MRA Director Terry Brunner: SB 251 to have big impact on future redevelopment of Downtown Albuquerque

Matthew Narvaiz, Albuquerque Journal, N.M.
Updated ·5 min read

Apr. 16—Legislation approved this session aims to improve metropolitan redevelopment across the state by expanding funding for projects in blighted areas.

The legislation, Senate Bill 251, passed through the Senate and House in the 60-day session with just one vote in opposition. It was signed by Gov. Michelle Lujan Grisham on April 4.

Sponsored by Democratic legislators Carrie Hamblen and Kristina Ortez, and Republican legislators Craig Brandt and Gay Kernan, it goes into effect July 2024.

To better understand the Metro Development Act Changes' potential economic impact and what it means, the Journal sat down with City of Albuquerque Metropolitan Redevelopment Agency Director Terry Brunner.

This interview has been edited and condensed for clarity.

Journal: In your own words, can you summarize what this legislation does for metropolitan redevelopment?

Brunner: Senate Bill 251 makes adjustments to the statute that governs metropolitan redevelopment agencies across the state and gives them the ability to implement tax increment financing as a redevelopment tool.

This now expands our abilities to collect gross receipts taxes, and do so with the county, city and state portions of gross receipts taxes, which really raises dramatically the amount of money we can spend on redevelopment in our metropolitan redevelopment areas.

Journal: How is this tax increment financing different from what was done in the past?

Brunner: Municipalities can choose to designate an area as blighted or in need of redevelopment. Albuquerque has been doing that for a few decades.

Now, we have a couple of dozen areas and when we go in and redevelop an area, we're typically using general funds or maybe our bond funds. And, you know, we might do, in a redevelopment area, one project every 20 years. A good example is in east Downtown (Albuquerque). More than a decade ago, we did the old Albuquerque High project and invested in that. And that was one project in an entire district.

We're not alone in that — a lot of the metropolitan redevelopment areas across the state are doing one or two projects in an area they've designated (blighted) every five to 10 years, and that's because they're really trying to use their city's general funds, which isn't a lot.

So, the ability to do a large housing development is pretty small with $5-$10 million. It doesn't go that far. What this is doing is raising the potential revenue to focus on a particular area. That's what's new and different here.

Journal: Has the MRA made any estimates in terms of how much potential revenue might increase?

Brunner: I didn't mention that under this tax increment financing, we can do a 20-year duration to that increment. The other thing that's unique about this is if you declare a particular area blighted, you can see your way to 20 years of funding. What cities have traditionally done across the state is they'll do bit by bit projects ... and so there's no real consistency.

We've looked at Main Street areas across the state and those districts might see an occasional federal grant or a state grant, but that's one-time funding. To be able to plan for 20 years of redevelopment with a consistent revenue flow is a completely different way of doing it.

So, over 20 years, we estimate in Ruidoso they could generate $12 million over 20 years. In Las Cruces, they could generate $145 million over 20 years. And in our Downtown, using tax increment financing we could generate just shy of $300 million over 20 years.

Journal: That's a significant amount of money for redevelopment.

Brunner: It's a significant amount of money and to put it in perspective, what we tell people is (that) this is what you see when you travel to other Western cities.

Like when you wonder how Denver redeveloped its downtown, or how Dallas redeveloped some of its areas, or Salt Lake (City), they're typically using this tool. (That's) because it's very hard to do redevelopment on a case-by-case basis, and ask the (Albuquerque) City Council for a project here or a project there. If you can plan out 20 years for redevelopment, it's a much more wholesale process.

Journal: It sounds like prior to this legislation, the Metropolitan Redevelopment Agency was limited on monetary resources. This opens the floodgates for more redevelopment, if you will.

Brunner: Exactly.

Journal: When this legislation goes into effect, what are we looking at in terms of future MRA projects?

Brunner: Well, I think for sure, we'll be looking at Downtown (Albuquerque). I think there's a definite need there. I wouldn't be surprised if we saw some work on east Central as well. I think those are two areas that are in obvious need.

But what's unique about this legislation, in a sense, is the state and the county have the option to contribute as well. What I'm excited about is trying to find those areas where we can form partnerships — where the state, the county and the city all see the value in reinvesting in an area.

It also attracts industry and new businesses and redevelopment. It kind of gives us the ability to make larger, more impactful investments.

So, if we're trying to attract industry from out of state, if we're trying to get someone to grow their local restaurant or their local business, and we can help them find a building or provide some land, we can be much more aggressive. We don't have to wait years and years to cobble together funds. ... We can take action more quickly and be more impactful, which I think is exciting as businesses look to grow or expand in Albuquerque.