Posts Tagged ‘Business on the Border’

Robert Garza

Article courtesy of the Las Cruces Bulletin

By Richard Coltharp

For City Manager Robert Garza, helping guide Las Cruces in the right direction regarding economic development is a little like driving a car cross country.

You have to keep an eye on the gauges of your dashboard.

Garza spoke Tuesday, Aug. 2, at the monthly Business on the Border luncheon presented by the Mesilla Valley Economic Development Alliance at Hotel Encanto de Las Cruces. Also speaking was Chuck McMahon, the economic liaison for Doña Ana County.

Garza said he is regularly apprised of several key indicators he calls his “economic dashboard.” They include non-farm payroll, unemployment rates, single-family building permits, permit valuation, the city’s general fund and total permitted value.

Everyone’s aware of the recession of the last few years, and the city’s gauges reflect that downturn. Some of the indicators show Las Cruces and the El Paso area have rebounded better than the rest of New Mexico.

But the key from the city’s perspective is gross receipts tax (GRT).

“When people have money, they buy things,” Garza said. “And that’s our bread and butter.”

Just five years ago, in 2006, the city’s GRT revenue saw a 13.4 percent increase. The number slid the next three years: 7.2 percent in 2007, 5.8 percent in 2008 and -3.4 percent in 2009. But 2010 and 2011 saw slight rebounds, to 0.8 and 1.7 percent, respectively.

“So the question became, ‘Why was it not going back down again?’” Garza said. “And the answer was this: public construction.”

Major public projects, such as the new Las Cruces City Hall, the Las Cruces Aquatic Center and the Las Cruces Convention Center, the past few years infused life into the GRT.

Fiscal year 2010 saw $91 million in public construction, and fiscal year 2011 saw $89.9 million. Fiscal year 2012 was scheduled to see $31.5 million and for a GRT forecast of 1.3 percent growth.

Without the public projects, the GRT of 2010 and 2011 would have been in the negative, Garza said.

“Those public projects were artificially putting money in our coffers,” he said.

While much of the private economy remained in a holding pattern, the city found a way to create another construction vitamin.

With the benefit of some bonds and some planning, the city was able to fund $73.6 million in capital improvements through fiscal year 2012.

“Now, we add that to the $31 million,” Garza said. The number becomes $104.6 million higher than in 2010 and 2011.

While the side effect may be a boost to the GRT, the tangible results will be capital improvements to city infrastructure. About half the projects are rehabilitation and half are new, Garza said. They include work on the airport, facilities, parks and recreation, drainage, gas, water, wastewater and streets, specifically streets providing access to the new Centennial High School on Dripping Springs Road.

Those improvements also play a role in job creation, Garza said.

“Some people come here because they get a great job here,” he said. “Others come because of the quality of life.”

Job creation, Garza said, comes from three areas: expanding existing companies, attracting new companies and enhancing collaboration.

“Eighty percent of jobs are added one by one,” Garza said of the importance of expanding existing companies.

One benefit, he said, is the revitalization of existing areas, citing Downtown Main Street as an example as well as improvements to the University Avenue corridor and plans for El Paseo Road and Picacho Avenue.

He also recognized ways the city can better facilitate speed and timing for developers in construction.

“Our permitting and inspecting process needs to be cleaner,” he said. “In too many cases, we’ve got different eyes looking at the same things. I know it’s a problem. And we’re working on it.”

McMahon cited an instance where the county’s collaboration with the city has helped facilitate projects.

“NRG Solar is putting 250,000 solar panels up on the West Mesa,” McMahon said. “The county implemented a commercial property exemption for the first 10 years of the company’s 25-year agreement. That will help them make progress sooner.

“The county also supports the (Tax Incremental Development District),” McMahon said of the incremental tax downtown property owners are paying that will go exclusively toward revitalization in that area.

Other county projects include $6 million for an arsenic treatment facility in Santa Teresa, and an agreement with the New Mexico Spaceport Authority and Sierra County for 25 miles of road from Upham at Interstate 25 to the Spaceport America. Doña Ana has agreed to fund the survey, alignment, design and drainage.

One hitch for the road, Mc Mahon said, could be environmental clearance. Because the road would be adjacent to the historical El Camino Real, extra care must be taken to avoid damage.

“It could take months, it could take years,” McMahon said. “In general fiscal terms, the county is in good shape. We’ll be ending the year with very healthy cash reserves. We have three times the legal required amount. We’re required to have $11 million, and we have three times that.”

Garza said the city is also in good shape financially. He acknowledged the city can no longer depend on once-flowing funds from federal and state sources, but they have adjusted accordingly.

“We have one threat,” Garza said. “That’s the hold harmless clause on food and medical tax.”

When the state eliminated the tax on food and medicine that instantly reduced GRT for municipalities. So the state instituted the hold harmless clause, basically a payment to offset what municipalities lost.

“We face the constant threat of (the state’s) trying to repeal that,” he said. “If they do it, is it going to crash the plane? No. Will it hurt us? Yes. But if they do it slowly, incrementally, then we can adjust over time.”

Robert Garza

Las Cruces City Manager Robert Garza and Dona Ana County Manager Brian Haines will be the featured speakers at the upcoming Business on the Border Forum.  They will discuss the public sector role in economic development and job creation. The meeting will be held on Tuesday, August 2, 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.

Brian Haines

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, July 28 by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

Paul Michaud, Senior Planner for the City of Las Cruces and Roger Hedrick, Deputy Community Development Director for Dona Ana County, will discuss the Vision 2040 plan for Dona Ana County at the July Business on the Border Luncheon.  The meeting will be held on Tuesday, July 5, 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.

The One Valley, One Vision 2040 Regional Plan is a long-range, regional comprehensive plan that evaluates the needs of the region for the next 30 years and ways to meet those needs. The main components of the plan includes a regional vision statement, snapshot of existing conditions, goals and strategies, regional growth strategies, and suggested actions. This draft plan is the result of many public meetings over the past year by stakeholder representatives of the Vision 2040 Advisory Committee. The public review period for the plan runs through the middle of July 2011. The plan is available online at http://vision2040.las-cruces.org.

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, June 30 by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.

L&M Radiator photo courtesy of Fred Shepherd

Article courtesy of the Las Cruces Bulletin

By Samantha Roberts

The Mesilla Valley of Economic Development Alliance (MVEDA) has been busy this month with meetings, events and behind-the scenes work. The organization, which was incorporated in 1994, is “a public/private sector economic development partnership that serves Dona Ana County,” according to its mission. MVEDA partners with entities in southern New Mexico, such as the City of Las Cruces, Dona Ana County, New Mexico State University, Dona Ana Community College, the Las Cruces Public Schools, the Village of Hatch and the New Mexico Economic Development Department.

“We have begun a business connection series,” said Fred Shepherd, MVEDA business development manager. “We are trying to put together events that address what companies want to see and hear about.”

In addition to monthly business luncheons, MVEDA has other tools in its toolbox, such as business resource guides, assistance programs, business start-up help, educational opportunities and business consultations.

Newest to its resources, MVEDA offered a “commuter package” in collaboration with the City of Las Cruces to L&M Radiator, a worldwide manufacturer of MESABI flexible core heat exchangers that has decided to relocate its El Paso office to Las Cruces. The company purchased the old Coca-Cola bottling plant at 2100 S. Valley Drive.

“We have 60 current employees that will stay with us, and it will be up to them if they chose to move to Las Cruces or stay in El Paso, but we thought this was a nice way to at least show them what Las Cruces has to offer,” said Production Manager Tom Baumchen, in regards to the open house event.

L&M Radiator chartered two buses Saturday, June 4, filled with employees and their families to introduce them to the City of the Crosses. In addition to MVEDA, guests were allowed to peruse several vendors’ booths, including Dona Ana Community College (DACC), Las Cruces Public Schools, the City of Las Cruces, home loan companies, newspaper options and many others. Guests were also treated to a lunch and tour of Las Cruces before going back to Texas.

“We hope this event is the first of many of its kind,” Shepherd said. “We learned a lot from this first experience. For example, someone asked us about child care, and we didn’t have the information to provide them that day, but in the future we will know. And it is obvious, people moving to Las Cruces want to know the best place for their kids to go to school or where they can be safely kept.”

Other than booths, the participants also enjoyed guest speakers, including Margie Huerta, president of DACC, who was able to facilitate a brief question-and-answer session and recognize Las Cruces for its many wonderful opportunities.

“We are excited about the move, and it just came at the right time,” Baumchen said. “The reason for moving here was to continue a longtime partnership we have with TMS Machine Shop, and we found a building that could house both companies.”

Baumchen said the move has already started and anticipates three shifts per week to be operating by Friday, June 17. “We should be all moved over and settled in by the first or second week of August. Overall, we are very eager about being in Las Cruces and thrilled about the tremendous turnout today,” said Baumchen, hinting that an upcoming “phase two” is in the works for the company.

After L&M moves its final belongings to Las Cruces, Baumchen said he anticipates about 30 more hires. “We are bringing 60 people with us, and have already hired 30 more, but I anticipate that with the way work is coming in, we will add another 30 in the near future,” he said.

For Davin Lopez, MVEDA President and CEO, this event helped answer an important question. “For people moving here, where does quality of life fit in?” Lopez asked at the monthly Business on the Border luncheon Tuesday, June 7. “In addition to that, we at MVEDA want to help connect the fact that companies and their people are wanting to move here and are moving here, and how that will impact our local economy.”

L&M Radiator is not the only company making big changes in the area. Keith Beck, vice president and general manager of the Jacobs Technology’s NASA Test and Evaluation Contract (NTEC) at the NASA White Sands Test Facility (WSTF), also gave an update at the Business on the Border luncheon about what is going on at WTSF.

In regard to the number of people who will be out of work due to departments closing and contracts ending, Beck said a majority of the personnel will be maintained.

“We do a lot of stuff that has to do with testing. Anything that goes into space has to go through testing,” Beck said. “We have 420 employees now and as new jobs come, we look to hire internally first. The fiscal year is looking good, and we don’t anticipate another big hit coming anytime soon.”

Beck also said WSTF is constantly looking at new partnerships to create jobs, such as working with Spaceport America.  “We are currently working on scenarios that Spaceport America could be interested in,” he said. “For example, we are working with nitrous- oxide testing with the (Federal Aviation Administration). We will also have the ability to train people at Spaceport America or provided services as simple as rebuilding a valve on their car so they can get it fixed locally instead of shipping it away.”

At WSTF, Beck is responsible for all rocket propulsion testing, materials and component testing and the processing of flight hardware for the Space Shuttle and International Space Station as well as commercial and military systems. He holds a bachelor’s degree in mechanical engineering from Christian Brothers University and a master’s degree in engineering management from the University of Tennessee and is a registered Professional Engineer.

The next Business on the Border luncheon will be held from 11:30 a.m. to 1 p.m. Tuesday, July 5, at Hotel Encanto de Las Cruces, 705 S. Telshor Blvd. The meeting will begin with a hot entrée buffet followed by a brief update by MVEDA staff. Luncheon cost is $20 per person and open to the public.  For more information, call MVEDA at 525-2852.

Keith Beck, NASA Test and Evaluation Contract (NTEC) Program Manager for Jacobs Technology, Inc., will be the featured speaker at the June Business on the Border Luncheon.  The meeting will be held on Tuesday, June 7, 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.

The NASA Test and Evaluation Contract is one of 20 main contracts that Jacobs Technology Inc. (Jacobs) holds with NASA, the Department of Defense, and other government, and commercial entities.  The primary role of Jacobs is to provide outstanding and unprecedented service to its customers.  With more than 420 people on this contract, the Test Evaluation and Support Team (TEST) at the NASA Johnson Space Center’s White Sands Test Facility (WSTF) provides the expertise to test and evaluate spacecraft materials, components, and rocket propulsion systems to enable the safe human exploration and utilization of space.  Jacobs’ services also include system-level development and test operations, testing of composite overwrap pressure vessels (COPV), oxygen system analysis and testing, chemistry and metallurgy testing.  The Agency’s hypergolic experts reside at WSTF, most of who are Jacobs, employees, making this facility essential to the health of future hypergolic propulsion-system development.  Jacobs also has the facilities and expertise to provide calibration, machining, and welding services and clean rooms for their customers.

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, June 2 by sending an email to rsvp@mveda.com or by calling the office at (575) 525-2852. The meeting is open to the public.