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ECONOMY

Albuquerque mayoral election could decide fate of controversial Downtown BID

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The fate of a proposed Downtown Business Improvement District could hinge on the city鈥檚 mayoral runoff next week, as supporters and opponents watch to see how the next leader of Albuquerque might influence the controversial effort.

鈥淚 think it鈥檒l be significant,鈥 Albuquerque attorney and BID proponent Bill Keleher said. Voters will decide between Mayor Tim Keller and challenger Darren White in a runoff on Dec. 9.

Albuquerque is one of the largest U.S. cities without a BID, a mechanism through which property owners pool their resources and pay money into the BID to support services such as cleaning, maintenance, security and marketing within the district.

The city of Albuquerque already provides some of these services, but property owners say it isn鈥檛 enough. Some local leaders and property owners are betting big on the idea that a BID is what Downtown Albuquerque needs to combat challenges of crime and safety, and revitalize the area as a walkable hub for living, working and recreating.

A petition to create a Downtown BID can only move forward to City Council for approval if it receives signatures from at least 51% of the proposed district鈥檚 property owners. Downtown鈥檚 proposed BID has more than 180 property owners and 30%, totaling 50 signatures, had signed the petition as of Wednesday, according to Keleher, who鈥檚 leading the BID effort.

鈥淲e are 60% of the way to where we need to be to get enough signatures and there are plenty of property owners (left) to talk to,鈥 Keleher said.

Candidate take

The Keller administration has for a Downtown BID, touting it as complementary to Downtown鈥檚 Tax Increment Financing District, or TIF, approved by the City Council in December. The TIF allows the city to capture up to 75% of the growth of gross receipts and property taxes collected Downtown for reinvestment into the district.

鈥淲hen growth is led by local stakeholders, it can take off and be sustained regardless of changes in government or politics,鈥 Keller wrote in an email to the Journal. 鈥淎 BID helps ensure continuity, momentum, and a shared sense of ownership over downtown鈥檚 future, and that鈥檚 what we need to keep moving Albuquerque forward.鈥

White did not directly say whether he would support the creation of a Downtown BID as mayor, but said his plans to tackle crime and homelessness would offer 鈥渕eaningful relief鈥 to Downtown business and property owners.

He added he was 鈥渢roubled by鈥 Keller鈥檚 comments about the BID, saying he believed Keller is using the proposal as 鈥渁 way to wash his hands of downtown鈥檚 crime and safety issues by shifting responsibility to property owners.鈥

鈥淢y biggest concern is the disconnect among downtown building owners,鈥 White said. 鈥淚f this process is going to succeed, we need a more intentional effort to bring all stakeholders together. Without that, the BID risks failing again and deepening divisions rather than solving problems.鈥

Not only does the BID have to go through City Council for approval, but it also hinges its success on both the city and county agreeing to financially contribute due to the number of government buildings located Downtown.

Governmental agencies are exempt from tax assessments; however, they can still participate by entering into a 鈥渇ee for services agreement鈥 to pay for the BID鈥檚 services, according to the Downtown BID website.

鈥淭his BID is being formed with the expectation that the City and County will contribute their fair share,鈥 the website says.

Both Keller and White said they would support the city contributing if property owners create the BID.

If Keller wins, Douglas Peterson, one of Downtown鈥檚 largest real estate holders, believes it鈥檒l be a boost for BID advocates to re-up their efforts. While he doesn鈥檛 know exactly where White stands on the issue, Peterson said conversations with the mayoral candidate have led him to believe White is 鈥渁 rational person鈥 who wouldn鈥檛 be in favor of 鈥渟omething that鈥檚 illegal and that鈥檚 failed in the past.鈥

Downtown Albuquerque once had a BID from 2000 to 2014, but a judge ruled that the district was improperly renewed using signatures from unauthorized individuals, dissolving that BID.

Keleher and supporters have said the new BID is much different than the previous one, making improvements to what they鈥檝e said was a faulty structure.

Difficulties getting a hold of some property owners and 鈥渕isunderstandings about how a BID works鈥 have presented challenges during the signature-collection process, Keleher said. His team recently addressed the latter by launching a about the Downtown Albuquerque BID.

The website, which went live in November, includes general information about the BID, blog entries from BID advocates and answers to frequently asked questions, including who runs the BID, who pays into it and what property owners will receive for their investment.

鈥淚t鈥檚 ongoing community education,鈥 Keleher said. 鈥淚 think if the fence sitters that I鈥檝e talked to 鈥 once they understand the benefits and sign, then we鈥檒l have enough to go forward.鈥

Keleher expects his team to collect the majority signatures needed by February, as the effort will slow down over the holidays.

鈥楩ooting the bill鈥

Staunch BID opponents remain unconvinced and are as committed to stopping the formation of the Downtown BID as the advocates are to getting it past the finish line.

Peterson has spent the last several months gathering signatures from those opposed to the BID. Peterson said he had collected roughly 60 signatures as of Tuesday.

One of those opponents is Eric Kilmer, who has owned property Downtown since the 1980s.

鈥淚t鈥檚 just another mechanism for them to extract money from property owners Downtown that (doesn鈥檛) need to be extracted,鈥 Kilmer said.

In Kilmer鈥檚 view, property owners already pay enough in taxes for city services and in personal expenses for security services and repairs to crime-related damages. Kilmer believes extra investment in Downtown should come from the city and state through grants and designated funding, not the property owners.

鈥淭he people that own property in Downtown are the ones that really invest in Albuquerque,鈥 Kilmer said. 鈥淲e鈥檙e the ones that are footing the bill basically and they鈥檙e asking us to foot more of the bill when they should be wanting to help us.鈥

Both Kilmer and Peterson said they would take legal action before paying a dime into the Downtown BID.

In addition to doubting its efficacy, Peterson challenges the legality of the BID, claiming the current proposal isn鈥檛 in alignment with . A proposed BID must have at least three-quarters of its area zoned and used for business or mixed commercial or retail use, the says.

Peterson said the proposed Downtown BID doesn鈥檛 meet that requirement, with government buildings taking up a significant portion of the district.

The Downtown BID website says that the statute does not define what 鈥渦sed for business鈥 means and contends that a 鈥渞easonable understanding of the statute is that having operating government buildings in which people work and provide services does not prevent formation of a business district.鈥

Peterson said the outcome of the mayoral runoff will 鈥渂e real determinative about whether or not (a legal fight is) necessary.鈥

Keleher said he hopes White will support the BID if elected, but added he remains confident regardless of the outcome.

鈥淲e hope the city will continue to support the effort, but this is an effort of property owners, so whether the administration supports it or not, we still need a good Downtown,鈥 Keleher said.