During the council work session, MainStreet Revitalization Specialist Amy Bell gave an example of how a Metropolitan Redevelopment Act (MRA) can be utilized. She said gas station in Lovington burned down in the 1970s and the city inherited the property, trying for years to sell it. Finally, the city sold it for $100 to a developer. Through the MRA support for business development, a brewery was opened on the property. Courtesy/LAC
By KIRSTEN LASKEY
Los Alamos Daily Post
kirsten@ladailypost.com
Could a Metropolitan Redevelopment Act (MRA) be White Rock’s ticket to revitalization and redevelopment?
The Los Alamos County Council weighed in on the potential option during its May 18 work session.
Los Alamos MainStreet Director Lauren McDaniel presented the idea of a MRA along with Los Alamos Commerce and Development Corporation Executive Director Patrick Sullivan and MainStreet Revitalization Specialist Amy Bell.
Just what is a MRA?
“MRA is part of the state-wide code … that gives local government more flexibility in their efforts to rehabilitate and redevelop areas that are struggling economically to stimulate economic and community development,” Bell said.
She added that more than 25 communities in the state have a MRA.
“In general, the designation of a MRA allows the local government to contribute public resources to private entities for revitalization projects without violating the anti-donation clause,” Bell said.
There are benefits tied to a MRA, she said.
For instance, while public infrastructure improvements are possible without a MRA, she said provisions for public infrastructure improvements to businesses would not be possible without one. Furthermore, tax abatement, leases below market value and the ability to attract private investment couldn’t be possible without a MRA. Bell added that a MRA offers user tools to implement master plans. If implemented, the MRA boundary would be around the White Rock shopping center. Bell highlighted a few criteria that makes White Rock eligible for a MRA: low business activity, vacant/under-utilized properties, deteriorating buildings and/or public infrastructure, housing deficit and obsolete planning/platting.
McDaniel discussed the process that would be taken to establish a MRA. The first phase, which was completed, was a MRA assessment. She said the boundary was evaluated, a need was determined, and business and property owners were spoken to about the MRA.
McDaniel said they received “very positive feedback from everybody we spoke to.”
Phase two, which is now underway, addresses the MRA designation. The public will be given notice about the MRA before it is presented to council for possible approval.
Next, if council approves, a plan for the MRA would be conducted. McDaniel said a consultant would be hired to develop the MRA plan. This process would be transparent and would gather public input, she said. Once the plan is developed, there would be a public hearing for adoption.
McDaniel said the cost of the consultant is estimated to be about $50,000 but MainStreet would reimburse this expense so there would be no cost to the County. She added the timeframe for developing the MRA plan would be eight to 12 months. Finally, the plan would be implemented.
McDaniel said forming a MRA implementation committee is recommended and MainStreet does offer a tool kit to put this plan into action.
“Just to recap a MRA can really help advance the downtown master plan process that’s already underway and the development code update,” McDaniel said. “We recommend leveraging a MRA, possibly creating a Tax Increment Financing (TIF) district to fund public infrastructure improvements, maybe create a grant program for façade improvements, really develop strategies that incentivize redevelopment of vacant properties … that can be done in a variety of ways, complimentary to that could be implementing a vacancy ordinance. A MRA, I think, really focuses more on incentives to developers and people interested in opening a business in a MRA as opposed to penalties. Then we could also develop strategies to keep commercial rents affordable. There’s lease to own strategies, and buy your business programs that are possible through a MRA as well as a variety of tax credits …”
Other municipalities in New Mexico have implemented MRAs with success, Sullivan said.
He said Albuquerque created a 20-year report on its MRA. He pointed that out Albuquerque has 20 separate MRA districts but even though the size and scope of Albuquerque’s MRA is different than what White Rock would pursue, it shows how much a MRA can be utilized. For instance, Sullivan said almost 2,000 residential units were added along with more than 500 hotel rooms and 700,000 square feet of commercial and office space. Additionally, more than 4,200 jobs were created.
“In looking at it in terms of does this commit to the County to anything, is there a financial risk or any other type of risks – the answer is no,” Sullivan said. “What this ordinance establishing a MRA would do is provide a tool to use for the future should the council decide to use that tool. This is the first step to create more opportunities and more tools to help revitalize the downtown commercial area in White Rock.”
Councilors shared their thoughts on pursuing a MRA in White Rock.
Councilor Sara Scott said she supported the idea.
“I really support having more tools available … addressing some of these challenges we have been facing for a long time with some potential new tools, and a mechanism to identify and evaluate potential new opportunities for development, to me is something I think would be worth pursuing,” she said. “I don’t see really a downside in this given that projects would be evaluated on a case-by-case basis just like LEDA…”
Councilor Denise Derkacs also voiced support.
“I too appreciate having another tool in our toolbox to help revitalize White Rock,” she said. “I also appreciate how each project has to be approved individually. Approving the designation doesn’t mean that we are just forging ahead with things, we would be able to evaluate each project individually.”
A few councilors had questions about the MRA. Council Vice Chair James Robinson wondered why there is vacant businesses in White Rock and what a MRA would do to prevent future vacancies. He also wondered how the MRA differs from the downtown master plan being developed.
Sullivan said the MRA wouldn’t address vacancy but focus more on revitalizing and redeveloping the downtown. He added a MRA is more detailed than a downtown master plan – it offers more specificity on projects.
Council Chair Randall Ryti also wondered about vacancies; he asked if there were any state-wide trends on vacancies.
Bell said that is something MainStreet is paying attention to. She added the numbers from last year are all over the map because COVID affected communities differently but MainStreet is monitoring it and will share its information.
Councilor David Izraelevitz wondered about using tax increment financing (TIF) to fund projects in the MRA. If the County has the money through its gross receipts taxes, Izraelevitz asked if there is any additional value to using TIF funds.
A TIF, Sullivan explained during the meeting, is used when a new project is started. There is a baseline property tax that is collected before the project takes place and after there is an incremental increase in tax revenue because the project increased the property value and property tax. The incremental increase is pulled out and put in a fund and as the fund grows it could be used for direct financial contribution for another project in a MRA.
He added it is not necessary to use a TIF. Several things can fund MRA projects such as the County’s general fund or lodgers’ tax revenue.
Councilor Sean Williams questioned pursuing a MRA at all.
“What problem here is the MRA solving,” he asked. “Or what would it solve?”
“MRA provides an opportunity for the county to help catalyze projects that otherwise would not happen …,” Sullivan said. “There is no singular problem – there are multiple and MRA can address all of them project by project. If (we) didn’t have a MRA then you take away a lot of ways a municipality can work with the private sector to do things…”