The Albuquerque City Council unanimously approved a quarter-billion-dollar tax break at the June 16 City Council meeting for a three-part luxury development in the Sawmill District, despite public pushback over affordable housing, fair wages and developer accountability.
The City Council voted unanimously Monday to approve industrial revenue bonds for three projects, a hotel, extended-stay suites and an apartment-retail complex proposed by developer Jim Long, whose company will receive a 70% property tax abatement over 20 years.
“We’re just very fortunate,” said Councilor Dan Lewis, “I mean, our city is fortunate to have people that are from Albuquerque, that invest, their hard earned money, their investment, their name, their reputation, to create just phenomenal cultural places that are providing housing, just some amazing facilities that are just going to lift up the whole city.”
Supporters say the project will boost the Sawmill District and drive economic growth in nearby areas like Old Town and downtown, creating jobs and new business opportunities.
Pushback from critics
The approval came just days before a new state law requiring prevailing wages takes effect and not everyone is on board.
Critics, including residents and union members, questioned the 70% property tax break, the absence of affordable housing, and whether local workers would receive fair wages and benefits — raising broader concerns about using public money to support luxury development.
Mayoral candidate Alex Uballez said Albuquerque should grow in ways that benefit both developers and everyday residents.
“The purpose of giving a developer a 70% tax abatement is to serve the interests of the people of Albuquerque, the interests both in tax revenue and in jobs with fair wages and affordable housing,” he said.
Uballez questioned why the city would offer a more generous deal than the county and urged the council to wait until July, when a new state law, House Bill 6, requiring prevailing wages takes effect.
“I’d ask that this body consider whether people who build and work on this project can also live in this project and benefit from and if not,” he said. “I feel that this deal may betray the intent of the IRBs, converting a tool that was meant to serve the people into an incumbent, rewarding [benefactors].”
City officials say the project will bring jobs, tourism and investment to a longtime redevelopment zone, but the size of the subsidy and Long’s past unpaid city tax liens have drawn scrutiny.
By 2031, the project is expected to create at least 75 full-time and 40 part-time permanent jobs, plus another 113 full-time and 72 part-time positions through retail tenants, according to Monica Mitchell, deputy director of the city’s Economic Development Department. She said the development will also generate about 750 construction jobs, mostly using local labor, with many permanent roles offering full benefits.
Developer defends the project
The developer behind the project is Sawmill Bellamah Properties, LLC, a company formed in 2014 to manage parcels in the Sawmill District. Long, the founder of Heritage Hotels & Resorts, leads the company and will operate the new properties through his affiliated businesses. Long owns and is spearheading the broader Sawmill District redevelopment.
“We’re very excited to create these beautiful buildings for our city,” Long said. “Not only will they raise the bar in terms of quality development in Albuquerque and the state, but it’s also the excitement and the stimulation that these buildings will be — especially for people that will live, work and play in this environment. Hopefully, [it’s a] very inspiring project [that helps] others make similar decisions to invest, as we are today, in our community.”
Long also owns Hotel Chaco and Sawmill Market. In 2021, the ABQ Journal reported that The Clyde Hotel, Hotel Chaco and Nativo Lodge owed $336,000 in unpaid lodgers’ tax and hospitality fees. According to the city Treasury division, those hotels are now in compliance and have no liens.
Union leaders speak out
Labor leaders spoke out at the meeting, urging the city council to delay the vote and strengthen labor protections tied to the project.
Rosendo Najar, president of Carpenters Union Local 1319, urged the city to delay the vote and tie the project to stronger labor standards.
“We’re happy that developers are wanting to come to Albuquerque and invest in the community and get some money while they’re at it,” said Najar. “That’s good, but there needs to be more than a beautiful building left in that community.”
Najar said the community investment must benefit workers. “There needs to be a workforce that now has a check, that now has insurance, that now is able to buy the school supplies that they need for their kids.”
“It’s not okay to not apply apprenticeship language to it, and it’s not okay to bare minimum wait two weeks to [make sure] prevailing wage is tied to this,” he said. “The fact that it’s been introduced before, that seems kind of sneaky to us. This is not okay.”
Joan Baker, political affairs director and director of outreach at UA Local 412 for the plumbers and pipefitters union, said city council members have a fiduciary duty to protect tax dollars.
“This IRB, the way it is written or passing it before July 1, is a $227 million gift with no worker protections and no affordable housing during our biggest crisis, which is a housing crisis,” Baker said. “Therefore it is not maximizing those tax dollars.”
She said the council must maximize its investment. “I heard the woman, the economist, give the report that construction GRT is up. It’s one of the only ones that is up. Let us get it up more. Let us keep it up. And it being tied to prevailing wage is an important part of that.”
Local Hiring
Councilor Nichole Rogers asked developer Jim Long what percentage of past construction jobs on his Albuquerque projects went to local workers.
“Probably 99%,” Long said.
When asked if those contractors were unionized, Long said his company has worked with the Jaynes Corporation, “which I believe is the largest union contractor in New Mexico.”
Rogers asked about the Chaco residences, saying, “One part of the packet says it’s long-term stay. Can you explain the residential part of the project?”
Long said it’s an extended-stay hotel. Many guests stay for a while but don’t have kitchenettes. So people looking for long-term rentals — like those moving for a new job — can’t really stay there now. The Chaco residences will offer that option.
When asked about rent, Long said he wasn’t sure but added hotel rates run about $275 a day and the residences could be in that range.
“That helps me get an idea of who could live there,” Rogers said. “I could not at that amount, just saying.”
Rogers added she’s not against the development but wants to make sure community concerns are addressed. She said she appreciates the honest answers.
“What I’m most grateful for, is that there’s a land trust in this neighborhood,” Rogers said. “Those of you that live in that land trust, your housing is going to be stable regardless of what happens with development around it. That’s why I’m helping with the land trust in District Six.”
“We want development, we want those things, but we also want to keep it affordable for folks who’ve lived in these neighborhoods for generations and generations,” she said. “This is exactly why we need more land trust so that someone like you could do awesome development that we need, but we also keep it affordable, so we can do both.”
Rogers said she’s glad the project employs local workers, adding it’s crucial to support the people doing the construction.
She wrapped up by saying that while housing at Chaco might be too expensive for many, land trusts are key to preventing displacement in the community. She emphasized the importance of expanding land trusts in the neighborhood to ensure both growth and affordability.
Project Breakdown
- Chaco Residences:
- $70.4 million, 107-unit luxury extended stay hotel at 1904 Bellamah Ave. NW, featuring suites, wellness areas, restaurants, 19,194 sq. ft. of retail and outdoor terraces. Construction will start in August.
- It is expected to generate $5.6 million in taxes by 2042 and create 18 direct jobs, 86 retail-related jobs and 250 construction jobs.
- Sawmill Hotel:
- $76.3 million, 115-room boutique hotel at 1921 Bellamah Ave. NW, with rooftop dining, event space, fitness center, pool lounge and 5,000 sq. ft. of retail. Construction will start in August 2030.
- It’s expected to generate $8.2 million in taxes by 2049 and create 58 full-time, 32 part-time, three retail jobs and 250 construction jobs.
- Sawmill Mixed Use:
- $80.8 million, 140-unit apartment complex at 800 20th St. NW and 1904 Bellamah Ave., with 24,540 sq. ft. of retail, entertainment, restaurants and amenities such as a pool, hot tubs, clubhouse and gym. Construction will start in August 2028
- It is expected to generate $2.3 million in taxes by 2047 and create 7 direct jobs, 96 retail-related jobs and 250 construction jobs.
What’s next
The bond ordinance now heads to the mayor for a signature. If signed quickly and published immediately, it could take effect as early as June 25 —just days after House Bill 6 becomes law on June 20. That would make it one of the first industrial revenue bond deals subject to the new statewide prevailing wage law.
To avoid confusion, the council passed an amendment making it clear that prevailing wages will apply no matter when the ordinance becomes law. HB6 only applies to IRBs approved after its effective date and does not apply retroactively. The amendment helps ensure the project complies either way, giving labor groups more certainty.
Get Involved
With the City Council taking a summer break, the next City Council meeting is at 5 p.m. Aug. 4 in the Vincent E. Griego Chambers, basement level of the City of Albuquerque Government Center, 1 Civic Plaza NW.
To speak during public comment, you must sign up by 4 p.m. the day of the meeting. If you don’t have internet access, call 505-768-3100 for help.
Join virtually:
- Zoom link: cabq.zoom.us/j/84979163903
- Webinar ID: 849 7916 3903
- Phone: 669-444-9171, then enter the Webinar ID
Watch live:
- Comcast Channel 16 (GOVTV)
- Stream at cabq.gov/govtv
On YouTube at youtube.com/@GOVTVBoardsCommissionMeetings