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

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

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

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

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

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

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

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

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

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

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

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

Secretary Skandera

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

Secretary Garcia

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

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

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

Sean Jodoin

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

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

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

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

Christopher A. Erickson, Ph.D.

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

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

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

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

By Todd G. Dickson

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

By Brook Stockberger/Business Editor

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

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

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

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

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

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

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

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

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

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

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

Featured panelists will include:

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

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

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

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

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

By Brook Stockberger/Sun-News Business Editor

LAS CRUCES – Manufacturing is not dead. That was the message Davin Lopez, president and CEO of the Mesilla Valley Economic Development Alliance, gave a breakfast audience at Hotel Encanto de Las Cruces on Thursday. MVEDA’s annual breakfast allows the private/public entity to give report for the recently completely fiscal year.

“It’s a tough time to talk about the economy,” Lopez said. “(And) we’ve been feeling it for the last couple of years.”

Still, the economic development group reports that lead development remains strong and there has been a “significant” jump in terms of manufacturing.

“Almost 45-percent of our leads are in manufacturing and logistics,” Lopez said. “We are hearing that heavy manufacturing is coming back to America.”

He pointed to the addition of Alaska Structures at the West Mesa Industrial Complex. The Anchorage-based company which makes shelters for the military as well as commercial customers, moved into a 184,000-square foot building that used to house Rea Magnet Wire, and also uses about 100,000 square feet at the previously empty building at 8500 Mountain Vista Parkway where Parkview Metal Products used to reside.

“If you think back 12 to 18 months ago, think of all those facilities sitting vacant,” Lopez said.  In fact, he said the Las Cruces area could use more spec buildings. “The biggest challenge we have going forward is we need more buildings,” Lopez said.

In addition, capital investment has jumped considerably in Dona Ana County, spurred by the recently begun Union Pacific Railroad project in Santa Teresa, but also ahead of the pace of the past several years even without Union Pacific.

New officers

Gary Lenzo with Century Bank is MVEDA’s chairman of the board as the new fiscal year begins, stepping in for Citizen’s Bank’s George Ruth, who will now serve as past chairman of the board.  ”I have some big shoes to fill,” Lenzo said.

In addition to Lenzo and Ruth, other officers include: Vice Chair Kiel Hoffman, Pioneer Bank; Secretary Dolores Connor, City Councilor; Treasurer Jim McGonnell, Memorial Medical Center; Executive Committee Member at Large Jack Darnall, Verde Realty.

Bryn Davis, New Mexico operations manager for Sapphire Energy and former past chairman of the board, was presented with a special award for all the work he has performed for MVEDA through the years.  ”I know I’m on the phone with him a lot,” Lenzo said.

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

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.”