Posts Tagged ‘State of New Mexico’

The September MVEDA Business on the Border Forum will feature a Southern New Mexico economic development update.  A panel of regional economic development professionals will discuss recent changes in the area’s economy. The meeting will be held on Tuesday, September 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.

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.

Article courtesy of the Las Cruces Bulletin

By Samantha Roberts

Since Gov. Susana Martinez signed a bill to lower taxes on diesel fuel, everyone in southern New Mexico is talking about Union Pacific (UP) coming to Santa Teresa, but there is a lot more happening on the border that people don’t know about.

On Thursday, June 16, more than 700 people gathered at Sunland Park Racetrack & Casino for the annual NAFTA Institute/Supplier Meet the Buyer Conference.  With two floors full of business-to business networking, speakers and economic leaders, there was never a dull moment at the conference.

“This event creates the opportunity for companies to make transactions and get introduced to new businesses,” said Fred Shepherd, Mesilla Valley Economic Development Alliance business development manager. “Companies can come and display their products and also hear an overview of business opportunities.”

First-time attendee Reinhard Peter, CEO of Solarzentrum North America, said he was pleased with the success of the event.  “There are so many people here,” he said. “Since cost is always an issue, events such as this one help a large number of people get together to network.”

Reinhard, who sells hybrid solar panels that produce hot water and useable electricity, said his focus on the environment got him into the business.  “I want to preserve the environment for our kids,” Reinhard said. “We are in one of the sunniest cities of the world, no? We have so much sunshine, and it’s free. We are supplying a product that people use daily, and free is good, no?”

In addition to all of the vendors, UP was also there, representing its new facility in Santa Teresa and answering questions to curious participants.

Zoe Gisela Richmond, UP public affairs director, said UP representatives were also pleased with the turnout and excited about educating people on their upcoming facility. “We are hoping UP coming to the area is the catalyst for more opportunities in southern New Mexico and that it will attract more companies to the area,” she said. “We are shooting for an early August date for the groundbreaking of the facility.”

Though the main goal of the event was to make relationships and establish connections, some companies were able to make more use of their time.

For Erlinda Portillo, coordinator of donor services and special events at Dona Ana Community College, and Ken Tellez, manager of planning and development at DACC, the community college struck manufacturer gold at the event.  Portillo said Maria Elena Vargas, a business owner in Mexico, has agreed to donate manufacturing equipment to DACC.

“We made the connection through Jerry Pacheco,” Tellez said. “We talked a little before, but this event allowed us to finalize the deal and discuss transportation of the equipment from Juarez to Las Cruces.”

The conference also hosted a bevy of guest speakers, including New Mexico Secretary of Economic Development Jon Barela, who gave an overview of Martinez’s administration in regard to border and economic development objectives.

“I am proud to announce several hundred new jobs in Dona Ana County,” Barela said. “We have recently passed a board of jobs package that includes the locomotive fuel tax reduction. This will allow New Mexico to be more competitive with Texas and has helped bring Union Pacific to the state.  “To me, job creation is a priority in southern New Mexico, and overall I want to help provide a better regulative climate, reducing the cost of compliance for businesses without sacrificing the health, welfare or beauty of New Mexico to do business.”

Other guest speakers included Bob Queen, from the United States Department of Commerce; Jose Contreras, from Border Security Consultants; and Brent Eastwood from the International Trade Office from the State of New Mexico. Richmond also gave an update about UP, an addition that plant manager Alex Sierra is very excited about.

“The new railroad lines are going to run through my ‘backyard.’ The new rail will cut one month off travel time for me,” said Sierra, who runs a car seat manufacturing plant in Santa Teresa. “We are in the ‘belt buckle’ of the Americas and it only makes sense to grow this area.”  Sierra said he has been coming to the event since its inception. “This is a great time for me to make 50 to 60 phone calls in one day,” he said. “It is well worth the $100.”

Also attending the event were employees from the New Mexico Economic Department ready to connect business owners and guests of the event with whoever they were looking to talk to.  “We have business-to-business networking going on over here,” said Steven Montano, senior advisor of the New Mexico Economic Development division, in regards to dozens of tables filled with business men and women making conversations in both English and Spanish. “People here are really making deals, and although they may not be creating jobs today, they are creating jobs down the road, and that is very important for New Mexicans. “This event really has a history of success, and I think that is because there is such an emphasis on the economy.”

Though times may still be tough in America, forward-thinking people in southern New Mexico and the surrounding area are expanding their horizons and looking to change the state of the economy one job at a time.

As many of you are already aware, MVEDA has a core, focused approach to economic development that concentrates on growing the economic base of Dona Ana County.  Economic based approaches focus on industries that export a product or service outside the region thereby bringing new dollar flow into the local economy.   It is one of the fundamental means by which a region can build and create new wealth and demand.  New dollar flow into an economy then leads to greater disposable spending that can be used to purchase the local goods and services that we rely on each day.    We have had success in this approach to economic development and as move closer to entering the fourth quarter of our fiscal year the impact from economic based industry development becomes evident; not only in job creation but in the new tax base that it creates.

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.

The Mesilla Valley Economic Development Alliance (MVEDA) and the Border Industrial Association will host a business incentives workshop on Friday, March 4, 2011 from 10:00am-12:00pm.  The workshop will be held in the Fireplace Room at the Santa Teresa Country Club, 75 Feathermoon Drive in Santa Teresa, New Mexico.

This workshop will cover incentives that the State of New Mexico and the U.S. federal government have in place for manufacturing and logistics companies.  The session will consist of an overview of incentives that apply to our southern New Mexico industrial base and how to access them. Companies are encouraged to register their accounting/financial people for this session. The workshop qualifies for CPE credit.

There is no charge for participating, but you must RSVP your attendance to: Adriana Castillo, 575-589-2200 or Adriana@nmiba.com.

Project to bring 3,000 construction jobs, 600 operational

Las Cruces Bulletin photo by Niki Rhynes

Article courtesy of Las Cruces Bulletin

By Gabriel Vasquez

Gov. Susana Martinez returned to Doña Ana County for the first time since being sworn in as governor to announce a rail-expansion project that could bring more than 3,000 construction jobs and 600 permanent, post-construction positions near Santa Teresa. The announcement was made Friday, Jan. 7, alongside Union Pacific (UP) officials during a well-attended ceremony held inside an industrial office complex adjacent to the Santa Teresa Airport.

“I’m honored to (be) here to renew the commitment the state of New Mexico made a few years ago to improve the infrastructure and create jobs in the southern part of the state,” Martinez told the crowd of area politicians, industry leaders, state workers and reporters. “These jobs would otherwise go to Texas.”

UP’s investment for the rail expansion is $400 million. UP officials said the project would have an overall economic impact of $500 million on the state. The plans are to expand a rail station near Santa Teresa to add fueling facilities, crew headquarters, an intermodal switching yard and an intermodal ramp for business access.

This sort of “inland port” will facilitate the movement of goods all across the Southwest, but specifically will help border businesses by providing a “truck-to-train” facility in the area, significantly spurring economic development in New Mexico, said Bob Turner, senior vice president of corporate affairs for UP.

“I predict that this will be a catalyst for economic growth the likes of which will amaze you all,” he said. “The goods will come in, be offloaded, re-sorted and shipped to various parts of the country.”

The transfer facility will place southern New Mexico on UP’s “Sunset Route,” one of the oldest rail corridors in the country, which spans from California to Texas. Other Sunset Route facilities similar to the one planned for Santa Teresa exist in Lathrop, Calif., Los Angeles, Dallas and San Antonio, Texas.

“In order for New Mexico to recover economically, we need to take deliberate action and begin gaining back jobs we’ve lost to our neighbors,” Martinez said. “That’s one of our driving forces for the policy decisions being made by my administration.”

Although UP officials are optimistic about the project, it has one more hurdle left to clear. The project is largely dependent on a locomotive diesel fuel tax exemption that will go before the state Legislature when it convenes later this month.

“All that stands in the way from this taking place and moving the project forward … is a legislative fix,” said Martinez, who added she strongly supports the exemption. “As a result, Union Pacific can start building and New Mexicans can start working.”

Martinez added that she encouraged all state legislators “to dot their ‘i’s’ and cross their ‘t’s’ for the project to move forward.

State Sen. Cynthia Nava, who attended the ceremony, said she would support the diesel tax exemption.

“I’m willing to work with all my colleagues to get this job done,” Nava said. “I would assure the governor that we are dotting and crossing and we will get this exemption so this project can move forward. It’s been a long-time coming.”

Aaron Hunt, director of media relations for UP, said the company would have to “strongly re-evaluate” its options if the diesel tax exemption is not passed.

“Historically, we have invested a lot of resources on this part of our system,” Hunt said. “There’s 100 years of history here.”

When UP’s intentions to expand the Santa Teresa rail were first announced in 2006, the state passed a diesel fuel tax exemption accordingly, but it expired in 2010. Due to the economy, which dealt a hard blow to UP in 2008, the project was subsequently delayed with no timetable to move forward. UP officials hope now the Legislature makes the same decisions in 2006.

Theresa Fisher, director of the Anthony Chamber of Commerce, said the project could be beneficial for the whole state.

“This opportunity is excellent not just for Santa Teresa and Sunland Park, but Anthony, as well as the entire state,” she said. “There will be opportunities for employment for our people, and it helps us with economic development and marketing here.”

Fisher, who owns an 8-acre vineyard, is building a wine tasting facility near Anthony and hopes UP will bring future customers as new businesses come to the area to take advantage of the transfer station.

A groundbreaking will be held sometime this summer when construction starts, not with shovels, “but something more exotic,” Turner said. Construction is expected to take place until 2015.

For more information, visit www.up.com.