New Mexico

Albuquerque, New Mexico Economic Development Incentives for Skorpios Technologies Expansion

Photonic integrated circuits manufacturer Skorpios Technologies Inc. has announced plans for an expansion of its operations in Albuquerque, NM.

New Mexico LEDA

New Mexico LEDA (photo -gonm.biz)

Supported by $7 million in state and Albuquerque economic development incentives, the company will create up to 300 jobs over the next few years.

These will be high-tech engineering and manufacturing positions with an average salary of more than $60,000, and ranging all the way up to $150,000.

Skorpios Technologies is a fabless semiconductor company that has developed its own wafer-scale, silicon photonics process. Their proprietary technology has a wide range of applications for everything from high-speed video to data and voice communications for networking and cloud computing, storage, wireless and cable TV.

Skorpios Technologies Founder and CEO Stephen Krasulick said in a release that they are thrilled to continue the expansion of their business in Albuquerque, and look forward to collaborating with the State and City to create opportunities that benefit the community and the company.

“All of us at Skorpios would like to thank Governor Martinez, Secretary Barela and Mayor Berry for their outstanding support as we take the next step in the evolution of Skorpios,” added Krasulick.

Skorpios has been awarded $5.5 million in state incentives that will be provided as Local Economic Development Act (LEDA) funding to help develop infrastructure at the company’s Albuquerque facility to expand its research and development, test and assembly operations.

The City of Albuquerque will pitch in with another $1.5 million in LEDA funding to help with the company’s infrastructure spending costs. The LEDA awards from the city and state were cited as key to help keep Skorpios in New Mexico.

The Local Economic Development Act is New Mexico’s closing fund to help recruit new businesses to the state and help existing businesses grow and thrive. Governor Susana Martinez said in the release that “Building New Mexico into a high-tech jobs leader is a cornerstone of our efforts to grow and diversify our economy.”

Skorpios also said that it decided to expand its operations in New Mexico because of the state’s high quality of life and deep talent pool of workers experienced in hardware development and physical sciences.

New Mexico Economic Development Secretary Jon Barela said in the release that “Skorpios is a locally grown firm with the technology and expertise to be a game changer in the telecommunications and data communications industry, and we are proud they chose to keep their business in New Mexico.”

NMSU, Las Cruces, New Mexico Economic Development Partnerships Secure ARCA UAS Testing Facility

ARCA Space Corporation announced plans to build a new manufacturing and testing facility at Las Cruces Airport in New Mexico. The company will produce and conduct field tests of its AirStrato unmanned aerial systems (UAS) and Haas rocket series at this facility.

ARCA Air Strato UAV in Hangar

ARCA Air Strato UAV in Hangar (photo – Dragos muresan/wikipedia)

The project is supported by funding from the New Mexico Economic Development Department, an abated lease from the City of Las Cruces, and assistance from Mesilla Valley Economic Development, the NMSU Arrowhead Center, and the university’s Physical Science Laboratory.

The company is investing $1.2 million to construct a new 14,000-square-foot hangar and manufacturing space at Las Cruces Airport. As part of this project, ARCA Space Corp. has committed to creating at least 100 jobs in the next three years. These will be jobs with an average annual salary of $52,000.

ARCA was originally founded in Romania, and has succeeded in launching 15 flight missions in the last 16 years. After relocating its headquarters to Las Cruces, NM last year, ARCA is now a U.S.-based research and development company that aims to be a leader in the growing UAV market.

ARCA CEO Dumitru Popescu said in a release announcing the project that two of their space vehicles currently in development will be brought to Las Cruces in the near future for testing, manufacturing and operations from Spaceport America.

In order to secure the project, the New Mexico Economic Development Department announced that it will contribute $500,000 in Local Economic Development Act (LEDA) funds towards the construction of ARCA’s hangar and manufacturing space.

City of Las Cruces economic development incentives for the project, with an estimate value of $55,000, include an abated lease of office, showroom and hanger space for one year.

Governor Susana Martinez said in the release that not only does New Mexico now have a competitive business environment but a strong aerospace infrastructure with NMSU Physical Science Laboratory and Spaceport America positioning New Mexico to be an industry leader.

NM Economic Development Secretary Jon Barela said that the Martinez Administration, local officials, Mesilla Valley Economic Development and New Mexico State University all played an important role in bringing this amazing project to Las Cruces.

Las Cruces Mayor Ken Miyagishima likewise noted that this is a great example of collaboration between the State and City in using the Local Economic Development Act (LEDA) to attract good, family-sustaining jobs to Las Cruces in an industry that has enormous potential.

Mayor Miyagishima added that local partners like New Mexico State University, Arrowhead Incubator, the Physical Science Laboratory, the New Mexico Space Grant Consortium, Spaceport America, and MVEDA all worked on presenting Las Cruces as an ideal location for ARCA Space.

NMSU Vice President for Economic Development Dr. Kevin Boberg said in the release that NMSU’s economic development engine Arrowhead Center has been working with ARCA on a New Mexico Small Business Assistance Grant, and their Physical Science Laboratory worked with the company on securing FAA certifications.

Dr. Boberg added that this is an exciting demonstration of NMSU’s continued role in economic development through academic achievement.

New Mexico Capital Outlay Bill Provides Critical Economic Development Funding

A $293.7 million Capital Outlay Bill signed by Governor Susana Martinez includes critical funding for New Mexico economic development programs and road and highway infrastructure projects.

New Mexico

New Mexico (photo – rutlo/flickr)

The bill, passed through a special legislative session, expands New Mexico’s closing fund for economic development projects by $12.5 million, to a total of $50 million.

Local Economic Development Act (LEDA) funding is a vital tool that helps New Mexico communities attract new business and help existing ones to expand and grow. LEDA provides local communities access to funding for infrastructure upgrades or improvements required to support new and expanding businesses.

The capital outlay bill also contains $8 million for critical highway infrastructure improvements in and around the Santa Teresa borderplex where cross-border international trade has been growing at a fast clip and is driving the ‘Borderplex’ economy, a bi-national metro area of 2.5 million people spanning three states and two nations.

Santa Teresa’s recently expanded port of entry has reduced wait times and is making it the ideal place to access the ports of Houston and Long Beach or locations deep in Mexico by rail or on I-10, which connects with I-25 in Las Cruces, offering a direct route to the Canadian border.

The Borderplex is now a focal point of New Mexico’s growing leadership in international commerce and trade, and it has attracted huge economic development projects to New Mexico such as the recently completed $400 million full-service intermodal facility by Union Pacific on its El Paso-Los Angeles Sunset Route.

Funding for highway infrastructure improvements in and around this borderplex boom is essential to help the regional economy maintain its fast pace of growth.

All told, the capital outlay bill includes more than $70 million for highways and roads across the state. This includes $45 million for major and critical road and highway construction projects. This influx of state funding will allow New Mexico to partner with local and federal agencies and complete large-scale projects offering regional or statewide benefits.

A lot of this money will go toward repairing, resurfacing, and expanding New Mexico’s roads and highways, many of which are unsafe and in dire need of repair, and impeding economic growth.

Gov. Martinez said in a release announcing the bill that “When we invest in infrastructure, we create jobs – lots of them – in every corner of the state. And we achieve critical, lasting objectives. That’s exactly what this capital outlay bill aims to do.”

New Mexico Economic Development Dept Launches Revamped Website

The New Mexico Economic Development Department officially announced the launch of its newly improved and revamped website.

NMEDD website BRC

NMEDD website BRC (photo – gonm.biz)

The new NMEDD website has a different layout, and includes some new and interesting features such as the Business Resource Center (BRC), in addition to all the existing resources and information the site already had.

NMEDD Secretary Jon Barela said in a release announcing the launch of the new website that “Our website is a vital tool for our department to communicate with businesses and the public about the different ways we’re working to grow New Mexico’s economy.”

Sec. Barela added that NMEDD is making it easier for entrepreneurs to find what they need to successfully take advantage of state programs designed to help businesses open up shop, grow and expand.

The new BRC section of the website is intended to be a one-stop shop and resource for entrepreneurs and businesses looking to find out what steps they need to take to register and license their company, and succeed.

The BRC takes you through a standard series of steps from planning to start, and grow. You can use it to find customized assistance, and make use of a huge list of available toolkits for business planning, marketing, training, government contracting, workforce development, and business operations and technical development.

The BRC also has a complete listing of New Mexico Economic Development Dept programs that are already in place to assist businesses, including job training incentives, international trade, ISO 9001 training and preparation, finance development, business retention and expansion, etc.

But the most powerful and useful tool you will find within the BRC is probably the BRC directory. This is an extensive and categorized listing of New Mexico programs, incentives, service organizations and facilities that are working to help build businesses and the state’s economy.

The BRC directory includes categorized lists of everything from angel investors to business accelerators and incubators, and mentoring resources. You will find listings for organizations that will help you with business plan development, entrepreneurship training, patent and technology development assistance, and so on.

There are links to lab spaces, commercial kitchens, makerspaces, shared office space, and other such facilities. You will find resources to help you access small business loans, seed and early-stage funding, crowdfunding, FDI, micro-loan providers, etc.

The website also includes marketing materials that position New Mexico as a competitive destination for businesses, including success stories from around the state and video testimonials from businesses that have successfully located in the state.

Site selectors will find all the resources and data they need about specific New Mexico communities. Through an agreement with the Census Bureau’s State Data Center program, NMEDD provides access to a searchable database of available commercial properties, along with county and tribal data profiles. Not to mention a comparison of New Mexico data with the other 49 states.

The new economic development website was designed by award winning New Mexico-based web design firm Xynergy, Inc.

Albuquerque Economic Development Lands Flagship Food Group Expansion With 300 Jobs

Diversified global food company Flagship Food Group announced plans for an expansion of their operations in Albuquerque, NM.

Flagship Food Group expansion announcement in Albuquerque, NM

Flagship Food Group expansion announcement in Albuquerque, NM (photo – Albuquerque Economic Development)

As part of this expansion, the California-based Flagship will be creating 300 new jobs in Albuquerque, with plans to hire 155 employees over the next year and the remaining 145 in the next few years.

Flagship already manufactures products under its 505 Southwestern brand in Bernalillo County, and is relocating an out-of-state operation to a new location in Albuquerque, where it will consolidate both the existing and new operations.

Flagship Food Group CEO Rob Holland was joined for the announcement by Governor Susana Martinez, New Mexico Economic Development Department Cabinet Secretary Jon Barela and Albuquerque Mayor Richard J. Berry.

Also present were local officials representing Albuquerque Economic Development and Bernalillo County.

Gov. Martinez said in a release that they are proud of Flagship Food Group becoming their latest partner in growing New Mexico’s private sector economy.

Holland noted that they are looking forward to the New Mexico expansion, and added that the state has an extremely talented workforce and newly improved tax climate for manufacturing and exporting.

The Flagship CEO added that Gov. Martinez, Sec. Barela, Mayor Berry and the Bernalillo County Commissioners had shown a genuine interest in the company, and Flagship is thrilled to be in the state.

Albuquerque Economic Development recruited the project, with support from the Bernalillo County Economic Development Department and NM EDD.

Flagship applied for an Industrial Revenue Bond (IRB) of $10.25 million to help finance the acquisition of the property and for equipping the food manufacturing plant. The county will hold title to the personal property until such time as the company manages to repay the bondholders.

The New Mexico Economic Development Department is additionally providing $150,000 in incentives to help the company upgrade the new Albuquerque facility in Desert Surf Circle.

Sec. Barela said that New Mexico has been working hard to diversify its private-sector economy, and value-added food production was an area of natural growth for the state. He added that this industry provides well-paying jobs and brings new dollars into the state through exports.

Flagship Food Group, LLC is headquartered in Los Angeles, and serves many of the world’s leading retail, food service and grocery chain companies. Their brands such as Oasis, 505 Southwestern and TJ Farms Select are distributed through more than 30,000 retail outlets that include large retailers like Costco.

The company sells 170 million pounds of food product annually, and their purchasing for a food manufacturing facility can also make a big impact on the economy. Flagship already buys more than 2.5 million pounds of New Mexico’s Hatch Green Chile every year.

Apart from Los Angeles and Albuquerque, the company has additional offices and production facilities spread across locations including Boise, Atlanta and Indianapolis, and has one overseas location in London.

 

Four Corners Economic Development Snags PESCO Expansion in Farmington, NM

Oil-field servicing provider Process Equipment and Service Company (PESCO) announced another expansion at their headquarters in Farmington, NM.

Gov. Susana Martinez at PESCO jobs announcement in Farmington, NM

Gov. Susana Martinez at PESCO jobs announcement in Farmington, NM (photo – PESCO)

PESCO executives and Governor Susana Martinez, who made the announcement at the factory, were joined by New Mexico Economic Development Department Cabinet Secretary Jon Barela and local officials from San Juan County and Four Corners Economic Development.

PESCO is adding a 16,000-square-foot shop to their factory at Farmington, and will create another 150 manufacturing-related jobs with an average salary of $40,000 plus benefits.

The family-owned company was founded in the 1970s in Farmington by PESCO President Kyle Rhodes’ parents to design, manufacture, repair and service equipment used by oil and gas production companies in the San Juan Basin.

PESCO is now a leader in engineering and servicing production equipment for the oil and natural gas industry throughout the U.S. More than 90 percent of the company’s products are sold outside the San Juan Basin, including in overseas markets such as China and Australia.

The company now has around 100,000 square feet of production space in New Mexico and currently employs 340 workers, many of whom are deployed for field service operations in the San Juan Basin and Wyoming.

Governor Martinez said that PESCO is a home-grown company, marking a significant expansion. The Governor noted that while touring the PESCO facility a couple of years ago, they had talked about ways in which the State could better partner with businesses in order to make expansions like this possible.

Secretary Barela said that New Mexico’s recruitment and expansion pipeline was bare when Gov. Martinez took office, but the increased growth the state is experiencing is a result of their numerous efforts to make the tax environment more competitive and the business climate more welcoming.

The PESCO expansion is being supported through state incentives provided by the New Mexico Economic Development Department in the form of $500,000 in Local Economic Development Act funding.

Four Corners Economic Development helped the company secure the LEDA funding and additional incentives worth over $300,000 in the form of tax credits and training funds.

This expansion comes on the heels of an expansion by Accurate, also a family-owned company that is creating 250 new jobs in the Village of Los Lunas, NM.

 

New Mexico Local Economic Development Act Funding Helps Create 250 Accurate Jobs

Accurate, an Albuquerque-based manufacturing company, is going to build a new facility at the Los Morros Business Park in the Village of Los Lunas, NM.

Village of Los Lunas, NM

Village of Los Lunas, NM (photo – acommunitythatworks.com)

The company will break ground on the new 107,500-square-foot facility in Sept, and plans to create 250 new jobs with wages between $18 to $30 per hour.

Actually, the family-owned business is made of two companies – Accurate Machine and Tool (AMT) and Accurate Custom Injection Mold (ACIM). Together, they currently employ 50 workers, so the expansion will increase their workforce five-fold.

ACIM is one of only three companies in the United States producing in-mold labeled drink ware. Their product line includes food and beverage packaging for sports arenas and movie theaters.

In order to secure the project and keep the company’s expansion within the state, the New Mexico Economic Development Department approved $400,000 as incentives for AMT and ACIM through Local Economic Development Act funding.

Communities in New Mexico that have passed a Local Economic Development Act are able to adopt an ordinance for creating a strategic plan and an economic development organization, and embark on economic development projects tailored to their specific local needs.

Accurate Machine and Tool’s Greg Pluemer said they needed to expand because of increasing sales and contracts, but there was no room at their current location.

Pluemer added that they looked at the numbers and it was clear that New Mexico is the most competitive and welcoming place for them to operate. He also singled out the new tax changes for manufacturers as one of the factors that helped them decide.

Legislation signed by Governor Susana Martinez in 2013 introduced a single sales factor for manufacturers and is reducing New Mexico’s corporate income tax rate from 7.6 to 5.9 percent in stages over five years. Another piece of legislation eliminated tax pyramiding, a practice which subjected finished construction and manufacturing sector projects to double and triple taxation.

“We are proud to help local, family-owned companies like Accurate grow and expand in New Mexico,” said Governor Martinez in a statement issued by the New Mexico Economic Development Department.

NMEDD Cabinet Secretary Jon Barela said he is thrilled that companies like Accurate continue to find New Mexico’s business environment as a competitive place to do business.

Secretary Barela added that they have been working hard to reform the climate for businesses, and continue to improve New Mexico’s reputation as an ideal place for manufacturing.

New Mexico FundIt Federal-State Partnership Offers One-Stop Funding for Community Projects

New Mexico has launched a program called FundIt that brings together state and federal agencies with local officials in order to help communities in the state get complete funding for their projects.

Gov. Martinez announcing NM FundIt program

Gov. Martinez announcing NM FundIt program (photo – NMEDD)

This one-stop funding program provides a centralized location to obtain financing from start to completion for projects that will help with their job creation efforts and assist small business development.

Communities undertaking infrastructure projects will be able to vet their project in front of multiple state and federal infrastructure funding agencies simultaneously.

The federal and state agencies that are participating in the FundIt program will work together to analyze and compare proposals such as downtown revitalization, industrial parks, business incubators, housing projects and infrastructure development.

Federal agencies including the SBA, USDA and HUD will coordinate funding for FundIt projects with the New Mexico Departments of Transportation, Environment, Finance and Administration, the Mortgage Finance Authority and the NM Finance Authority.

Projects will also be submitted by the Council of Governments (COGs), the NM MainStreet program and regional representatives of the NM Economic Development Department.

The plan to create this one-stop funding group came from the New Mexico Rural Economic Development Council, which was restored to assist smaller communities in the state improve their economic development efforts.

This FundIt program is one of the components of New Mexico’s plan for “Rural Renaissance” and has been included as a part of the state’s five-year economic development strategic plan.

Announcing the program, Governor Susana Martinez said that it is important, especially for New Mexico’s rural communities, to be able to identify funding for projects that will help grow jobs and improve the quality of life for residents.

The Governor said they want to help by making the process more effective by bringing all the players in one place instead of making communities go to each agency separately for piecemeal financial support.

New Mexico Economic Development Cabinet Secretary Jon Barela said the FundIt initiative will save communities and small businesses time, helping them focus on creating jobs instead of navigating a maze of government agencies.

Raytheon New Mexico Expansion Aided by Local Economic Development Act Funding

The design and construction of a warehouse at a Raytheon Diné facility in the NAPI Industrial Park near Farmington, New Mexico is getting state funding in the form of Local Economic Development Act (LEDA) funds.

New Mexico LEDA

New Mexico LEDA

To be specific, the New Mexico Economic Development Department is providing San Juan County $200,000 in LEDA funding on behalf of the Raytheon expansion project.

New Mexico communities that have passed LEDA have in effect created an economic development organization with a strategic plan for entering into public-private partnerships for an economic benefit.

The Act empowers communities to embark on economic development projects tailored to their local needs, and further allows counties and municipalities to enter into “Joint Powers Agreements” that are helpful in planning for and supporting regional projects.

LEDA can be used to support infrastructure and improvement projects, economic development projects that create jobs, and retail sector projects. The LEDA funding being provided to San Juan County will help retain 42 jobs and create two new jobs.

New Mexico Economic Development Cabinet Secretary Jon Barela said this funding was much needed to help Raytheon fulfill its current mission and expand capacity. Sec. Barela said the LEDA program is a great tool to help the department expand and recruit economic-base jobs to New Mexico, and added that they are happy at being able to assist San Juan County and Raytheon.

The Raytheon Diné facility has a total of 207 employees, and has been located since 1989 at the 250-acre Navajo Agricultural Products Industry (NAPI) Industrial Park located a few miles south of Farmington. They produce electro-mechanical assemblies for the Tucson, AZ-based Raytheon Missile Systems (RMS).

The NAPI Industrial Park is a part of the Navajo Reservation covering 24,000 square miles spread across New Mexico, Arizona and Utah. The Navajo Nation last year approved $3.3 million for Raytheon Diné’s expansion project. This funding is being provided from their Business Industrial Development Fund.

RMS Spokesman John Patterson said the company values its relationship with the Navajo Nation, San Juan County and the State of New Mexico, and added that they will use the new warehouse to more effectively manage operations at the NAPI Industrial Park facility.

Tesla’s Two-State Site Selection Solution for Gigafactory

Back in February, Tesla Motors, Inc. (NASDAQ: TSLA) clarified in an SEC filing that the site selection process for Tesla’s battery factory, known as the Gigafactory, had been narrowed down to four states – Arizona, Nevada, New Mexico and Texas.

Tesla Gigafactory

Tesla Gigafactory (photo – teslamotors.com)

Now, Bloomberg News quotes Tesla CEO Elon Musk as saying in an interview that the company is close to naming not one, but two states for the Gigafactory project, which calls for an investment of up to $5 billion and creation of up to 6,500 jobs.

Tesla is apparently planning to continue the site selection and negotiation process with both states all the way to a ground breaking.

The reasoning behind pursuing negotiations and preparation of two sites in different states for the same project is that Tesla wants to make sure they minimize the risk of delays in case any last-minute hiccups arise with one site.

Musk notes in the interview that it is highly unusual to start construction at two locations when the intention is to use only one, but they may eventually need another Gigafactory.

The prospect of being in the running for a future second Gigafactory may come as little consolation for the site which does everything Tesla wants right up to the ground breaking, but then is left with no project and regret at losing billions of dollars being pumped into the economy, millions in new tax revenues, and thousands of jobs being created.

According to the specifications made public by Tesla, the sites they are looking at have to be on lots that are 500-1,000 acres in size, offering the ability to build 10 million square feet of production space on one or two levels.

The timeline calls for Tesla to begin supplying battery packs from the Gigafactory in 2017, which gives them approximately three years to complete the site selection, finalize one location, build the factory and get it up and running. The plant will attain full production capacity by 2020. At that time, the Gigafactory is expected to be able to fulfill production demand for 500,000 Tesla vehicles annually and stationary storage applications, in the process reducing battery pack cost by 30 percent.

The location also needs to have open spaces adjacent to the Gigafactory site that will be suitable for wind and solar energy projects that will provide cheap and clean power for the Gigafactory.

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