A California IT company will not only bring an annual payroll of $12 million to Rio Rancho, but it also will back-fill a large chunk of empty office space at the Hewlett-Packard complex.
Those are some of the economic impacts coming to light on the heels of a recent announcement that El Segundo, Calif.-based PCM,a technology services provider with business and government clients, will bring operations to the city this summer. Company officials said the business will eventually ramp up to 224 sales positions with annual salaries ranging between $45,000 and $65,000.
“We conservatively estimate an annual payroll of $12 million, and that’s on the low side,” said Matthew Geisel, economic development and business relations manager for the city.
In addition, Geisel is projecting 400-500 hotel room nights generated each year from the company’s vendors, which will bring business to local lodging providers. That doesn’t factor in some of the other revenue generated during the visitors’ stay, such as car rentals, gas, meals and incidentals.
“It’s been an intense six months,” Geisel said of the back-and-forth visits by city and state economic development officials, who made the case to bring the company to New Mexico. In deciding on Rio Rancho, PCM scrapped plans to expand an existing facility.
PCM is expected to receive $700,000 from the state’s closing fund via the Local Economic Development Act . The company will also receive $568,676 in Job Training Incentive Program funds to help it hire and train workforce, according to the state Economic Development Department.
LEDA funds are eligible to offset cost of land, building, infrastructure and lease payments. PCM, which Geisel described as a “value-added reseller,” elected to use the money to offset its lease payments at the H-P building, where the company will take over 30,000 square feet on the third floor.
A handful of company employees will relocate to New Mexico, but the majority of new hires will be locals, said Kris Rogers, PCM senior vice president.
She said the business will reconfigure the space to handle the technology demands of its business operations, which sells computer products, networking, storage and services to customers.
The 218,000-square-foot Class A building at 2361 HP Way NW, in Rio Rancho’s city center, had about 80,000 square feet available for lease after Hewlett Packard downsized its local operations, going from 1,350 jobs to 800.
In 2014, S&P Data call center took over 20,000 square feet of office space on the first floor, said Geisel.
Titan Development completed the build-to-suit customer contact center for H-P in December 2009. The building was constructed to promote natural light, an efficient HVAC system and wall and roof insulation, and landscaping and site design that promotes water conservation and reuse.
The total project cost was $63 million. Titan, which is responsible for property management of the facility, retains ownership of the building.