Village of Bosque Farms, NM
Valencia County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Mayor and Council of the Village of Bosque Farms 5-18-2006 by Ord. No. 2006-03. Amendments noted where applicable.]
This Section 2-8 may be cited as the "Economic Development Ordinance."
The Economic Development 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 Section 2-8 is adopted as part of the Village of Bosque Farms' economic development plan.
A. 
The purpose of the Economic Development 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 Section 2-8 is to allow the Village of Bosque Farms 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.
(1) 
Local governments are allowed to provide direct or indirect assistance to qualifying businesses to implement 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.
(2) 
Eligible uses. Municipalities may impose municipal infrastructure gross receipts taxes and dedicate the revenue for economic development projects. A total of 0.25% tax (in four increments of 0.0625%) may be imposed.
As used in this Section 2-8, the following terms shall have the meanings indicated:
ECONOMIC DEVELOPMENT PROJECT
The provision of direct or indirect land, buildings or other infrastructure; public works improvements essential to the location assistance of a qualifying business and including the purchase, lease, grant, or construction, reconstruction, improvement or other acquisition or conveyance of expansion of a qualifying business; and payments for professional services contracts necessary for local or regional governments to implement a plan or project.
GOVERNING BODY
The Mayor and the Village Councilors.
PROJECT PARTICIPATION AGREEMENT
An agreement between a qualifying entity and the Village of Bosque Farms whereby the Village of Bosque Farms provides assistance to an economic development project in exchange for the benefits received as set forth in this Section 2-8.
QUALIFYING ENTITY
An existing or proposed corporation, limited-liability company, partnership, joint venture, syndicate, association or other person that is one or a combination of two or more of the following:[1]
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 as provided in Subsection D or E of this definition, not including any enterprise for the 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 as provided in Subsection D or E of this definition, not including businesses 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.
E. 
A retail business.
RETAIL BUSINESS
A business that is primarily engaged in the sale of goods or commodities at retail.[2]
[1]
Editor's Note: Amended at time of adoption of Code (see Section 1-1).
[2]
Editor's Note: Added at time of adoption of Code (see Section 1-1).
A. 
The Village Clerk/Administrator, 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 Section 2-8 are met. The Village of Bosque Farms 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 Village of Bosque Farms, at its discretion, may bear the full cost or contribute a portion of the costs, including the waiver of applicable fees. The Village of Bosque Farms, 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 Section 2-8 and any other legally permissible forms of assistance. However, this does not establish any obligation on the community's part to offer any specific type or level of assistance.
A. 
The governing body assigns the Economic Development Committee the following responsibilities with regard to the economic development plan for the Village of Bosque Farms:
(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 Economic Development Committee shall at all times provide for a Chairman's position for the Committee. The governing body shall appoint members of the Committee and designate one of the members as Chairman.
A. 
Any qualifying entity meeting the definition set forth in § 2-8-4 may propose an economic development project to the Village of Bosque Farms. Meeting the definition of a qualifying entity does not create any obligation on the part of the Village of Bosque Farms.
B. 
Applications from qualifying entities shall be submitted to the Village of Bosque Farms on forms provided by the Village Clerk.
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[1]
[1]
Editor's Note: Amended at time of adoption of Code (see Section 1-1).
(d) 
Resumes of all directors and officers.
(2) 
Evidence of financial solvency:
(a) 
Financial statements (income statements and balance sheets) for the past three years;
(b) 
Federal tax number, New Mexico State Taxation and Revenue number and county business license; and
(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; and
(c) 
Business plans for the entity and proposed project (shall include pro-forma cash flow analysis).
(4) 
The project participation agreement and any other pertinent information will be forwarded to the governing body for final consideration at a public meeting.
A. 
Applications for economic development projects requesting assistance from the Village of Bosque Farms which meet the policies and objectives of the community'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 businesses and/or provide goods and services which currently have to be imported into the Village of Bosque Farms;
(3) 
Private businesses seeking to build, expand or relocate;
(4) 
Private businesses which provide facilities or services which enhance the ability of the Village of Bosque Farms;
(5) 
Organizations which assist business start-ups or bring small businesses together to increase their competitive abilities. This must involve a tangible project which will create jobs in the Village and promote an industry. Examples include, but are not limited to:
(a) 
Business incubators;
(b) 
Art incubators or coalitions (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 workforce development efforts such as apprenticeships or other job training programs.
(6) 
Projects in industry clusters listed above are 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 community 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 community shall submit a cost-benefit analysis. Preparing a cost-benefit analysis will be the responsibility of the applicant. The Village of Bosque Farms retains the right to specify a format and methodology for the cost-benefit analysis. The Economic Development Committee 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 Village of Bosque Farms will at least recoup the value of its donation within a maximum period of 10 years. The analysis shall address the following:
(1) 
The number and type of jobs to be created, both temporary construction jobs and permanent jobs (by New Mexico Department of Labor job categories);
(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 Village of Bosque Farms area;
(4) 
Total payroll expected at start-up and after one year;
(5) 
Anticipated impact on the local tax base; and
(6) 
Anticipated impact on local school systems.
C. 
All applicants for economic development projects requesting economic assistance from the Village of Bosque Farms 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 Village of Bosque Farms 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 its employees.
E. 
All applicants for economic development projects requesting economic assistance from the Village of Bosque Farms shall clearly demonstrate the benefits which will accrue to the community as a result of the donation of public resources. The Village of Bosque Farms 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 a regional economy, may be recognized. The benefits claimed on any proposal will receive careful scrutiny. However, it is the intent of this Section 2-8 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 Village of Bosque Farms 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 things or service of value for the expansion or improvement of the economy. The Village of Bosque Farms retains flexibility in defining the "substantive contributions." The benefits identified in the previous subsections may be accepted as adequate contributions on their own, or cash donations may be required. Assistance in providing affordable housing to its employees or the community at large may also qualify. Determination as to what constitutes an acceptable contribution for a given project shall be at the discretion of the governing body.
A. 
All economic development projects receiving assistance from the Village shall be subject to an annual performance review conducted by the Economic Development Committee. This review shall evaluate whether the project is achieving the goals and objectives set forth in the project participation agreement. This review shall be presented to the governing body for 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 Village of Bosque Farms shall retain a security interest which shall be specific in the project participation agreement. The type of security interest will depend on the nature of the economic development project and assistance provided by the Village of Bosque Farms. Types of security may include, but are not limited to:
(1) 
Letter of credit in the Village of Bosque Farms;
(2) 
Performance bond equal to the Village of Bosque Farms' contribution;
(3) 
A mortgage or lien on the property or equipment;
(4) 
Pro-rated reimbursement of donation if business 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 Village of Bosque Farms 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 Village of Bosque Farms may choose to deny said assignment, lease or transfer or may negotiate a new agreement with the new operator, or the Village of Bosque Farms 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 period based on the cost-benefit analysis developed for the project.
A. 
The qualifying entity shall prepare with the Village of Bosque Farms 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 Village 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 Village's investment;
(6) 
The procedures by which a project may be terminated and the Village's investment recovered; and
(7) 
The time period for which the Village shall retain an interest in the project. Each project agreement shall have a "sunset" clause after which the Village of Bosque Farms 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.
All project monies shall be kept in a separate account by the entity and the Village of Bosque Farms, with such account clearly identified. These accounts shall be subject to an annual independent audit paid for by the qualifying entity.
The governing body may terminate this Section 2-8 and the Village of Bosque Farms' 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 Village monies remaining in the Village project accounts shall be transferred to the Village of Bosque Farms' general fund.
The Village of Bosque Farms 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 Section 2-8.