Las Cruces City Council Recap: GRT Increment Funding for Six Metropolitan Redevelopment Areas

Each [metropolitan redevelopment area] resolution was voted on separately. and all six were approved unanimously.

Source: City of Las Cruces
Photo: Courtesy

At its Monday, March 16, 2026, regular meeting, the Las Cruces City Council discussed and voted on six resolutions approving gross receipts tax (GRT) increment financing for six metropolitan redevelopment areas (MRA) in the City. By unanimous vote of the council, all the resolutions were discussed concurrently. Each resolution was then voted on separately and all six were approved unanimously. 

According to New Mexico statute, tax increment financing allows the City of Las Cruces, with council approval, to utilize up to 75 percent of GRT increments generated within each MRA for up to 20 years as an alternative funding mechanism for metropolitan redevelopment projects. An increment is the amount of GRT revenue collected in the MRA above a GRT baseline established when the MRA was created. Increment financing does not increase the tax rate. Rather, a portion of the new GRT and/or property tax generated above the baseline as development occurs is reinvested in the MRA. The baseline for each MRA was provided by the New Mexico Department of Taxation and Revenue.

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Eligible uses for the funds generated include public-private redevelopment projects, infrastructure improvements, affordable and mixed-income housing development, land acquisition and site preparation, business rehabilitation and support programs and community and economic development initiatives.
The six MRAs are:

• The El Paseo and South Solano MRA was approved by the City Council July 7, 2025. The MRA is bordered by East Lohman Avenue on the north, approximately one block from South Solano Drive on the east, East University Avenue on the south and South Main Street on the west. The MRA’s monthly baseline revenue is estimated at approximately $42,000, with an approved allocation of 75% of the increment for a 20-year period.
• The West Picacho and Motel Boulevard MRA was approved by the City Council Dec. 1, 2025. The MRA is bordered by Tashiro Drive and McClure Road on the north, Burlington Northern and Santa Fe Railroad tracks on the east, West Hadley Avenue on the south and the Rio Grande on the west. The MRA’s monthly baseline revenue is estimated at approximately $42,000, with an approved allocation of 75% of the increment for a 20-year period.
• The Apodaca and Lift Up MRA was designated in March 2023. The MRA is bordered by North Main Street on the northwest, North Triviz Drive on the east, Spruce Avenue on the south and North Solano Drive on the west. The monthly baseline revenue for the MRA is estimated to be more than $19,500. 
• The East of Solano Neighborhood MRA was designated in March 2023. The MRA is bordered by East Lohman Avenue on the north, South Triviz Drive on the east, East University Avenue on the south and South Española Street and Pecos Street on the west. The monthly baseline revenue for the MRA is estimated to be more than $41,500.
• The Mesquite MRA was designated in March 2023. The MRA is bordered by East Madrid Avenue on the north; North Solano Drive, North Tornillo Street, North Virginia Street and South Espina Street on the east; East Lohman Avenue on the south; and the LC Lateral, North Campo Street and South Campo Street on the west. The monthly baseline revenue for the MRA is estimated to be about $5,300.
• Amador Proximo and South MRA was designated in March 2023. The MRA is bordered by West Hadley Avenue on the north, Burlington Northern and Santa Fe Railroad tracks on the east, Brown Road on the south and South Valley Drive on the west. The monthly baseline revenue for the MRA is estimated to be a little more than $18,000.