ALBUQUERQUE – Today, Mayor Tim Keller and city leaders joined downtown business leaders and property owners to unveil a plan to change the way downtown Albuquerque develops. Two key initiatives, a Downtown Business Improvement District (BID) and a Downtown Tax Increment Financing (TIF) district, were announced. They transform the downtown economic landscape, give power back to the people and help government get out of the way. Both will provide the necessary tools and structures to help growth gain momentum and be sustained regardless of changes in local government and political leadership.
“The best thing we can do for downtown is to give the community the means and opportunity to build its own future without being dependent on politicians, election cycles or city bureaucracy,” said Mayor Tim Keller“I have loved downtown my entire life and know there are so many things that make it great, like concerts at the El Rey, late-night dining at Sister, and the occasional large street concert. These changes will help us be the best partner we can be so we can preserve what we love about our downtown and invest in its future.”
The city will present a bill to the City Council to help improve the quality of life downtown and hold absentee and out-of-town landlords accountable.
The City is moving forward with implementation of a Tax Increment Financing (TIF) District, a powerful tool that leverages growth in city and county property taxes and city, county and state gross receipts taxes. A downtown TIF could generate $200 million in 20 years that can be reinvested in downtown real estate, businesses and other activities. Thanks to legislation the City fought for in Santa Fe, the City can immediately implement a property tax-based TIF, followed by a gross receipts TIF when the State opens applications in early 2025. This long-term funding source ensures that the benefits of the TIF extend well beyond current administration and provides ongoing revenue to keep downtown thriving.
Finally, the city is working with downtown business owners and encouraging them to form a Business Improvement District (BID). BIDs are a mechanism used in communities nationwide to encourage downtown commercial efforts. BIDs are funded by a levy from participating property owners and are managed by a board that ensures the interests of the downtown community are at the forefront of all activities. Under a BID, the city can enter into agreements with the BID to transfer services such as parking, security and street cleaning; property owners are given autonomy to manage these services according to their needs. This approach promotes community ownership by reducing government interference and allowing downtown to shape its future. Downtown is preparing to present its petition to City Council soon.
“I thank the MRA staff for their work in funding our Downtown Capital projects, one year earlier than expected,” said District Councilor 2, Joaquín Baca“This gives the city a head start on some very important improvements here downtown.”
“This approach is a recipe for success for the renewal of inner cities across the country,” said MRA Director Terry Brunner“It is a reliable and sustainable path forward for downtown Albuquerque and will create opportunities for transformative investments.”
Dozens of cities are using these tools, and together, BIDs and TIFs are driving economic growth downtown by providing the money and structure that downtown communities need to grow. The City invites the downtown community, businesses and property owners to participate in this transformative endeavor and play an active role in creating a vibrant, dynamic and economically thriving downtown Albuquerque.
