Posts Tagged ‘City of Las Cruces’

Article courtesy of the Las Cruces Sun-News

By Brook Stockberger/Sun-News Business Editor

LAS CRUCES – “Las Cruces, manufacturing hub!”

Well, southern New Mexico’s largest city might not gain that moniker anytime soon, but the reality of an operating Spaceport America north of town and the start of construction on a $400 million Union Pacific Railroad facility south of town, has spurred increased interest in Las Cruces among manufacturing and logistics companies.

According to a recent quarterly report, the Mesilla Valley Economic Development Alliance says that 65 percent of all new leads are in the manufacturing sector.

“This is a great area to be growing in because manufacturing/logistics generally involves paying local people and local suppliers to make things that people outside the region pay for,” said Christine Logan, economic development administrator for the city of Las Cruces.

L&M Radiator and Alaska Structures both moved into town and created manufacturing jobs. That was welcome news that came on the heels of a stretch last decade in which Las Cruces lost Parkview Metals, Rea Wire Magnet Wire and manufacturing jobs with Taylor Precision Products. “Both of these companies moved from El Paso to Las Cruces,” Logan said. “A big factor was that we had facilities here that they could move into and expand their operations. A recurring theme in the city’s economic development efforts has been the need for existing industrial space.”

Minnesota-based L&M had a facility in El Paso, but outgrew that location and turned its eyes north across the state border. “Our business has seen a tremendous amount of growth over the last year,” L&M Radiator President Dan Chisholm said when the company decided to move. L&M, which makes cooling systems for heavy machinery, is leasing about 52,000 square feet of manufacturing and warehouse space on South Valley Drive.

In addition, TE Connectivity, an electronics component manufacturer, will relocate 100 jobs to its Santa Teresa plant from El Paso. “In the next three years, we’re hoping those 100 jobs grow to 250,” said Jerry Pacheco, vice president of the Border Industrial Association.

According to the city’s most recent economic development report, the manufacturing business category makes up just 1 percent of the businesses and 4 percent of the jobs.

Still, Davin Lopez, president and CEO with MVEDA, said that the area is increasingly showing up on companies’ radar. MVEDA works to bring companies to Doña Ana County and to help those already here expand. “We continue to see manufacturing leads increase as a percentage of total leads developed,” Lopez said. “This category also includes logistics companies. Whereas this category accounted for approximately 39 percent of all leads in the last fiscal year, we have seen it grow to 65 percent of in the first quarter of this year.”

Both Logan and Lopez said that the Union Pacific facility in Santa Teresa plays a major role. “Over the past 12 to 18 months, we have received greater interest from manufacturing and logistics firms due to the Union Pacific announcement,” Lopez said. “A $400-million-plus investment catches attention both regionally and nationally.

“It has enabled us to not only showcase opportunities in and around the Santa Teresa region but also to bring greater attention to the Las Cruces region where we happened to have existing facility space that fits the needs of some of these companies,” he said.

“We are getting more attention lately because, No. 1, we had vacant facilities to accommodate companies,” Logan said. “No. 2, there is pent-up demand for manufacturing space since no one wanted to expand or relocate in the worst of the economy and, No. 3, the proximity to the Union Pacific intermodal facility makes this a great place to locate a manufacturing facility.”

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

It is with a great deal of excitement that I present to you MVEDA’s First Quarter results of the 2011-’12 Fiscal Year.  It seemed it would be very difficult to match the performance level and results of our last fiscal year, one of MVEDA’s best years ever.  In the last fiscal year we experienced our second best year ever in terms of job creation.  It was by far our best year ever in terms of capital investment made into the region.  Additionally, it was our best year ever in terms of average salaries created which is a direct impact on wealth creation for the region and its residents (please see attached FY 11 Annual Report).   But if this first quarter is any indication of how the rest of the year will proceed then we will have just as much success to look forward to and with great anticipation.

Let me first start off by saying that the “job” of job creation in economic development takes an organized and consolidated approach and it requires the efforts of many groups working together.  In this respect I want to recognize all the team players that make this possible here in Doña Ana County.  They include the New Mexico Economic Development Department, the New Mexico Partnership, the Border Industrial Association and of course our partners at both the City of Las Cruces and Doña Ana County.  They also include our educational and training partners at NMSU and DACC.  And of course it takes the support of all of MVEDA’s private sector partners.

COMPLETED PROJECTS AND SUMMARY OF ACTIVITY

As of September 30, 2011, MVEDA has assisted in the creation of two new locates representing 279 new jobs to Las Cruces.  They include:

• Vangent, a back office support center based in Arlington, VA.  The company announced the decision in early July of this year and have currently hired over 90 employees to date.
• L&M Radiator, a manufacturer of industrial radiators that recently relocated out of El Paso to Las Cruces.

With these two locates, we are far ahead of production levels compared to this same time last fiscal year in terms of project completion, square footage absorption, employment numbers and capital investment.

MARKETING & BUSINESS DEVELOPMENT

As a result of the several locates that have taken place over the last nine months, the MVEDA staff had spent considerable time and energy in project management functions.   Entering the new fiscal year, we have now returned our focus to the marketing efforts of the organization and the re-building of our project pipeline.  Although lead and prospect generation is slower year-to-date compared to this same time last fiscal year, we are once again beginning to see new opportunities.

We have been quite aggressive in our marketing efforts and reaching out to target markets where we believe there is potential for near term growth opportunities.  At MVEDA’s Board Strategic Planning Retreat in June, the staff outlined the following primary targets:

• Unmanned Aerial Vehicles/Systems (UAV/UAS):  The Las Cruces International Airport is the only municipal airport in the US where UAV’s can be tested in the public airspace.  Along with the expertise in systems operations provided by the Physical Science Laboratory, the Las Cruces region becomes a unique opportunity for UAV companies seeking to not only test but to conduct R&D and assembly operations.

• Logistics & Warehousing:  The announcement of Union Pacific this past fiscal year affords us incredible future growth opportunities and we are taking steps to position ourselves for success in this area.

• Renewable Energy:  Over the past 12 months, MVEDA and the region have experienced tremendous success in the development of solar projects.  We continue to aggressively seek out opportunities in this area.  However, we are seeing a shift in new interest from bio-mass companies exhibited by the growth in research in new fuel related agricultural crops.

• El Paso Market:  Over the last 18 months, Las Cruces and Doña Ana County have benefited greatly from growth pressures in El Paso that are squeezing the industrial base.  Early results have included Alaska Structures and L&M Radiator expanding into Las Cruces as well the recent announcement of TE Connectivity’s consolidation into Santa Teresa.

This quarter, we have also participated in prospect trips to Chicago, Boston, Washington DC and San Francisco.   More recently MVEDA also participated in Virgin Galactic’s Industry Day at Spaceport America and the ISPCS conference.

As evident from the above, we are experiencing renewed growth and interest in the region, primarily in the manufacturing sector.  Eighteen months ago, the City of Las Cruces had over 360,000sf of industrial space sitting idle.   Of that space, 300,000sf is now occupied by Alaska Structures in our West Mesa Industrial Park.  Vangent has taken over the former Frontier Airlines reservations center and L&M now occupies the former Multi-Plastics facility.

The Union Pacific project at Santa Teresa further positions Doña Ana County to be a major hub for future distribution and logistics companies.   More recently, but falling within our 2^nd Quarter activity, TE Connectivity officials along with Governor Susana Martinez announced their plans to consolidate their operations in Santa Teresa thereby making their Doña Ana County facility their largest North American distribution center.  We also expect one to two more announcements before the end of the calendar year.

Again, we cannot accomplish our goals without the support of our partners and stakeholders.  We thank each of you for your continued support and we look forward to continuing the mission of job creation for Doña Ana County and New Mexico.

Davin Lopez

President and CEO

Mesilla Valley Economic Development Alliance

Two of the three renewable energy projects in Doña Ana County are on-line and producing electricity under a power purchase agreement with El Paso Electric. Construction for the third solar energy project has begun in Las Cruces.

NRG at Santa Teresa

NRG Energy, through its wholly owned subsidiary NRG Solar, completed construction recently on the Roadrunner Solar Generating Facility, which is one of the first large-scale solar projects built in New Mexico.  The Roadrunner Solar Generating Facility is located on 210 acres near the Santa Teresa Port of Entry. Its 340,000 photovoltaic solar panels can produce up to 20 megawatts of electricity, which is enough power to supply 6,600 homes in El Paso Electric’s system. (Related story)

NextEra at Hatch

NextEra Energy Resources, a subsidiary of NextEra Energy, recently completed one of the largest concentrating photovoltaic (CPV) systems in North America on 39 acres in the Hatch Industrial Park, 7 miles west of the Village of Hatch. The 5-megawatt (MW) system, with 81 solar tracking concentrator panels, was funded by Village of Hatch Industrial Revenue Bonds. The Village put an emphasis on New Mexico jobs for New Mexicans. (Related story)

SunEdison at Las Cruces

SunEdison, one of the largest solar energy providers in North America, has begun construction of the solar power generation facility at the City of Las Cruces West Mesa Industrial Park.  The 12MW solar power project is expected to require 230 construction jobs for a 6-9 month period.

Las Cruces Bulletin photo by Samantha Roberts

Article courtesy of the Las Cruces Bulletin

By Samantha Roberts

You have to see it to believe it. The research on algae biofuel at Sapphire Energy could change the world, literally. Research and development measures at the compound could lead to replacing millions of gallons of transportation fuel a year with pond scum.  Currently, New Mexico is a leader in the world in terms of algae-based production because of its environmental conditions.

“Algae like the hot weather and lots of sunshine,” said Tim Zenk, vice president of corporate affairs for Sapphire Energy. “It even likes the slightly cooler temperatures during a New Mexico winter.”

“Algae also like brackish water,” said Denise Gitsham, Sapphire’s director of corporate affairs and legislative council. “Southern New Mexico has an abundance of salty water perfect for algae growth. And we are only using land that can’t be used for other purposes. We are not competing for drinking water or agricultural land. “We are creating the first above-ground renewable oil field.”

These reasons have led Sapphire Energy to name Las Cruces as its research and development facility, a component that will remain when the Columbus, N.M., site, which is currently under construction, is completed. Sapphire Energy started in 2007. The company has 155 employees across three facilities and more than 50 employees in Las Cruces.

“Sapphire purchased 10 acres at market value and promised to invest $6 million and create 30 jobs in three years,” said Christine Logan, economic development administrator for the City of Las Cruces. “In exchange, the city made 90 acres available at no cost. Sapphire surpassed their (promise) short of a year and a half.”

Las Cruces serves as a testing and development center, operating plot farms. The area is small in comparison to commercialization of the algae product and what will be done in Columbus but large by world standards, Zenk said. “We understand the business principles to make commercialized algae biofuel successful,” Zenk said. “We know we have to be concerned about crop protection, (fuel) extraction and crop yield as well as the biology and engineering behind the process. “Historically, 99 percent of crude oil has come from diatoms and algae. If Mother Nature can do this naturally, then so can we in petri dishes. And then take that to small ponds, to large ponds and to commercialization.”

Currently, the Las Cruces facility is operating at four different levels – petri dishes, small ponds, runway ponds and large ponds. The Columbus facility will have more large ponds connected back to back. “Our (final) goal is to produce 5,000 gallons of oil per acre per year,” said Bryn Davis, New Mexico operations manager.

Once the biofuel is capable of being produced on a large scale, Zenk said Sapphire’s initial target client will be the U.S. Department of Defense (DOD). “The DOD has led the way for every energy change,” Zenk said. “There is strategic planning going on right now for the next (energy) transition. There will be an opportunity to be at the forefront of this technology, and a big proposal will soon be released by the U.S. Navy asking for large scale efforts to supply biofuels.”

The Navy is going to look at communities with the technology and the community support. They don’t want to push a technology on a community that doesn’t want it. Therefore, it is very important for the Las Cruces community and southern New Mexico to rally around our efforts and see the benefits for all sectors.”

Zenk said the request for information was due at the end of September. “The (request for proposal) will be released around the beginning of next year,” he said.

The Columbus site is expected to open by the spring or summer of 2012 with 100 acres and will spread over 300 acres upon final completion in 2015. Columbus is expected to produce 100 million gallons of diesel fuel per year. At phase three, the Columbus site will be a demonstration facility that Sapphire hopes to use as an example, attracting investors.

“At that scale, the site will demonstrate operations for a larger facility,” Davis said. Davis said there is little time to talk about algae because developments are happening so quickly. “We are competing with other nations,” he said. “When we broke ground in Las Cruces, I was already shopping for the land in Columbus. We have to think about the next step because there is not a lot of time.”

“China’s No. 1 objective is to develop a new source of energy,” Zenk said. “It is us versus them. We can fight over energy or develop a new source. It is the only hope for our military.”

New Mexico State University also has a large role to play in Sapphire’s success.

“Our goal is to create a center of excellence with advanced biofuels,” said City Councilor Nathan Small.

Currently, more than $15 million has been invested into the Las Cruces community, and Sapphire Energy has hired more than 50 people – many NMSU and Doña Ana Community College graduates – for the Las Cruces facility. Spin-off business will also be created through growth of Sapphire and commercialization of the algae biofuel.

“We use a large amount of CO2,” Zenk said. “To produce one gallon of algae fuel, we use about 20 to 25 pounds of CO2. Finding a consistent source of carbon dioxide is crucial. The pipeline in Lea County is very valuable to us. I can also see a business in managing CO2.”

Gitsham said she expects to see more graduates of NMSU and DACC staying in southern New Mexico as a result of the work at Sapphire.

“We are still at the dawn of the algae business,” Zenk said. “The biology is only four years old, and there is still a lot more ahead of us. If someone told you they knew everything about algae biology, they are probably lying.”

Article courtesy of the Las Cruces Bulletin

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.