Union Pacific, which recently began construction of an all-new rail facility outside Santa Teresa, announced a $100,000 donation to Doña Ana Community College as part of Las Cruces Day in Santa Fe during a press conference Monday, Jan. 30, at the Roundhouse in Santa Fe.

The donation, which Zoe Richmond, UP director of public affairs, said was given to DACC to use as the institution sees fit. However, the underlying message at the press conference was creating jobs to sustain UP’s new intermodal facility.

“Doña Ana Community College is excited to be the recipient of such generosity from Union Pacific,” said DACC President Margie Huerta. “We plan to use the funds for scholarships and workforce development to ensure our students have the knowledge needed to qualify for the jobs this new facility will bring to the region.”

There were several key players who helped make the donation a possibility, including Sens. Cynthia Nava and Mary Kay Papen, Rep. Mary Helen Garcia and New Mexico Economic Development Secretary Designate Jon Barela as well as Mesilla Valley Economic Development Alliance CEO Davin Lopez and Border Industrial Association Executive Director Jerry Pacheco and Juan Massey.

“Union Pacific and Doña Ana Community College is an example of a great private-public partnership,” Lopez said. “We are proud to be a part of this.”

“Right now, we are moving 4.1 million cubic yards of dirt,” Richmond said about developments in Santa Teresa. “We hope this donation strengthens our long-term commitment to southern New Mexico.”

As another part of Union Pacific’s commitment to grow New Mexico, Richmond said seven of the 10 subcontractors working on the project are from New Mexico, which translates to 66 percent of $40 million that has been spent in the Land of Enchantment. The intermodal facility is expected to be completed by 2015, bringing in 600 permanent high-paying jobs.

“The average employee will be making $100,000 in wages and benefits,” Richmond said. “We like to say where we have rails, we have ties.” Richmond said UP chose DACC as a recipient because “DACC is a neighbor” and she is looking forward to a good working relationship with the community college.

“Thank you for your generosity,” Huerta said during the press conference. “The Greater Las Cruces Chamber of Commerce as well as many others have given their help and been so supportive – Davin Lopez, Jerry Pacheco, Juan Massey, (Rep.) Terry McMillan.

“Donations like this will have an immediate impact on southern New Mexico. Developing the workforce in southern New Mexico is critical, and this gift of $100,000 is a huge investment and will yield positive return. “In Doña Ana County, we work with a collaborative spirit to improve the community.”

Nava, former superintendent of Gadsden Independent School District, said the example set in southern New Mexico is remarkable. “The rest of the state should listen,” Nava said. “I fought to get Union Pacific here, and I will fight to hold them accountable to their promises. This check is a great start, and it is about jobs, economic development and the opportunity for students to succeed.”

To help bring UP to southern New Mexico, Gov. Susana Martinez signed into law in 2011 a bill granting Union Pacific a locomotive fuel tax deduction that allowed the company to move forward with an investment of $400 million in the construction of a 2,200-acre rail facility west of the Santa Teresa Airport, which will include fueling facilities, crew change buildings, locomotive inspection tracks, an intermodal ramp and a switching yard.

“This new facility will strengthen our long-term commitment to deliver premium service to our customers,” said Scott Moore, vice president of public affairs for Union Pacific. “Upon completion of this new infrastructure, New Mexico will take its place among the leaders in the goods movement industry.”

A key player in getting the locomotive fuel tax deduction bill passed was Barela. When the bill was passed, Barela called it “a cornerstone to creating jobs in southern New Mexico.”

“Doña Ana County has great potential and thank you to our great corporate neighbor – UP,” Barela said. “The facility is a solid anchor project on the entire Mexico border – all 2,000 miles of it.”

SANTA FE –Gov. Susana Martinez and Economic Development Secretary Jon Barela praised the formal filing of the deed with the Doña Ana County Clerk’s Office on Wednesday to create the Camino Real Regional Utility Authority (CRRUA) in Southern Dona Ana County. The utility authority will provide an independent utility for the provision of water and wastewater services along the U.S./Mexico Border in southern Doña Ana County.

“I am pleased that the final step in creating this utility authority has been taken,” Gov. Martinez said. “It is imperative that we have the Camino Real Regional Utility Authority in place to provide a predictable source of water for residents and businesses in the area. This will help to not only retain the companies we have in the region but recruit new companies to Santa Teresa and Sunland Park.”

CRRUA will oversee provisions of services and utility billing to thousands of customers within the City of Sunland Park and the Santa Teresa development, as well as to thousands more in the rapidly developing areas adjacent to the Santa Teresa Port of Entry.

“We are happy about the collaboration in the creation of CRRUA and look forward to the economic progress that will develop as a result of today’s action,” Secretary Barela added.

A view of the Union Pacific site, looking east with the Airport, Santa Teresa, El Paso and the Franklin Mountains in the background. Photo courtesy of Suzie Azar.

Release courtesy of Union Pacific Railroad.

The passage of the Locomotive Fuel Tax Deduction HB523/SB179 by the New Mexico state legislature and signing into law by Governor Martinez was the catalyst that allowed Union Pacific Railroad to break ground on a state-of-the-art rail facility in the southern part of the state. With an overall economic impact of $500 million for the New Mexico economy, Union Pacific’s investment in the project totals more than $400 million. The facility will create 3,000 jobs during the construction phase from 2011 to 2015, and will eventually be headquarters for more than 600 permanent jobs. For the first time ever, southern New Mexico will have a key inland port, positioning the Santa Teresa area as a strategic focal point for goods movement in the southwestern U.S.

Phase 1 Construction

The Phase 1 construction launch occurred on August 8, 2011. Phase 1 will continue through 2012. Rangar-Benson received the first construction contract and will complete the mass grading in which approximately 5.6 million cubic yards of dirt will be excavated and 4.1 million cubic yards of dirt will be placed. This phase will also extend approximately two miles of Dona Aña County public water and sanitary sewer lines that will serve the facility. This work is scheduled to last approximately one year.

Seven of the ten contractors on the project are New Mexico based, totaling $40 million worth of contracts, more than 66 percent of the Phase 1 contracting.

340 people have been working on the site at any given time to date during the Phase 1 construction process with more than 50 percent of those hailing from New Mexico.

Phase 2 Construction

The second phase of construction will commence after Phase 1 and will complete the remaining portion of the yard to include all the mechanical, electrical, architectural, utilities, track and civil engineering portions of the project.

As part of the contract, there is an expectation that the general contractor will consider New Mexican subcontractors and also look for opportunities to hire qualified New Mexicans.

Global Economy Demands Efficiency

The construction of the Santa Teresa facility will permanently position Southern New Mexico as a crucial component of the historic “Sunset Route,” one of the oldest and most critical rail corridors in American history, securing New Mexico’s future as a leader in the goods movement industry. Union Pacific’s initial plans for capital spending in 2012 total $3.6 billion in support of America’s freight transportation needs. That investment will continue enhancing the safety and efficiency of Union Pacific’s 32,000-mile network. The resulting improved rail capacity benefits everyone. It allows freight rail service to grow, helping to build a cleaner environment. According to the U.S. Environmental Protection Agency, freight trains are nearly four times more fuel efficient than trucks.

About The Project
Fueling Facilities – Located along the busy “Sunset Route” between El Paso and Los Angeles, this fueling facility will enhance commerce and goods movement in the state of New Mexico.

Crew Change Buildings – This facility will eventually serve as home base for Union Pacific employees operating long-haul trains out of the area.

Intermodal Ramp – This regionally focused intermodal ramp will permit both local and regional businesses more immediate access to the efficiencies of freight trains.

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

 SANTA FE – Governor Susana Martinez made the following statement after receiving notification that global electronics manufacturer TE Connectivity will merge two distribution and manufacturing centers in the southwest United States into a single facility in Santa Teresa. Governor Martinez and Economic Development Secretary-designate Jon Barela both met personally with representatives from TE Connectivity to encourage them to expand their operations in New Mexico and contribute to the state’s growing economy along the southern border.

“As we work to encourage economic growth in and attract new businesses to our state, I’m pleased that TE Connectivity has decided to expand in Santa Teresa,” said Governor Martinez. “Continuing to foster a friendlier environment that encourages growth and investment will send a signal that New Mexico is open for business. This announcement is an important development and I am committed to further encouraging growth and expansion as we work to turn New Mexico’s economy around.”

“New Mexico can and should be an attractive destination for businesses to grow and expand,” added Secretary Barela. “TE Connectivity’s decision to centralize their operations in Santa Teresa is a great step forward for economic development in our state. This administration remains committed to creating a friendlier business environment so we can continue to attract businesses and create jobs in New Mexico.”

Governor Martinez and Secretary Barela met with TE Connectivity executives in Albuquerque over the summer and encouraged them to consider merging their southwestern facilities in Santa Teresa. As a result, Southern New Mexico will house the company’s largest distribution and manufacturing center in the United States.

“Our conversations with Governor Martinez and her administration were very encouraging as we were making the decision to expand operations in Santa Teresa,” said Joann Piccolo, Vice President of Global Government Affairs for TE Connectivity. “We are grateful for the guidance provided by Governor Martinez and Secretary Barela and we look forward to a long and successful presence in Southern New Mexico.”

TE Connectivity designs and manufactures over 500,000 products and employs nearly 100,000 workers. Their partners include customers in a wide range of industries, including consumer electronics, energy, healthcare, automotive, aerospace, and communications networks.

SANTA FE –Governor Susana Martinez signed the Capital Outlay Bill Tuesday which includes $1.85 million in capital improvements for the Santa Teresa Water System Infrastructure Project.

“This project is an important element to infrastructure development, public safety and job creation in Santa Teresa,” said Secretary of Economic Development Jon Barela. “It will improve water service for industrial, commercial, and residential customers southern Doña Ana County and the surrounding border region.”

The funding is part of Local Economic Development Act (LEDA) that includes planning, design, permitting, and construction to the existing Doña Ana County Wastewater Treatment Plant, and building new water and wastewater treatment facilities and piping at the Santa Teresa Industrial Park.

“The Santa Teresa Water System Infrastructure Project improvements are critical for many companies located at the border to have the adequate water pressure needed to operate,” said Jerry Pacheco, vice-president of the Border Industrial Association, which represents 45 companies located near New Mexico’s southern border that employ approximately 2,000 workers. “The project will also help recruit and relocate companies from El Paso and other areas and retain the existing companies along the border.”

There are five components of the full project including new water wells, replacing water pumps, a new water storage tank, replacing the domestic booster station, and replacing the fire pump.

The Economic Development Department’s Office of Business Advocacy and the EDD Financial Development Team have spearheaded the LEDA funding efforts for the waste water system in Santa Teresa since January 4, 2011.

The $86 million Capital Outlay bill was approved by the Legislature during a special session, which ended in September.

NRG Photo

Release courtesy of the New Mexico Economic Development Department

SANTA TERESA, NM — A construction project that created 240 jobs in Santa Teresa culminated with an inauguration ceremony to mark the start of energy production from the state’s second-largest photovoltaic operation on Friday.

“The completion of the Roadrunner solar facility is a major milestone for the New Mexico border region,” said Secretary of Economic Development Jon Barela. “This builds on all the momentum taking place in the region due to the coming together of many entities, including the Border Industrial Association, Mesilla Valley Economic Development Alliance, NRG Energy, El Paso Electric and First Solar, for the economic development success of Santa Teresa and we are thrilled to have the Roadrunner solar project and this partnership here as a part of the community.”

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. Cost-competitive, renewable power generated by the facility will be sold to El Paso Electric under a 20-year power purchase agreement.

“This new project is a good example of an economic development opportunity that is characterized by high-technology and a renewable resource that is plentiful in southern New Mexico – sun,” said Jerry Pacheco, Vice-President, Border Industrial Association. “We congratulate NRG Energy, El Paso Electric and First Solar on this milestone and the door it opens to new possibilities for our region.”

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.

By generating clean, renewable energy, the Roadrunner Solar Generating Facility will contribute to cleaner air and result in a smaller carbon footprint for the state.

The Roadrunner facility will use a single-axis tracking system, which pivots PV solar panels to follow the sun throughout the day, increasing electricity production compared with a fixed tilt installation. The panels were made by First Solar Inc., which built the Santa Teresa plant for NRG, and also has a contract to operate and maintain the facility.

NRG Solar started construction in December 2010.

By Marvin Tessneer

The Las Cruces community will connect with renewable energy when NRG Energy starts generating power this fall at its Roadrunner Solar Plant in Santa Teresa.

The solar panel plant is being set up on 210 acres of privately owned land, 10 miles west of El Paso adjacent to El Paso Electric Co. transmission lines.

The plant is designed to create 20 megawatts of solar generated electrical power that will be sold to El Paso Electric Co. under a 20-year power purchase agreement. NRG also plans to invest $21 million in the project in the next three years, according to an NRG Energy news release.

“We’re very pleased that the NRG Roadrunner Solar Facility in Santa Teresa is coming along according to schedule, and we’re looking forward to the site’s presentation this fall,” said El Paso Electric Chief Executive Officer David Stevens. “Our 20-year contract to purchase the power from the facility demonstrates El Paso Electric’s on-going commitment to solar energy research, education and utilization in this area.”

At full capacity, the Roadrunner Solar plant will, in domestic terms, supply enough energy for 16,000 families, according to an NRG Energy news release.

The electricity is generated by what is referred to in the industry as photons in solar photovoltaic panels that are manufactured by First Solar, a company in California.

When photons strike solar cells in the panel, they are reflected, absorbed or passed through the panel. When they are absorbed, they have the energy to knock electrons loose, which flow in one direction within the panel and leave the panels through transmission wires as electric power, according to a First Solar fact sheet.

Voltaic solar panels generate direct current, and El Paso Electric converts it to alternating current with an inverter for domestic and business use, the power company reported.

Electric power generated at the Roadrunner plant will avoid an annual emission of 27,000 tons of carbon when compared with fossil fuel generation, NRG Energy reported.

The advantages of solar power, zero-emission, sustainable energy, coincident with peak demand and compliant with the state are convincing, said David Crane, NRG president, in an earlier news release.

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.