House committee advances bill to create State Fairgrounds development district in Albuquerque

The House Appropriations & Finance Committee gave a do-pass recommendation to Senate Bill 481 on a 10–6 vote, advancing a bill to create a State Fairgrounds District aimed at redeveloping the State Fairgrounds and nearby International District in Albuquerque.

Senate Bill 481 would form a state-owned district that the bill’s backers compared to a tax-increment development (TID). The measure names a board made up of elected officials — the governor, the mayor, four elected state legislators, a county commissioner and a city councilor — plus one public member, and would capture some gross-receipts and gaming-tax revenue from the area to fund a master plan and redevelopment projects.

Proponents said the district could marshal roughly $12 million a year from gaming and gross-receipts taxes and direct that revenue to community benefits including affordable housing, education and health services. “This includes community benefits so that whatever happens at the state fair, the benefit of that can be put into affordable housing, education, health, and other things that the community is looking for,” said Roger Valdez, Center for Housing Economics.

Jessica Martinez, representing Albuquerque Public Schools, said the bill “will generate opportunities to enhance public school facilities, enrich our educational programs, and create a more vibrant learning environment that will lead to improved student outcomes.”

Supporters described safeguards in the draft legislation intended to limit the district’s powers. The bill prohibits use of eminent domain, requires open meetings for the district, and contains deadlines and “guardrails” including bonding authority capped in statute and a sunset or refund mechanism if projects do not move forward, according to the presenter. The bill also authorizes an election of residents in the district at a later date to permit a limited property tax for a defined term; the presenter said no residents currently live inside the district, so such a vote would be years away.

Opponents faulted the process and the level of public representation on the board. “There has not been public input,” said Carla Sontag, president and CEO of the New Mexico Business Coalition, adding that agriculture and existing fair supporters are among groups who oppose the plan. Sontag said she was concerned the single public-member seat would not adequately represent neighborhood sentiment.

Other witnesses and members pressed for detail on how a relocated fair, racetrack and casino would be handled in practice. The bill does not mandate that the fair remain at its current site; the master plan RFP is intended to explore options including whether to redevelop in place or relocate. The presenter said the casino currently holds a 25-year lease and the racetrack is “attached” to that arrangement; he said the casino owner had been engaged in discussions about the plan.

Representative Vincent said she was reluctant to support moving or removing the rodeo arena if the fair were relocated; the sponsor said the master plan will evaluate options and that decisions would be made by the board and the community.

Committee members also asked about governance and board continuity in the statute’s proposed six-year initial term and potential subsequent elections. Supporters said the structure reflects the state-owned status of the property and standard TID language tailored for state land, and that the RFP for a master plan is already funded with $500,000 appropriated last year.

The bill attracted mixed public comment in committee. The Greater Albuquerque Chamber of Commerce urged support, saying the plan could increase safety, home values and job growth. The New Mexico Business Coalition opposed the bill and urged more public engagement.

The committee vote on the bill’s do-pass motion was recorded as 10 in favor and 6 opposed.

Votes at the committee roll call recorded “yes” from Representatives Garrett, Hernandez, Herndon, Herrera, Little, Lujan, Sanchez, Silva, Vice Chair Dixon and Chair Small; “no” from Representatives Baca, Brown, Chatfield, Dow, Duncan and Vincent.

The bill will be scheduled for further action in the House; if enacted it would authorize the new district and direct initial actions such as completing a master plan and establishing the district board.