jobs thereby indicating a very healthy pipeline of future projects.   Renewable energy and manufacturing & logistics projects represent the overwhelming greater percentage of our leads.

November marks a critical time period for MVEDA in our prospecting activities.  Economic development recruiting efforts normally have a minimum sales cycle of six months.  Given that we have only eight months left in our fiscal year, this means that we have only two months left to develop new leads that may have a chance of closing prior to July 2010 when our new fiscal year begins.  Therefore, MVEDA will be concentrating significant efforts on getting current leads and prospects to the finish line.

The open projects that MVEDA believes have the greatest likelihood of closing this fiscal year include;

• Project Windtower, an alternative energy manufacturer,
• Project Alimentos, a food processing company, and
• Project Roadrunner and Project X, both alternative energy developers.

If realized, these four projects represent over 200 jobs to Dona Ana County and over $300MM in capital investments.

To recap lead generation activity over the past month, MVEDA generated fifteen new leads compared with ten the last month, thereby showing a very healthy pipeline of projects and interest.   Although alternative energy companies continue to make up over 1/3 of all our leads in the past two months, the overall percentage has dropped slightly and we have seen an increase in the percentage of lead generation within the aerospace and food processing sectors.  We currently have 25 new leads in the pipeline for this fiscal year totaling 2,512 potential jobs and over 1 million square feet of potential real estate needs.

As announced last week, Frontier Airlines stated that they would be closing their Las Cruces reservation center towards the end of this year.  MVEDA has already begun to market the facility as a plug-n-play call center to the site selector community and have currently received two inquiries.

In September, MVEDA attended the Industrial Asset Management Council (IAMC) conference in Minneapolis.  This is the premier event for site consultants.  MVEDA co-hosted a site consultant dinner put on by the New Mexico Partnership which received strong attendance.

For the month of October, MVEDA has a very busy marketing and travel schedule consisting of:

• Oct. 12-16: Prospect mission to Washington D.C. to meet primarily with defense related firms and site consultants
• Oct. 20-22: Leonard R. Sugerman Public Forum and ISPCS
• Oct. 26-29: Prospect mission in Los Angeles and attendance at the Solar Power International Show.

Finally, I am happy to say that on September 22, 2009, the County Commission voted unanimously on the passage of the Local Economic Development Act (LEDA) in Dona Ana County.