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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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Transcript

  1. Rio Rancho
    Growth and Development
    Update
    1

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  2. COMMUNITY OVERVIEW
    2

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  3. Rio Rancho….
    A Nationally Recognized Best Place to Live
    3

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  4. 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

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  5. DEVELOPMENT AND GROWTH
    UPDATE
    5

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  6. 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

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  7. Unser Gateway
    7

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  8. 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

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  9. 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

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  10. Petroglyph Medical Plaza
    • 19 total acres
    • Lots 0.73 – 8 acres
    • 60,000 SF Class A Medical Office
    Unser Corridor
    Announced
    10

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  11. 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

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  12. Unser Pavilion
    Unser Corridor
    Phase 2 - Completed
    Phase 1 - Completed
    12

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  13. 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

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  14. • 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

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  15. Cabezon Commons
    After Hour Pediatrics
    Completed
    Unser Corridor
    Opened September ‘14
    15

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  16. 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

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  17. The Village at Rio Rancho
    • Mixed-use pedestrian oriented retail-
    commercial master planned development
    • 65± Acres
    • 400,000± SF
    Unser Corridor
    Announced
    17

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  18. The Village at Rio Rancho – Con’t
    18

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  19. Loma Colorado-
    Northern
    20
    528-South

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  20. 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

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  21. 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

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  22. The Neighborhood at Rio Rancho
    23
    Loma Colorado - Northern

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  23. Enchanted Hills
    24

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  24. 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

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  25. Plaza at Enchanted Hills Tenants
    26

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  26. 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

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  27. City Center
    28

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  28. 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

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  29. ECONOMIC DEVELOPMENT
    JOB CREATION
    30

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  30. 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

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  31. 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

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  32. 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.

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  33. RESIDENTIAL
    34

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  34. 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

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  35. Loma Colorado
    Central RR
    Under Construction – 80% Built Out
    36

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  36. 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

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  37. 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

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  38. CITY INITIATIVES TO ENABLE
    AND SUPPORT DEVELOPMENT
    39

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  39. 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

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  40. Roads
    41

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  41. 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

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  42. 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

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  43. 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

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