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Rio Rancho Growth and Development Update

Rio Rancho Growth and Development Update

Presented by Rio Rancho Mayor Gregg Hull at the Greater Albuquerque Association of REALTORS® on April 8, 2015.

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  1. Rio Rancho Facts • 3rd Largest City in the State

    • Population of 91,956 • Median HHI of $60,125 • Median age is 34.7 with: • Under 5: 7.2% of the population • Under 18: 28.1% • The average household is 2.75 people • The city of Rio Rancho is ~66,670 acres of which less than ~20% is developed. 4
  2. Trade Area Overview • Rio Rancho has five-(5) distinct trade

    areas: • Unser Gateway: • Emerging rapidly • 528-South: • Established with new entrants via re-development • Loma Colorado/Northern: • Emerging • City Center: • Under-served • Enchanted Hills: • Emerging  Established 6
  3. Presbyterian Rust Medical Center • Oct 2011: Opened with 68

    beds • Jul 2012: Built out last floor to 24 beds • Feb 2014: Announced plans to add a six-story patient tower • $80M project, • Up to 120 additional beds • Cancer center • Physical therapy gym • 100 new jobs • Total to 650+ FTEs (with 700+ employees) Unser Gateway Completed / Under Construction 8
  4. Rio at Rust Skilled Healthcare Facility Unser Corridor Under Construction

    • 24/7 skilled healthcare facility featuring nursing and physician care and therapy services • Estimated project value of $10.5 million, 51,000 square feet • Construction started January 2014 with a 12-month build • Anticipated opening January 2015 • Employment of 120+ 9
  5. Petroglyph Medical Plaza • 19 total acres • Lots 0.73

    – 8 acres • 60,000 SF Class A Medical Office Unser Corridor Announced 10
  6. Rio Grande Gracious Retirement Center • One of the 1st

    projects in the Unser/Westside area • Independent Senior Living • $25 Project • 130 Apartments and four residential cottages • Opened Spring ‘13 Unser Corridor Completed 11
  7. Update: Einstein Bros Bagels – Unser Pavilion Then - End

    of Q1-14 (About ~90+ Days) “We have had record weeks of any Einstein Bagels in Albuquerque” “We are doing nearly double in sales compared to my store in Albuquerque” “The drive thru is doing 30-40% additional sales” “We are seeing 50-100 transactions more per day than we expected” Now – September 2014 Update “The store opened with record numbers. It has leveled out to a very healthy number.” “We are now doing about 20% more than my ABQ store.” “This is TRUE! And it’s closer to 40%!” “50 is about accurate.” Verbatim quotes from Natalie Palmer, Einstein Brothers Bagels Franchisee: 13
  8. • Two more questions: • Q: Is the RR Location

    still the top performing store in the ABQ Metro Area? • A: “Yes. Rio Rancho is still the top performing store in the market. And I feel there is still a huge potential for growth with new development in the area and the untapped catering market in RR.” • Q: Did the success of the RR location propel you to open your new Westside location on an accelerated time-table and/or ahead of other options? • A: “Partly. We are required by Einstein to open up a certain number of stores per year. The fact that RR is a high volume store did help accelerate the time table some.” Update – Con’t: Unser Pavilion – Einstein Bros Bagels Verbatim quotes from Natalie Palmer, Einstein Brothers Bagels Franchisee: 14
  9. Dion’s Update 16 • Quote from Mark Herman, Dion’s CEO,

    on the location’ s initial success, 30 days after opening: “Our new store at Unser & Cabezon in Rio Rancho is performing very well. At this point we are more than 50% over our initial sales projection. Traffic seems to be increasing in the area every week. It was the right time for Dion’s to establish a location in this rapidly growing area.” • Plan submittal to building permit issued: 21 days
  10. The Village at Rio Rancho • Mixed-use pedestrian oriented retail-

    commercial master planned development • 65± Acres • 400,000± SF Unser Corridor Announced 17
  11. Re-Development New Retail in 528-South • SWC NM528/Southern Blvd •

    Re-development of the original Rio Rancho Shopping Center 528-South Completed Under Construction 21
  12. The Neighborhood at Rio Rancho Loma Colorado - Northern Announced

    • ‘Lifecare’ Facility • SEC of Loma Colorado Dr/ Northern Blvd • North edge of Pulte’s Loma Colorado • $36M Project • 180 jobs 22
  13. Plaza at Enchanted Hills • SWC of EH Blvd and

    NM528 • 225,000± SF of retail • Mid-2015 Enchanted Hills Tenants to include: • Bed, Bath & Beyond • Michael’s • Famous Footwear • Rue 21 • Kirkland’s • Petsmart • Plus restaurant users and shop space Under Construction 25
  14. PMG @ 528 (Presbyterian Medical Group) • $4.4M project •

    18,343 SF on 6 acre site • Site is master-planned for future growth • 40 jobs include 4-5 MDs • Opened in early Fall 2014 Completed – Now Open 27 Enchanted Hills
  15. City of Rio Rancho City Hall 300 FTEs on-site Unser

    Blvd 4-Lane Widening Completed 2012 $8M Project Santa Ana Star Center 100+ events & 250K+ attendees annually Hewlett Packard 800+ FTEs $45M payroll Opened 2009 UNM Sandoval Regional Medical Center $143M Facility 300 FTEs Opened summer 2012 Central NM Community College 1500+ Students Opened 2010 UNM West 750+ Students Opened 2010 Broadmoor Blvd Final design of extension underway (Construction to begin in <15 mos.) City Center Rio Rancho, NM 87144 Note: The information contained was collected from third party sources. It is believed to be reliable, but no guarantee, warranty or representation about it is made. It is user’s responsibility to independently confirm its accuracy and completeness. Unser Blvd NM347 To US550 & I25 S&P Data 100 FTEs in ‘15 Opened Nov/’14
  16. S&P DATA • 425 Jobs ramped- up over 5 years

    • Contract/3rd Party Customer Contact Center • Fortune 500® customers, such as American Express, Apple, McDonald’s, Mercedes-Benz, Sprint, and UPS. • Heavy focus on value-added and consultancy • Absorbing plug-n- play space • SW Expansion • 5 locations in Great Lakes region 31
  17. Jobs Update Company Announced Alliance Data 200 DHF Technical 35

    Intersections 70 Neighborhood at RR 180 PHS Rust 100 PMG @ 528 40 Rio at Cabezon 120 S&P Data 425 Stolar 25 Total 1,195 32
  18. Bank of America 33 • Recently announced adding 300 jobs

    to existing Rio Rancho facility for video chat ATM program • BOA’s decision to expand their presence in Rio Rancho is a testimony to the strength of the labor force available in our community • The permit for tenant improvements at this facility was submitted on March 3. It went through the review process, which was completed on March 11. The permit was picked up and officially issued on March 13.
  19. Mariposa •~150 Homes •~575 Finished Lots •~5500 Platted Lots Active

    Builders: •Sivage •Twilight Lomas Encantadas •~250 Homes •~250 Finished Lots •~1800 Platted Lots Active Builders: •Abrazo Homes •DR Horton Loma Colorado •~750 Homes •~250 Finished Lots Remain •~80 ac of commercial Active Builders: •Pulte Homes •Raylee Homes Cabezon • ~2500 Homes Occupied Stonegate & adjoining sub- divisions ~1400 SFR ~300 Attached units ~10 ac of commercial Rio Rancho Residential – Master Planned Communities 35
  20. More Residential • Stonegate Master Plan • 1400 units •

    ~10 ac of commercial • 111K SF office/retail • Solcito and Mellon Ridge • 300 lots • LGI Homes at Camino Crossings – 88 Homes • Raylee Homes has 5 storefronts in Rio Rancho Central RR Announced & Under Construction 37
  21. North Rio Rancho Residential • Lomas Encantadas - Two active

    builders: • Abrazo and DR Horton • Mariposa: • Harvard Investments recently purchase this high-end 800-acre high desert environmentally conscience master plan • Coupled with the settlement reached in summer 2013 capping Homeowners’ monthly PID payments, dynamically renewed activity and interest • 550+ finished lots in current phase • Residents served by Unser Gateway and Enchanted Hills trade areas 38
  22. Roads • Broadmoor Blvd. (Northern Blvd. to Paseo del Volcan)

    • Final design of extension underway • Funded for construction in FY15 with anticipated completion in summer 2016 • Westside Blvd Improvements • Bridge and eastbound lane approaches construction, completion of top mat of asphalt • Partially funded by City and State • Southern Blvd Preliminary Design • Input from business community and corridor stakeholders • The 1st-phase, from N.M. 528 to Golf Course, slated for FY18 40
  23. Development Services Department • 2-Hour Building Inspection Appointment Window •

    Assessment Report done using stakeholder input to identify reputation of “not business friendly” • Recommendations from the report grouped into seven areas: communication, attitude, problem-solving approach, process requirements, training, and management/leadership • City has been and will continue to implement action items 42
  24. Tools • Gross Receipts Investment Policy (GRIP) A developer/retailer pays

    for the cost of public infrastructure improvements (roads, drainage, water and wastewater lines, etc.) for a project, and in return the city refunds a percentage of the yearly applicable gross receipts tax revenues it receives that are directly attributed to the retail sales of the project/business back to the developer up to a maximum number of years. • Tax Increment Development District (TIDD) A TIDD issues bonds to finance public infrastructure improvements (streets, water, wastewater, drainage). The TIDD bonds are secured by a dedication of certain municipal, county, and/or state-shared gross receipts tax that are generated in the TIDD. The length of time and amount of gross receipts tax dedication that occurs varies by individual TIDDs. • Public Improvement District (PID) A PID provides financing based on levying property taxes on land within a PID, imposing special levies based on benefit to property, front footage, acreage, cost of improvements (or other factors apart from assessed valuation), or by providing for use charges of improvements or revenue-producing projects or facilities. PID taxes, levies and charges may be pledged to pay debt service on bonds issued by a PID. 43
  25. Tools • Industrial Revenue Bond (IRB) IRBs enable local governments

    to provide a mechanism for low-cost financing and other incentives (property tax exemption and gross receipts tax exemption for equipment purchased for facility) for private parties to create facilities that enhance employment in the locality. • Local Economic Development Act (LEDA) Per the New Mexico constitution, local or regional governments - to create new job opportunities - can provide land, buildings or infrastructure for facilities to support new or expanding businesses. The participation agreement sets out the contributions to be made by each party, the security provided to the local government by the qualifying entity, a schedule for project development and completion, and provisions for performance review and actions for unsatisfactory performance. 44