Less than four months after the 2025 legislative session adjourned, the New Mexico State Fair Tax District Board has had its first meeting. The goal of the enabling legislation, the State Fairgrounds District Act was aggressively supported by the Chamber during the session and signed into law by Gov. Michelle Lujan Grisham will revitalize the 236 acres of state-owned land in the heart of Albuquerque.
Terri Cole, president and CEO of the Greater Albuquerque Chamber of Commerce, testified several times for Senate Bill 480, which created the board as well as a funding mechanism. She shared that “the Chamber has been involved in this issue for years, and I can tell you from personal experience this is the most well-conceived and credible of all the attempts made.”
Decades ago, the State Fair was the third largest in the country, according to the Governor’s Office. Today, it is well down the national list, and residents know too well that the area around the fairgrounds has unfortunately become an “epicenter of crime in New Mexico — with murders, arson, pedestrian fatalities, drug use, cartel activity, human trafficking and homelessness,” Gov. Michelle Lujan Grisham says in a news release.
On July 3, Lujan Grisham was joined by Albuquerque Mayor Tim Keller, Senate President Pro Tem Mimi Stewart, D-Bernalillo (who sponsored the fairgrounds legislation), other state and local officials as well as community leaders as the board began working on seriously re-envisioning and rebuilding the fairgrounds.
The plan
Lujan Grisham favors a mixed use, mixed income, walkable green neighborhood — though she insists a final decision on moving the fair hasn’t been decided, but must be data- and community-driven.
Stewart’s Senate bill created the board and a Tax Increment Development District (TIDD) for the area, a funding mechanism the Chamber has long supported. Within the TIDD:
- Beginning July 1, 2025, it captures 75% of the gross receipts and gaming taxes from the fairgrounds, which totals approximately $12 million annually.
- It has authority to issue bonds up to $500 million
- Understanding that schools anchor neighborhoods, it is authorized to invest capital monies in the schools in the surrounding neighborhoods.
- It is authorized to make investments for the “benefit of the community,” which can include assisting area nonprofits working to address homelessness.
- It is subject to all open meetings, ethics and governmental conduct rules.
- A total of $800,000 is being used for active community outreach, economic analysis and best-practice research to make multiple recommendations for what might be done at the fairgrounds, including but not limited to a mixed use, mixed income, walkable and green-spaced neighborhood.
One option might be for a $300-to-$400 million-dollar multipurpose arena that might be catalytic for a youth-oriented entertainment district, replete with young and diverse families. Three other options include:
- Scenario 1: The State Fair moves but the track and accompanying horse facilities remain at the site.
- Scenario 2: The State Fair, track and horse facilities all move.
- Scenario 3: The State Fair remains at the site and the track and horse facilities move.
The master plan will also include alternative sites for the N.M. State Fair should the State Fair Commission determine moving it is the best scenario.
Should the State Fair move, Lujan Grisham says she insists it remain in central New Mexico, which includes Bernalillo County, southern Sandoval County and northern Valencia County.
Economic Impact
According to early data, the preliminary economic analysis indicates that should the current site be infilled with a well- planned mixed-use, mixed-income development, the result will be literally billions of dollars of economic activity in the area.
Construction alone will generate over $2.1 billion in economic activity and support an annual average of 3,700 jobs each year during the construction period.
Commercial tenants of the mixed-used development, such as retailers, health care providers and tech firms, will generate over $1 billion in annual receipts and provide over 4,000 jobs.
Even with robust commercial development, the site can accommodate over 1,000 new residences, the occupants of which will be able to dine, shop and obtain services from local businesses, injecting millions each year into the local economy.
In total, State Fair redevelopment is expected to support between 18,000 and 33,000 temporary and permanent jobs providing between $1.1 billion and $2.1 billion in income for New Mexico workers over the project’s first six years.
The Why Behind it All
In the governor’s explanation of the fairground’s initiative, it states clearly:
“Albuquerque is the only city in the southwest to lose population post pandemic. Cities either grow or die. It is understood that there will likely never be unanimity on what should be done, but the governor is committed to making sure that everyone is heard in the process. She is similarly convinced that doing nothing is not an option. … Any survey of the city will conclude that this is one of the largest business and economic opportunities on the horizon for Albuquerque. Good paying local jobs and high functioning schools reduce crime and provide opportunity for future generations.”
Read the governor’s State Fair initiative and economic summary documents below:
STATE FAIR ECONOMIC IMPACT REPORT
Redevelopment of the state fair property will generate substantial short-and long-term economic benefits for the surrounding community. Positive economic impacts will arise in the short run from construction-phase spending. These impacts will begin as soon as development commences and will span the construction period.