JLL_LIHTC Disposition_FC_QoF_GB - signed

Extracted text

To: Finance Committee, Quality of Life, Governing Body
From: Carly Venditti, Deputy Director, Metropolitan Redevelopment Agency
CC: Andrea Phillips, Deputy City Manager, Brian Moya, Interim City Manager
Date: August 6, 2026
Re: Public Announcement: Midtown Real Property for Sale or Lease Pursuant to Resolution
2021-16
Pursuant to Resolution 2021-16 (attached), the Metropolitan Redevelopment Agency (MRA) seeks
approval from the City of Santa Fe Governing Body to publicly announce that parcel K-1b, property
at the Midtown Site is available for sale or lease to facilitate a Low-Income Housing Tax Credit
project (LIHTC) through real estate consultant Jones Lang LaSalle.
Disposition and development of the Midtown Site parcels are pursuant to the Midtown Master Plan
and the Midtown Community Development Plan approved by the City’s Governing Body. The
Midtown Site address is 1600 St. Michaels Drive, Santa Fe, NM. The specific tracts associated with
this public offer is Tract K-1b within the Projected Section 34, T.17N, R.9E, N.M.P.M., as described in
Survey: Lot Split to Create Tracts, Midtown Site, Santa Fe County, NM. November 2024. This public
offer will be open until September 23, 2026, which may be extended at the City’s sole discretion.
Tract K-1b was among those tracts were identified as redevelopment parcels in the Midtown Master
Plan, and do not include tracts with existing buildings identified for rehabilitation and reuse or
public open spaces identified in the Midtown Master Plan, specifically, the Visual Arts Center (Tract
K-1a; Tract P-1b), Santa Fe Art Institute (Tract P-1a), the Greer Garson Performing Arts Theater (Tract
R2-1a), the Fogelson Library Complex (Tract Q-1b), the Arroyo Park area (Tract H-1b), the MidtownCAV
CAVBM
BM

Plaza area (Tract N-1; Tract L-1b). the six tracts in development pursuant to an approved and
executed Disposition and Development Agreement between the City and the developer, Aspect
Studios, for the redevelopment and expansion of film and multi-media production studios in a
mixed-use film zone (Tract F-1b; Tract G-1; Tract J-1a; Tract J-1b; Tract L-1a; Tracts F-1a), or Tract O-1
under remediation by the New Mexico General Services Department (GSD) (Tract O-1).
Attachments:
• Exhibit A. Jones Lang LaSalle Offer Memorandum,
• Exhibit B. Lot Split Plat, ‘Lot Split to create TRACTS K-1a and K-1b'
• Exhibit C. RESOLUTION NO. 2021-16

The City of Santa Fe Metropolitan
Redevelopment Agency presents a rare
and compelling opportunity to shape
the future of affordable housing in one
of America's most culturally significant
cities. The MRA is seeking a visionary
development partner to deliver a
transformative affordable housing
community on Parcel K-1B within the
Midtown District, a 64-acre mixed-use
redevelopment that will serve as the
vibrant heart of Santa Fe for
generations to come.
This is a unique opportunity to create
lasting social impact while
participating in one of Santa Fe's most
ambitious urban revitalization efforts.
Located at the geographic center of
Santa Fe, the Midtown District
represents the City's commitment to
building an inclusive, sustainable
future that honors its past while
embracing innovation.
Midtown Santa Fe
Parcel K-1B Offering Memorandum
August 12, 2026

The Midtown Site is a 64-acre property
located at the geographic center of
Santa Fe at 1600 St. Michael's Drive.
Once home to the College of Santa Fe
and later the Santa Fe University of Art
and Design, the site has served as a
cultural, educational, and civic anchor
in the community since its inception.
Following the University's closure in
2018, the City of Santa Fe assumed
ownership and launched a
comprehensive planning process to
reimagine the property.
Santa Fe Midtown District
Overview

Santa Fe Midtown District
Planning Process
The city has developed and adopted the
regulatory framework and the detailed
community vision. The Master Plan
Vision calls for a mixed-use district
serving all residents, incorporating:
• Housing (including substantial
affordable housing component)
• Employment centers
• Arts and culture venues
• Educational facilities
• Open space and recreation
• Civic institutions
A central objective is addressing Santa
Fe's acute housing affordability
challenges, including persistent
shortages of quality rental housing
affordable to low- and moderate-
income households.

Parcel K-1B Overview
Parcel K-1B encompasses approximately
3.9 acres of City-owned land positioned
within a mixed-use community designed
to integrate housing, employment, arts,
culture, education, and civic life. This site
has served as an educational and cultural
anchor for decades. Now, it stands ready
for its next chapter: delivering quality,
deeply affordable housing to the families,
essential workers, and long-time residents
who form the backbone of Santa Fe's
community.
Parcel K-1B offers exceptional connectivity
and compelling strategic advantages that
position it for development success. The
parcel benefits from strong physical and
visual connections to established schools,
diverse employment centers, transit
corridors, and surrounding residential
neighborhoods. This central location
ensures that future residents will have
convenient access to daily needs,
employment opportunities, and
community amenities—critical factors for
affordable housing success and resident
quality of life.
The site sits within the framework
established by the Midtown Master Plan,
which specifically designates this area for
higher-density, mixed-income housing
development. This supportive land use
context removes many of the regulatory
uncertainties that often complicate
affordable housing development. Rather
than fighting for density or seeking
variances, developers will work within a
plan explicitly designed to accommodate
and encourage exactly the type of
development this opportunity envisions..
Infrastructure and Integration
As part of the larger 64-acre Midtown
redevelopment, Parcel K-1B will benefit
from coordinated infrastructure planning
and investment. The City is actively
planning utilities, roadways, and
supporting infrastructure as part of the
comprehensive district transformation.
While the developer will be responsible for
site-specific planning, utility connections,
and on-site improvements (to be
negotiated in the Disposition and
Development Agreement), these efforts
will occur within a context of broader
public investment and coordinated
development phasing.

Parcel K-1B Site Characteristics
Location
Parcel K-1B is located at 1600 St. Michael's Drive, at the
geographic center of Santa Fe within the 64-acre Midtown
District. The site comprises approximately 2.50 acres or 108,900
square feet. Rather than serving as an isolated affordable
housing site, this parcel will be an integral component of a
vibrant mixed-use district, benefiting from coordinated public
investment and surrounded by complementary uses.
Zoning
Parcel K-1B offers a land use framework specifically designed to
facilitate higher-density affordable housing. The site is governed
by the Midtown Master Plan and Midtown Community
Development Plan, which support and prioritize mixed-income
housing in this designated area.
The Midtown Local Innovation Corridor Overlay provides three
critical advantages:
• Reduced development fees that improve project feasibility
• Expedited review timelines that compress schedules and
reduce carrying costs
• Administrative development plan review for qualifying
projects, providing predictability and speed
All entitlements will be pursued administratively per SFCC
Chapter 14-3.8(B)9—no lengthy public hearings or
unpredictable political processes. The developer remains
responsible for obtaining required approvals and meeting
Midtown design standards, but the pathway is streamlined and
efficient.

Parcel K-1B Site Characteristics
Utilities
Utilities, roadways, and infrastructure are being planned
as part of the larger Midtown redevelopment, providing
context and support for individual developments. The
developer will handle site-specific planning, utility
connections, and on-site improvements (as negotiated),
but these occur within a framework of coordinated public
investment.
During the 18-month ENA Due Diligence Period, parties
will negotiate terms for any public infrastructure
improvements directly impacting the development, with
agreed terms incorporated into the final Disposition and
Development Agreement. This process provides clarity
and certainty before binding financial commitments are
made.
The developer must coordinate horizontal development
activities with the City's infrastructure planning to ensure
alignment with the Midtown Master Plan—creating a
unified district rather than disconnected projects.
Parking
The City has eliminated minimum parking requirements
for this affordable housing development. However, the
developer retains responsibility for determining
appropriate parking supply based on target resident
demographics, transit accessibility, Midtown Master Plan
objectives, market demand, and LIHTC requirements. The
site's central location and strong transit connections
support reduced parking ratios.

Housing Requirements
The City seeks a development that maximizes
affordability while maintaining financial
viability and design excellence. The program
calls for new affordable rental housing utilizing
Low-Income Housing Tax Credits (LIHTC) in
conjunction with other funding sources to
serve households earning at or below 80% of
Area Median Income, with a strong preference
for deeper affordability where feasible.
This project will provide a minimum 20-year
affordability commitment, ensuring long-term
housing security for Santa Fe's workforce and
families through income certification, recorded
covenants, land use restrictions, and lease
protections. The development must embody
the City's vision for equitable, sustainable
growth—featuring 100% electric design with
integrated photovoltaics, high-quality
architecture that complements the Midtown
aesthetic, and public art woven throughout the
community to celebrate Santa Fe's renowned
creative spirit.
Recognizing the critical importance of this
project, the City of Santa Fe has assembled a
comprehensive package of financial
incentives, regulatory flexibility, and
partnership support designed to enhance
project feasibility and streamline development.

Housing Requirements
Financial Incentives:
• Discounted or waived development fees, including Impact
Fees and Utility Extension Charges (UECs)
• Grant and funding application sponsorship for state and
local funding opportunities
• Access to the City of Santa Fe Affordable Housing Trust
Fund for soft financing with application and support from
MRA
• Flexible site disposition options, including long-term
ground lease, site purchase, or alternative arrangements
with City co-developer fee participation
Regulatory Advantages:
• No minimum parking requirements, allowing for efficient
site utilization and reduced development costs
• Administrative development plan review for qualifying
projects, significantly expediting approvals
• Qualifying Project status under the Midtown Local
Innovation Corridor Overlay, providing reduced fees and
accelerated review timelines
• Streamlined entitlements processed administratively
Partnership and Support:
• City sponsorship of grant applications and collaborative
funding pursuits
• Coordination with infrastructure development as part of
the broader Midtown investment
• Technical assistance throughout entitlement, permitting,
and development phases

Santa Fe Market Trends
Population and Household Growth
The 3-mile trade area demonstrates stable, moderate growth. Population increased
4.57% from 57,625 in 2020 to 60,261 in 2025, and is projected to grow an additional
2.27% to 61,628 by 2030. Household counts followed a similar trajectory, expanding
4.27% from 27,688 to 28,871 over the same five-year period, with projected growth of
2.28% through 2030.
Demographic Profile
The trade area reflects an affluent, mature population. Median household income
reached $72,328 in 2025, representing 22.1% growth from $59,252 in 2020. Average
household income climbed to $96,124, up from $81,028. Notably, 27.1% of households
earn over $100,000 annually, with 9.86% exceeding $200,000.
The population skews older, with a median age of 49 years and 29.3% of residents aged
65 or above. The area is culturally diverse, with 48.7% of the population identifying as
Hispanic origin.
Housing Characteristics
Owner occupancy stands at 54.8%, slightly above the renter share of 45.2%. The
median home value of $465,944 underscores the area's premium residential character.
Employment Base
The 3-mile radius supports a robust daytime employment base of 59,873 employees
across 6,910 businesses, yielding an average of 9 employees per business. The largest
employment sectors include Public Administration & Sales (17,539 employees), Health
Care & Social Assistance (10,420 employees), and Retail & Wholesale Trade (8,348
employees). The civilian labor force participation rate is 60.4%, with unemployment at
just 2.3%.
By occupation, the workforce is highly skilled, with 33.2% employed in Professional &
Management roles and 13.2% in Education & Health services. Educational attainment is
strong, with 47.4% of adults holding a bachelor's degree or higher.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2020 2025 2030 (proj.)
Count
Population & Household Growth (2020-2030P)
Population
Households
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2020 2025
Income ($)
Household Income: 2020 vs 2025
Median HH Income
Average HH Income

Multifamily Housing Market Trends
Current Market Conditions (Mid-2026)
The Santa Fe multifamily submarket is experiencing elevated vacancy
following an unusually large development cycle. Vacancy peaked at
18.5% in late 2025 and has since declined to 13.2%, though this
remains well above historical averages for this supply-sensitive
market.
Supply and Demand Dynamics
Demand has been strong, with approximately 580 units absorbed
over the past 12 months—more than double the typical annual pace.
However, this absorption has not fully offset the impact of recent
construction. Approximately 350 units were delivered in the past year,
and while net absorption exceeded new supply, vacancy remains
elevated due to the cumulative effect of the recent development
cycle.
Rent Performance
Asking rents declined 2.8% year-over-year to approximately $1,830
per unit, with effective rents facing additional pressure from prevalent
concessions. The luxury segment (4 & 5 Star properties) has been
most affected, as the majority of recent and upcoming deliveries
concentrate in this tier, intensifying competition and limiting pricing
power.
Market Outlook (2026-2028)
The submarket is projected to remain in an extended adjustment
phase through at least 2028. Approximately 560 units are currently
under construction, representing 11.2% of existing inventory. Vacancy
is forecast to ease gradually but remain in the low- to mid-teens
through 2027-2028, with subdued rent growth and continued
competition among newer assets expected throughout this period.

Retail Market Trends
Current Market Conditions (Q2 2026)
The Santa Fe retail market reported a vacancy rate of 2.9%, representing a 1.1
percentage point increase over the past year driven by negative net absorption
of 96,000 SF against minimal new supply of 14,000 SF. Current vacancy
exceeds both the five-year average of 1.6% and the 10-year average of 2.2%,
with year-end 2026 vacancy forecast at 3.3%. Approximately 300,000 SF is
listed as available, representing a 3.0% availability rate.
Subtype Performance
Vacancy rates vary significantly by property type: neighborhood centers lead
at 6.1%, followed by strip centers at 1.3%, general retail at 1.4%, and malls at
0.3%. Power centers report zero vacancy. The market contains approximately
9.9 million SF of retail inventory, with general retail comprising the largest
share at 5.7 million SF.
Construction Pipeline
No retail space is currently under construction in Santa Fe, notably below the
10-year average of 4,700 SF. This signals limited near-term supply pressure.
Rent Performance
Market rents average $24.00 per SF, flat year-over-year compared to 1.8%
national growth. Performance varies by subtype: neighborhood centers grew
0.6% and malls 0.4%, while power centers declined 0.4%, strip centers fell
0.1%, and general retail decreased 0.3%. Despite current stagnation, Santa
Fe's longer-term rent growth has been stronger, averaging 3.3% annually over
five years and 2.8% over ten years.
Market Outlook
Overall annual rent growth is forecast to end 2026 at -0.4%, underperforming
the 1.8% national average, as the market absorbs elevated vacancy levels in a
constrained supply environment.

Estimated Disposition Schedule*
Action Responsible Party Date
Issue RFP CPD August 12
Site Visit Potential Offerors August 26
Response to Written Questions Procurement Manager September 11
Proposals Due Date Potential Offerors September 23
Interviews Potential Offerors October 7
Best and Final Offer(s) Potential Offeror(s) October 14
Governing Body Approval of
ENA Governing Body October 28
*All dates in this schedule are subject to change at the
MRA's sole discretion. Actual timing may be affected by
factors such as market conditions, permitting, financing,
or construction delays.

Karlen Beitman
Senior Vice President
JLL Public Institutions
+1 312 221 3838
Karlen.Beitman@jll.com
Nicholas Gabel
Vice President
JLL Public Institutions
+1 202 549 0863
Nicholas.Gabel@jll.com
Laurence Hicks
Associate
JLL Public Institutions
+1 206 818 4438
Laurence.Hicks@jll.com
Carly ‘C ' Venditti
Deputy Director
Metropolitan Redevelopment
Agency
City of Santa Fe
+1 505 795 0675
cavenditti@santafenm.gov

10287.1 1
1 CITY OF SANTA FE, NEW MEXICO
2 RESOLUTION NO. 2021-16
3 INTRODUCED BY:
4
5 Councilor JoAnne Vigil Coppler
6 Councilor Michael J. Garcia Councilor Renee Villarreal
7 Councilor Carol Romero-Wirth Councilor Signe I. Lindell
8
9
10 A RESOLUTION
11 REQUIRING GOVERNING BODY APPROVAL PRIOR TO ANNOUNCING THE
12 AVAILABILITY OF ANY CITY-OWNED LAND, BUILDINGS, OR OTHER REAL
13 PROPERTY FOR SALE.
14
15 WHEREAS, Governing Body approval and a bill presented at a public hearing are
16 required for an offeror to purchase City property having an appraised value in excess of twenty-
17 five thousand dollars ($25,000); and
18 WHEREAS, approval from the Governing Body is not currently required before the City
19 announces the opportunity for potential offerors to submit offers to buy City property for the
20 Governing Body's consideration; and
21 WHEREAS, the Governing Body and staff work together to evaluate assets and staff seeks
22 policy guidance from the Governing Body; and
23 WHEREAS, staff have expertise in real property transactions and m evaluating
24 development strategies to maximize City interests; and
25 WHEREAS, the Governing Body has developed policy priorities for the use of certain

10287.1 2
1 City-owned land, buildings, and other real property; and
2 WHEREAS, Santa Fe City Code sole guidance on real property sales is contained in
3 Section 11-10.2 which cites to statutory authority (NMSA 1978, § 3-54-1), or as otherwise provided
4 by law; and
5 WHEREAS, NMSA 1978, Section 3-54-1 sets forth the statutory process for selling
6 municipal utility facilities and other real property subject to a required referendum period; and
7 WHEREAS, City-owned land, buildings, and other real property are public property; and
8 WHEREAS, the Governing Body understands the importance of holding executive
9 sessions for sales of City-owned land, buildings, or other real property.
10 NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE
11 CITY OF SANTA FE that the Governing Body shall hold an executive session to discuss a
12 proposed sale when recommended by staff.
13 BE IT FURTHER RESOLVED that, if staff does not recommend an executive session,
14 then staff will provide a public presentation regarding the reasons for the recommended sale of
15 City-owned land, buildings, or other real property.
16 BE IT FURTHER RESOLVED that, regardless of whether or not the Governing Body
17 holds an executive session, prior to the City announcing the sale of any City-owned land, buildings,
18 or other real property that has a value that exceeds $25,000, the Governing Body shall vote to
19 approve a proposed announcement that includes the address, name, and description of the relevant
20 property during a public meeting.
21 BE IT FURTHER RESOLVED that the Governing Body shall review this Resolution
22 within three (3) years of the date of adoption to evaluate the efficacy of the process it establishes.
23 BE IT FURTHER RESOLVED that this Resolution shall apply to properties that are not
24 already announced as "for sale" at the time of the adoption of this Resolution.
25 PASSED, APPROVED, and ADOPTED this 10th day of March, 2021.

10287.1 3
1
2
3
4 ATTEST:
5
6
7 KRISTINE MIHELCIC, CITY CLERK
8 APPROVED AS TO FORM:
9
10
11 ERIN K. McSHERRY, CITY ATTORNEY
12
13
14
15
16
17
18
19
20
21
22
23
24
ALAN WEBBER, MAYOR
25 Legislation/2021/Resolutions/2021-16 GB Approval for Offering of Public Land for Sale



Signature:Email:Signature:Email:Signature:Email:cavenditti@santafenm.govANDREA PHILLIPS (Aug 6, 2026 17:34:44 MDT)akphillips@santafenm.govbjmoya@santafenm.gov

JLL_LIHTC Disposition_FC_QoF_GB
Final Audit Report 2026-08-09
Created: 2026-08-06
By: Brandon Woodlee (bmwoodlee@santafenm.gov)
Status: Signed
Transaction ID: CBJCHBCAABAAOD7HMsl0WN1ji5KYI-_WWm7AJnre889D
Documents: JLL_LIHTC Disposition_FC_QoF_GB.pdf (19 pages)
Number of Documents: 1
Document page count: 20
Number of supporting files: 0
Supporting files page count: 0
"JLL_LIHTC Disposition_FC_QoF_GB" History
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