ALBUQUERQUE, N.M. — Crews will soon start construction at the northeast corner of 1st and Central, transforming what is now a parking lot into One Central, a five-story residential/commercial building with an attached parking structure.
Albuquerque businessmen Jerry Mosher, Dale Armstrong and Tony Pisto will develop the site under One Central Operating Associates LLC. But the city of Albuquerque will play a major role in the undertaking too, ultimately contributing about half the total cost in a collaboration both parties say is essential to the project’s viability.
Developers conceived One Central to meet the city’s goal of a Downtown entertainment district. As planned, it will include 60 apartments above about 40,000 square feet of commercial space that developers hope to fill with a bowling alley, a brewery, restaurants and more. The parking garage will have 423 spaces, and the city will take over immediate management and operation duties, with an option to eventually buy it.
One Central will cost an estimated $40 million to develop. The city will chip in $17.55 million – most of it coming from lodgers’ tax collections – plus land valued at $1.4 million, accounting for just under $19 million. Bernalillo County has also approved an industrial revenue bond package that includes property and gross receipts tax breaks.
Albuquerque Mayor Richard Berry contends that the city is not paying for half the development, but rather buying a parking garage. Once One Central builds the structure – scheduled for completion next fall – the city will pay the developer $17.55 million for an “exclusive operating agreement” and option to purchase it for $1,000 after 10 years, according to an agreement between the parties.