This chapter may be cited as the "City of Socorro Economic Development
Plan Ordinance."
The Economic Development Plan Ordinance is enacted pursuant to Article
IX, Section 14D, of the Constitution of the State of New Mexico and statutory authority conferred upon municipalities to allow public support of economic development (NMSA 1978, §§ 5-10-1 through 5-10-13).
The purpose of the Economic Development Plan Ordinance is to
allow public support of economic development projects to foster, promote,
and enhance local economic development efforts while continuing to
protect against the unauthorized use of public money and other public
resources. Further, the purpose of the ordinance is to allow the City
to enter into one or more joint powers agreements with other local
governments to plan and support regional economic development projects.
Local governments are allowed to provide direct or indirect
assistance to a qualifying entity for furthering or implementing an
economic development plan and projects; furthermore, local and regional
governments have the authority to contribute assets to development
projects. However, the imposition of a tax must be approved by the
voters in referendum.
Pursuant to NMSA 1978, § 5-10-4B (2013), no more than
10% of the City's annual general fund may be spent on economic
development projects.
As used in this chapter, the following terms shall have the
meanings indicated:
ECONOMIC DEVELOPMENT PROJECT
The direct or indirect provision of land, buildings or other
infrastructure; public works improvements essential to the location;
or assistance to a qualifying entity, and includes the purchase, lease,
grant, or construction, reconstruction, improvement or other acquisition
or conveyance of land, buildings or other infrastructure or public
works improvements essential to the location or expansion of a qualifying
business; and payments for professional services contracts necessary
for local or regional governments to implement a plan or project.
PROJECT PARTICIPATION AGREEMENT
An agreement between a qualifying entity and the City whereby
the City provides assistance to an economic development project in
exchange for the benefits received as set forth in this chapter and
a substantive contribution from the qualifying entity.
QUALIFYING ENTITY
An existing or proposed corporation, limited liability company,
partnership, joint venture, syndicate, association or other person
that is one or combination of two or more of the following:
A.
An industry for the manufacturing, processing or assembling
of agricultural or manufactured products;
B.
A commercial enterprise for storing, warehousing, distributing or selling products of agriculture, mining or industry, but, other than as provided in Subsection
E,
F, or
I of this definition, not including any enterprise for sale of goods or commodities at retail or for distribution to the public of electricity, gas, water or telephone or other services commonly classified as public utilities;
C.
A business in which all or part of the activities of the business involve the supplying of services to the general public or to governmental agencies or to a specific industry or customer, but, other than as provided in Subsection
E or
I of this definition, not including businesses primarily engaged in the sale of goods or commodities at retail;
D.
An Indian nation, tribe or pueblo or a federally chartered tribal
corporation;
E.
A telecommunications sales enterprise that makes the majority
of its sales to persons outside New Mexico;
F.
A facility for the direct sales by growers of agricultural products,
commonly known as farmers' markets;
G.
A business that is the developer of a metropolitan redevelopment
project;
I.
A retail business, defined as a business that is primarily engaged
in the sale of goods or commodities at retail and that is located
in a municipality with a population of 10,000 or less.
All project monies shall be kept in a separate account by the
entity and the City, with such account clearly identified. These accounts
shall be subject to an annual independent audit.
The City may engage in economic development projects involving
one or more other government entities for projects which encompass
more than one municipality or county. In such instances, the relevant
governing bodies shall adopt a joint powers agreement. This agreement
will establish the application criteria and the terms of all project
participation agreements. Criteria established under a joint powers
agreement shall be consistent with the provisions of this chapter.