Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Taylor
DATE TYPED 2/15/05
HB
SHORT TITLE South Valley Economic Development Center
SB 527
ANALYST Hadwiger
APPROPRIATION
(in $000s)
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
$400.0
Recurring General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Finance and Administration (DFA)
Economic Development Department (EDD)
SUMMARY
Synopsis of Bill
Senate Bill 527 appropriates $400,000 from the general fund to Department of Finance and Ad-
ministration (DFA) in FY05 and FY06 for start-up costs of the South Valley Economic Devel-
opment Center and Business Incubator.
Significant Issues
The Economic Development Department noted that the Center/Incubator has been built and is
due to open its doors March 2004, but has no funds available for operations.
The building for the Center/Incubator is 17,000 square feet in area and will have a commercial
kitchen. The development director of the facility indicates that the size of the building and the
kitchen will require additional funding. By means of comparison, DFA indicated that the chief
executive officer of the Santa Fe Business Incubator stated that facility started in a building of
10,000 square feet with 9 to 12 businesses. Its start-up costs in the first year were $400,000 for
the furniture and fixtures plus another $250,000 for programs and staffing for a total of
$650,000.