Downtown Development & Activation

Situational Analysis

Albuquerque's Downtown stands as a testament to the city's ongoing urban renaissance, blending its rich historical heritage with modern developments. The area has undergone significant transformation in recent years, breathing new life into the urban core and offering visitors a unique Southwest experience.

While rich in potential, Downtown currently faces a complex set of challenges that impact the city's urban core and its appeal to visitors and residents alike. The area has struggled with persistent issues that have hindered its full revitalization, creating a mixed landscape of progress and setbacks.

One of the most visible challenges is the ongoing problem of the unhoused. The area has seen a noticeable increase in the unhoused population, leading to encampments in public spaces and vacant lots. This situation has created concerns about public safety and cleanliness, often deterring visitors and potential investors. Local businesses have reported difficulties in maintaining their customer base due to these issues, with some choosing to relocate or close altogether.

Crime rates in Downtown have also been a point of concern. Efforts have been made to increase police presence and implement community policing strategies, leading to a 20% to 30% decrease in crime in 2023, according to the Albuquerque Police Department. However, incidents of property crime and occasional violent crime continue to make headlines. This perception of insecurity has had a negative effect on nightlife and evening activities, with many residents and visitors hesitant to venture Downtown after dark.

Vacancy rates in commercial properties present another challenge. Despite some successful redevelopment projects, many storefronts and office spaces remain empty, creating a sense of urban decay in certain blocks. This has led to a chicken-and-egg scenario where the lack of foot traffic discourages new businesses from opening, while the scarcity of retail and dining options fails to attract more visitors.

On a more positive note, there have been continuous and concerted efforts to address these issues from a number of stakeholders and agencies. The City administration and local stakeholders are actively working to address the complex issues that have hindered the area's growth and appeal.

The City of Albuquerque has implemented programs aimed at providing services to the unhoused population and has worked on strategies to encourage economic development. Several successful mixed-use projects have brought new residential units to the area, potentially increasing the 24/7 population needed to support a vibrant urban core.

Downtown has also seen some wins in terms of cultural, dining and lodging options. The renovation of historic buildings like the KiMo Theatre, the 505 Central Food Hall (formerly a Sears and Roebuck), Ex Novo Brewing Company (formerly a Firestone auto repair shop) and ARRIVE Hotel (formerly the Downtowner), as well as the success of events like the Downtown Growers' Market and ABQ Artwalk, have shown the potential for creating engaging public spaces. These bright spots demonstrate that with continued effort and investment, downtown Albuquerque could overcome its challenges.

In 2024, proposals were introduced to create both a Business Improvement District (BID) and a Tax Increment Financing (TIF) District. The TIF requires City Council approval, while the BID requires approval of business owners in the district. These initiatives would empower Downtown property owners to collectively manage resources and invest in improvements to the area. Such measures could lead to enhanced security, cleanliness and overall attractiveness of the district, addressing some of the persistent issues that have deterred visitors and businesses.

The Albuquerque Metropolitan Redevelopment Agency (MRA) is a key player in the city's urban revitalization efforts, particularly focused on Downtown and other designated redevelopment areas.  As the MRA works to leverage public and private partnerships to stimulate growth, address blight and create vibrant, walkable neighborhoods, there is a lot of synergy and alignment with the Destination Master Plan and areas where the tourism industry and MRA can collaborate.  MRA's efforts include facilitating mixed-use developments, improving public spaces, supporting arts and cultural initiatives, and enhancing infrastructure to attract businesses and residents.

The Downtown Forward Plan outlines Albuquerque's vision for revitalizing its urban core. The plan, developed by MRA and Albuquerque Police Department, aims to create a safe, vibrant and inclusive community in downtown Albuquerque.

The plan recognizes that downtown Albuquerque, despite occupying only 1% of the city's area, has a disproportionate economic and fiscal impact, accounting for 6% of the city's employment. However, the area faces significant challenges, including safety concerns, homelessness and the need for economic revitalization.

To address these issues, the Downtown Forward Plan proposes seven key strategies:

1. Increasing activities and event development and growth Downtown to attract more visitors and keep workers in the area after business hours.
2. Building more housing to increase the residential population and support local businesses.
3. Investing in strategic projects like the Rail Yards redevelopment, the Albuquerque Rail Trail* and the Next Generation Media Academy to catalyze economic growth.
4. Implementing sustainability initiatives, including renewable energy projects and improving public transportation.
5. Enhancing public safety through increased police presence, technology deployment and community policing efforts.
6. Extending compassion to those in need by expanding shelter capacity and providing services to the homeless population.
7. Creating new tools for redevelopment, including establishing a place management organization and seeking changes to state code to increase funding for redevelopment projects.

The plan emphasizes the need for public-private partnerships and a sustained, multi-pronged approach to overcome the challenges facing downtown Albuquerque. It outlines specific initiatives under each strategy, such as providing grants to businesses, implementing a property tax exemption for new developments, and launching the Downtown TEAM (Targeted Enforcement and Active Monitoring) initiative for improved public safety.

The City of Albuquerque is committing over $54 million in investment, leveraging an additional $129 million in potential public and private funding for Downtown revitalization. The plan acknowledges that success will require ongoing collaboration between the City, businesses, residents and other stakeholders to implement and refine these strategies over time.

The Destination Master Plan’s key priorities closely align with the City’s priorities as outlined in the Downtown Forward Plan. While downtown Albuquerque continues to grapple with challenges, there's a sense of optimism and potential for growth. The proposed BID and TIF, combined with efforts to increase the number of Downtown residents and strategic development projects like the Rail Trail, could mark a turning point for the area. The coming years will be crucial in determining whether these initiatives can successfully address the longstanding issues and unlock downtown Albuquerque's full potential as a vibrant urban center.

Downtown Development and Activation Strategies and Recommendations