Approving Ground Lease of City-Owned Buildings at Midtown (FIR)

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FISCAL IMPACT REPORT
General Information:
(Check) Bill: X Resolution: _______
Short Title(s): Approving Ground Lease of City-Owned Buildings at Midtown
Sponsor(s): Mayor Michael Garcia, Councilor Jamie Cassut, and Councilor Pilar Faulkner
Reviewing Department(s): Metropolitan Redevelopment Agency
Staff Completing FIR: Carly Venditti, Metropolitan Redevelopment Agency Deputy Director
Date: 4/23/2026 Phone: 505-795-0675
Reviewed by City Attorney: Date:
Reviewed by Finance Director: Date:
Summary:
The City of Santa Fe (“City”) and Midtown Arts and Design Alliance (MADA) (“Developer”) entered into
an Exclusive Negotiation Agreement on September 5, 2023 in order to negotiate a ground lease and
development agreement for the renovation of the Midtown Visual Arts Center and adjacent Barracks. The
City and MADA, are now entering into a Ground Lease and Disposition Agreement for the Property.
NMSA 1978, Section 3-54-1 requires that the City approve the lease of City-owned property with an
Ordinance. This bill is created to comply with that statute.
Departments Affected:
Metropolitan Redevelopment Agency (MRA), Public Works Department
Consequences of Not Enacting Legislation:
If this legislation is not adopted, the ground lease and development Agreement cannot move forward, and
the City would need to identify a new process or Request for Proposal process for renovating the Midtown
Visual Arts Center and Barracks.
Conflict, Duplication, Companionship, or Relationship to Other Legislation:
The proposed bill is related to Resolution 2022-68, Midtown Master Plan Approval; and Resolution 2023-
5 Midtown Community Development Plan Approval.
Performance and Administrative Implications:
The lease will engage two parcels; parcels K-1a and P-1b for a total of 3.37-acres, including the following
buildings: the Tipton Lecture Hall and the Marion Center for the Photographic Arts, the Tishman Hall,
inclusive of the Thaw Art History Center of the Visual Arts Center, and the Barracks.
FIR No. 10742.0Marcos D. Martinez (Apr 23, 2026 12:49:37 MDT)
Marcos D. Martinez04/23/2026ANDREA PHILLIPS (Apr 24, 2026 12:21:19 MDT)04/24/2026

Adopted: 01/12/05; revised 8/24/05; 4/17/08; 2
Fiscal Implications:
The developer will pay one dollar ($1.00) in rent to the City over the course of this ground lease with an
initial term of 10 year, with a first extension right of 10 years, followed by the right for three consecutive
10-year terms. Developer shall deposit $10,000 with the City to be held by the City until the Construction
Commencement Date of the Improvements for Phase 1, at which time the City shall disburse the $10,000
to the Developer. The Developer shall design, finance, develop, construct, operate, and manage the project
in accordance with the Final Development Plans and Applicable Rules. The Developer would also be
responsible, at is sole cost and expense, for the entitlement, development, construction, and improvement,
management, and operation of the project.
Fiscal Impact
Check here if no fiscal impact

Expenditures
Expenditure Narrative:
Revenue
Revenue Type FYE 2026 FYE 2027 FYE 2028 Recurring (R) or Non-recurring (NR) Fund
General Fund $ $__1____ $ R WIP Construction
Special Revenue $ $ $
CIP $ $ $
Enterprise $ $ $
Internal Service $ $ $
Trust and Agency
Federal
$
$
$
$
$
$
Other $ $ $
Total $ $ 1 $
Revenue Narrative:
The developer will pay one dollar ($1.00) in rent to the City over the course of this ground lease with an initial term of 10 year, with a first extension right of 10
years, followed by the right for three consecutive 10-year terms.
Expenditure
Type
FYE 2026 FYE 2027 FYE 2028 Require BAR
(Y/N)
Recurring (R) or Non-
recurring (NR)
Fund 3-Year Total
Cost
Personnel and
Benefits*
$ $ $
Capital Outlay $ $ $
Contractual/
Professional Services
$ $ $
Operating $ $ $ $
Total: $ $ $ $

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