[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:
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.
The Mayor and the Village Councilors.
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.
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]
An industry for manufacturing, processing, or assembling of
any agricultural or manufactured products;
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;
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;
A telecommunications sales enterprise that makes the majority
of its sales to persons outside of New Mexico.
A retail business.
A business that is primarily engaged in the sale of goods
or commodities at retail.[2]
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:
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.
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.
