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 3rd 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 1st 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.
