Albuquerque Development Thread

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Downtown construction preps for ‘Entertainment Hub’

By Madeline Schmitt
KRQE News
• Video Link

ALBUQUERQUE, N.M. (KRQE) – Construction is underway downtown to make way for another major, multi-million dollar project coming to the city’s Entertainment District.

Right now, crews are tearing up where Central, 1st and Copper meet to square off the intersection. This is in preparation for the new ‘Entertainment Hub’ building planned for the northeast corner of the intersection.

The ‘Entertainment Hub’ project just snagged a contractor.

“This is part of a much bigger downtown revitalization,” Mayor Richard J. Berry said.

As soon as the intersection re-do wraps up in the fall, ground will break on the building that will become the home of a bowling alley, restaurants, shops and apartments.

“This site…is an old parking lot that will turn into a public-private partnership with a 430 space parking garage that you and I will ultimately own as taxpayers,” Mayor Berry said.

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ABQ says it has federal approval to begin spending on rapid transit

By Dan McKay
Albuquerque Journal Staff Writer

ALBUQUERQUE, N.M. — Mayor Richard Berry’s administration says it has the federal approval it’s been waiting for to start spending on the construction of the Albuquerque Rapid Transit project.

In a letter to U.S. District Judge Kenneth J. Gonzales, City Attorney Jessica Hernandez said the city has received what’s called a “Letter of No Prejudice” — which allows the city to immediately spend up to $59 million that is eligible for reimbursement by the Federal Transit Administration for ART.

Similar cities have started construction after receiving a letter of no prejudice, Hernandez said.

But she also said the city plans to wait for Gonzales to rule on litigation aiming to stop the project, before any construction begins, “barring unforeseen circumstances.”

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Plans to change traffic flow in downtown Albuquerque

By Lysee Mitri
KRQE News

• Video Link

ALBUQUERQUE, N.M. (KRQE) – One traffic study after the other, and people living in downtown Albuquerque are wondering when they’ll actually see change. Residents are worried about intersections, they say, are not safe for pedestrians.

City Councilor Isaac Benton started looking at downtown traffic two years ago, hiring out-of-state Urban Designer Jeff Speck. The recommendation: Instead of traffic signals, use all-way stops.

“Because there’s a stop in all directions, inherently it’s better for pedestrians,” Councilor Benton said.

He believes that will then encourage more people to walk downtown.

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Vacant Downtown property hits auction block

Stephanie Guzman
Reporter
Albuquerque Business First

A Downtown building that's been vacant for four years is about to hit the auction block, or rather an online auction platform.

Alvarado Square, the former home of Public Service Co. of New Mexico, was listed Wednesday for auction by FRE.com, an online real estate auction platform. It's being marketed by LFC Marketing Services LLC, and locally by John Ransom, Tim With and Keith Bandoni of Colliers International.

“I anticipate that this well-maintained office building which is centrally located in Downtown Albuquerque will sell at a fraction of its replacement value," said William W. Lange, president and CEO of FRE.com.

The minimum bid for the 251,000-square-foot building at 415 Silver Ave. SW is $2.95 million. To bid requires a deposit of $10,000, and Sept. 15 is the deadline.

The owners of the building, Albuquerque Plaza Associates, have been trying to land a tenant in Alvarado Square since PNM moved its last employees out of the building in 2012.

Alvarado Square was built for PNM, which stayed in it for 35 years. The energy company later moved its employees to the building next door, 414 Silver Ave. SW, and another office in the North I-25 area.

The eight-story office building was then listed for $11.1 million, a price that later dropped to $6 million. Bernalillo County considered buying the building, with negotiations on and off for years.

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A plan that could change ABQ development is headed toward a key vote

Stephanie Guzman
Reporter
Albuquerque Business First

After a year and a half of public hearings and workshops, the city's new comprehensive plan, the reworked document that will guide new development in the future, will have its first vote.

The Albuquerque/Bernalillo County Comprehensive Plan will go before Albuquerque's Environmental Planning Commission Thursday from 1 p.m. to 8 p.m. at City Hall.

The commission is tasked with looking at the updated comprehensive plan, a more than 500-page document, and making a recommendation to the City Council. The commission will likely take public comment and discuss the plan over several meetings, as the planning department staff recommends a continuance of the meeting until Aug. 25.

The comprehensive plan is a vision guide for development. While it primarily covers land use, it also addresses other topics including transportation, environmental and cultural resources, economic development and housing.

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City wants appeals court to put ART plaintiffs on the hook for potential delays

Joe Cardillo
Reporter
Albuquerque Business First

The battle over Albuquerque’s Rapid Transit project (known as ART) has moved to federal appeals court. Officials with the city of Albuquerque won an inch in it Tuesday, and asked the court to put opponents on the hook for potential project delays.

The city received approval in a Tuesday order from the U.S. Court of Appeals for the 10th Circuit to move forward with “nondestructive, preconstruction work.” Further ART construction is on hold pending additional court action. The court hasn’t yet ruled on a related request from the city that could place financial responsibility for further delays on Coalition of Concerned Citizens to MakeARTSmart, a group that includes business owners that initiated a federal lawsuit against the project.

“Because an appeal may take many months to complete, the City respectfully requests that the Court require the Coalition to post a bond in the amount of $1,350,000.00, which represents $7,500/day for 180 days,” the city said in a filing Tuesday. The city's filing said posting of such a bond could be delayed until Aug. 22 if the court allowed preconstruction work to go forward, which it subsequently did.

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Downtown’s office vacancy takes a turn (for the better)

Stephanie Guzman-Barrera
Reporter
Albuquerque Business First

For years, Albuquerque's biggest employers left Downtown for submarkets they thought were more suitable for their businesses. Those submarkets include business centers like as Journal Center and Uptown.

But with Molina Healthcare settled in and ABQ Health Partners set to move into 63,000 square feet Downtown, CBRE New Mexico reports it appears Downtown's story is about to turn around.

Its second quarter office market report highlights Downtown as an area to watch. Though Downtown's office vacancy is second highest in the city at 34.9 percent, CBRE points to the area's growing appeal.

"We anticipate other expansions within the Downtown submarket during the coming quarters," the report reads, which was written by researcher Atsuko Poelman. "The efforts to revitalize the Downtown area by public and private sectors seems to be a contributing factor in attracting occupiers."

With significant investments in the convention center, a new entertainment district, more coffee shops, breweries and a new grocery store opening Downtown, the neighborhood does appear to be improving.

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PNM gets the OK for Facebook energy contract

By Marie C. Baca
Albuqueruqe Journal Staff Writer

State regulators today approved a special services contract between Facebook and Public Service Company of New Mexico, bringing a proposed Los Lunas data center one step closer to fruition.
In a unanimous vote, the New Mexico Public Regulation Commission approved the application, which outlines how the state’s largest utility would supply power to the data center.

Facebook is considering both Los Lunas and West Jordan, Utah, for the site of its data center. Utah lawmakers plan to lure Facebook to the state with $240 million in tax breaks, but the strategy hit a snag Tuesday when the Salt Lake County Council decided to vote against the tax breaks in a crucial meeting next week.

The Los Lunas Village Council has already approved up to $30 billion in industrial revenue bonds for the project. The measure would allow the community to receive payments from Facebook in lieu of property taxes. Facebook’s identity was not disclosed to the council at the time the measure was approved.

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ART can move forward as 10th Circuit Court decision allows construction

Joe Cardillo
Reporter
Albuquerque Business First

After nearly a three-week wait, Albuquerque's Rapid Transit project can finally move forward.

The U.S. Court of Appeals for the 10th Circuit lifted a stay late on Friday that had halted the project, clearing the way for construction to start. The court had previously approved non-destructive, pre-construction work to go forward.

To win an injunction that would halted the project for a longer period, Coalition of Concerned Citizens to MakeARTSmart, which is behind the lawsuit, would have had to, according to the court's filings, demonstrate that they were likely to prevail on appeal, would suffer irreparable harm if an injunction was not granted, and that an injunction was in the public interest.

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Downtown ABQ grocery store to open Thursday

By Jessica Dyer
Albuquerque Journal Staff Writer

ALBUQUERQUE, N.M. — Downtown denizens won’t have to go far to buy a dozen eggs any more.

The neighborhood’s new full-service grocery store will finally open this week. Silver Street Market’s owners say they will crack open their doors at 6 a.m. Thursday following 1½ years of work and many more years of civic planning and community longing.

“We’re thrilled to finally open the doors,” said Kelly Ortman, who owns the store with husband Rob. “We’re as excited as everyone around us. It’s been a long time coming.”

Silver Street Market occupies 12,000 square feet of street-level space at the new Imperial Building at 2nd and Silver.

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County to start negotiations for new Downtown home

Stephanie Guzman-Barrera
Reporter
Albuquerque Business First

Bernalillo County will begin negotiating with the owners of Downtown's First Plaza Galeria, potentially buying the building while the owners take on the county's older assets.

County commissioners voted Tuesday night to allow county staff to start negotiations for the building, owned by Santa Fe-based Gemini Rosemont. It was approved in a 4-1 vote, with commissioner Lonnie Talbert dissenting.

First Plaza Galeria, 20 & 40 First Plaza Center NW, is a 316,000-square-foot building that has a few tenants, but not a single big user.

County commissioners agreed in October to fund a $75,000 feasibility study on locating all of the county's departments in the building. That came after negotiations stalled with the owners of Downtown's Alvarado Square, which the county once considered moving into. Alvarado Square was still on the table, though the building is now up for auction.

Roger Paul, Bernalillo's deputy county manager in the public works department, said negotiations with Gemini Rosemont would occur over several months.

The county wants Gemini Rosemont to take on several of the county's current buildings, many of which are older and in need of repair.

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Construction on entertainment complex could begin as early as next year

By Nikole Mckibben
DailyLobo.com

Planning and pre-development on a sports entertainment complex in the shadow of University Stadium is progressing, with construction expected to begin early next year on a project that is currently bigger than originally was expected.

The director of UNM's Real Estate Department, Tom Neale, who has worked for UNM for 10 years, said his department handles all of the leasing and property entities under the Board of Regents, in addition to helping academic departments acquire space off campus as well as on campus for businesses.

Neale is also the director of the nonprofit UNM entity Lobo Development, which is facilitating the plans for the entertainment complex on South Campus.

“54 Development was originally going to develop 25,000 square feet of entertainment and retail space. Their plans have grown to a 50,000-55,000 square foot project,” Neale said.

Sean Elliott, 54 Development’s brand and public relations developer, said he looks forward to bringing more people to the area to enjoy what makes Albuquerque tick, especially for sports fans.

“Ultimately, we will be successful if we engage the residents of Albuquerque and the surrounding areas with our offerings and provide a lifestyle space that students, educators, sports fans and families can enjoy year round,” he said.

There is confidence that the project will be successful, as more than $125 million dollars in renovations have been funneled into south campus over the years, Neale said.

The $60 million renovation at WisePies Arena aka the Pit, $25 million construction of Isotopes Stadium, and $40 million spent by American Campus Communities at Lobo Village and the BMX complex have allowed South Campus to become a distinct district, he said.

[southtucsonboy77]

My only concern is the lack of density and "neighborhood" flow of such a project...where the casual citizen drops by and eats, drinks, and shops on non-sports days. That area just really feels isolated. I hope it works out, but the initial smaller size of development probably would have been more logical...and if it worked out...a phase 2 could have come in play. Only time will tell.

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Major construction work on ABQ Rapid Transit to start in mid-October

By Dan McKay
Albuquerque Journal Staff Writer

ALBUQUERQUE, N.M. — Bradbury Stamm is on the clock.

Mayor Richard Berry’s administration signed an $82.6 million contract Wednesday that calls for the local construction company to finish work on Albuquerque Rapid Transit in 16 months, or by late 2017. The city is entitled to damages of $2,500 a day if the work isn’t done on time, city officials said.

Heavy demolition and disruptions along a nine-mile stretch of Central Avenue are expected to begin in mid-October as Bradbury Stamm puts hundreds of people to work building a network of bus-only lanes and bus stations between Louisiana and Coors.

Berry said he hopes the project will reach “substantial completion” by the time he leaves office. His second four-year term as mayor ends Nov. 30 next year.

He announced the signing of the construction contract during a 45-minute news conference that featured 14 speakers, including business owners, city councilors and the heads of business associations.

It was a celebration of sorts after the project survived litigation aimed at preventing the start of construction. Opponents also filled a series of public meetings earlier this year and shouted down city officials supporting the project.

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Vacant Downtown office building could have a future as residences

Stephanie Guzman-Barrera
Reporter
Albuquerque Business First

It's something only a few Downtown developers have tried — turning old office space into apartments or upscale lofts.

It's been done at the Banque Lofts, and is under construction at the former federal building Downtown.

Now, it appears developers are eyeing Alvarado Square in Downtown Albuquerque to do the same.

Alvarado Square, the former home of Public Service Co. of New Mexico, was listed for auction in July by FRE.com, an online real estate auction platform. It's being marketed by LFC Marketing Services, and locally by John Ransom, Tim With and Keith Bandoni of Colliers International.

The minimum bid for the 251,000-square-foot building at 415 Silver Ave. SW was $2.95 million.

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Facebook picks Los Lunas for its data center

By Marie C. Baca
Albuquerque Journal Staff Writer

ALBUQUERQUE, N.M. — Facebook has chosen to build its data center in Los Lunas, according to a statement from New Mexico’s congressional delegation.
“We welcome Facebook to New Mexico and are proud to help secure this new investment in our state’s future. Facebook will bring innovative opportunities for our economy and much needed jobs. As a leader in energy development, New Mexico is an ideal fit for the new facility, which is planned to be powered with 100 percent renewable energy, ” according to the statement from U.S. Senators Tom Udall and Martin Heinrich, and U.S. Representatives Steve Pearce, Ben Ray Luján and Michelle Lujan Grisham.

The announcement that Facebook will build its new $250 million data center in Los Lunas follows months of speculation.

The proposed data center has generated breathless enthusiasm throughout New Mexico since the beginning of the summer, uniting interest groups here that have traditionally found themselves at odds. In the race to beat out Utah for the deal, New Mexican politicos demonstrated that the state’s regulatory process could move beyond dissension and procedural issues to be accelerated under certain circumstances.

[southtucsonboy77]

That is great news for the Albuquerque area!

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New Rail Park May Spark Industrial Boom for Central New Mexico

By Garry Boulard
constructionreporter.com

A sweep of undeveloped desert land some four miles to the west of the center of Los Lunas could soon become a hub of manufacturing and transportation.

The plans for what is being called the Central New Mexico Rail Park have taken a significant step forward with a unanimous Los Lunas Village council vote approving annexation of 1,627 acres on the north side of New Mexico State Road 6.

At the same meeting, council members also voted to approve a special zoning designation for the land based upon the earlier recommendation of the Los Lunas Planning and Zoning Commission.

“I really think it represents a tremendous opportunity for us,” says Gino Romero, a Los Lunas council member who voted in favor of both the annexation and the special zoning.

“It’s true that with any rail park you don’t necessarily know what you are going to get until you get it,” Romero continues. “But we could eventually be looking at seeing anything from Fed Ex to UPS moving there,” says Romero, who adds that, at full build-out, the rail park could be worth up to 5,000 jobs.

An idea that has been talked about and studied for roughly a decade, the Central New Mexico Rail Park was conceived as an inland port providing designated space for manufacturing and distribution facilities.

But what makes that space so special is that it will be served by the Burlington Northern Santa Fe Railway.

“It will be a rail park, not a rail yard,” Tim Cummins emphasizes when talking about the development, noting that opponents of the proposal have fixated on the rail part, imagining heavy and groaning trains coming and going at the site all hours of the day.

“This is not going to be a rail yard like what is in Belen or the Abajo yards in the South Valley,” says Cummins, who is the owner of Rio Real Estate Investment Opportunities, which is developing the project.

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Exclusive first look: Downtown's latest loft units

Stephanie Guzman-Barrera
Reporter
Albuquerque Business First

The former federal building in Downtown Albuquerque is sort of like a big experiment, with a big price tag.

Buy a vacant office building for $1.51 million and completely gut it. Then drill through the concrete floors to add new plumbing and electrical lines. Add loft-like features with open-concept units and exposed ceilings.

What you end up with is 27 units on the first floor, between 406 and 716 square feet. Rents start at $450 and top off at $750. The building, renamed Merhan Lofts after the New Jersey-based developer Anthony Mehran, is located at 517 Gold Ave. SW.

Only the bottom floor of the Mehran Lofts has been renovated, with renovation ongoing on the second and third floor. The developer plans to tackle each of the eight floors one by one, potentially changing design based on market demand.

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Work to begin on $40 million Downtown project

By Jessica Dyer
Albuquerque Journal Staff Writer

ALBUQUERQUE, N.M. — Crews will break ground Wednesday on One Central, the $40 million mixed-use development at the northeast corner of 1st and Central.

The development features street-level commercial space — including some designated for entertainment purposes — plus 60 apartments and a 423-space parking garage.

The parking garage is scheduled for completion by late 2017, with the rest of the project expected to wrap about three months later.

Klinger Constructors is the general contractor. SMPC Architects designed One Central.