New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 61 - STATE INDEBTEDNESS AND SECURITIES › Part 3 - DEDICATION OF A PORTION OF THE STATE'S GROSS RECEIPTS TAX INCREMENT › Section 2.61.3.9 - APPLICATION SUBMITTAL, PROCESSING, EVALUATION METHODOLOGY, AND EFFECTIVE DATE AND DURATION OF DEDICATION

Current through Register Vol. 35, No. 13, July 16, 2024
A.
				Contents of application. A district requesting a dedication of a portion of the
				state's increment or the revision of its base year shall submit an application
				that includes:
(1) a conceptual site plan for
				the project;
(2) the tax increment
				development plan approved by the governing body that includes:
(a) a map depicting the geographical
				boundaries of the area proposed for inclusion within the district; this map
				should indicate any existing infrastructure and residential, commercial and
				industrial structures and development;
(b) the estimated time necessary to complete
				the project;
(c) a description and
				the estimated cost of all public improvements proposed for the
				project;
(d) whether it is proposed
				to use gross receipts increment bonds or property tax increment bonds or both
				to finance all or part of the public improvements;
(e) the estimated annual gross receipts tax
				increment to be generated by the project and the portion of that gross receipts
				tax increment to be allocated during the time necessary to complete the payment
				of the project;
(f) the estimated
				annual property tax increment to be generated by the project and the portion of
				that property tax increment to be allocated during the time necessary to
				complete the payment of the project;
(g) the general proposed land uses for the
				project;
(h) the number of jobs
				expected to be created by the project classified at the three digit level of
				the most recent North American industry classification system (NAICS), and
				separated into full-time and part time jobs;
(i) the amount and characteristics of
				workforce housing expected to be created by the project;
(j) the location and characteristics of
				public school facilities expected to be created, improved, rehabilitated or
				constructed by the project;
(k) a
				description of innovative planning techniques, including mixed-use
				transit-oriented development, traditional neighborhood design or sustainable
				development techniques, that are deemed by the governing body to be beneficial
				and that will be incorporated into the project; and
(l) the amount and type of private investment
				in each project;
(3)
				information on the availability of other public and private funds for the
				project, including:
(a) whether it is proposed
				to finance any portion of the infrastructure using the provisions of Section
				5-15-13 NMSA 1978, which permits the property owners within a district to
				impose a property tax rate of up to five dollars ($5.00) per one thousand
				dollars ($1,000) of net taxable value for a period of up to four years;
				and
(b) whether it is proposed to
				establish an improvement district and finance any portion of the infrastructure
				using the provisions of Sections 3-33-1 through -43 NMSA 1978, as they may be
				amended, and whether the bonds sold through this mechanism conform to the limit
				of twenty-five percent of total property value established in Section 3-33-14
				NMSA 1978;
(4) an
				economic development plan, including an industrial cluster analysis if
				appropriate, for attracting businesses to the district;
(5) market feasibility study that includes:
(a) the number of residential (single family
				and multi-family) units and the square footage of commercial, retail and
				industrial space to be built by calendar year;
(b) the average price per square foot or by
				unit by type;
(c) the market supply
				(or availability) and the value of each property type in the area and
				surrounding areas with reference to any other planned development in the
				surrounding areas; and
(d) market
				demand (or absorption rates) for each property type in the area and surrounding
				areas with reference to any other planned development in the surrounding
				areas;
(6) economic
				analysis to include:
(a) employment and salary
				projections by industry as classified at the three digit level of the most
				recent North American industry classification system (NAICS) in the district by
				calendar year, whether the jobs are temporary (i.e., construction) or permanent
				employment, and whether the jobs are full-time or part-time;
(b) population projections by calendar
				year;
(c) housing unit projections
				and type by calendar year;
(d)
				economic output from direct and indirect impacts within the district with
				temporary construction activity listed separately; separate listing of economic
				base employment within the district, indirect and induced employment within the
				district and in surrounding areas is optional, but encouraged;
(e) the anticipated net revenue impact on the
				state general fund shall be calculated as follows:
(i) the sum of all general fund revenues
				generated by economic activity within the district by type of revenue (e.g.
				gross receipts tax from retail sales, gross receipts tax from services provided
				to New Mexico businesses, personal income tax, etc.) less:
1) the sum of all general fund costs to the
				state associated with the provision of services to individuals and businesses
				(e.g. public schools);
2) the
				estimated amount of tax incentives provided to promote economic development
				within the district under current law;
3) the amount of the state's increment
				requested by the district; and
4)
				the total amount of capital outlay appropriated for use in the district under
				current law;
(ii) the
				net revenue impact on the state general fund must be expressed in constant
				dollar terms; and
(iii) the net
				present value of general fund revenues less general fund costs over the life of
				the bonds shall be submitted; a discount rate equal to five percent shall be
				used in this calculation;
(7) letter from governing body verifying its
				ability to pay for operations and maintenance of public infrastructure created
				by the district and provide basic services such as law enforcement and public
				health and safety within the district;
(8) a detailed timeline of project
				completion, including public infrastructure expenditures;
(9) a financing plan to include:
(a) information supporting why tax increment
				financing is needed;
(b) debt
				structure and terms, including maturity and estimated interest rates;
(c) pro-forma for all bonds to be issued for
				the project (including property tax increment bonds, if proposed);
				and
(d) projected coverage ratios
				for all bonds;
(10)
				developer information to include:
(a)
				organizational chart;
(b)
				experience in developing similar projects and utilizing tax increment
				financing;
(c) audited financial
				statements for the past three years; and
(d) identify past and pending administrative
				actions and litigation in which the developer is involved that could impact the
				current financial viability of the developer; briefly describe the nature of
				the proceedings and current status or final result;
(11) any other information regarding the
				economic benefits to the project's community and to the state or which the
				district believes will aid the board in considering the request for the
				dedication;
(12) enacted resolution
				of governing body approving the plan;
(13) enacted resolution of governing body
				forming the district;
(14) enacted
				resolution of each governing body dedicating a portion of its share of the
				applicable tax increments;
(15)
				approved master development agreement with governing body;
(16) form of board resolution approving the
				dedication of a portion of the state's increment; and
(17) in addition to the submission
				requirements above, for requests for the approval of a revised base year:
(a) a detailed project history including a
				summary of past appearances before the board, legislative efforts related to
				the project, and activity to date in the district;
(b) a written summary of the reasons why
				rebasing is requested and stating the revised base year requested;
				and
(c) a certification of the
				district that the district's base year has never been revised and that no gross
				receipts tax increment bonds attributable to the district have been
				issued;
(d) tabular or verbal
				comparison of the information provided pursuant to Paragraphs (2) through (6),
				(8) and (9) of this Subsection at the time a revised base year is requested
				versus at the time the dedication of a portion of the state's increment was
				initially approved, with explanations of any substantive changes;
(e) a copy of the resolution adopted by the
				district declaring the district's intent to revise its base year;
(f) a copy of all comments on the intent to
				revise the base year received from the taxation and revenue department, the
				developer and the local governments that have dedicated a tax increment to the
				district; and
(g) any other related
				documentation.