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

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

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.”

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.

Las Cruces, N.M. – Local bank representatives and business counselors will join the Hispano Chamber of Commerce and the City of Las Cruces to distribute information and answer questions from the public during the inaugural Small Business Lending Fair, set for 9 a.m. to 2 p.m. Friday, Aug. 5, at the Las Cruces Convention Center.

The first event of its type and size in Las Cruces, the Small Business Lending fair is a new annual event organized by the Hispano Chamber targeted at local economic development by facilitating the start-up and expansion of small businesses in our community.

“Our members, as well as people in the community, have voiced their need for this type of event in Las Cruces,” said Peter Ibarbo, chair of the Hispano Chamber’s Economic Development Committee and co-organizer of the event. “By bringing all of the financial institutions together, as well as micro-lenders and government loan programs, Hispano Chamber members and members of the public will benefit from a ‘one-stop-shop’ if they’re looking to start a new business or grow their existing business.”

Participants invited to the Small Business Lending Fair include Bank of the West, Wells Fargo, Bank of America, Citizens Bank of Las Cruces, Bank of the Rio Grande, BANK’34, Century Bank, First New Mexico Bank, White Sands Federal Credit Union, FirstLight Federal Credit Union, OneSource Federal Credit Union, Bank of the Southwest, First American Bank, Western Heritage Bank, Pioneer Bank, First Community Bank and BBVA Compass.

“Why spend a week or more researching competing loan products when you can get the information all at once?” Ibarbo said. “Local bank representatives will be on hand to answer questions, set up future meetings and distribute information regarding their commercial loan products.”

The Small Business Lending Fair will be organized in an event similar to a job fair – with more than 40 exhibitors and vendors presenting information in a booth-type format.

In addition to traditional commercial lenders, the Hispano Chamber has invited ACCION New Mexico, The Loan Fund and WESST Corp. to provide information regarding their respective organization’s micro-loans. Micro-loans can be used by those who lack the capital, collateral or financial background to start a small business. Lenders such as ACCION and the Loan Fund have an established micro-loan clientele in southern New Mexico, including Las Cruces.

“Micro-lending is growing in popularity across the United States, and is a viable alternative to larger commercial lending,” Ibarbo said. “Anyone looking for more information on micro-loans should attend the Small Business Lending Fair.”

An injection of public or private capital is not the only way to grow an existing business. For current business owners and administrators who are looking to grow their clientele base without a loan, the Small Business Lending Fair will be host to business-support organizations such as the Hispano Chamber, Greater Las Cruces Chamber of Commerce, Green Chamber of Commerce, Downtown Las Cruces Partnership, Mesilla Valley Economic Development Alliance and the Sierra County Economic Development Organization. Business-referral organizations have also been invited, such as Masterminds de Las Cruces, Success … Inc.!, Synergy Business Network and Buzztown.

“It is part of the Hispano Chamber’s mission to educate its member and the public at large about all of the opportunities available to grow their business,” Ibarbo said.  “Often, business-support and business-referral organizations can provide that needed marketing boost.”

The Hispano Chamber has also partnered with the Office of U.S. Sen. Tom Udall to bring government lending partners to the Small Business Lending Fair. Government organizations invited to participate in the fair include the Small Business Administration, USDA Rural Development, Economic Development Administration, Housing and Urban Development and the Department of Labor.

Specialized SBA lender Enchantment Land Certified Development Corp. will also be on hand to distribute information and answer questions about SBA-backed loans.

Completing the “one-stop” shop at the Small Business Lending Fair will be the Dona Ana Community College Small Business Development Center (SBDC), PTAP, SCORE and WESST Corp., who will provide free business counseling at the event.

In addition to free counseling, the SBDC will also host three “How to Start a Business” workshops during the half-day event. Entrepreneurs interested in learning the initial steps on how to start a new business are highly encouraged to attend the Small Business Lending Fair.

The Small Business Lending Fair is free and open to the public. Residents from Las Cruces’ neighboring communities are also invited to attend.

For more information about the Small Business Lending Fair, call the Hispano Chamber at 575-532-9255.

About the Hispano Chamber of Commerce de Las Cruces:

The Hispano Chamber of Commerce de Las Cruces, through its diverse membership, advocates for business growth in the community and promotes Las Cruces and Hispanic business owners through economic development, education, community service, and cultural awareness. The Hispano Chamber of Commerce de Las Cruces was initiated in 1992 as the Hispano Chamber of Doña Ana County and in 1994 incorporated as The Hispano Chamber of Commerce de Las Cruces. The original founders consisted of a group of businesspersons interested in developing a support organization for small and Hispanic businesses.

Photo courtesy of Davin Lopez

New Mexico Governor Susana Martinez and Economic Development Secretary Designee Jon Barela were warmly welcomed by Alaska Structures (AKS) as the Governor and the Secretary toured the facility and addressed the employees.  In 2010, Alaska Structures expanded from approximately 70,000 sq. ft. of space to over 250,000 sq. ft. of space at the City of Las Cruces West Mesa Industrial Park, occupying both the former REA Magnet Wire building as well as the former Parkview Metals building.  Since their expansion they have grown from approximately 170 employees to over 300.

Photo courtesy of Davin Lopez

Addressing the employees, the Governor expressed her commitment to getting all New Mexicans who want to work the opportunity to work and that economic development was a primary goal of her administration.  “This is definitely a company we want to brag about!” commented the Governor.  Commenting to the Governor, Davin Lopez stated  “Just a year ago this facility was vacant. Now you walk through it and it’s bustling with employees back in the work force.  Alaska Structures is truly a success story for Las Cruces.”

AKS designs, engineers and delivers survivable fabric building systems for extreme environments. Since 1975, AKS products have been used for nearly every building application in every part of the world: United Nations’ disaster relief facilities, military housing facilities, aviation hangars, convention centers, medical complexes, warehouses, mining and manufacturing facilities, film locations, theaters, incarceration complexes, housing, retail outlets, hotels, as well as many other applications large or small, remote or otherwise.

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.

For example, currently this fiscal year MVEDA has been involved in efforts that have assisted in the creation of 216 new jobs as well as the retention of 42 jobs within the City of Las Cruces with the total capital investment estimated in new construction and equipment estimated at $40mm.  Utilizing IMPLAN economic impact analysis, a 3^rd party statistical software that measures direct, indirect, and induced economic impacts, new tax revenue to the City of Las Cruces would exceed $700,000 during the construction phase and over $226,000 per year in subsequent years should employment levels be maintained.  Likewise, the increased tax revenue to the State of New Mexico as a result of these projects is estimated at over $2.3mm during the construction phase and over $347,000 in subsequent years.  Our educational institutions also benefit as a result of these economic based projects.  Las Cruces Public Schools property tax revenues could grow by as much as $200,000 per year.

Also, MVEDA is working closely with a handful of projects that have considerable impact to Dona Ana County; primarily with Union Pacific’s $400mm refueling station and intermodal ramp which would create over 3,000 construction jobs and eventually over 500 permanent, high wage jobs in Santa Teresa.  The impact of this project would create $19.9mm to the State of New Mexico and $3.5mm to Dona Ana County in new gross receipts and compensating tax paid on construction services alone.   As the State of New Mexico is currently faced with large budget deficits, the identification and creation of a new tax base becomes even that much more critical.  As evident from the above discussion, the attraction of economic based industry to the State and County is the solution.

Economic development practitioners and leaders around the United States value economic based industry growth and it is for this reason that competition continues to grow.  And even during these challenging economic times, and even with budget deficits, we see that States and regions across the country are investing more in their economic development efforts.  For example, just to the south of Dona Ana County in Horizon City (a suburb of El Paso), the city has adopted a new tax to build an economic development fund.  This is in addition to the State of Texas’ Enterprise Fund which provides the State with deal-closing dollars to attract industry.  Recently, Arizona legislators began a special legislative session to begin consideration of business tax cuts and the creation of a $25mm closing fund to attract new business to their State.   On a recent trip to Atlanta, MVEDA met with several national site selectors and two messages became clear.  First, that there would be an exodus of companies from California, and second, that Arizona and Texas had firmly placed their flag in the ground as the business friendly destination.   With less than a month left in New Mexico’s 60-day legislative session, we are hopeful that the State of New Mexico remains aggressive in the pursuit of economic development.  For this reason the Dona Ana County Legislative Coalition has been supporting the following economic development issues:

1.    Support of a State economic development recruitment budget by expanding the New Mexico Partnership beyond present funding levels, with the purpose of creating new private sector employment opportunities, creating new jobs for New Mexicans and expanding business in the State.  Currently, past year funding has been at $1.1mm.  This is a significant decrease in funding from when the program began in 2003. It is also a small budget in comparison to neighboring cities, much less other State recruitment budgets.  The Partnership also provides lead generation flow to smaller communities that do not have their own marketing budget to work with.  Rural communities that have benefited from the Partnership’s involvement have included Clovis, Roswell, Gallup, and Dona Ana County to name just a few.   To compare this funding level against some of our neighbors;

o    El Paso, TX has a recruitment program funded at about $1.5mm, and

o    The Greater Phoenix Economic Development Council has a recruitment program funded at about $4mm.

2.    Support of retaining existing economic development incentives to include:

o    Funding the State’s Job Training Incentive Program,

o    Maintaining the Technology Jobs Tax Credit, the Manufacturing Investment Tax Credit, and Rural Jobs Tax Credits.

3.    Support of regional border issues which comprise New Mexico’s second largest existing industrial base:

o    Reinstatement of the Locomotive Diesel Refuel Tax Exemption to make southern New Mexico more competitive against Texas as a bi-modal, transportation and logistics hub.

o    Creation of an Commercial Overweight Zone which will assist in attracting new logistics and distribution companies to New Mexico, &

o    Creation of a border infrastructure fund to plan, design and construct border infrastructure to allow for pro-active economic development planning.

Regardless of the outcome at the State level, we still have tremendous economic growth opportunities here in Dona Ana County.  This stems from a direct industry focused marketing approach that leverages the unique assets of the region.  They include our border logistics and port of entry with Mexico, our proximity to White Sands Missile Range, our natural assets in solar, a strong agricultural region, and the continued development of an aerospace industry with Spaceport America as its anchor.  As illustrated in the Lead Generation chart, MVEDA continues to receive diversified industry interest lead first by manufacturing and logistics, followed by renewable energy, and increased growth in the aerospace and food processing sectors.  We have also recently seen a renewed interest in high tech companies looking at the area.

In terms of performance output versus past years, MVEDA has assisted in the creation of 237 new jobs in Dona Ana County as of March 1 of this fiscal year which places us well ahead of job creation numbers in each of the past previous two years, only overshadowed by the positive economic climate of 2007-’08.  However, there remains a strong potential that we will see a handful of projects close before the end of the current fiscal year which would then create a record year for MVEDA.

As also illustrated in the Completed Projects chart, as of March 1^st we have already surpassed past years’ results in the industrial square footage taken off the marketplace and in the total capital investment that these projects have brought to Dona Ana County.

In addition to economic based industry attraction, MVEDA is working on solutions to connect local businesses to the opportunities that economic based industry brings to the region.   Therefore we were pleased to announce our first “Business Connection Series” on Monday, March 7, 2011 where SunEdison provided local vendors, suppliers, and sub-contractors with a pre-bid briefing on their 12 MW solar project at the West Mesa Industrial Park.  We are hopeful that this will be the first in a series of localized economic-based business building opportunities.

Additionally, in conjunction with the Border Industrial Association (BIA), MVEDA hosted a Business Incentives Workshop for the southern New Mexico industrial base and the CPA firms that service them.   The workshop which also counted towards CEP credit was provided by Moss Adams, a MVEDA Partner and covered, not only the details of applying for state incentives, but federal incentives as well.

As evident, even with the budget challenges at the State level, we are optimistic about the future of economic development in Dona Ana County and appreciate the continued support of all of our partners and stakeholders.