This chapter may be cited as the town economic development ordinance.
(Ordinance 15-03 adopted 2015)
This chapter is enacted pursuant to the express statutory authority conferred upon municipalities to allow public support of economic development.
(Ordinance 15-03 adopted 2015)
The purpose of this chapter is to allow public support of economic development 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 town to enter into one or more joint power agreements with other local governments to plan and support regional economic development projects.
(Ordinance 15-03 adopted 2015)
As used in this chapter:
Arts and cultural district.
A developed district of public and private uses that is created pursuant to the Arts and Cultural District Act of the State of New Mexico.
Cultural facility.
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 contractor.
One or more individuals, corporations, associations, partnerships or other legal entities with whom the town has entered into a written agreement for recruitment of new businesses and job opportunities, the expansion of existing business and industry, and other related services to preserve, promote, diversify, and strengthen the business and general economic base of the town and its environs.
Economic development project.
The provision of direct or indirect assistance to a qualifying entity 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 town council of the Town of Taos.
Person.
An individual, corporation, association, partnership or other legal entity.
Project participation agreement.
An agreement between a qualifying entity and the town whereby the town provides assistance to an economic development project in exchange for the benefits received as set forth in this chapter.
Qualifying entity.
A corporation, limited liability company, partnership, joint venture, syndicate, association or other person that is one or a combination of two (2) or more of the following:
A. 
An industry for the manufacturing, processing, or assembling of any agricultural or manufactured products;
B. 
A commercial enterprise for storing, warehousing, distribution or selling products of agriculture, mining or industry, but other than provided in subsection D or E of this definition, not including any enterprise 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 governmental agencies or to a specific industry or customer;
D. 
A telecommunications sales enterprise that makes the majority of its sales to persons outside of New Mexico;
E. 
A facility for the direct sales by growers of agricultural products, commonly known as farmers’ markets;
F. 
A business that is the developer of a metropolitan redevelopment project;
G. 
A cultural facility;
H. 
A retail business.
Regional government.
Any combination of municipalities and counties that enter into a joint powers agreement to provide for economic development projects pursuant to a plan adopted by all parties to the joint powers agreement.
Retail business.
A business that is primarily engaged in the sale of goods or commodities at retail.
(Ordinance 15-03 adopted 2015)
A. 
The governing body may assist economic development projects in any legally permissible manner including, but not limited to, provision of land, buildings and infrastructure provided that all the requirements of this chapter are met. The town may provide land, buildings, or infrastructure that it already owns, or it may build, purchase or lease the facilities needed for an economic development project. The town, at its sole discretion, may bear the full cost or contribute a portion of the costs including the waiver of applicable fees. The town, at its sole 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 town’s part to offer any specific type or level of assistance.
C. 
The money expended by the town in any one fiscal year shall not exceed ten percent (10%) of the annual general funds expenditure by the town during that fiscal year. The limits of this section shall not apply to:
1. 
The value of any land or building contributed to any project pursuant to a project participation agreement;
2. 
Revenue generated through the imposition of the municipal infrastructure gross receipts tax pursuant to the Municipal Local Option Gross Receipts Taxes Act for furthering or implementing economic development plans and projects as defined in the Local Economic Development Act or projects as defined in the Statewide Economic Development Finance Act; provided that no more than the greater of fifty thousand dollars ($50,000.00) or ten percent (10%) of the revenue collected shall be used for promotion and administration of or professional services contracts related to the implementation of any such economic development plan adopted by the governing body;
3. 
The proceeds of a revenue bond issue to which municipal infrastructure gross receipts tax revenue is pledged;
4. 
Funds donated by private entities to be used for defraying the cost of a project.
D. 
The town shall maintain an economic development fund into which it shall deposit the revenue for economic development and any income from the economic development fund to which the limits of subsection C of this section do not apply. Money in the economic development fund may be expended only as provided in the Local Economic Development Act or the Statewide Economic Development Finance Act.
(Ordinance 15-03 adopted 2015)
At its sole discretion, the governing body may assign to one or more of its economic development contractors the following responsibilities with regard to the economic development plan of the town:
A. 
Reviewing and making recommendations to the governing body on applications for assistance for economic development projects;
B. 
Reviewing and making recommendations to the governing body on applications for industrial revenue bonds (IRBs); and
C. 
Performing such other tasks as the governing body may determine necessary or desirable to further the economic development projects contemplated herein.
(Ordinance 15-03 adopted 2015)
A. 
Any “qualifying entity” meeting the definition set forth in section 4.20.040 of this chapter may propose an economic development project to the town. Meeting the definition of a “qualifying entity” does not create any obligation on the part of the town.
B. 
Applications from qualifying entities shall be submitted to the office of the town manager.
C. 
Applications shall contain at least the following information organized in the order listed below:
1. 
Identification information:
a. 
Complete name and address of the qualifying entity;
b. 
Incorporation papers with bylaws;
c. 
List of board of directors and executive directors, with addresses; and
d. 
Resumes of all directors and officers.
2. 
Evidence of financial solvency (personal statements of principals):
a. 
Financial statements (income statements and balance sheets) for the past three (3) years;
b. 
Federal tax numbers, New Mexico state taxation and revenue number and town’s business license;
c. 
Projected income statement for at least three (3) years.
3. 
Evidence of organizational capacity:
a. 
Brief history of the qualifying entity;
b. 
Organizational chart of the qualifying entity;
c. 
Business plans for the qualifying entity and proposed project (including 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; and
(2) 
Resumes of key staff involved with the project;
e. 
The qualifying entity shall disclose the following information (if the answer is yes, the entity shall attach a written explanation):
(1) 
Has the qualifying entity or any of its officers ever been involved in a bankruptcy?
(2) 
Has the qualifying entity or any of its officers ever defaulted on obligations on which payments are not current?
(3) 
Does the qualifying entity have any loans or other financial obligations on which payments are not current?
4. 
Funding sources for the proposed economic development project:
a. 
Equity investment of the qualifying entity;
b. 
Specific assistance being requested of the town (e.g., specific parcel of land, applicable fees, etc.), with the estimate of value; and
c. 
Funding sources other than the town with letters of commitment of intent to fund.
5. 
A complete and specific description of the proposed economic development project, including, but not necessarily limited to:
a. 
Business activities to be conducted;
b. 
Management and staffing requirements;
c. 
Property and equipment requirements;
d. 
Markets;
e. 
Transportation requirements;
f. 
Utility requirements, including, but not limited to, electric, gas, and water;
g. 
Solid and liquid waste disposal requirements;
h. 
Infrastructure requirements;
i. 
Regulatory compliance requirements; and
j. 
Environmental assessment.
6. 
A complete and specific cost-benefit analysis. The source and rationale for any multiplier effects shall be identified. The cost-benefit analysis shall show that the town will recoup the value of its donation within a maximum period of ten (10) years.
7. 
A complete and specific description of the proposed economic development project’s substantive contributions to the town including, but not limited to, such factors as in-kind services to the town, jobs, expanded tax base, property or other thing or service of value for the expansion or improvement of the economy.
8. 
A complete and specific description of the employee job training and career development plan for the proposed economic development project.
9. 
Any other information necessary for the town to make a determination as to whether or not the applicant is a qualifying entity.
10. 
Any other information required of the applicant by the governing body.
(Ordinance 15-03 adopted 2015)
A. 
The governing body shall review each project application in accordance with the criteria set forth hereinafter and all applicable laws, rules, regulations, and policies and shall determine whether the entity and the proposed project qualify pursuant to this chapter and all applicable state laws and regulations.
B. 
If requested to do so by the governing body, the town’s economic development contractor shall review and make recommendations to the governing body regarding the proposed project or projects.
(Ordinance 15-03 adopted 2015)
A. 
Applications for economic development projects requesting economic assistance from the town shall be evaluated by the following criteria:
1. 
Compliance with all requirements for a “qualifying entity” and an “economic development project”;
2. 
Feasibility and substantive contribution of the proposed economic development project;
3. 
Evidence of financial solvency and financial ability to undertake and complete the proposed economic development project;
4. 
Qualifications of the principals to undertake and complete the proposed economic development project;
5. 
Stability of the qualifying entity and organizational capacity to undertake and complete the proposed economic development project;
6. 
Cost-benefit analysis:
a. 
The number and types of jobs to be created both temporary construction jobs and permanent jobs (by New Mexico department of workforce solutions job category);
b. 
Pay scales of jobs;
c. 
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 Taos area;
d. 
Total payroll expected at startup and after one year;
e. 
Anticipated impact of the project on the local tax base;
f. 
Anticipated impact on the local school system;
g. 
Anticipated impact on the regional environment;
h. 
Anticipated impact on utilities, water, and other infrastructure; and
i. 
Anticipated impact on the community socioeconomic structure and cultural and historical heritage.
(Ordinance 15-03 adopted 2015)
A. 
All economic development projects receiving assistance from the town shall be subject to an annual performance review conducted by the governing body or its designee. The 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 their consideration. The governing body at a public meeting, in a manner consistent with law, may terminate assistance to the economic development project by enactment of an ordinance which terminates the agreement and specifies the disposition of all assets and obligations of the project.
B. 
The town shall retain a security interest which shall be specified in the project participation agreement. The type of security given shall depend upon the nature of the economic development project and assistance provided by the town. Types of security may include, but are not limited to:
1. 
Letter of credit in the town’s name;
2. 
Performance bond equal to the town’s contribution;
3. 
A mortgage or lien on property or equipment;
4. 
Prorated reimbursement of donations if a qualifying entity reduces its work force or leaves the community before the end of the agreed upon term; 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 town 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 sole discretion, the town may choose to deny said assignment, lease, or transfer or may negotiate a new agreement with the new operator, or the town may reclaim the facility and enter into an agreement with a 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 five (5) years from the date the ordinance adopting the project participation agreement is passed by the governing body.
(Ordinance 15-03 adopted 2015)
A. 
The qualifying entity shall submit to the town manager for review by the governing body a draft project participation agreement which states the contributions and obligations of all parties in the economic development project. The agreement must clearly state the following items:
1. 
The economic development goals of the project;
2. 
The contributions of the town and the qualifying entity;
3. 
The specific performance objectives;
4. 
A schedule for project development and goal attainment;
5. 
The security or securities being offered for the town’s investment;
6. 
The procedures by which a project may be terminated and the town’s investment recovered; and
7. 
The time period for which the town shall retain an interest in the project. Each project agreement shall have a “sunset” clause after which the town shall relinquish interest in and oversight of the project.
B. 
After reviewing the draft, the governing body or its designee may negotiate any final terms and conditions of the agreement for final approval by the governing body.
C. 
Each project participation agreement shall be adopted as an ordinance and enacted by the governing body at a public meeting.
D. 
All project participation agreements shall require a substantive contribution from the qualifying entity for each economic development project in return for public support. A substantive 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 of the economy.
E. 
The qualifying entity shall provide security to the town within the project participation agreement for the public support provided. The security shall secure the qualifying entity’s obligations based on the terms stated in the project participation agreement and shall reflect the amount of public support provided to the qualifying entity and the substantive contribution expected from the qualifying entity.
F. 
The project participation agreement shall contain a mechanism for the town to recover the public support provided to the qualifying entity in the event that the qualifying entity fails to provide all or part of the substantive contribution expected from the qualifying entity. The recovery of public support shall be proportional to the failed performance of the qualifying entity in regard to its substantive contribution and shall take into account all previous substantive contributions for the economic development project performed by the qualifying entity and shall be based on the recovery mechanism and terms specified in the project participation agreement.
G. 
The project participation agreement must contain, at a minimum, the following:
1. 
The contributions to be made by each party to the participation agreement;
2. 
The security provided by the qualifying entity to the town and any other governmental entity that is a party to the project participation agreement and shall specify the form of the security such as a lien, mortgage or other indenture and the pledge of the qualifying entity’s financial or material participation and cooperation to guarantee the qualifying entity’s performance pursuant to the project participation agreement;
3. 
A schedule for project development review and actions to be taken upon a determination that project performance is unsatisfactory.
(Ordinance 15-03 adopted 2015)
All project monies shall be kept in a separate account by the entity and the town, with such accounts clearly identified. These accounts shall be subject to an annual independent audit.
(Ordinance 15-03 adopted 2015)
At any time, the governing body may terminate this chapter, the town’s community development plan, and any or all projects. Termination shall be by ordinance. An ordinance repealing an economic development plan shall provide for satisfying existing contracts and rights of the parties arising from those contracts. Upon the repeal of a plan and termination or dissolution of a project, any unexpended and unencumbered balances remaining in any project fund or account may be transferred to the town’s general fund. In the case of funds or accounts of a joint or regional government project, the unexpended and unencumbered balances shall be divided among the local governments as provided in the joint powers agreement.
(Ordinance 15-03 adopted 2015)
The town may engage in economic development projects involving one or more other governmental entities for projects, which encompass more than one municipality or county. In such instances, a joint powers agreement shall be adopted by the relevant governing bodies. This agreement will establish the application criteria and the terms of all project participation agreements. Criteria established under a joint power agreement shall be consistent with the provisions of this chapter.
(Ordinance 15-03 adopted 2015)
The town is authorized to submit applications to the New Mexico Economic Development Department (NMEDD) for Local Economic Development Act (LEDA) funding to support providing additional water utility service. The town is further authorized to enter into an intergovernmental agreement with the NMEDD for the receipt and transfer of the aforementioned LEDA grant funding.
(Ordinance 22-20 adopted 11/8/2022)