UNM Regents Give OK To First Step Toward New Downtown Facility

ALBUQUERQUE-The University of New Mexico Board of Regents voted Friday to move forward with acquiring the First Baptist Church property Downtown for UNM’s Innovate ABQ initiative.
The vote followed a lengthy discussion at a special meeting about environmental issues related to the site, terms and conditions on outside donations to UNM to help pay for the acquisition, and the legal title to and governance of the property once purchased.
Regent Gene Gallegos left before the board voted, but the other six regents unanimously approved authority for UNM’s Science and Technology Corp. to spend up to $7.3 million to buy the First Baptist site, and draw up a master plan and design guidelines.
But the regents made closing contingent on the university first receiving assurances from the current owners, the state Environment Department and Burlington Northern Santa Fe Railway Co., that UNM will not be held liable for environmental problems related to the site.
“I’m thrilled,” said UNM President Bob Frank after the vote. “We appreciate the regents’ support and that they did all their due diligence. It’s a better project because of all the research and it’s a great day for UNM.”
The property eventually will become the headquarters of Innovate ABQ, which UNM and the city of Albuquerque jointly have promoted as a high-tech research and development zone that could help turn the city’s core into a bustling center for technology-based economic growth.
UNM will work to attract private investors to develop the site, located at Broadway and Central.
The property is valued at $6.6 million. UNM will receive $6.5 million in outside donations to help pay for it, including $3 million from New Mexico Educators Federal Credit Union, $2 million in city bond money and $1.5 million from the U.S. Commerce Department.
The regents also authorized up to $800,000 to be withdrawn from the UNM Foundation to cover the remainder of the purchase price, plus initial site-planning costs.
UNM currently has a purchase option on the property valid through Dec. 31. It’s now negotiating a 90-day extension to first resolve pending environmental issues before closing on the acquisition.
Those issues include groundwater and soil contamination from an old diesel refueling site for the railroad that runs by the property, some asbestos in tiles in buildings at the site and possibly lead in some building paint.
Tom Neale, UNM’s director of real estate, told regents at the meeting that Burlington already has agreed to indemnify UNM for any needed remediation related to the ground and water contamination.
In addition, the church is working with the Environment Department through a program where sellers agree to a voluntary remediation plan. That will lead to issuance of a covenant guaranteeing that the state will not later sue the new owners for environmental problems.
Regents made closing on the purchase contingent on finalizing the railroad indemnity agreement and issuance of the covenant. UNM must also complete a phase-one environmental assessment of the site to determine if there are any other problems.
Once the university closes on the property, it will hire a firm for master planning and design guidelines, said Lisa Kuuttila, head of the STC and UNM’s chief economic development officer.
“We’ll begin working immediately with the Lobo Development Corp. on doing all the necessary environmental steps and due diligence required,” Kuuttila told the Journal . “We’ve been working on this project for six to seven months now. We’re excited to be moving forward.”
After closing, UNM will work with private developers to build the site out in phases. That will begin with an 18- to 24-month period in which UNM expects to raise about $14 million to construct an incubator for technology startups, plus a dormitory to allow students to live, work and study at the site as part of a new “Innovation Academy.”
Kuuttila told regents that six or seven New Mexico-based private developers, plus three from out of state, already have expressed “strong interest” in financing the first phase of development.
Regents voted to vet Innovate ABQ’s progress after two years, at which time Frank must provide a status report on the Downtown property and options on how to proceed with the project.
Separately, UNM wants regents to approve $5.66 million in foundation funding to acquire and improve the Aperture Center at Mesa del Sol south of Albuquerque for incorporation into Innovate ABQ, but regents won’t discuss that proposal until next year.
The STC wants the Aperture building to immediately house new technology startups while the Downtown site is built out. STC hopes to co-locate there with technology-transfer staff from the state’s other research universities and national laboratories, making it a one-stop shop for investors to acquire intellectual property and incubate new businesses.
Mayor Richard Berry, who has worked closely with Frank to promote Innovate ABQ, praised regents for supporting the initiative.
“This bodes well for Albuquerque,” Berry told the Journal . “We need to foster innovation here. We have a lot of untapped resources and assets, and this is an excellent opportunity for us to start developing that potential and create good, high-paying jobs.”
(Albuquerque Journal)
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