Original Content: Is Las Cruces Business Friendly? (cont'd)

Employment for the construction industry in New Mexico is down 36% from 2007. Next to Government and Public Education, the construction industries are the largest economic development incubators and employment sectors. It is obvious how much GRT revenue they create and yet the City slams this industry the hardest. Imposition of anti-growth anti-business policies including impact fees, sign and lighting ordinances, erosion (dust) control ordinances, and smart codes have all contributed to the increasing unemployment and downturn in the Las Cruces economy and ultimately the loss of GRT revenues.
The lack of appropriate infrastructure is a result of ineffective planning and misguided budget priorities that puts bike paths ahead of street maintenance. So, lack of revenue isn't the problem. It is that the current City Council is unable to establish rational budget priorities and policies that encourage the type of market-driven development that produces the GRT we need.
Other cities in New Mexico have had the sense to recognize the realities of the world economic situation. The decline in GRT is directly related to jobs and disposable income. Rather than continuing to collect impact fees Albuquerque and Santa Fe (yes, even liberal Santa Fe) have decided impact fees are counterproductive to job expansion and have hurt overall revenues. Apparently, the Las Cruces City Council believes that rather than GRT, impact fees make single family homes and multi-family development more attractive to the city in terms of revenue productivity.
Now is not the time to impose additional costs and impact fees that discourage economic development, limit home ownership or increase rents. Other cities are realizing that incentives rather than fees are necessary to encourage business to locate or expand in their communities. Ideology has never been a substitute for common sense. Las Cruces can be both business friendly and environmentally responsible. It is time for the City Council to come to this same realization.

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