§ 2-14-040. Economic development strategic plan.
Note: The terms "city," "Alamogordo" and "City of Alamogordo" referred to in this economic development strategic plan refer to the city government of that legal entity called the City of Alamogordo.
(a)
Economic development goals: Having encouraged the support of the community and its leadership through public meetings and interviews, this economic development strategic plan declares the following to be desired goals:
(1)
To diversify the local economy by the creation of additional jobs in existing business and the development of new business.
(2)
To support the development of industrial/business park(s) that will be attractive to new and expanding business.
(3)
To, when feasible and within the provisions of the New Mexico Local Economic Development Act, use public funds to assist in the development of new jobs.
(4)
To only assist businesses that meet all applicable environmental rules and regulations, both state and national.
(5)
To encourage cooperation between the public and private sectors as they assist in the creation of new jobs.
(6)
To support and encourage actions that will foster the utilization of Holloman AFB and White Sands Missile Range at their current levels of employment and when possible work for the creation of additional jobs.
(7)
To help develop within the community's resources the best possible vocational and other skill training to prepare the local populace to enter the work force.
(8)
To help develop the arts, cultural and entertainment industries within Alamogordo.
(b)
Types of businesses that meet the community's goals: Those that fit most or all of this criteria will be selected when considering giving assistance under the Local Economic Development Act. This list is not necessarily all inclusive, and should an industry fall outside this preferred list, individual consideration will be granted.
Alamogordo considers the following types of businesses to be those that are preferred or meet the community goals:
(1)
Industry that meets all environmental standards both state and federal.
(2)
Industry that does not use large amount of water in its production processes. Exceptions may be made in instances where the water is mostly reprocessed rather than discharged.
(3)
Industries that pay a wage that will help improve the local per capita income.
(4)
Industries that can take advantage of the highly skilled personnel that are available as the result of discharge or retirement from area military installations.
(5)
Qualifying office/service industries such as telemarketing or data processing that provide jobs attractive to high unemployment groups including second incomes for families.
(6)
Industry that will help diversify the local labor market and lessen the reliance on federal government employment.
(7)
Research and development, particularly those related to the aerospace industry.
(8)
Light assembly or manufacturing industry that are labor intensive.
(c)
Criteria for community assistance: Community assistance will be considered for those industries that meet the criteria of a "qualifying entity" as defined in the Local Economic Development Act Law of 1993, Chapter 297, 5-10-3 as follows:
(1)
An industry for the manufacturing, processing, or assembling of agricultural or manufactured products;
(2)
A commercial enterprise for storing, warehousing, distributing, or selling products of agriculture, mining or industry, but, other than as provided in paragraph (5), (6) or (9) of this subsection, not including any enterprise for sale of goods or commodities at retail or for distribution to the public of electricity, gas, water or telephone or other services commonly classified as public utilities;
(3)
A business, including a restaurant or lodging establishment, 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, but, other than as provided in paragraph (5) or (9) of this subsection, not including businesses primarily engaged in the sale of goods or commodities at retail;
(4)
An Indian nation, tribe or pueblo or a federally chartered tribal corporation;
(5)
A telecommunications sales enterprise that makes the majority of its sales to persons outside New Mexico;
(6)
A facility for the direct sales by growers of agricultural products, commonly known as farmers' markets;
(7)
A business that is the developer of a metropolitan redevelopment project;
(8)
A cultural facility.
In deciding the eligibility for community assistance, the city commission may choose to work in conjunction with the county economic development council to be the city's agent in dealing with projects and formulating recommendations to the city commission.
(1)
Information required. For an applicant to be considered for assistance the following may include but is not limited to the following:
a.
Company financial history.
b.
The number of jobs to be created.
c.
The types of business and jobs including a business plan.
d.
Compatibility with Alamogordo's economic development goals.
e.
Other resources available to the borrower.
f.
Financial and marketing projections.
g.
Other information deemed pertinent to the city.
(2)
Information verification. The city will use due diligence to verify all facts about the business seeking assistance including but not limited to:
a.
Requiring financial statements and appropriate tax records to be made available by the business.
b.
Investigation to determine the validity of any claims to patent rights, trade secrets, etc.
c.
Verification of financial data including requesting data from banks and other financial institutions that may have had previous dealings with the business seeking assistance or its principals.
d.
Review of information pertaining to any other borrowing by the business or its principals that might affect the business's ability to repay debt or fulfill other obligations, if any, owed to the city.
e.
Review of the business's plans and marketing plans proposed by the borrower including, if deemed necessary, outside professional review of technical data.
(d)
Investment protection. The city will provide adequate safeguards to insure that its rights and financial commitments are adequately protected and recoverable in the event of default. No investment will be made that is not in compliance with the Local Economic Development Act. Protection may include but is not limited to:
(1)
Security provided the city may be in the form of a lien, mortgage or other indenture and the pledge of the qualifying business's financial and material participation and personal cooperation to guarantee the borrower's performance pursuant to the project's goals.
(2)
Any investment in streets, utilities or other public works will be made in accordance with city policy that provides security for any city investment made pursuant to the attraction of a business under the Local Economic Development Act.
(3)
Provision for performance review will be established to insure that the business is operating in accordance with its agreements with the city. This may include milestones, measurable goals and time limits on project development and completion. Provisions for performance review may include penalties for unsatisfactory performance.
(4)
The contribution made by each party and its participation in the project will be clearly stated in the agreements. Contributions made by the qualifying entity must be of value and may be money, in-kind services, jobs, expanded tax base, property or other thing or service of value to the local economy.
(5)
There will be separate accounts for all financial dealings.
(6)
An annual independent audit of the fund/account shall be required.
(e)
Possible community assistance. Community assistance under the Local Economic Development Act may include:
(1)
The sale or lease of city-owned land or other property in return for pledges to provide new jobs of a value commensurate with discount from market value granted in any land/property sale or lease. Terms of said sale/lease may provide penalties including return of the property for failure to meet goals for the creation of jobs.
(2)
Alamogordo will consider building and leasing or selling a facility in return for new jobs. The terms of such a lease/sale shall be commensurate with the number of new jobs created. This reduced lease/sale shall have provisions for adjustment of the lease/sale price in the event the lessee/borrower fails to meet the previously established employment goals.
(3)
The minimum benefit to the community to qualify for assistance is the creation of new jobs that pay an hourly rate at least equal to the federal minimum wage or other standards that may be adopted.
(4)
The community will assist the new business in obtaining vocational/educational training from local sources whenever possible. The community will also assist in obtaining matching funds if available under the New Mexico In-Plant Training Program.
(5)
When appropriate information is presented and an application is made the city will issue industrial revenue bonds to assist in the location or expansion of a qualifying business. These bonds may include tax abatement when deemed appropriate.
(6)
Under circumstances where the benefit to the community is not clear, an economic impact analysis may be requested by the city.
(7)
Assistance under this Act shall not exceed the expenditures of monies exceeding five (5) percent of the city's general fund budget in any one (1) year. Other assistance, such as the sale of already owned city land, will be considered on an individual basis.
(f)
Community expectations and benefits. The city expects the economic development strategic plan to help direct the community towards goals of greater economic diversification and increased per capita income as the result of more and better jobs.
(g)
Project termination. The city may by ordinance terminate this economic development strategic plan. It may also terminate projects developed under this plan provided the term of any existing contract must be satisfied. Any monies left in the account or funds for this project(s) shall be transferred to the general fund.
(Ord. No. 983, 8-13-96; Ord. No. 1548 , § 1, 11-13-17; Ord. No. 1577 , 10-9-18)