Columbus and Palomas: getting it together

New Mexico Business Journal, August, 1995 by M. Gene Aldridge, Susan C. Aldridge

If you haven't heard, economic development and cooperation are alive and well, in microcosm, on both sides of the border. This is a tale of two towns that have figured out that borders don't have to be walls.

Puerto Palomas in Mexico and the village of Columbus on the other side of the Rio Grande south of Deming are demonstrating that NAFTA is beginning to catch hold - not with a $5 trillion economic market predicted by its supporters (not yet, anyway), but with one small step toward international cooperation on education, health, economic development and infrastructure projects.

Palomas is a community of about 10,000 persons. Columbus is, at last count, about 700 persons strong. Both towns are working to redevelop themselves and make cooperation work. They are among the 24 Sister Cities on the border that are meeting with their counterparts and developing long-term bi-national relationships in business, economics, health and trade. So what are the folks of Palomos and Columbus up to? A partial list:

* A bi-national educational program that allows children from Mexico to attend school in Columbus and Deming and allows children on the U.S. side to study Spanish with Mexican teachers.

* A bi-national health council that is working to develop health programs because disease knows no border and businesses won't come if there are health problems.

* A bi-national task force to lay out a master plan for developing both sewage and water treatment systems for both communities along the border because they both share the same aquifer and future development is dependent upon access to good water sources without pollution or fluoride problems.

All of these efforts are linked to the central idea that economic development must be created around sound health, education and infrastructure programs before businesses will be attracted to the border area. These ideas are so interesting that these two towns have begun attracting money and heavy-hitting visitors to promote their efforts. Senator Jeff Bingaman (D-NM); Victor Miramontes, COO, North American Development Bank; Myles Culbertson, executive director, New Mexico Border Authority, and Steve Anaya, state director of the Rural Housing and Community Development Service, were among recent visitors.

Mayor Carlos R. Ogden of Columbus and Mayor Julieta Elizondo de Avina of Palomas meet frequently to discuss joint ventures.

In May, Anaya presented Mayor Ogden with the first installment of a $425,000 Colonias Grant for water development in Columbus. At that meeting Miramontes of the North American Development Bank said, "NAFTA is merely the expansion of what many communities have been doing along the border for years. Your two communities are unified; you respect each other. The vision for the future here is very powerful. . . it's your vision, your future. If your two communities can come together with a plan, it can become a model for other communities along the border. This new vision is a planning approach that can become the vision for the rest of the border." Miramontes has provided deeds with his words because he has already brought a company to inspect the area for site location that may employ 200-300 employees. Any loans for economic development will probably come from the North American Development Bank located in San Antonio.

Myles Culbertson of the Border Authority and Columbus officials have also contributed funds for the development of a strategic plan for the area. Culbertson said, "We are the deal makers, the business makers for the border projects. We must work strategically and creatively. With recent legislation, we can accept credit enhancements such as financial institution letters of credit or bond insurance policies. In addition, the Authority can accept funds, borrow money, issue revenue bonds, plus charge and collect fees on projects. We work in tandem with economic development agencies."

Attracting new business and manufacturing groups to the area can be enhanced by these activities, but Columbus already has an International Industrial Park, with its own port of entry, which was established in 1979. It is located right on the border, three miles south of Columbus. While ranching and agriculture have been the main economic stabilizers for Luna County, park developers are looking for small to medium manufacturing groups.

Within the park is a linear molding wood products company called Concepts in Wood and a pump company that exports to Mexico. Stage Coach Cottage and Distribution, a trucking and warehouse company, has purchased 28 acres. But businesses don't have to locate on the border to receive assistance from the New Mexico Border Authority, they just have to use one of the Ports of Entry to export or import goods. "In essence, a company in Lovington or Deming or Santa Fe that exports through the border would be eligible for capital financing through the Border Authority," said Culbertson.

Attending Palomas-Columbus task force meetings can be like visiting an international exchange party. Spanish and English are spoken by all parties. Mayor Ogden speaks Spanish and assists Mayor Elizondo de Avina in English. Sometimes she assists Mayor Ogden in Spanish. When the meeting is over everyone seems to understand what it all means regardless of the language spoken. No one seems to leave embarrassed or frustrated. Business is conducted in both languages. Translators are often provided during the larger more public meetings.