Font ResizeLAS CRUCES - It's taken longer than city of Las Cruces officials expected, but gross receipts taxes collected from the creation of a downtown Tax Increment Development District (TIDD) are now coming into city coffers, and property taxes won't be far behind.
The revenue is already being put to use, paying for a portion of construction costs of a roundabout across from City Hall and the reopening of Main Street from Las Cruces Avenue north to Mountain Avenue.
Altogether, the TIDD is expected to pay for $13.2 million in infrastructure improvements within the district during the next 25 years.
Members of the city's TIDD board were told those details Monday during the board's first meeting in more than eight months. The special assessment of taxes didn't begin coming in to the city's Finance Department until late summer, so there really wasn't any reason for the board to meet until Monday.
Pat Degman, interim city finance director, said $1.45 million in gross receipts taxes have been collected and paid into the TIDD from the time it was formed in late 2009 through December.
The inability of the state to set up proper accounting procedures for revenues generated by the TIDD caused a delay in payments from the state into the TIDD. Procedures to accurately account for the amount of property taxes that should be dedicated to the TIDD are being worked out.
"Property taxes collected to date are at zero," Degman said. "But we should be seeing a catch-up on property taxes by
William Slettom, downtown development coordinator, said $13.2 million in infrastructure improvements have been identified for the TIDD. It is anticipated to cost the city - with money coming from the TIDD - $6.2 million to reopen Main Street. The first phase of reconstruction, from Las Cruces Avenue north to Mountain Avenue, is under way, and the south portion of Main, from Griggs Avenue south to Amador Avenue, is expected to start later this year.
"We're timing the start of the south portion to coincide with the completion of the north phase," Public Works Director Mike Johnson said. "At this point, our intentions are to bid and start construction of the southern portion of Main Street sometime in the August and September time frame."
TIDD money will also be used to convert Water and Church Streets to two-way traffic at a cost of $3.1 million. The cost for improvements to Las Cruces and Griggs avenues, between Church and Alameda Boulevard, is estimated at $2.6 million, and modifications for Organ, Court, Hadley and May avenues are priced at $1.3 million.
Slettom also said there are plans to build a parking garage, that would also include a commercial component. Slettom said the area just south of Las Cruces Municipal Court, just west of the new U.S. federal building, appears to be a leading candidate.
"I like that location," Mayor Ken Miyagishima said. "It makes sense. With the federal building directly across the street and the federal government expressing their wishes for a parking garage like that close by, I think that would be an excellent place to put it."
Steve Ramirez can be reached at (575) 541-5452.
