New Fairgrounds Lease Agreement Approved

The New Mexico Board of Finance met in open session and on web cast Tuesday to discuss and vote on the approval of the state’s new lease agreement with the Downs of Albuquerque at the New Mexico State Fairgrounds. The vote of the board was unanimous in favor of the deal. Various witnesses were called to explain how the lengthy Request for Proposal (RFP) process was implemented prior to the reaching of an agreement. There were also extensive discussions of the steps taken to gather public input associated with the bid process on the contract.

Despite the fact that the new lease renewal was subject to the first open bid process, including a formal RFP in several years, some critics have insinuated that the lease renewal agreement was completed behind closed doors and rigged. At issue seems to be the belief by some that the current lease should have been extended to give the state more time to weigh its options. The State Fair has come under severe criticism this year for operating losses that have been picked up by taxpayers. 

Tim Keller

Included in the new 25 year lease agreement are provisions for the Downs of Albuquerque to invest $20 million in a new racino at the site. Proponents of the agreement believe the new money, which all comes from private investment sources, will greatly improve the property, create several hundred construction jobs, and the greatly increase the potential for substantially higher tax revenues from the new racino facility. Other provisions in the new lease agreement seem to give the state considerable performance enforcement leverage as well as the offloading of operating costs. Still, Senator Tim Keller, who has been particularly critical of the process over the course of both the Richardson administration and now the Martinez administration, has been one of the chief proponents arguing for a delay. You can hear Senator Keller's complaints on the video contained in a story and interview conducted by Rob Nikolewski of Capital Report New Mexico.

New Fairgrounds Lease Agreement Approved