Aerial view Saturday morning of the Mari Mac Shopping Center where the former Smith’s and other spaces remain empty. Drone shot by Nate Limback/ladailypost.com

By KIRSTEN LASKEY
Los Alamos Daily Post
kirsten@ladailypost.com

Large, vacant commercial properties in Los Alamos have been a topic of conversation for years. How to address these vacant buildings is regularly debated.

One thing is for certain, looks can be deceiving. While properties like the Hilltop House Hotel and the abandoned Smith’s in the Mari Mac Plaza appear to sit idle, letting time just pass by, the reality is the County and many other organizations are putting in the work to change these building’s circumstances.

Los Alamos County Economic Development Administrator Dan Ungerleider recently spoke to the Los Alamos Daily Post about the status of various commercial properties in town.

Hilltop House Hotel
Ungerleider reported that on April 26 Los Alamos County Council approved a contract for remediation and demolition of the former Hilltop House Hotel. He added the building’s owners, Innovation Triangle Management are determining what they should do with the property. The County will be liening the property for cost associated with remediation and demolition. Ultimately Innovation Triangle Management will still be responsible for reimbursing the County for the costs of demolishing the building.

“I’m very excited because this building demolition removes a safety hazard in our community and makes way for development at the entrance of Downtown Los Alamos,” Ungerleider said.

Mari Mac
While there are no notable developments on the abandon Smith’s building in Mari Mac Plaza or any of the plaza’s other empty storefronts, Ungerleider said several interested parties have presented letters of interest to Mari Mac’s owner, Kroger. Since this is privately owned property, the County’s involvement is limited.

However, “The County is here to support Kroger as needed,” Ungerleider said.

Reel Deal Theater
Ungerleider reported that the owner of the former Reel Deal Theater has entered into a contract for the building’s sale. He added that while the possibility of the County purchasing the building to transform part of it into a Tween Center was discussed in a past council work session, that option has been set aside for the time being.

CB FOX
Regarding the former CB Fox building, Ungerleider said he has been meeting with the parking lot association that owns the parking lot behind CB Fox to separate the parking lot from the rest of the association. He explained this step is necessary for the sale and redevelopment of the building.

20th Street Lot
Ungerleider said there is no new information to report regarding the project to construct an extended-stay hotel and conference center on 20th Street.

With the 20th Street project or any other development, Ungerleider said patience is key.

“Development takes time,” he said. “It took a long time for Smiths’ Marketplace to get developed. It will take time for 20th Street to be developed and CB Fox (etc).”

He noted that evidence of progress can be seen throughout town. For instance, the Canyon Walk apartments on DP Road were constructed and the new senior housing complex is being built. Additionally, Los Alamos got a new grocery store with Smith’s Marketplace.

Los Alamos Commerce and Development Corporation Executive Director Lauren McDaniel further pointed out that Central Park Square is completely leased and said it has turned into a great district for food, drinks and more.

Ungerleider added with the pandemic receding, hopefully more opportunities will be presented for economic development.

“I believe that as the brunt of the pandemic becomes history, and LANL continues to reinvest and hire more employees, our local and regional economy will benefit and grow,” he said, adding that “I think the coordination between the County and its partners has never been better.”

McDaniel agreed that COVID has played a role in the current business ecosystem.

She explained Los Alamos MainStreet engaged with New Mexico MainStreet in late summer 2021 to start a process to analyze the current small business ecosystem regarding vacancies and lease rates. During this time, McDaniel said small businesses struggled with staffing and the continued challenges of the pandemic, including supply chain issues and rising costs, and there was an increase in building vacancies. Some businesses closed to expand elsewhere, and some owners retired.

To help assist with the effects of the pandemic, the County is about to begin its business assistance program, which is financed by the American Rescue Plan Act (ARPA). Ungerleider said he hopes the ARPA funds will be the seed money and the program continues after the ARPA funds are used.

McDaniel also touched on several action items underway targeting local economic development.

“We have been trying to support and encourage through recent programming efforts like the Los Alamos Retail Accelerator,” she said. “A bigger vision and redevelopment effort is needed in these instances, which includes residential options and mixed-use zoning in alignment with the updated Downtown Master Plan.”

Other tools include the upcoming Metropolitan Redevelopment Area (MRA) Plan for White Rock, which she said will eventually put some of that vision into action by identifying and enabling public-private partnership opportunities, incentives for residential and commercial developers, and even possibly the creation of a tax increment development district – where property or GRT tax revenue from a specific area is essentially earmarked for reinvestment in a particular area.

“To create a more vibrant commercial scene in Los Alamos, it is important to continue to foster the right environment in which small businesses can be successful,” she added. “We also have an opportunity to conduct a Retail Gap Analysis on what services are leaving the hill, and how we can best meet community demand by recruiting the types of businesses we want and need. Then we must continue to market our available properties in a cohesive way that promotes the opportunities in Los Alamos, including pulling in collaborators like New Mexico Partnership.”

Another collaborator is UNM-Los Alamos; McDaniel said the SEED program with the local community college and Chamber of Commerce offers free college courses to employees who work at local businesses, in turn helping owners recruit, and hopefully retain, motivated employees.

There are many factors in motion to improve the County’s development but there are still challenges to address.

Ungerleider explained business owners have expressed that it is difficult to find funding for startups and to expand existing businesses.

McDaniel also touched on the cost for building space. She said the 2021 Market Analysis’ survey results showed that space buildout costs, a desire by some for building ownership, and the fact that a third of survey respondents said they pay more than 10 percent of their gross sales per square feet on their rent, which is above the recommended market average.

“There could be a variety of market factors influencing this, but it needs to be examined more closely,” she said. “Los Alamos MainStreet will use this Market Analysis, and more data points, to work closely with Los Alamos County, New Mexico MainStreet, Los Alamos National Laboratory, property owners and business owners to create more favorable dynamics that will lead to long-term sustainability and economic vitality and diversity in our community.”