City of Las Vegas, NM
San Miguel County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Las Vegas 1-9-2002 by Ord. No. 01-19; amended in its entirety 7-1-2009 by Ord. No. 09-13. Subsequent amendments noted where applicable.]
GENERAL REFERENCES
Infrastructure gross receipts tax — See Ch. 389, Art. II.

§ 33-1 Short title.

This chapter may be cited as the "Economic Development Plan Ordinance."

§ 33-2 Authority.

The Economic Development Plan Ordinance is enacted pursuant to the statutory authority conferred upon municipalities to allow public support of economic development (NMSA 1978, §§ 5-10-1 through 5-10-13). This chapter is adopted as part of the City's economic development plan.

§ 33-3 Purpose.

A. 
The purpose of the Economic Development Plan/Ordinance is to allow public support of economic projects to foster, promote and enhance local economic development efforts while continuing to protect against the unauthorized use of public money and other public resources. Further, the purpose of this chapter is to allow the City to enter into one or more joint powers agreements with other local governments to plan and support regional economic development projects.
B. 
Local Economic Development Act. Local governments are allowed to provide direct or indirect assistance to qualifying businesses for furthering or implementing economic development plans and projects, furthermore local and regional governments have the authority to contribute assets to development projects; however, the imposition of a tax must be approved by the voters in referendum.
C. 
Eligible uses. Municipalities may impose municipal infrastructure gross receipts tax and dedicate the revenue for economic development projects. A total of 0.25% tax (in four increment of 0.0625%) may be imposed.

§ 33-4 Definitions.

As used in this chapter, the following terms shall have the meanings indicated:
ARTS AND CULTURAL DISTRICT
A facility that is owned by the state, a county, a municipality or a qualifying entity that serves the public through preserving, educating and promoting the arts and culture of a particular locale, including theaters, museums, libraries, galleries, cultural compounds, educational organizations, performing arts venues and organizations, fine arts organizations, studios and media laboratories and live-work housing facilities.
ECONOMIC DEVELOPMENT PROJECT or PROJECT
The provision of direct or indirect assistance to a qualifying entity by a local or regional government and includes the purchase, lease, grant, construction, reconstruction, improvement or other acquisition or conveyance of land, buildings or other infrastructure; public works improvements essential to the location or expansion of a qualifying entity; payments for professional services contracts necessary for local or regional governments to implement a plan or project; the provision of direct loans or grants for land, buildings or infrastructure; technical assistance to cultural facilities; loan guarantees securing the cost of land, buildings or infrastructure in an amount not to exceed the revenue that may be derived from the municipal infrastructure gross receipts tax or the county infrastructure gross receipts tax; grants for public works infrastructure improvements essential to the location or expansion of a qualifying entity; grants or subsidies to cultural facilities; purchase of land for a publicly held industrial park or a publicly owned cultural facility; and the construction of a building for use by a qualifying entity.
GOVERNING BODY
The City Council of Las Vegas.
PROJECT PARTICIPATION AGREEMENT
An agreement between a qualifying entity and the City whereby the City provides assistance to an economic development project in exchange for the benefits received as set forth in this section.
QUALIFYING ENTITY
An existing or proposed corporation, limited liability company, partnership, joint venture, syndicate, association or other person that is one or combination of two or more of the following:
A. 
An industry for manufacturing, processing, or assembling of any agricultural or manufactured products;
B. 
A commercial enterprise for storing, warehousing, distributing, or selling products of agriculture, mining or industry, but other than provided in Subsection D of this definition, not including any enterprise for sale of goods or commodities at retail or for the distribution to the public of electricity, gas, water, or telephone or other services commonly classified as public utilities;
C. 
A business in which all or part of the activities of the business involves the supplying of services to the general public or to government agencies or to a specific industry or customer, but, other than provided in Subsection D of this definition, not including business primarily engaged in the sale of goods or commodities at retail;
D. 
A telecommunications sales enterprise that makes the majority of its sales to persons outside of New Mexico.

§ 33-5 City assistance with economic development projects.

A. 
The City Manager after approval of the governing body may assist economic development projects in any legally permissible manner, including but not limited to provisions of land, buildings and infrastructure, provided that all the requirements of this chapter are met. The City may provide land, buildings or infrastructure it already owns, or it may build, purchase or lease the facilities needed for an economic development project. The City at its discretion may bear the full cost or contribute a portion of the costs, including the waiver of applicable fees. The City, at its discretion, may also contribute to the payment of costs for professional service contracts such as industry feasibility studies and planning and design services needed to implement a project.
B. 
The governing body may consider offering all forms of assistance allowed under this chapter and any other legally permissible forms of assistance; however, this does not establish any obligation on the City's part to offer any specific type or level of assistance.

§ 33-6 Las Vegas San Miguel Economic Development Corporation.

A. 
The governing body assigns the Las Vegas San Miguel Economic Development Corporation (LVSMEDC) Board of Directors the following responsibilities with regard to the economic development plan for the City of Las Vegas:
(1) 
Reviewing and making recommendations to the governing body on applications for assistance for economic development projects; and
(2) 
Reviewing and making recommendations to the governing body on applications for industrial revenue bonds (IRBS).
B. 
The LVSMEDC shall at all times provide for a Board of Directors position for the City of Las Vegas, the Mayor shall appoint a member of the Board of Directors with the advice and consent of the City Council.

§ 33-7 Application requirements.

A. 
Any qualifying entity meeting the definition set forth in the definition of "qualifying entity" in § 33-4 may propose an economic development project to the City. Meeting the definition of a "qualifying entity" does not create any obligation on the part of the City of Las Vegas.
B. 
Applications from qualifying entities shall be submitted to the City of Las Vegas on forms approved by the City.
C. 
Applications shall contain the following information for business applicants:
(1) 
Identification information:
(a) 
Complete name and address of entity;
(b) 
Incorporation papers with bylaws;
(c) 
List of board of directors and executive director, with addresses; and
(d) 
Resumes of all directors and officers.
(2) 
Evidence of financial solvency (personal statement of principals):
(a) 
Financial statement (income statement and balance sheets) for the past three years;
(b) 
Federal tax number, New Mexico State taxation and revenue number and county business license;
(c) 
Projected income statement for at least three years.
(3) 
Evidence of organizational capacity:
(a) 
Brief history of the entity;
(b) 
Organizational chart of the entity;
(c) 
Business plans for the entity and proposed project (shall include three-year pro-forma cash flow analysis);
(d) 
Evidence of ability to manage the project, such as, but not limited to:
[1] 
List and description of previously completed projects;
[2] 
Resumes of key staff involved with project.
(e) 
Entity shall disclose the following information (if the answers is yes the entity shall attach a written explanation):
[1] 
Has the business or any of its officers ever been involved in a bankruptcy?
[2] 
Has the business or any of its officers ever defaulted obligations on which payments are not current?
[3] 
Does the entity have any loans or other financial obligations on which payments are not current?
(4) 
The project participation agreement and any other pertinent information will be forwarded to the governing body for final consideration at a public meeting.
(5) 
Funding source for project:
(a) 
Equity investment of qualifying entity;
(b) 
Assistance being request of the City (e.g., specific parcel of land, applicable fees, etc.), with estimate of value; and
(c) 
Funding sources other than the City with letters of commitment of intend to fund.
(6) 
Identification of the terms, conditions, location, scope and requirements to the economic development project.
(7) 
Information sufficient for the LVSMEDC to make its determination whether the applicant is a qualifying entity.
(8) 
Any other information required of the applicant by the LVSMEDC or governing body.

§ 33-8 Applicable review process.

A. 
The LVSMEDC Board of Directors shall determine whether the entity and the proposed project qualify under this chapter.
B. 
The LVSMEDC Board of Directors shall then coordinate with the qualifying entity to develop a project participation agreement as set forth in § 33-11.
C. 
The LVSMEDC Board of Directors shall consider the economic development project participation agreement in accordance with the criteria set forth in § 33-9. The LVSMEDC Board of Directors shall recommend to the governing body that the proposal be adopted, conditionally adopted or not adopted.
D. 
The recommendation will be forwarded with the project participation agreement, minutes of the LVSMEDC meeting and any other pertinent information to the governing body for final consideration at a public meeting.

§ 33-9 Applicable review criteria.

A. 
Applications for economic development projects requesting economic assistance from the City, which meet the policies and objectives of the City's economic development plan, shall receive priority. Examples include, but are not limited to:
(1) 
Manufacturing firms (including intellectual property such as computer software);
(2) 
Projects, which enhance the exporting capacity of companies and/or provide goods and services, which currently have to be imported into Las Vegas;
(3) 
Private companies seeking to build, expand or relocate facilities;
(4) 
Private companies which provide facilities or services which enhance the ability of Las Vegas businesses to operate;
(5) 
Organizations, which assist business start-ups or bring small companies together to increase their competitive abilities. This must involve a tangible project, which will create jobs and promote an industry. Examples include, but are not limited to:
(a) 
Business incubators;
(b) 
Art incubators or coalition (e.g., a performing arts coalition seeking construction rehearsal or performance facilities);
(c) 
Public markets for farmers, gardeners, crafts, etc.; and
(d) 
Organizations which foster economic development by promoting work force development efforts such as apprenticeships or other job training programs;
(6) 
Projects in industry clusters listed above are particularly encouraged, but others are eligible to apply as well. The intention is to retain flexibility in the use of incentives; and
(7) 
Qualifying entities with existing contract or projects with the City when this plan is adopted may propose a restructuring of their projects as an economic development project.
B. 
All applications for economic development projects requesting economic assistance from the City shall submit a cost benefit analysis. Preparing a cost benefit analysis shall be the responsibility of the applicant. The City retains the right to specify a format and methodology for the cost-benefit analysis. The LVSMEDC shall review and approve the methodology used. The source and rationale for any multiplier effects shall be identified. The cost-benefit analysis shall show that the City will recoup the value of its donation within a period of 10 years. The analysis shall address the following:
(1) 
The number and type of jobs to be created, retained, both temporary construction jobs and permanent jobs (by New Mexico Department of Labor job category);
(2) 
Pay scale of jobs;
(3) 
Determination of which jobs are expected to be filled locally and which will be filled by transfers from other facilities or recruited from outside the Las Vegas area;
(4) 
Total payroll expected at start-up and after one year;
(5) 
Anticipated impact on local tax base; and
(6) 
Anticipated impact on local school systems.
C. 
All applicants for economic development projects requesting economic assistance from the City shall require the same review required of industrial revenue bond applications. This review shall focus on environmental and community impacts of proposed projects. Special attention shall be given to job training and career advancement programs and policies. Projects shall demonstrate a strong commitment to providing career opportunities for Las Vegas area residents. Cultural impacts of projects shall also be considered.
D. 
Any qualifying entity seeking assistance shall prepare and make available a job training and career development plan for their employees.
E. 
All applicants for economic development projects requesting economic assistance from the City shall clearly demonstrate the benefits, which will accrue to the community as a result of the donation of public resources. The City has considerable flexibility in determining what is considered as adequate benefits. Benefits such as providing components or production capabilities, which enhance a targeted industry cluster, or addressing critical deficiencies in regional economy, may be recognized. The benefits claimed of any proposal will receive careful scrutiny. However, it is the intent of this chapter to be flexible in the evaluation of these benefits, and to recognize the qualitative as well as quantitative impact of a proposal.
F. 
All applicants for economic development projects requesting assistance from the City shall clearly demonstrate how the qualifying entity is making a substantive contribution. The contribution shall be of value and may be paid in money, in-kind services, jobs, expanded tax base, property or other thing or service of value for the expansion or improvement of the economy. The City retains flexibility in defining the "substantive contributions." The benefits identified in the previous paragraphs may be accepted as adequate contributions on their own, or as cash donations may be required. Assistance in providing affordable housing to its employees or the community at large may also qualify. Determination of what constitutes an acceptable contribution for a given project shall be at the discretion of the governing body.

§ 33-10 Public safeguards.

A. 
All economic development projects receiving assistance from the City shall be subject to an annual performance review conducted by the LVSMEDC. This review shall evaluate whether the project is attaining the goals and objectives set forth in the project participation agreement. This review shall be presented to the governing body for its consideration. The governing body at a public hearing may terminate assistance to the economic development project by provisions set forth in the agreement, which terminates the agreement and specifies the disposition of all assets and obligations of the project.
B. 
The City shall retain a security interest, which shall be specific in the project participation agreement. The type of security given shall depend upon the nature of economic development project and assistance provided by the City. Types of security may include, but are not limited to:
(1) 
Letter of credit in the City's name;
(2) 
Performance bond equal to the City's contribution;
(3) 
A mortgage or lien on the property or equipment;
(4) 
Prorated reimbursement of donation if company reduces work force or leaves the community before the term agreed to; and
(5) 
Other security agreeable to both parties.
C. 
Should a qualifying entity move, sell, lease or transfer a majority interest in the economic development project before the expiration of the project participation agreement, the City retains the right to deny any and all assignments, sales, leases or transfers of any interests in the economic development project until adequate assurances are made that the transferee, assignee or lessee is a qualifying entity and that the terms of the agreement will be satisfied by the transferee, assignee or lessee. At its discretion, the City may choose to deny said assignment, lease or transfer or may negotiate a new agreement with the new operator, or the City may reclaim the facility and enter into an agreement with the new qualifying entity.
D. 
Any qualifying entity seeking assistance from public resources shall commit to operate in accordance with its project participation agreement for a minimum of 10 years from the date this chapter is adopted and the governing body passes the project participation agreement.

§ 33-11 Project participation agreement.

A. 
The qualifying entity shall prepare with the City a project participation agreement. This agreement is the formal document, which states the contribution and obligation of all parties in the economic development project. The agreement must state the following items:
(1) 
The economic development goals of the project;
(2) 
The contribution of the City and the qualifying entity;
(3) 
The specific measurable objectives upon which the performance review will be read;
(4) 
A schedule for project development and goal attainment;
(5) 
The security being offered for the City's investment;
(6) 
The procedures by which a project may be terminated and the City's investment recovered; and
(7) 
The time period for which the county shall retain an interest in the project. Each project agreement shall have a "sunset" clause after which the City shall relinquish interest in and oversight of the project.
B. 
Each project participation agreement shall be subject to review and approval by the governing body at a public hearing.

§ 33-12 Project monies.

All project monies shall be kept in a separate account by the entity and the City, with such account clearly identified. These accounts shall be subject to an annual independent audit.

§ 33-13 Termination.

The governing body may terminate this chapter and the City's economic development plan and any or all project participation agreements undertaken under its authority. Termination shall be by ordinance at a public hearing or in accordance with the terms of the project participation agreement. If an ordinance or a project participation agreement is terminated, all contract provisions of the project participation agreement regarding termination shall be satisfied. Upon termination of the ordinance or any project participation agreement, any City monies remaining in the City project accounts shall be transferred to the City's general fund.

§ 33-14 Joint or regional projects.

The City may engage in economic development projects involving one or more other government entities for projects, which encompass more than one municipality or county. In such instances, the relevant governing bodies shall adopt a joint powers agreement. This agreement will establish the application criteria and the terms of all project participation agreements. Criteria established under a joint powers agreement shall be consistent with the provisions of this chapter.