NMEDD Department 2015 Strategic Plan

 

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NMEDD Department 2015 Strategic Plan

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NEW MEXICO ECONOMIC DEVELOPMENT DEPARTMENT FY 2015 STRATEGIC PLAN FY 2015 Strategic Plan 0

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Table of Contents Letter from Cabinet Secretary Barela…………………………………………………………………………………………2 Office of the Secretary……………………………………………………………………………………………………………….3 Office of the Secretary Priority Initiatives…………………………………………………………………………………..3 Bi-National Community………………………………………………………………………..……………………….3 Water Technologies………………………………………………………………………………………………………3 Statewide Commercial Kitchen and Growers Program…………………………………………….…...3 Business Resource Center……………………………………………………………………………………..….....5 Office of the Secretary Programs…………………………………………………………………………………………….…5 Marketing……………………………………………………………………………………………………………….…….5 State Data Center……………………………………………………………………………………………………….…5 New Mexico’s Business Incubator Program……………………………………………………………….….6 Office of Business Advocacy……………………………………………………………………………………….…6 Economic Development Division……………………………………………………………………………………….………7 New Mexico MainStreet Program………………………………………………………………………….….….8 Arts and Cultural District Program…………………………………………………………………..…….….....9 Frontier Communities Initiative…………………………………………………………….…….….…..……..11 Community, Business, and Rural Development Team………………………………….…………..…11 Tribal Liaison Program………………………………………………………………………………….……….……12 Rural Economic Development Council…………………………………………………………………….….13 Finance Development Team……………………………………………………………….……….……………..13 Job Training Incentive Program…………………………………………………………………….……….……14 Office of International Trade…………………………………………………………………………..………….15 ISO 9000……………………………………………………………………………………………………………………..19 Office of Science and Technology……………………………………………………………………..………..20 New Mexico Economic Development Corporation (Partnership)………………………….…….….……….21 New Mexico Film Office…………………………………………………………………………………………….……..……..22 1) 2) 3) 4) 5) 6) Production Recruitment and Assistance……………………………………………………….…….…...…22 Emerging Media…………………………………………………………………………………………….……………23 Film Tourism…………………………………………………………………………………………………….…………23 Outreach Initiatives………………………………………………………………………………………….…………23 Statewide Film Liaison Network………………………………………………………………………….………24 Workforce Development: Job Training Incentive Programs for Film and Multimedia.…24 FY 2015 Strategic Plan 1

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Letter from Cabinet Secretary Barela New Mexico Economic Development Department Strategic plan for FY2015 I am proud of the work that has gone into the Economic Development Department’s annual strategic plan. This effort involved the participation of not only our department, but members of the Economic Development Commission, our statewide partners and business and government leaders who all expressed their ideas to facilitate economic growth in New Mexico. Over the last two and a half years our department laid out a yearly strategic plan that focused on reducing regulatory burdens on job creators, fostering a pro-growth tax environment and increasing exports internationally. This strategy aimed to benefit not only the state’s metro areas but also our rural communities. Through our annual planning process, we are able to take what we’ve started to expand our vision for growth. Those efforts include areas that are a challenge yet an opportunity for us such as water conservation and developing and commercializing new technologies. This includes technologies from our national laboratories to startups grown by one of our five active statewide incubators. It includes taking advantage of our geographical blessing such as our proximity to Mexico, our central location in the NAFTA region and the east-west and north-south transportations lines that can get goods anywhere in the U.S. and Canada quickly. That is why the Bi-National Community in southern Doña Ana County is a priority for us to market and develop. It is also important to continue to grow our international export numbers - which have doubled in the last two years leading New Mexico to take the top spot for export growth in the country in early 2013. This strategy grows local jobs, as the U.S. Department of Commerce states for every $1 billion in exports from a state, more than 6,000 jobs are created. And for our rural communities, one of our most promising new initiatives to bring jobs and growth to rural downtowns is the Historic Movie House and Theater Initiative – which provides funding to restore old theaters to their former glory while updating them with digital movie equipment. Not only are we preserving our historic treasures but encouraging commerce to return to local downtowns. And so all of the programs that are offered by the state and other entities are easily accessible, we will work to create a one-stop shop for business assistance, the Business Resource Center that will be housed in the Economic Development Department. We have a wonderful team of dedicated economic development professional in the Economic Development Department working daily to see these initiatives come to reality for the benefit of all New Mexicans. FY 2015 Strategic Plan 2

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Office of the Secretary The New Mexico Economic Development Department (EDD) Strategic Plan informs our constituents, Legislators and the Governor as to how and where EDD resources are allocated to accomplish our statutory directive to create new jobs. It is intended to provide transparency, accountability, and flexibility. Performance Measures:  Total number of EDD jobs created: 3,000  Number of rural jobs created: 1,400  Total number of jobs filled due to Economic Development Department efforts: 1,650  Percentage of vouchers accurately processed within 72 hours: 75% Office of the Secretary Priority Initiatives Bi-National Community Governor Susana Martinez and Secretary Barela have been focused on building the New Mexico Borderplex since taking office nearly three years ago with a three-pronged approach that includes tax and regulatory reform, and targeted investments in infrastructure, to encourage investment and growth. In August, they announced they are aligning their efforts with Chihuahua Governor César Duarte and Chihuahua Secretary of the Economy Álvaro Navarro to create a 70,000 acre, first-of-its kind, bi-national, master-planned community around the Santa Teresa-San Jeronimo border crossing. This region is strategically located in the central corridor of the NAFTA region and its right in the middle of the U.S.-Mexico Border between the two major seaports of Houston and Long Beach making it an attractive location for manufacturers, transportation and logistics companies. It is also home to two major industrial anchors on both sides of the border – the Union Pacific Intermodal Rail Facility in Santa Teresa and the 640 acre Foxconn manufacturing campus in San Jeronimo, Chihuahua. It will be positioned to attract large, global industrial and commercial businesses, include residential and retail development and incorporate state-of-the-art energy, water and sustainability technologies. Water Technologies Secretary Barela is dedicated to positioning New Mexico as a Center for Excellence for Water Research and Technology. His goal to help lead the nation in developing technologies that will conserve and treat water. Such an objective will help create jobs in addition to provide a sustainable water future for the state. The department along with the Martinez administration are also currently identifying water infrastructure investment priorities to ensure New Mexicans have available water for economic development and for health and safety. Statewide Commercial Kitchen and Growers Program When EDD and the Legislature created the business incubator program in 2005 the South Valley Economic Development Center (SVEDC) was one of the first incubators to be certified under the new program. The Rio Grande Community Development Corporation (RGCDC) applied for the certification and manages SVEDC, which has become a nationally-recognized incubator due in large part to its highly successful commercial kitchen and unique growers program. The growers FY 2015 Strategic Plan 3

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program began as a partnership with Mesa del Sol, a large mixed-use development in southwest Albuquerque. SVEDC organized growers of landscape plants in the South Valley in order to accommodate the large development. Until this agreement Mesa del Sol was purchasing plants from Arizona with a loss rate of about 30%. This concept blossomed into today’s Delicious New Mexico and Mixing Bowl programs which are also highly-successful. New Mexico still imports about 90% of the landscape plants used in the state today from Arizona. This represents a huge lost opportunity. The Mixing Bowl is the commercial kitchen/incubator program of the RGCDC and SVEDC. The Mixing Bowl works with 250 potential entrepreneurs every year. It has 120 businesses currently in the development phase, 60 businesses currently selling products, and another 40 that have graduated from the process over the last six years. This successful model could be implemented at a statewide level creating economic development opportunities for new entrepreneurs in any region of New Mexico. Funding of $1.4 million (utilized over four years) would be required to take the Mixing Bowl statewide. This funding could generate 120 new companies, 298 new jobs, and $5.485 million in gross business impacts in rural communities over the next four years. There are many communities with dark kitchens across the state today. These facilities could be active job and wealth creators utilizing the expertise of the Mixing Bowl staff and the commitment of the participating community. The program helps entrepreneurs overcome regulatory issues, connects them to retail markets, and a supportive entrepreneurial network. With an annualized cost per job of $3,200, the Mixing Bowl has proven to be one of the most cost-effective job creation programs in the country. It has been presented to standing room only audiences at the National Conference on Business Incubation and has worked with startup incubation programs from around the country. RGCDC will partner with EDD and rural communities to build on existing infrastructure and create cost-effective kitchen incubators using the Mixing Bowl’s successful program as a template and the nationally-recognized Delicious New Mexico brand. Commercial kitchens can add value and drive growth to local farmer’s markets and festivals, and are often a contributor to downtown revitalization programs. New Mexico MainStreet already has local organizations that include farmers’ markets and festivals featuring local foods in their promotional programs. Identifying markets for food products often hinders potential entrepreneurs. A key to the success of the Mixing Bowl program is its relationship with buyers like Whole Foods and John Brooks. More than a dozen communities are already interested in participating in the program should funding be secured. Three hundred and fifty thousand dollars a year will provide funding to work with multiple rural communities and provide the support those communities need to develop and integrate their respective food assets – whether entrepreneurs, farmers, ranchers, or value-added producers - into a cohesive, solid statewide food infrastructure. EDD will support RGCDC’s special appropriation request of $1.4 million to fund this program for four years with a four-year goal of assisting 12 commercial kitchens between fiscal years 2015 and 2019. FY 2015 Strategic Plan 4

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Business Resource Center (BRC) The Business Resource Center (www.nmbusinessresourcecenter.com) will be developed in response to a need expressed by many business leaders as the Secretary has travelled around the state. There are many, varied services and resources available to businesses, however they are distributed across many organizations and geographies with multiple points of access. EDD will partner with the certified business incubators and other service providers to create a web portal that will direct businesses to the services they need in a “one-stop shop” digital environment. Businesses who complete a simple intake form will be tracked to ensure a satisfactory experience with the BRC. Late in FY14 a new staff person was hired; this position will be dedicated to developing the content and functionality of the Business Resource Center, and ensure companies who complete the simple intake form receive the assistance they need. A contractor was also hired to develop site architecture for the BRC one-stop portal. Office of the Secretary Programs Marketing An outreach effort conducted by the Economic Development Division in FY13 indicated that awareness and understanding of EDD programs and services could be improved. In FY14 the department undertook a small marketing effort utilizing existing resources to better inform New Mexico businesses of these programs. Flyers were distributed through partner economic development organizations and earned media was utilized to describe the benefits of EDD services. Ads informing readers of EDD’s programs and services were placed in the New Mexico SBA magazine and the Business First Book of Lists. The department will continue to monitor the effectiveness of these marketing efforts and seek resources and partners to continue to make New Mexicans aware of EDD programs. The marketing team developed brochures highlighting New Mexico’s assets within its targeted industry sectors: Aerospace, Energy & Natural Resources, Advanced Manufacturing, Food Processing, Back Office & Technical Support, Emerging Media, and Logistics, Distribution & Transportation. The brochures are produced in-house, allowing the flexibility to customize and update the information when necessary. Late in FY14 EDD hired a web design and online marketing firm to assess the department’s web sites, create site architecture recommending improvements to the site, create site architecture for the Business Resource Center, and analyze EDD’s online marketing and search engine optimization. In FY15 EDD will use that information to build a new website intended to be more user friendly for New Mexico businesses and communities; and provide a stronger global presence for the state through a better design and search engine optimization. State Data Center In FY14 the department hired an economist who will dedicate much of his time to improving the products provided on the State Data Center (SDC) website (www.nmstatedatacenter.com). The SDC will enhance its efforts to serve rural communities with their research and marketing needs by adding resources such as software that provides cost-of-doing-business comparison data and access to national business listings and financial information. FY 2015 Strategic Plan 5

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EDD also hired a contractor to create a customized economic impact model that will assist communities in assessing potential projects before offering incentives; and will provide EDD, the Executive and the Legislature with more complete data supporting the return on investment of economic development programs. In FY15 the SDC will begin to construct online databases to present Census, workforce, and economic data. SDC staff continue to provide data and research training at regional and statewide events and at the annual New Mexico Economic Development Course at Western New Mexico University. New Mexico Business Incubator Program The business incubator program received a special appropriation of $130,000 in FY15. A portion of this funding will be used to host a workshop on business incubation and alternative ideas to provide an optimal environment for businesses to begin and thrive in rural areas. The incubators will also mentor five rural communities in starting an entrepreneurship program customized for each community’s needs.  The Santa Fe Business Incubator added wet lab space this year and continues to be a destination for companies spun out of technologies born at Los Alamos National Laboratory.  Over its seven year history, the South Valley Economic Development Center has incubated more than 100 businesses, created over 350 jobs, returned more than $8 million in payroll to the local economy and serves about 250 entrepreneurs annually, many through its commercial kitchen and highly successful Mixing Bowl program.  Between 2009 and 2012, member companies of the WESST Enterprise Center had created a combined total of: 266 new jobs with a total payroll of $16.9 million, generated $30.3 million in revenues, and raised $10.7 million in equity investments.  Arrowhead Technology Incubator, on the campus of New Mexico State University, includes companies that span across various industries, including national and homeland security, energy solutions, space and aerospace, information technology, and hi-tech discoveries. Members have the option to operate virtually, co-work, or lease an office at a nominal cost.  The Enterprise Center at San Juan College continues to be a one-stop shop of services for new businesses, including workforce development, business plan development, procurement, training, and networking. Office of Business Advocacy The Office of Business Advocacy (OBA) was created in January, 2011, as a direct initiative from Governor Martinez and Secretary Barela. The mission of OBA is to help companies navigate state government by providing assistance with regulatory, intergovernmental and public policy issues adversely affecting businesses in New Mexico. OBA continues to work across all industry sectors. The ability of OBA to research and identify answers and solutions has proven invaluable to small companies with limited resources and time. The issues OBA works are complex and include everything from how to appeal a federal highway sign ordinance to researching international tariff issues for solar cells imported from the Pacific Rim. FY 2015 Strategic Plan 6

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Goal: Increase visibility and accessibility of the Office of Business Advocacy Objectives:  Increase new case load and solved cases throughout the year  Market and increase the utilization of the online intake form created at www.NMforBusiness.com. The online intake form provides easy access, easy tracking and insures a quick response time for businesses needing immediate assistance.  Address state regulatory policy issues through the Small Business Regulatory Advisory Commission (SBRAC) Performance Measures:  Number of new business advocacy cases opened: 100  Number of business advocacy cases solved: 50 Economic Development Division The Economic Development Division will focus on several initiatives in FY15 to continue and strengthen the division’s mission: 1. Maintain funding levels established in FY14 & FY15 for MainStreet’s operating budget; increase MainStreet’s capital outlay budget; hire a MainStreet deputy director; conduct an impact analysis of the MainStreet Program; collaborate and co-host the first “Creative Community Builder’s” Conference; and enhance and grow the Frontier Communities and Historic Movie House, and Spanish Plazas Initiatives 2. Enhance the Business, Retention and Expansion Program which will track survey results and improve follow-up activities; continue to enhance the Certified Communities Initiative 3. Increase capital outlay funding which will be deployed through the Local Economic Development Act; and attempt to increase the number of communities which have adopted the Local Option Gross Receipts Tax as a way to earmark tax revenues for economic development projects 4. Increase JTIP participation in rural, frontier areas of the state; and continue to establish a permanent, non-reverting funding level for JTIP 5. Maximize the STEP grant to support the Office of International Trade and establish a Mexico Trade office 6. Enhance the Rural Economic Development Council – continue to ensure the Council is engaged and establishes rural priorities 7. Continue to conduct marketing and outreach of the services provided by the ED Division. Performance Measures:  Number of total business expansions assisted by the Economic Development Department: 50  Number of rural business expansions assisted by the Economic Development Department: 15 FY 2015 Strategic Plan 7

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New Mexico MainStreet Program New Mexico MainStreet functions as a community revitalization “umbrella” housing multiple community economic development programs. Based on a community’s assessment of its current needs it chooses the program that best fits the economic development of its placebased assets. New Mexico MainStreet’s professional team delivers technical assistance, services and resources enabling communities to implement public and private improvements within a commercial district neighborhood, growing the local economy. The Team utilizes the MainStreet Four-Point Approach®, developed by the National Main Street Center, Inc. The program is tiered: local affiliates, based on their local capacity development, move from “Emerging Community,” to “Start-Up MainStreet Community,” and finally to “State Certified MainStreet Program.” In addition, MainStreet assists property and business owners to rehabilitate buildings, address infrastructure needs, fund capital improvements, and market and promote the district as a destination for locals and visitors alike. This comprehensive economic development approach creates an environment to attract new businesses and entrepreneurs and results in job creation and private reinvestment in the district. The programs currently housed within New Mexico MainStreet are the:  Nationally accredited and licensed MainStreet program  Arts & Cultural Districts  Frontier Communities Initiative  Historic Theaters Initiative  Historic Plazas Initiative New Mexico MainStreet received for a second year, a 66% increase ($500,000) special appropriation to its existing FY15 operations budget of $750,000, (a total of $1,250,000), making possible:  Continue services and technical assistance to the current 23 designated MainStreet and 6 State Authorized Arts & Cultural Districts;  Graduate the four FY14 “Emerging Communities” into “Start-Up MainStreet” status;  Develop the capacity of the three FY14 State Authorized, “Start Up” Arts & Cultural Districts bringing the total to 9 Arts & Cultural Districts;  Add three new Emerging Communities which will bring the total of local MainStreet community affiliates to 30;  Select seven to eight new Frontier Communities in FY 15; and  Working with the Finance Development Team, fund two new Historic Theater projects, the Lea Theater in Lovington and the Lyceum Theater in Clovis. In November of 2014, MainStreet will launch, with co-sponsors from the New Mexico Arts Division and the New Mexico Historic Preservation Division of the Department of Cultural Affairs and the Tourism Department, an annual inter-agency statewide conference entitled the “Building Creative Communities Conference,” (www.buildingcreativecommunities.org). The conference will target local practitioners of community revitalization and development, to build local capacity and leverage resources to build and enhance quality of life and local economic vitality. Underwriting the costs of the conference are the New Mexico Resiliency Alliance, The McCune Foundation, the National MainStreet Center, the National Park Service, PNM, and the New Mexico Heritage Preservation Alliance. FY 2015 Strategic Plan 8

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New Mexico MainStreet will also re-launch this fall the culture and heritage tourism website “Off The Road.” Meticulously researched, the website spotlights the historic and cultural assets of MainStreet and Arts & Cultural District communities to attract more “destination-type” travelers to New Mexico’s traditional and historic downtowns. New Mexico MainStreet Program partners on local projects with the Local Government Division of DFA, the Department of Transportation, Historic Preservation Division and New Mexico Arts Division of DCA, and the New Mexico Tourism Department, several state colleges and universities, and non-profit foundations including the McCune Charitable Foundation, the Friends of New Mexico MainStreet, Inc., the New Mexico Resiliency Alliance and the New Mexico Humanities Council. MainStreet’s priority is always to build the capacity of its local partners. However, nonMainStreet communities are eligible to attend community economic development workshops and trainings provided by NMMS staff. Many of the activities conducted throughout the year focus on workshops specific to fundraising, grant writing, quarterly leadership network meetings and other specialized training. Goal 1: Stimulate private sector reinvestment into the built environment within MainStreet districts. Objective: Provide professional, technical assistance in practical design and planning practices; implemented through MainStreet Façade Squads, MainStreet “PlaceMaking” and MainStreet Interiors Design and the new Design Intervention Initiatives. Goal 2: Grow new businesses in downtown areas. Objective: Provide technical assistance on entrepreneur development, economic positioning, business retention & expansion, and recruitment; accessing financing tools, accessing incentives; and capital outlay funds. Goal 3: Complete building rehabilitations in MainStreet districts to create an attractive destination for new businesses and residents. Objective: Provide assistance to MainStreet organization’s façade renderings, historic preservation treatments, access to historic preservation tax credits, and USDA grants. Performance Measures:  Dollars of private sector investment in MainStreet districts: $15 million  Number of building rehabilitations completed in MainStreet Districts: 150 Arts & Cultural District Program The Arts & Cultural District (ACD) program established New Mexico as one of the first states in the nation to focus on growing the cultural economy and has served as a model for 15 other states and over 600 towns nationally. “State-Authorized” programs receive a district evaluation by a professional resource team and are eligible for funding for an ACD Cultural Plan and an ACD Master Plan to establish goals and identify priority infrastructure and capital improvement projects. The Cultural Plan and Master Plan for the ACD must be adopted by the partnering municipality and may serve to create local financial tools to invest in projects. An annual survey tool was created to assess performance of the local districts and to aid in reporting to the New FY 2015 Strategic Plan 9

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Mexico Arts Commission, the authorizing body for ACDs. 

 The Arts & Cultural District State Council is an interagency collaboration that currently includes the New Mexico Arts and Historic Preservation divisions of the Department of Cultural Affairs, the Economic Development Department’s MainStreet program, the Tourism Department and two statewide foundations, the McCune Charitable Foundation and the New Mexico Humanities Council. Funding for a number of local initiatives has been awarded from the McCune and Whited Foundations and the National Endowment for the Arts. The State Council is assisting with a second round of cultural and heritage tourism marketing with the assistance of the Tourism Department’s Tourism Co-op grant program. An Inter-Agency, inter-disciplinary team provide a three day Resource Team assessment of the potential of each new ACD District for developing their cultural economy, creative industries, and to support cultural entrepreneurs with opportunities for business development within each ACD District. There are currently nine state-authorized Arts & Cultural Districts: downtown ABQ, Artesia, Gallup, Las Vegas, Los Alamos, Mora, Raton, Silver City, and Taos Including three new “Start Up“ ACD Districts which were made possible through a portion of the $500,000 Frontier Communities special appropriation in FY 14 and which will continue to receive technical assistance and services in FY 15. . Goal 1: Sustain and fund the Program at FY15 level and capitalize the ACD Capital Outlay fund in the Department of Cultural Affairs. Objectives:  Work with the Department of Cultural Affairs Cabinet Secretary to capitalize the ACD fund for bricks and mortar projects identified in the municipally adopted ACD Cultural Economic Development Plan  Assist the affiliate ACDs to implement the state Tourism Cooperative Marketing Grant and apply for additional funding to leverage investments made previously in the ACD local districts.  Assist local communities to enact or amend their existing LEDA ordinance to include specific language related to “Cultural Facilities” that assists the municipality in funding projects within the district. Goal 2: Partner with the Department of Cultural Affairs to update the 30-year-old State Historic Tax Credit program Objectives:  With the Historic Preservation Division (DCA) update the maximum cap for tax credits to meet actual current costs of construction restoration of commercial properties  With the Historic Preservation Division (DCA) allow “transferability” of historic tax credits for eligible commercial properties in ACD and MainStreet Districts. FY 2015 Strategic Plan 10

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Frontier Communities Initiative Established by the state legislature and signed into law in 2013, the Frontier Communities Initiative was created to serve rural communities under 7,500 population who currently do not have the capacity to initiate a MainStreet or Arts & Cultural District program. FY 15 funding was provided for a second year through a $500,000 special appropriation of which a portion is dedicated to this program. Through an application process, community stakeholders identify a catalytic economic development project within a town center, village plaza, courthouse square or commercial historic corridor. Selected communities will partner with NMMS/EDD to develop the project for funding and implementation. Eight out of 14 applicants were selected for FY14 (Carrizozo, Columbus, Hurley, Lordsburg, Madrid, Moriarty/Historic Route 66, Santa Clara Village, Wagon Mound). Goal: Stabilize funding within the Division’s budget to sustain the program and serve an additional 7-8 Frontier communities in FY15. Objectives:  Select seven to eight Frontier Community projects in FY15 including the restoration of historic New Mexico plazas.  Seek at least $200,000 in LEDA capital outlay to assist two additional communities in digital conversion from film to digital media in New Mexico’s Historic Movie Houses Initiative to keep those theatres from going dark  Work with the regional Council of Governments, counties, municipalities, tribal governments, granting agencies and foundations to secure funding for communities awarded “Frontier” status. Community, Business and Rural Development Team The mission of the Community, Business and Rural Development Team (CBRDT), commonly known as “regional representatives,” is to assist communities build their capacity for development by: training local leadership, engaging diverse community stakeholders in the process of planning and implementing change in their regions, and helping them identify strategic opportunities to advance the region’s goals for economic growth. Members of the Team live and work in the six regions identified around the state for economic development by NMEDD. This practice allows the community and the department to understand what is needed for their economic success. The Team facilitates the establishment of economic development organizations (EDO) and partnerships. They collaborate, devise, promote, and facilitate activities to assist communities in analyzing, organizing, and developing their economic potential. Technical assistance is provided to nonprofit organizations, private entities, and public agencies on economic revitalization and community development. Communities are assisted in identifying funding programs including federal, state, local, philanthropic, and foundations; and the process necessary to acquire funding. The Team assists communities and EDO’s with passage of the Local Economic Development Act (LEDA) and its related Local Option Gross Receipts Tax. They also facilitate funding FY 2015 Strategic Plan 11

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opportunities for projects through the NMEDD-Finance Development Team and New Mexico FUNDIT. The Team also assists communities in the creation of jobs by providing assistance to New Mexico individuals and businesses that are engaged in expansion, retention or start-up activities. They also serve as a resource to the New Mexico Partnership by assisting economic development organizations responding to Potential Recruitment Opportunities (PROs). Goal 1: Identify infrastructure gaps that inhibit economic growth in the regions and assist the communities address funding to close the gap Objective:  Identify at least one infrastructure project in each region and assist the community in developing a financing package  Assist businesses and communities in presenting projects before New Mexico FUNDIT Goal 2: Develop relationships with economic-base businesses in each region so that expansion and retention opportunities are realized and issues are addressed systematically and proactively Objective:  Conduct statewide business retention and expansion surveys and work with local organizations to ensure that interviews are conducted in each region of the state and the information collected is summarized and made available to the Governor’s Office and Office of the Secretary Performance Measures:  Number of business retention and expansion surveys completed resulting in a positive outcome such as job creation, retention or business financing: 15  Number of community infrastructure projects moved to financing stage: 5 Tribal Liaison Program The Tribal Liaison Program aids New Mexico Tribes and Pueblos overcome barriers and allow opportunities for economic development. In accordance with the State-Tribal Collaboration Act (STCA), the NMEDD policy to promote and assist Native American entities is to utilize the Regional Representative Program. The Regional Representative network that has Native American entities within their service area will assist with economic development projects and initiatives; and then report to the Primary Tribal Liaison (PTL). The Regional Representative will also consult with other NMEDD programs to determine how best to assist with a Tribal need or project. NMEDD provides technical assistance through many of the programs which it currently utilizes such as JTIP, Collateral Support, Business Advocacy, International Trade, ISO9000 as well as SBA programs and other gap financing programs. The department annually provides a scholarship to the New Mexico Economic Development Course to a Native American economic development practitioner in the name of Bob Johnson, a devoted member of Taos Pueblo, former Community Development Team member, and economic development professional. FY 2015 Strategic Plan 12

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Goal 1: Identify and prepare Tribal communities in accessing financing through various funding programs such as the Tribal Infrastructure Fund (TIF) to create new jobs with Tribes in or outside the reservation. Objectives:  Assist the Office of Indian Affairs in identifying economic development projects to present to the Tribal Infrastructure Fund for approval.  Assist communities with project applications Rural Economic Development Council In October 2012, Secretary Barela appointed the Rural Economic Development Council (REDC) to inform EDD of policy issues specific to rural New Mexico and to inform EDD on the effectiveness of its programs. The Council is made up of two representatives from each planning district and two tribal representatives. In FY13, the Council met four times and established the following mission: to establish a formal platform to identify issues and challenges affecting rural New Mexico; advocate for sustainable growth in rural communities; support programs; and collaborate on policies which positively impact rural areas. The Council will provide training for rural community leaders, and address training gaps which may exist within the economic development community throughout the state. Two initiatives were begun by the Council in FY14. EDD purchased Go-To-Webinar as a platform to provide online training and business facilitation. In FY15 an established schedule of training events will be provided statewide. The second initiative is New Mexico FUNDIT, a group of representatives of all the federal and state infrastructure financing agencies. This group met for the first time in June 2014 and will begin vetting projects in FY15. The purpose of FUNDIT is to provide an opportunity for communities to present and fund critical community and business development infrastructure projects; and to ensure more effective vetting of projects and the more strategic use of available resources. Finance Development Team The Finance Development Team (FDT) assists new and existing businesses by providing information on financing tools available within New Mexico. Through the FDT, companies are provided detailed information on tax incentives and financial assistance programs. The main task is to assist with financial packaging (debt/equity) and/or accessing capital through commercial lenders, micro-lenders, and Certified Development Corporations. The team also facilitates the use of financing programs such as LEDA/capital outlay, NMFA programs, the Collateral Support Loan Participation Program, CDBG and HUD 108, USDA and SBA’s loan programs, and industrial revenue bonds (IRBs). As an additional service through the familiarization of these funding programs, the team will administer the New Mexico FUNDIT initiative, aimed at streamlining the process for funding infrastructure projects in rural areas of New Mexico through a single application process vetted by a group of funding agencies. FY 2015 Strategic Plan 13

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Technical assistance from the team varies per project and consists of interpretation and analysis of applicable tax credits and incentives, economic impact analyses, and financial analyses. Such requests come from regional representatives, municipalities, and economic development organizations. FDT also compiles a financial analysis for all JTIP applicants and conducts the due diligence for projects and administers the Angel Investment Tax Credit. Goal 1: Deploy capital outlay funding to attract capital investment and job creation for communities through LEDA Objective:  Encourage more communities to adopt the local option gross receipts tax or municipal/county GRT increment. Goal 2: Identify New Mexico businesses with expansion potential and assist them in creating jobs by structuring financing assistance programs. Objectives:  Pursuant to SWEDFA, provide and submit economic development determinations for New Markets Tax Credit, Collateral Support Program, and Local Government Planning Fund Program.  Pursuant to EB5 Policy established, provide TEA designation certifications and/or Letters of Support to EB5 Regional Center applicants that are qualified. Performance Measures:  Number of private sector dollars leveraged by each dollar through the Local Economic Development Act: 5:1  Average annual cost per announced jobs created through use of Local Economic Development Act funds: $5,000 average cost per announced job+  Number of businesses provided technical assistance resulting in a funding package and job creation: 5 Job Training Incentive Program The Job Training Incentive Program has been in existence since 1972. The program offers financial support in the form of wage reimbursements to businesses as they hire new employees and train them for newly created jobs within their company. The program offsets the costs of funding if the company opts to utilize an educational institution for the delivery of training and it may offset the costs of upgrading the skills of existing employees. The program is administered within the Economic Development Division with three full-time employees, but funding decisions are made by a six member board. Since its inception, the program has funded more than 1,200 companies and over 42,000 New Mexico workers have benefited from the program. Every year, the JTIP board meets to revisit its eligibility policies and guidelines. During the FY14 policy retreat the board made decisions to expand eligibility for intern positions; simplify wage requirements for contract-based customer support centers; and expand Step-Up to include ISO9000 training for New Mexico companies. Goal 1: Increase company participation in JTIP FY 2015 Strategic Plan 14

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