Review for Railyard

SANTA FE — When Chipotle, the Denver-based burrito and taco chain, opened its first restaurant in Albuquerque in 2011, New Mexicans lined up more than 40 deep for a bite.

But when it recently sought space in the Santa Fe Railyard’s Market Station complex — with its large swath of empty space that’s gone unused for years — they were turned away cold.

They’re not alone. The popular Einstein Bros Bagels chain and a national sporting goods company also haven’t had much luck recently seeking space in the city-owned downtown development.

To many, that’s not surprising, and, to some, it’s even preferable. The Railyard is governed by a master plan that prioritizes locally owned businesses over chains.

But with the Railyard nearly 30 percent empty more than four years after its grand opening and rental income falling below projections, others are wondering if it’s time to broaden the idea of who’s welcome in the Railyard.

“I think in order for the Railyard to be successful they’re going to have to start considering some different options about who goes in there,” Councilor Bill Dimas said.

The city purchased the 50 acres that would eventually become the Santa Fe Railyard development in 1995. The nonprofit Santa Fe Railyard Community Corp. is developing and managing the site. It uses the income from leasing Railyard buildings and ground parcels to pay operating expenses and debt-service payments on the city’s financing for the Railyard’s infrastructure.

Revenue from leases is currently lower than expected, and SFRCC is now seeking approval from the City Council to defer scheduled increases in the amount of rent it pays annually to the city and to push back the rent deferments’ due date.

In a letter to the city, SFRCC Director Richard Czoski said SFRCC has no intention of asking the city to tweak policy to allow more chains into the Railyard.

The SFRCC board rejected the application from Chipotle to locate into Market Station. Czoski said there was interest in putting an Einstein Bros Bagels near Baca Street and Cerrillos Road. He said a national sporting goods chain has also recently expressed interest.

Dimas said a national chain store could bring more Santa Feans to the Railyard, but that he would need a better idea about which retail operations might be interested in moving there before setting parameters on what might be acceptable.

SFRCC President Steve Robinson said the goal has always been to oversee the Railyard “in a way that Santa Feans feel comfortable and well and invited and welcomed.

“When you go to these places that are dominated by national retailers, you’re just another consumer in a mall and this Railyard wasn’t purchased for that purpose,” he said.
— This article appeared on page B1 of the Albuquerque Journal