Title
Discussion on Metropolitan Redevelopment Area (MRA) Commission
Body
Councilor Herrmann requested a discussion about the option of creating a Metropolitan Redevelopment Area (MRA) Commission. Currently, the County Council serves as the decision making governing body having authority over the two MRA's in Los Alamos - White Rock and Los Alamos Downtown East.
Background
New Mexico State Statute empowers municipalities to establish Metropolitan Redevelopment Areas in downtown areas suffering from blight, physical and economic deterioration, and/ or facility underutilization. The statute grants municipal bodies the ability to implement certain activities within these areas that can stimulate economic development, including:
- Land and building acquisition
- Adaptive reuse or demolition
- Rezoning and modification of zoning regulations
- Transportation improvements
- Cultural and community facilities
- Housing projects
MRA tools to incentivize redevelopment of blighted areas include:
- Establishes a basis for creating a Tax Increment Financing (TIF) district that dedicates increased tax revenues generated by redevelopment within the district for reinvestment in public improvements within the district.
- Creates a framework and priorities for considering Public-Private Partnerships where public funds assist with making the re-development feasible such as providing fee waivers or reimbursing the costs of public infrastructure and demolition costs associated with the re-development project.
- Establishes a basis for creating a Tax Increment District (TID) where tax revenues generated by the redevelopment project are reinvested into the project for public amenities and infrastructure.
- Establishes the basis for requesting a Zoning Code change or exemption.
- Establishes priorities for Local Economic Development Act (LEDA) funding request for economic development growth.
Assessment of the White Rock town center for MRA eligibility was completed and presented to Council on August 18, 2020.
Establishment of the area boundary was approved by Council on June 8, 2021 via Resolution No. 21-06.
MRA White Rock Plan was adopted by Council on October 18, 2022 via Resolution No. 22-19.
Assessment of the East Downtown Los Alamos for MRA eligibility was completed in February 2024.
Establishment of the area boundary was approved by Council on May 7, 2024 via Resolution No. 24-08.
East Downtown Los Alamos MRA Plan was adopted by Council on September 9, 2025 via Resolution No. 25-18.
The function of the decision making governing body for an MRA, whether is the Council or authorities are delegated to a MRA Commission, is to consider the request of public dollars use on a case-by-case basis and is not an entitlement program. The establishment and existence of a MRA simply defines there is an area of blight and offer opportunity. THe MRA does not obligate the property owner or the governing body responsible for approving the use of public funds for public benefit to move a re-development project forward or seek public financial support.
Reasons for having a separate MRA Commission:
MRA commission is used solely as an advisory board to the Council and would be an additional step for any MRA project requesting public funding.
MRA also has a TIF district established, where the businesses within the MRA are given authority to prioritize how the additional tax revenues generated by new or expanded business activities generated within the MRA are spent within the district and within the confines of eligible uses.
MRA has publicly owned land and the commission is used as a steering committee for visioning the re-development of the public lands.
MRA Commission or Board enabling ordinance examples:
Link to City of Santa Fe - https://librarystage.municode.com/nm/santa_fe/ordinances/code_of_ordinances?nodeId=1245719
Link to City of Farmington - https://library.municode.com/nm/farmington/codes/code_of_ordinances?nodeId=CICO_CH22PLDE_ART4MEREAG
Link to Town of Taos - https://www.taosnm.gov/DocumentCenter/View/4686/25-01_MRA-Published-Ordinance-PDF
Anticipated challenges and requirements to establishing an MRA Commission for Los Alamos:
- MRA Commission members are typically required to have professional expertise such as commercial real estate, commercial development, banking, law, affordable housing, or licensed design professionals and be residents of the communities with the MRAs. Los Alamos is a small community population wise in comparison to other cities and towns in New Mexico with MRAs, and finding specific professionals with the time and without conflicts of interest to serve on the commission is limited.
- Los Alamos MRAs are quite small geographical areas and the number of re-development opportunities limited in quantity.
- MRA Commission does not replace the necessary function of staff to review applications completeness and development necessary agreements that conform with applicable laws prior to the governing body's consideration of approval.
- MRA Commission is established by ordinance and would require clear definition of authority within the bounds of existing laws and administrative staff and legal counsel support
MRA Plan recommendation, along with Los Alamos Commerce and Development Corporation (LACDC) and Los Alamos MainStreet support, is for County Council to serve as the MRA governing body for efficiency in moving applications forward.