3a) (2) Modified Santolina, Subm. to BCC, 11.13.

19
21st CENTURY ALTERNATIVES to the
Proposed SANTOLINA DEVELOPMENT Plan

SUMMARY and RECOMMENDATIONS

Paul Lusk, Julia A. Stephens
November13, 2018

This Summary is an overview of the findings and recommendations contained in the related Paper. Each
‘key finding’ listed in the dot-points below includes a page-number reference where the reader can find
a more detailed discussion and analysis of that topic in the full document.

The ‘modified Santolina’ alternative is based on a vision of a historically, culturally and ecologically
superior future for the Albuquerque Metro area. It presents a re-arrangement of components of the
proposed -- but not yet granted ‘Planned Community’ (PC) zoning --Santolina development on
Albuquerque’s Southwest Mesa, south of I-40. Analysis over recent months indicate that it would be
economically and environmentally advantageous to pursue the ideas presented in this Paper due to
the extraordinarily high risk to the County and its citizens if Santolina, as proposed, were built.

If Option 1, the modified configuration, is not achievable with the present applicant, Option2,
acquisition of the entire site, may be the most feasible and cost-effective action. Such acquisition
could involve Bernalillo County, private interests in collaboration with the County, or via a
public/private partnership.

The objectives of both Options are to:

1) Create a more economically sound and environmentally sustainable alternative to the present
configuration of the proposed Santolina development that would:
• Reduce the cost of public infrastructure,
• Increase net revenue to the County,
• Substantially reduce the County’s risk due to mal-performance or default,
• Provide a source of clean, renewable, lower cost electricity,
• Provide the potential for greater population capacity, metro-wide, and
• Reduce the tax burden and debt for all citizens of Bernalillo County, including City
residents and businesses.

2) Incorporate, in Option 1, a 2000-acre industrial area, a new 21st century, historically and
culturally based, ecologically integrated, High-Desert community development supported by
improved public transit, and a 7,000 acre Photo Voltaic (PV) renewable energy generation, or

3) Alternatively, in Option 2, to develop a full-site PV energy generation facility meeting existing

Metro area generation retirement and decommissioning schedules, as well as Western Energy
Imbalance Market (WIM) commitments as needed.

The following key findings are based on the research and analyses conducted for this Paper.
They are discussed in greater detail on the referenced pages of the full document.

• Previous City annexation policy and the loss of County revenue created the impetus for the
County to consider the proposed Santolina project. (Background and Context, p.3).
 • The provision of 2000 acres of Industrial and related business area in the modified Santolina site
plan, with a specific strategy for job creation, in addition to the expansion of industrial
development north of I-40, in addition to the previously approved areas on the West Side,
would provide real capacity for job creation and economic growth within all 3 of these areas.
(Alternatives for West Side Development and Job Creation, p.3).

• Limiting identification of Santolina development costs to only those incurred by the County
appears to be in direct conflict with the requirements of the ”Planned Communities Criteria”
ordinance, as jointly adopted by both the City and County, ("No Net Expense’ Requirement, p.7).

• If the PC zone were granted for the present design, the County would be creating a substantial
increase in the value of the land without a guaranteed return on investment, especially with no
evidence of claw-back provisions in the TIDDs (Intent Resolution on October 11, 2016). There
would be no increase in the inherent value of the land, and if the zone-entitlement were to be
granted without the changes identified in this Paper, the option described here would not be
feasible or affordable. (Land Values and WALH's Projections, p.8)

• Analyses conducted in preparing this Paper indicates that acquisition of the proposed Santolina
site at assessed or adjacent-land market value, in lieu of granting PC zoning -- including the
construction of the PV array and related development -- would be less than the cost incurred by
County taxpayers if Santolina were to be approved and built as proposed. (Analysis of
Consultants' Costs and Tax Yield Projections, pp.8-10).

` • Estimate of the cost for the PV portion of Option 1, the modified Santolina design, indicates that it
would be less than half of the projected cost for the 20 Santolina TIDDs. (The Cost of and
Alternatives to Sprawl (p.4), PV Array, and Net Revenue, p.15).

• Both of the alternatives presented herein would result in the potential for greater net revenue to
the County than the present arrangement of the Santolina development. (INTRODUCTION. p.1,
Projected Development Cost and Revenue Comparisons, p.16).

• The modified design would provide for a greater total metro area population and an increase in
property values for properties benefitted by the new transit system, (Section D, p.19).

• The basic principles used in both Native American and early Hispanic development, applied to
new development could make this Region a unique, culturally grounded, 21st century, millennial
and tourist-attracting place in which to live, work and visit, (Historic Context, Sect. E, pp. 21-22)

• A set of recommendations to resolve the discontinuities between the text and land use maps in
the City’s version of the A/B Comprehensive Plan Update, (Section E, p. 22). 3

• The Benefits of this proposed alternative are grounded in economically sound and realistically
based estimates for the future of Bernalillo County and the Metro region (ABQ Economic
Development statistics’, p.9). (Nineteen significant advantages are identified in Section F, p.23).

• The economic assessment recommended in this Paper should determine whether the long-term
cost incurred by local taxpayers would exceed the purchase price plus development cost of the
modified arrangement recommended in either option, as compared to the current arrangement of
the proposed Santolina project if it were built. (Why an alternative? pp.2-4, Summary of Potential
Benefits, p.23).
 • If Option 2 were implemented, the energy generation capacity would provide for the primary
electricity demand for the equivalent of all the residences in Bernalillo County, including the City
of Albuquerque, and would provide for the replacement of retiring and decommissioned units,
plus capacity to serve the Western Energy Imbalance Market (WIM), as needed, (p.18).

Based on preliminary analysis, the alternatives presented in this Proposal would result in greater net
revenue to the County at far less risk than would the present design for the Santolina development.
Also, the inclusion of the transit component serving this site, in either option, could provide for a
greater population capacity for the Metro area. (See "No Net Expense", p.7, and Projected
Development Cost and Revenue Comparisons, p.16).

Additionally, significant benefits to Bernalillo County and the adjacent Metro area would be created
in conjunction with either proposed modification, based on rectifying the discontinuities between the
text and the land use maps in the City’s version of the A/BC Comprehensive Plan Update, (See Section
D, p.19), as well as a substantial increase in property values from properties benefitted by an
enhanced transit system (See Sections D & E, pp.19-23).

RECOMMENDATIONS:
• It is recommended that the County proceed with an objective and comprehensive fiscal
analysis of all projected long-term costs that would be incurred by the County, the City,
adjacent jurisdictions, the State and the citizens thereof, if the present configuration of the
proposed Santolina development were approved. This assessment should include a
cost/benefits comparison to the alternative described in this Proposal.

• In order to preserve the County’s option(s), it is recommended that further approvals of the
proposed Santolina development be delayed until the assessments described in this
Proposal are completed. If Santolina becomes entitled, as presently designed, it is further
recommended that it be taxed as undeveloped, entitled land, and that if default or
nonperformance occurs, the County and City be given first-option rights to buy back
portions or all of the land assets at pre-entitled, assessed valuation or adjacent land market
value.

• If the PC zone change is granted, in the present arrangement, and if there is default after
entitlement, it is recommended that the site be acquired through eminent domain

Please read the full Paper for details pertaining to the above key findings.