Welcome to my new blog which I created to help keep Los Alamos residents informed on important events in the County. My first entry is an editorial that I wrote about development of the Trinity site which appeared in the Los Alamos Monitor on Wednesday July 8th. I encourage Los Alamos County residents to express their opinions about this issue to the Council at the email address: countycouncil@lacnm.us .
Let’s Stay True to the Original Plan
When the voters approved the referendum on Ordinance 529 it was with the understanding that the Trinity site would be anchored with a big box retail store and that lease revenue from the site would go to our Schools with GRT revenue from the big box store going to the County. I strongly support this vision which is a true partnership and has benefits for both the County and Schools.
The Monitor’s February 22nd editorial suggested that it is time to look at other options and expressed the possibility of placing a new municipal building on the Trinity site. I couldn't disagree more with this point of view. Terminating negotiations with Boyer now and placing a new municipal building on the site would utterly destroy any chance of getting a big box retail store in our community, and would be an insult to the voters who sent a message to Council that they want more retail.
The need for more retail was clearly shown in a 2004 study by the POLICOM Corporation which indicated that on a per capita basis Los Alamos consumers spend about 11% of their personal income on retail within the County, whereas the rate in other communities in New Mexico is about 40%. This statistic is frightening in that it represents a huge leakage of retail dollars out of our community. The County shouldn’t just give away large amounts of GRT revenue from retail to other communities, yet that is exactly what we are doing. The only way to correct this situation is to increase retail opportunities with a big box store.
We are not going to attract new businesses to our community and broaden our economy if we do not provide retail for the basic amenities, the kind represented by a big box store. This type of retail is taken for granted in many other smaller communities such as Taos, Socorro, Espanola and Las Vegas, where on a per person basis retail spending is significantly higher than in Los Alamos County. These communities have a smaller population than Los Alamos and a considerably lower per capita income yet they all have big box stores. According to the POLICOM report the required amount of retail space to adequately meet community needs is about 40 square feet per person. Los Alamos County has less than half that amount. We fall far short in this one important aspect of quality of life, retail space. The Trinity site is arguably the best retail location in the County and using this location for a new municipal building isn’t going to provide the needed increase in retail space, rather it will stifle retail growth in our community for years to come.
Placing a new municipal building on the Trinity site will subvert the will of the voters who approved Ordinance 529 and as a community we should not do this. We should honor the voters who have spoken and not betray their trust. We have an obligation to make it easier for families who now travel great distances to purchase the goods they need because these goods are not available locally. We also have an obligation to ensure that the County receives income from future activities on the Trinity site. Once construction is complete the County would receive not even a single cent of GRT revenue from a municipal building on the site, but would still be obligated to make rent payments for the land. This is not a good deal for the County. Sixty six million dollars of public money is being spent for the new Airport Basin facilities which will house staff currently on the site. The task of relocating staff and demolishing the existing buildings will cost the County approximately $10 million. We have already committed far too much public money to abandon our original goal of expanding retail with a big box store.
It has taken longer than expected for the County and Schools to finalize their agreements for the Trinity site. Without a signed agreement between the County and Schools which governs the terms of the site master ground lease it is understandable that a retail developer would not want to commit to sublease the site from the County. Furthermore when the land transfers take place between the County and Schools and the master ground lease is signed approval from the State Board of Finance will still be required.
It is not in our best interests to terminate negotiations with Boyer at this time. Boyer was selected through a public process involving multiple competitors because of its proven track record in completing similar kinds of retail development projects in Utah with retailers including Walmart, Wild Oats, and Borders. Continuing to work with Boyer affords us the only realistic chance of getting a big box retail store on the Trinity site and developing the rest of the property in a cost effective manner.
The most important reason to have a big box retail store on the Trinity site is to provide an additional revenue source for our Schools. State money to our Schools for operating expenses has been reduced recently, irrespective of the proposed new funding formula, and as a result we have already witnessed cuts in sports programs and other activities, with the possibility of additional cuts in the future. Our Schools are in a tough position. The best thing we can do to help our Schools overcome this situation is to move forward with putting a big box retail store at the Trinity site.
The County needs to take three steps to enact the vision behind Ordinance 529. First, the County should minimize the amount of rent the Schools pay for their new facility at the Airport Basin as much as possible. Second, the County should commit to paying the full rent to the Schools regardless of whether there are new buildings on the Trinity site or not, and move forward with the master ground lease. In this way the Schools are assured a steady income no matter what the pace of development turns out to be. However, the County can only afford to do this if it gets future GRT revenue from the big box store. Third, the County must work with the developer to put a big box retail store on the site as soon as possible, making available economic development funds to the developer according to the terms of the LEDA bill recently amended by the State legislature.
The message from the referendum on Ordinance 529 is clear: Council, put a big box retail store on the Trinity site and make sure that our Schools get as much income as possible from the deal with no risk. Yet in our community there are persistent calls that we change course now and remove the big box retail store from our plan. Without further involvement by the supporters of Ordinance 529 in the ongoing debate we may very well end up with a new municipal building on the site instead of a big box store and this would not be a good outcome for our community.
Vincent Chiravalle
Los Alamos County Councilor
