House Bill 176 will provide additional real estate options throughout New Mexico for prospective economic development projects
The New Mexico State Land Office and NMIDEA, a statewide economic development association, have applauded Governor Michelle Lujan Grisham’s signing of House Bill 176 into law.
Currently, the State Land Office is authorized to issue direct business leases to municipalities and counties for public purposes, such as economic development projects, for a term to not exceed 25 years. However, with the previous maximum allowable lease term for a direct lease to a municipality or county sitting at 25 years, state lands were often not an option due to difficulty in obtaining project financing with a shorter lease term, despite business interest in leasing those lands.
House Bill 176, sponsored by Rep. Andrea Romero, will extend the maximum lease term to 40 years. By extending the allowable lease term, more economic development entities would consider leasing state lands and investing in buildings within city or county managed industrial or business parks.
House Bill 176 was aimed at implementing one of the recommendations of the Economic Development Innovation Task Force, as established by House Memorial 16, which passed during the 2019 Legislative Session.
“The State Land Office is well-positioned to assist communities to expand options for economic development projects, such as industrial and business parks,” Commissioner Stephanie Garcia Richard said. “With the signing of this bill and the increase in the maximum allowable lease term for a direct lease to a municipality or county we are giving business the ability to better secure infrastructure and facility investments on state land, while also helping us raise money for the beneficiaries.”
“By extending the allowable lease term, additional real estate options will become available to communities throughout New Mexico for prospective economic development projects, which will encourage the expansion of new and existing businesses, resulting in more jobs and tax revenues.” said Raymond Mondragon, Board President, NMIDEA.