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City outlines four proposed Metropolitan Redevelopment Areas to start GRT baseline collection
Summary
Economic development staff presented four proposed Metropolitan Redevelopment Area (MRA) designations and explained the state process for gross receipts tax (GRT) sharing to fund redevelopment; council discussed timelines and priorities for submissions.
Las Cruces — City economic development staff on Jan. 27 recommended designating four new Metropolitan Redevelopment Areas (MRAs) and described the state process for setting a gross receipts tax baseline that can later fund redevelopment within the designated areas.
Selena Morales, interim deputy director of economic development, told the council that MRAs aim to “target the elimination or prevention of slums and blighted areas, improving property value and economic activity,” and that designating an area starts a state data-collection process to set a GRT baseline.
Morales and consultants identified proposed focus areas in the city’s infill district and presented basic metrics for each. Examples cited by staff included: - Amador/Próximo and South: 55 businesses employing 759 people; 74 percent of housing built before 1980; median household income cited as $25,000 per year. - Apodaca/Lift Up: about 40 vacant parcels; 69 percent of housing built before 1990 and street/sidewalk deterioration. - East of Solano: 88 percent of housing built before 1990; median household income cited as $29,915 per year. - Mesquite area: about 93 businesses and 115 vacant parcels; median household income cited as $27,313 per year.
Morales explained the GRT-sharing sequence: after council designates MRAs, staff submits designations to the New Mexico Taxation and Revenue Department (referred to in the meeting as the Department of Tax and Revenue) for one year of data collection (staff said the state typically takes about a year but may accept shorter spans if sufficient data exist). The department establishes a baseline GRT amount. If redevelopment increases GRT above that baseline, a share of the increment (council may recommend a percentage, commonly 50–75 percent) can be redirected into redevelopment projects in the MRA; the state determines the final percentage after reviewing the data.
Economic development director Elizabeth Peters clarified that the redirected funds come from GRT collected above the baseline (the increment) and not from existing baseline revenues.
Councilors pressed staff on timing and priorities. Morales said the city aims to submit a resolution on March 17 to designate the four new areas and that staff typically budgets to produce one MRA plan per year, meaning all four would have plans within about four years. Councilors asked that El Paseo/South Solano and West Picacho receive early priority for submission so data collection could begin as soon as possible.
Several councilors raised questions about incentives to attract private investment to vacant parcels and whether city funds or grants would be used to jump-start projects until GRT increment materializes. Peters said the city expects to pursue grants and other seed funding to spur private investment while the state collects baseline data.
No formal vote occurred on designation during the meeting. Morales asked for questions and recommendations before staff prepares the resolution for the March council meeting.
Ending — Councilors generally supported proceeding with the designations and asked staff to prioritize the El Paseo/South Solano and West Picacho areas for early submission.
