Below are some facts, figures and general information for Mesa del Sol. We hope you find this information helpful in your research for press and editorial coverage. Please feel free to contact Griffin & Associates for additional questions and information.
Some Mesa del Sol nitty-gritty.
Mesa del Sol is a master-planned community coming to life in Albuquerque, New Mexico. Created by Forest City Covington, it’s designed to celebrate art and industry, the individual and the community, Mother Nature and common sense. At build-out, it will include:
- 20 square miles of land
- 18 million square feet of office, industrial and retail space
- Thousands of new jobs for the Albuquerque metro area
- 37,500 homes for 100,000 residents
- 3,200 acres for parks and open space
Mesa del Sol has an ideal location, less than 10 minutes from Albuquerque International Sunport and just 20 minutes (and no bridges) from downtown. So how is it that such a large, centrally located piece of land has gone undeveloped for so long? The short answer is that the New Mexico State Land Office, which owned the property, was waiting for the right development partner. In 2000, Forest City presented a plan for a sustainable, walkable, socially vibrant community. The plan not only included economic development and job creation, it began with these key building blocks and guaranteed a certain level of job creation as an ongoing prerequisite for developing the residential portion of the community.
In May 2001, the State Land Office announced that Forest City had been selected as the master developer of Mesa del Sol. The rest, as they say, is history.
How communities build for the future. (TIF & TID)
First, let’s get our terminology straight. Tax Increment Financing (TIF) is a tool that many municipalities utilize both to accelerate and manage growth. It begins when a municipality identifies and establishes a district or set of boundaries that will use the TIF. The municipality reviews the district’s previous years of tax revenue to set a baseline. Any new taxes generated over the baseline are used to fund new public infrastructure within the district. Then as new businesses and homes emerge in the new development district, the city reaps the rewards of additional tax revenues, which reimburse the city for the TIF investment. If instituted and managed properly, the city ends up with stronger growth and a net gain in tax revenue. That’s why 48 states now allow for Tax Increment Financing.
In New Mexico TIF is called TID, which stand for Tax Increment for Development. Same idea; different name.
So what’s a TIDD? Tax Increment Development Districts (TIDDs) are specific places that are being supported by TID. Each TIDD is governed by a board of directors appointed by the local government in which the TID is located. A single municipality or county can include several Tax Increment Development Districts. Presently there are five TIDDs in Mesa del Sol.
THE TID IN ACTION
- New Mexico adopted the statewide TID statute in 2006. All applications to utilize TID must be approved by the appropriate local governments, as well as the state.
- Mesa del Sol submitted an application to the City of Albuquerque to form TIDDs in order to begin infrastructure work on the new community. The City approved the application.
- The debt issued by TIDDs is not backed by the credit of the city, county or state.
- TID does not affect the existing tax base of the city, county or state.
- TID legislation does not involve any increase in rates for gross receipts taxes or property taxes.
- The city, county and state separately pass resolutions to dedicate to the TIDD up to 75 percent of additional tax revenues that result from the project for repayment of installation of PUBLIC infrastructure.
- The TIDD issues bonds supported by the dedicated new tax revenues. Bond proceeds are used to build public infrastructure, such as water and sewer lines, roads and schools. NOTE: Because any bonds that are issued are revenue bonds paid from the increased property and gross receipts taxes within the TIDD, neither the state nor any local government is liable with respect to those bonds.
- How is the TIDD governed? Each TIDD has a board of directors appointed by the appropriate local government. In the case of Mesa del Sol, the board is appointed by the City Council and is made up of;
- The President and Vice President of the City Council
- The District 3 City Councilor
- The Chief Administrative Officer of the City
- Budget Analyst – City Council Services
- Ex-officio members include a representative of Mesa del Sol.
- For TID financing to continue at Mesa del Sol, the new community must pass an annual test that shows the project is “no net expense” to the City. Mesa del Sol must also create a set number of jobs to pass the ” no net expense” test. Mesa del Sol must also be developed in a pedestrian-friendly, transit-ready, sustainable, “water-smart” manner with a certain number of affordable housing units. (This is how cities use TIDs to grow in a smart way.)
- New Mexico’s TID legislation requires that the project be sustainable and promote economic development, create workforce housing and allow for construction of public schools.
- The taxes generated are not paid to Mesa del Sol, but rather are used for economic development, workforce housing, the construction of public schools and libraries and publicly dedicated infrastructure such as sanitary sewage systems, draining and flood control and water systems, streets and roads.