Farmington and San Juan County

New Mexico Business Journal, Sept, 1997 by Joanne O'Keefe

Laid back and waiting for things to happen is a former way of life in the tri-city region of Farmington, Aztec and Bloomfield that make up the northwest corner of New Mexico. This is the Four Comers area where the states of New Mexico, Arizona, Utah and Colorado join together like a foursquare.

Northwest New Mexico, sacred homeland of the Navajo, awaited the arrival of pioneers where three rivers merge to provide a flourishing farm and ranch economy. Then, in the 1950s the oil and gas boom hit, swelling the population in a decade by more than 700 percent. The volatile economy steadied when the Farmington region settled into a retail service area.

Today, the community is striving to shape its future. It's taking a "proactive" stance, rather than a "reactive" stance, to economic development, says Cal Tinghey, board member of San Juan Economic Development Services. And the three cities have agreed to an aggressive plan, working together to promote healthy economic growth. "We have to market our community," says Tinghey. "We are the best-kept secret."

The Four Corners received a major boost recently when the Johnson Administration announced that the 152-mile stretch of NM 44 between Farmington and I-25 at Bernalillo would be widened to four lanes by July 2001. The estimated $250 million needed for the project would come mostly from the federal government.

In an unusual public-private partnership, the state government will seek a developer that will design the highway, oversee construction, finance and warrant the road, according to Pete Rahn, secretary of highways and transportation. San Juan County is expected to help pay for the project to about $5 million, most likely through a property tax increase.

The project will most certainly spur increased economic development. Gary Bratcher, the state secretary of economic development, says 96 percent of manufacturing companies that consider relocating to the state want to be within two miles of an interstate.

Tinghey's approach to economic development targets financially strong smaller companies which employ from 35 to 135 people, those normally not courted for recruitment. If the incentives are right and these companies make a move to the Farmington area, it benefits the whole community, providing a stronger financial base and jobs to an area, including the Navajo Reservation, which currently has a 9.4 percent unemployment rate.

The key word is control, recruiting companies that make a good fit within the community. This region has much to offer, says Tinghey. The areas in which it can't compete are high crime and traffic, he says with a smile.

Lack of such social problems contributes to the quality of life for the more than 102,000 people in San Juan County. Add this to the natural surroundings that provide superior outdoor recreation, along with the excellent contributions by Farmington Parks and Recreation, and these factors provide an extremely competitive marketing tool to entice industry.

One of Farmington's prime natural assets is the Animas River Corridor with an eight-mile trail system as part of the ongoing development. Construction is due to start in the fall on Gateway Park, which will house a Visitors Center and the Farmington Museum. Two new projects are also planned on the west side of Farmington. A sports complex, with tennis courts and baseball and softball fields, will be developed on 80 acres along La Plata Highway. A La Plata River Trail System will also be developed in that area.

"We think it will stimulate some development, both commercial and residential," says Dan Dible, manager for the City of Farmington. "I anticipate when these two projects are completed, Farmington will have the best Parks and Recreation facilities in the four-state region."

A recent report on the economy of San Juan County, prepared by Rauscher Pierce Refsnes, Inc., shows that commercial and residential construction within the city limits of Farmington has increased 52 percent in valuations over the last five years.

"Our residential real estate loans are up 10.5 percent from a year ago," says Dick Ledbetter, president and CEO of First National Bank. "Our total loan portfolio has grown 6.4 percent from a year ago."

Two new shopping centers are expected to start construction within the near future. A new Furrs Supermarket will anchor a strip mall to be built on 20th Street, and property at Pinon Hills Boulevard and Main Street on the north side of town has been cleared in anticipation of a new retail center. A $28 million high school is currently being built and should be open by the fall of 1998. Construction has also started on a 5,500 square-foot Applebee's Restaurant at the Animas Valley Mall, with an expected September opening. Sales at the mall are up 6 percent over last year, says Sandy Schumacher, marketing director.

"Our loan demand is very strong," says Randy Rouse, a vice president for First Place Financial Corporation, who cites the economic contributions of Navajo Agricultural Products, Inc. (NAPI), which has over 60,000 acres under cultivation and a contract with Frito Lay.