COLUMN: Site-readiness bills will make NM more attractive to businesses

As economic development professionals, we receive hundreds of inquiries each year from businesses seeking to expand in New Mexico, including many national and global companies interested in relocating their North America operations to New Mexico.

Over the past decade, two questions have consistently remained relevant: What is the state of New Mexico’s workforce, and how much does it cost to operate a business here? The answers are clear: With tuition-free higher education, robust workforce training programs and competitive operational costs, New Mexico is the perfect choice.

The third — but most prevalent and determining question — is about location readiness. Is there an existing building or piece of land with quick access to utilities and infrastructure that can accommodate my expansion needs today?

If the answer is no, we do not even get the opportunity to brag about our workforce, culture or other highlights of doing business here.

However, we have the potential to succeed on that front. At 121,700 square miles and 18 people per square mile, New Mexico is the fifth-largest state by geography and very rural. There is so much potential to identify and characterize future development properties and deploy dollars to make them job-ready. This is especially important for ensuring that rural communities can offer local job opportunities and a vital quality of life for residents.

Two bills supported by Gov. Michelle Lujan Grisham are before the Legislature to formally address the urgent need for a forward-thinking site-readiness initiative in New Mexico.

Senate Bill 169 creates the Strategic Economic Development Site Advisory Committee, composed of experts from the private sector and government officials. The committee will review applications from local communities and property owners and make recommendations to the New Mexico Economic Development Department regarding strategic economic development sites where investments will make properties more marketable and job ready.

Site certification will be based on these recommendations and then be eligible to apply for pre-development funding for things like road and utility improvements, engineering, planning, site prep work, environmental remediation and even a housing analysis — all things that can vastly speed up the process for a company to develop, invest and be the deciding factor in choosing New Mexico as a new location. House Bill 2 supports the initiative with $24 million to pay for these strategic investments.

The companion bill, Senate Bill 170, creates an expedited regulatory review process so that utilities — with input from ratepayers and the community — may invest infrastructure sooner in these high-potential sites. The bill also allows the New Mexico Finance Authority to provide low-interest loans to rural electric cooperatives to fund the projects, enabling rural parts of the state to better compete for jobs.

Thirty-six U.S. states have site-readiness programs, and 82% of site consultants who advise companies on where to put their operations strongly agree that the availability of development-ready locations with quick access to infrastructure is a primary factor when deciding where to expand employment and create jobs. They are proving that this approach works.

Michigan’s program includes awards for the preparation of brownfield sites and other strategic properties. Those efforts have supported 8,000 new jobs and $10 billion in private investment.

In 2024, Tennessee granted $18 million to 175 development sites across the state, enhancing the potential for rural communities to compete for higher-paying jobs.

Economic development is a long game, and these investments will take time to bear fruit. The result will be a stronger economy for our rural and urban communities and for the next generation of New Mexicans. Now is the time to invest in New Mexico’s future.

Rob Black is the cabinet secretary-designate of the New Mexico Economic Development Department. Danielle Casey is president & CEO of AREA, the Albuquerque Regional Economic Alliance.