Albuquerque Rail Yards Albuquerque, New Mexico

A N A D V I S O R Y S E R V I C E S P A N E L R E P O R T

Albuquerque Rail YardsAlbuquerque, New Mexico

Urban LandInstitute$

Albuquerque Rail YardsAlbuquerque, New MexicoRedeveloping the City’s Historic Rail Yards

February 24–29, 2008An Advisory Services Panel Report

ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W.Suite 500 WestWashington, D.C. 20007-5201

An Advisory Services Panel Report2

The mission of the Urban Land Institute is toprovide leadership in the responsible use ofland and in creating and sustaining thrivingcommunities worldwide. ULI is committed to

• Bringing together leaders from across the fieldsof real estate and land use policy to exchangebest practices and serve community needs;

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Established in 1936, the Institute today has morethan 40,000 members worldwide, representing theentire spectrum of the land use and developmentdisciplines. Professionals represented include de-velopers, builders, property owners, investors, ar-chitects, public officials, planners, real estate bro-kers, appraisers, attorneys, engineers, financiers,academics, students, and librarians. ULI reliesheavily on the experience of its members. It isthrough member involvement and informationresources that ULI has been able to set standardsof excellence in development practice. The Insti-tute has long been recognized as one of the world’smost respected and widely quoted sources of ob-jective information on urban planning, growth,and development.

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©2008 by ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W.Suite 500 WestWashington, D.C. 20007-5201

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Cover photo by Cary Sheih.

Albuquerque, New Mexico, February 24–29, 2008 3

The goal of ULI’s Advisory Services Programis to bring the finest expertise in the realestate field to bear on complex land use plan-ning and development projects, programs,

and policies. Since 1947, this program has assem-bled well over 400 ULI-member teams to helpsponsors find creative, practical solutions forissues such as downtown redevelopment, landmanagement strategies, evaluation of develop-ment potential, growth management, communityrevitalization, brownfields redevelopment, mili-tary base reuse, provision of low-cost and afford-able housing, and asset management strategies,among other matters. A wide variety of public,private, and nonprofit organizations have con-tracted for ULI’s Advisory Services.

Each panel team is composed of highly qualifiedprofessionals who volunteer their time to ULI.They are chosen for their knowledge of the paneltopic and screened to ensure their objectivity.ULI’s interdisciplinary panel teams provide aholistic look at development problems. A re-spected ULI member who has previous panelexperience chairs each panel.

The agenda for a five-day panel assignment is in-tensive. It includes an in-depth briefing day com-posed of a tour of the site and meetings with spon-sor representatives; a day of hour-long interviewsof typically 50 to 75 key community representa-tives; and two days of formulating recommenda-tions. Long nights of discussion precede thepanel’s conclusions. On the final day on site, thepanel makes an oral presentation of its findingsand conclusions to the sponsor. A written reportis prepared and published.

Because the sponsoring entities are responsiblefor significant preparation before the panel’s visit,including sending extensive briefing materials toeach member and arranging for the panel to meetwith key local community members and stake-holders in the project under consideration, partici-

pants in ULI’s five-day panel assignments areable to make accurate assessments of a sponsor’sissues and to provide recommendations in a com-pressed amount of time.

A major strength of the program is ULI’s uniqueability to draw on the knowledge and expertise ofits members, including land developers and own-ers, public officials, academics, representatives offinancial institutions, and others. In fulfillment ofthe mission of the Urban Land Institute, thisAdvisory Services panel report is intended toprovide objective advice that will promote the re-sponsible use of land to enhance the environment.

ULI Program StaffMarta GoldsmithVice President, Community

Thomas W. EitlerDirector, Advisory Services

Cary SheihSenior Associate, Advisory Services

Matthew RaderSenior Associate, Advisory Services

Caroline DietrichPanel Coordinator, Advisory Services

Nancy H. StewartDirector, Book Program

Laura Glassman, Publications Professionals LLCManuscript Editor

Betsy VanBuskirkArt Director

Martha LoomisDesktop Publishing Specialist/Graphics

Craig ChapmanDirector, Publishing Operations

About ULI Advisory Services


On behalf of the Urban Land Institute, thepanel thanks Mayor Martin Chavez, Coun-cilor Isaac Benton and his staff, the city ofAlbuquerque, the WHEELS Museum, and

the University of New Mexico School of Architec-ture and Planning for sponsoring the study of theAlbuquerque rail yards.

The panel also recognizes the numerous other en-tities that contributed to its success, including theAlbuquerque Convention and Visitors Bureau,Bernalillo County, the Albuquerque HispanoChamber of Commerce, Albuquerque Studios,Build New Mexico, the City of Albuquerque Land-marks and Urban Conservation Commission, theCity of Albuquerque Planning Department andHistoric Preservation Planner, the Greater Albu-querque Chamber of Commerce, the Mid-RegionCouncil of Governments, the National HispanicCultural Center, the Romero-Rose Company, thestate of New Mexico, and the Urban Council.

The panel extends particular thanks to RogerSchluntz, dean of the School of Architecture andPlanning at the University of New Mexico, forpreparing comprehensive briefing materials andserving as an ongoing source of technical informa-tion about the site; to Tom Pederson of the Uni-versity of New Mexico for technical and graphicsupport; to Kara Shair-Rosenfield of CouncilorBenton’s staff for her guidance and knowledge ofthe Albuquerque scene; and to Leba Freed, presi-dent of the WHEELS Museum.

Finally, the panel appreciates the participation ofthe many community members, including resi-dents of the Barelas and South Broadway neigh-borhoods, and other individuals who contributedtheir time, experience, and knowledge of all thingsAlbuquerque, to the visioning process for the railyards. Your participation was vital to recommen-dations set forth in this report.

Acknowledgments


ULI Panel and Project Staff 6

Foreword: The Panel’s Assignment 7

Market Potential 12

Planning and Design 22

Development Strategies 30

Implementation 32

Conclusion 38

About the Panel 39

Contents


Panel ChairChristopher W. KurzPresident/CEOLinden Associates, Inc.Baltimore, Maryland

Panel MembersGuillermo AguilarPrincipalGKK WorksIrvine, California

Luis BelmonteExecutive Vice PresidentAMB Property CorporationSan Francisco, California

Michael BernePresidentMJB ConsultingNew York, New York

Modesto Bigas-ValedonArchitect/LEED APWallace, Roberts & Todd, LLCPhiliadelphia, Pennsylvania

Diana GonzalezPresidentDMG Consulting ServicesMiami, Florida

John J. Griffin, Jr.PartnerEdwards, Angell, Palmer & Dodge, LLPBoston, Massachusetts

Philip HartPresidentHart Realty AdvisorsLos Angeles, California

Anita MorrisonPrincipalBay Area EconomicsWashington, D.C.

ULI Project StaffCary SheihSenior AssociateAdvisory Services

Matthew F. JohnstonResearch ManagerInitiatives Group

ULI On-Site CoordinatorCaroline DietrichPanel CoordinatorAdvisory Services

ULI Panel and Project Staff


At the invitation of the city of Albuquerque,the WHEELS Museum, and the Univer-sity of New Mexico School of Architectureand Planning, a ULI Advisory Services

panel was convened to evaluate redevelopmentopportunities for Albuquerque’s historic railyards. Founded in 1912, and in use through the1960s before closing its doors in the early 1990s,the rail yards, a once-thriving steam locomotiverepair operation, were at one time the city’sleading employer.

In 2007, the city of Albuquerque and the WHEELSMuseum formed a partnership to purchase the railyards from Old Locomotive Shops LLC. The ac-quisition was made possible, in part, by grantsfrom the New Mexico state legislature and Gover-nor Bill Richardson. The Albuquerque City Coun-cil appropriated more than 50 percent of the totalcost to purchase the property, and the city becamethe new owner of the old Santa Fe Railway railyards on November 28, 2007.

The city, the WHEELS Museum, and the Uni-versity of New Mexico School of Architectureand Planning invited the panel to “evaluate andconsider the site and its historic structures in thecontext of the city and its neighborhoods, and in-clude the WHEELS Museum in addition to eco-nomically viable commercial and/or housing op-tions for redevelopment of the rail yards.”

BackgroundThe rail yards officially lie within the Barelasneighborhood, one of Albuquerque’s oldest, andadjacent to the South Broadway neighborhood.Settled as a farming community and later shapedby the establishment of the railroad in the 1880s,by the early 1900s, Barelas had flourished. Manyof its residents were employed by the Atchison,Topeka and Santa Fe Railway.

Foreword: The Panel’s Assignment

In the mid-1920s, South Fourth Street in Barelaswas designated part of Route 66 and the PanAmerican Highway (U.S. 85), which helped estab-lish a thriving commercial corridor active from the1930s through the 1950s. The decline of the rail-road industry and the construction of Interstate

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Regional map.


25 negatively affected the community, as did theurban renewal program of the 1970s, which led toindustrial development replacing much of thehousing stock in south Barelas. However, the his-toric Barelas neighborhood has added new ameni-ties in recent decades, including the National His-panic Cultural Center and the AlbuquerqueHispano Chamber of Commerce, which have bol-stered its history and community character.

Along the eastern edge of the rail yards is theSouth Broadway neighborhood. Much of the com-munity’s growth took place between 1885 and1925, following its founding by Antonio Sandoval,a wealthy landowner responsible for constructingthe Barelas ditch, which drained and irrigated thesurrounding area. As in Barelas, many of SouthBroadway’s residents made their living throughagricultural pursuits before transitioning to jobsat the rail yards and the local iron foundry.

South Broadway urbanized rapidly during this pe-riod, only to suffer similar economic and popula-tion decline concurrent to that of the railroad in-dustry. Presently, efforts of organizations like theUnited South Broadway Corporation have pro-vided affordable housing for residents of the com-munity. Coupled with local businesses, many auto-motive-repair related, those efforts contribute tothe neighborhood’s identity.

The redevelopment of the rail yards providesopportunity for Barelas, South Broadway, anddowntown Albuquerque to enrich their respectiveindividual identities while rallying around a newcollective identity to whose development each iscrucial. Over time, residents of these communitieshave expressed both excitement and reservationsregarding redevelopment plans for the rail yardsand, given the personal ties many have to the his-tory of the rail yards, for good reason. Never-theless, successful redevelopment truly has thepotential to be a force of unification for the com-munities, the city, and the state of New Mexico—also known as the Land of Enchantment.

Study AreaLocated just south of downtown Albuquerque, the27.3-acre rail yards property is situated betweenBarelas and South Broadway—to the west along

In the background of thisaerial view of Albu-querque, the Rio Grandeflows along the city’snorthwestern edge.

Downtown Albuquerque’scentral business district.

Right and right below:The historic Barelasneighborhood, flankingthe northern edge of therail yards site, has deepties to the property andis poised to benefiteconomically from itsrevitalization.


2nd Street in Barelas and to the east along Com-mercial Avenue in South Broadway. The north endof the property bottlenecks and shares its edgewith a 7.2-acre parcel owned by the BNSF Rail-way. Over the south edge of the rail yards, BNSFis still operationally active. Erected in the decadefrom 1914 to 1924 and coinciding with what is con-sidered one of the greatest periods of industrialdesign and advancement in building technology,the 14 buildings currently on the property areeach original. The majority of these historic struc-tures occupy the northern half of the site, whilethe southern half contains an operable turntableused to rotate train engines for entry to or exitfrom the site.

The Panel’s AssignmentThe sponsors provided the ULI Advisory Ser-vices panel the following four nonnegotiable para-meters for considering the redevelopment of therail yards site:

• The major buildings and smaller significant his-toric buildings on the site must be rehabili-tated, with the exception of the wooden building,which should be relocated, and the north showerbuilding, which is too dilapidated to save.

• The WHEELS Museum will locate its opera-tions into one or more of the historic buildings.

• Redevelopment must have a mixed-incomehousing component, including at least 30 unitsof workforce housing. (Workforce housing isdefined by Albuquerque ordinance as follows:“Dwelling units serving residents and their fam-ilies whose annualized income is at or below 80%of the Area Median Income for Albuquerque …as adjusted for household size and determinedby the U.S. Department of Housing and UrbanDevelopment, and whose monthly housing pay-ment does not exceed 30% of the imputed in-come limit applicable to such unit or 35% underspecial conditions to be defined in the Work-force Housing Plan.”)

• The redevelopment must benefit and not harmthe adjacent neighborhoods.

Using these premises, the panel was asked tofocus on addressing the following questions:

The 27-acre rail yardswith downtown Albu-querque in the back-ground: promotingpedestrian connectionsbetween the two is a pri-mary goal proposed bythe panel.

• Rehabilitation or adaptive use of historic buildings

• What ideas can be applied to a high-quality re-habilitation and adaptive use of the main build-ings in addition to the WHEELS Museum?

• What sustainable design elements are appro-priate for the buildings?

• General uses

• What mixture and types of public and privateuses should be sought on the 27.3 acres?

• Fourth Street in Barelas is a local businessdistrict that serves the neighborhood. Whatkind of retail or other development will com-plement and be compatible with, rather thancreate competition for, small businesses thatare serving the Barelas and South Broadwaycommunities?

• If the seven-acre site directly to the north of the27-acre study site is also acquired, what wouldbe the best use or mix of uses for that land?

• Housing

• What types, density, price points, and designof mixed-income housing are feasible now andin the future?

• What tax benefits and other housing subsi-dies are available and advantageous in creat-ing mixed-income housing at this site?

• Transportation, transit, and connectivity

• What additional transit links to the site arepossible?


• Implementation

• What is the best way to ensure that high-quality job opportunities are available for res-idents of the Barelas and South Broadwayneighborhoods?

• What phases of development are recom-mended, and in what order should they beimplemented?

• What role should city, regional, state, and fed-eral governments play, including minimiza-tion of permanent subsidies, in redevelopingthis site?

• What financing mechanisms, sources, andschemes are recommended, and what taxbenefits are achievable and advantageous inthe public and private sectors at this site?

• What is the best way to deal with the variouseasements—utilities, railroad, and the like—that constrain the site?

Summary of RecommendationsFollowing an intense week of interviews, sitetours, and discussion, the panel recognized signifi-cant opportunity for the city of Albuquerque tosteer a redevelopment of its historic rail yards.The recommendations set forth were formulatedto create a large-scale, mixed-use redevelopmentprogram appropriate within the context of thecity, the neighborhoods surrounding the studyarea, and the existing business climate. Summa-rized below, these recommendations are describedin more detail later in this report.

Market Potential

Opportunities exist for various uses—specializedmanufacturers, performing arts facilities, a publicmarket, film studio operations, departments orspecialized training programs of the University ofNew Mexico, a charter school—on portions of therail yards property; however, an anchor use, in ad-dition to the WHEELS Museum, will have to befound and is not likely to emerge from the currentmarket. The site’s master developer, working inpartnership with the city and the state—andbeing mindful of the needs of the surrounding

• How can the effect of automobile traffic onBarelas be minimized?

• What are the best methods for ingress andegress to the property by both the public andlocal residents (street reconfiguration andpedestrian overpass connections)?

• Does a set of design ideas or concepts existthat would maximize the links between theredeveloping downtown areas and the railyards?

• What steps can be taken to avoid redevelop-ment pressures, such as displacement of ex-isting residents, property tax increases, andloss of cultural identity?

FirehouseTank ShopFlue Shop

Boiler Shop

Blacksmith Shop

Transfer Table

Machine Shop

Storehouse

Turntable

Hazeldine Avenue SW

Atlantic Avenue SW

Santa Fe Avenue SW

Pacific Avenue SW

Cromwell Avenue SW

Garfield Avenue SW

Seco

ndSt

reet

SW

First Stre

et SW

Configuration of existingprimary buildings on therail yards site.


communities—will need to seek out this anchoruser, whether conventional retail, commercial, orindustrial.

Planning and DesignBecause no single use is likely to absorb the fulldevelopment capacity of the site, a sustainability-oriented phased development program is appro-priate. It should be dedicated to enhancing theproperty’s environmental quality; preserving andcelebrating the iconic, historic character of the ex-isting buildings; establishing permanent, attrac-tive workforce housing; and integrating the railyards with the surrounding neighborhoods. Thereport describes each phase in detail and providesarchitectural and landscape renderings.

Development StrategiesThe city should select a sound master developerfor the redevelopment of the rail yards. The plan-ning process for the property must follow, and notprecede, the selection of the developer. The prop-erty must be rendered as appealing as possible byeliminating existing hurdles to successful develop-ment before exposing the property to the market-place. Several predevelopment considerations,namely, addressing easements held by BNSFRailway, ensuring environmental remediation ofthe site, and creating a special zoning district forthe rail yards with use categories and incentivesspecific to the site, should each be settled.

ImplementationPredevelopment implementation strategies in-clude appropriate marketing of the rail yards,emphasizing the importance of job creation andeconomic development as a result of the redevel-opment, and appointing an advisory board to over-see the development process. At the project level,the panel advises ensuring connections are madefrom the rail yards site to downtown Albuquerqueand surrounding neighborhoods, as well as per-forming site-specific activities, including environ-mental remediation, demolition of nonessentialbuildings, and selection of a nonprofit entity tooversee the construction of the 30 units of work-force housing.

Figure 1Existing Buildings on Albuquerque Rail Yard Site

Facility Year Built Square Feet Stories

Machine Shop 1921 165,0001 12

Boiler Shop 1923 58,1003 1

Transfer Table Pre-1919 36,000 0

Blacksmith Shop 1917 24,867 1

Storehouse 1915 18,900 1

Tank Shop 1925 18,564 1

Sheet-Iron Shed Pre-1919 13,950 1

Turntable 1915 11,309 0

Flue Shop 1920 8,878 1

Firehouse 1920 3,936 2

Washroom 1919 3,640 1

Locker Room 1919 2,964 1

Assembly Hall 1922 2,800 1

Babbit Shop 1924 2,250 1

Motor-Car Garage Pre-1931 1,512 11 3.8 acres. 2 With mezzanine. 3 1.3 acres.

Source: Chris Wilson, “History of the Rail Yard Site,” University of New Mexico.


Planning for the redevelopment of a majorsite begins with determining what marketsupport exists for alternative uses. Devel-opers seek land uses that can sustain them

over the long run and ideally attract significantprivate investment to pay for the site improve-ments. Market analysis provides guidance aboutthe demand for certain types of uses by looking atcomparable developments in the local market tounderstand how much space is needed and whatpeople are willing to pay for that space.

To assess the market potentials of the Albuquerquerail yards, the panel reviewed the full range oftraditional uses, but this site does not lend itselfto traditional solutions. The unique nature of thesite, its historic buildings, and its location will de-mand a special set of uses. Given the size of thesite, long-term sustainability will demand multipleuses that feed on and support each other, allowingthe project to change over time as market supportebbs and flows for different types of uses. Aroundthe country, strong developments and communi-ties that attract and retain users, tenants, and res-idents over several years benefit from the syner-gies of combining commercial, residential, arts,and other uses in a high-quality environment thatencourages pedestrian activity and interaction.

Economic OverviewTo set the overall context, the Albuquerque areais a medium-sized metropolitan area with a popu-lation of roughly 835,000 residents. The area hasenjoyed steady growth in recent years, and theMid-Region Council of Governments projects theregion’s population will reach 1 million in the next13 to 15 years. That represents an annual growthrate of 1.34 percent. Within the region, the city ofAlbuquerque represents 60 percent of the regionalpopulation and is growing slightly faster than theregion as a whole (1.37 percent annually).

Historically, the economy has been driven by gov-ernmental activities—Kirtland Air Force Base,Sandia National Laboratories, and the Universityof New Mexico. More recently, the technology in-dustry has become a major economic generator,including Intel Corporation, optics, biosciences,renewable energy, and digital media/film. Metro-politan area employment has grown from 357,400jobs in 2000 to 397,500 jobs in 2007. Governmentprovides 20 percent of all area jobs, followed by16.1 percent in professional and business services,and 12.2 percent in educational and health services.Unemployment is relatively low, averaging 4.0 per-cent in 2006.

Turning to individual land uses, the panel consid-ered office, industrial, hotel, residential, and retailuses, examining the current market conditions,the demand for space, the competition that devel-opment on the rail yards would face, and the fu-ture prospects and what they mean for the railyards.

Office MarketFor many developments, office is a major use andeconomic generator that funds the site improve-ments and attracts daytime activity. Albuquerque’soffice market is relatively limited with 12.8 millionsquare feet, compared with 96 million square feetin Denver and 61 million square feet in Phoenix.The market is relatively slow, with vacancies of10.8 percent in the region as compared with anideal of 5 to 10 percent.

Grubb & Ellis reports average office rents of $22per square foot for Class A space and only $14.32for Class B space. These rates compare withaverage Class A rents of $26 in Denver and $30in Phoenix. As a result of these low rents, con-struction is limited to build-to-suit buildings forowner-occupants. Last year saw construction ofonly 303,000 square feet of new office space across

Market Potential


the region. Demand totaled less than 280,000square feet in 2007 as measured in terms of netabsorption.

Geographically, the North I-25 submarket repre-sents 23 percent of the region’s inventory (2.9 mil-lion square feet); Downtown is close behind with2.6 million square feet, or 20 percent of the re-gional inventory. Uptown represents another 1.8million square feet, or 14 percent of the regionaltotal.

Into the foreseeable future, rents do not supportnew construction of speculative, multitenant spacerather than single-tenant build-to-suit space. Tojustify private investment in a new building, thedeveloper would need to receive rents in excessof $30 per square foot—substantially higher thanprevailing rents of $22 per square foot for ClassA space.

The rail yards site does not offer a prime office lo-cation. It lacks the easy transportation access andthe concentration of other office users that attracttenants. This finding means that the site has nomarket potential for office space except a smallamount ancillary to another use.

Industrial MarketAlbuquerque’s industrial market represents al-most three times as much space as the office mar-ket with a total inventory of 35 million square feet.Industrial space encompasses a variety of products.In the Albuquerque market, almost one-half of thespace is general industrial space for manufacturers,contractors, and industrial services. Warehouse/distribution represents 40 percent of the space,and the rest of the space is research and develop-ment (R&D)/flex space (single-story buildings thatcan be configured for a mix of office and warehouse/showroom space). At the end of 2007, the regionhad 2.1 million square feet of vacant space, 5.9 per-cent of the total.

Demand for industrial space averaged 1.1 millionsquare feet in 2007, distributed 52 percent in gen-eral industrial space, 25 percent in warehouse/distribution, and 23 percent in R&D/flex space.New construction added less than 150,000 squarefeet in 2007.

Almost one-half of the space is located in the NorthI-25 submarket. The South Valley, Airport, andMesa del Sol market includes 3.75 million squarefoot, 11 percent of the region’s inventory. Mesadel Sol is a major new industrial development withrecent development for digital media and film stu-dios, solar array manufacturers, and an announcedelectric car assembly plant.

The rail yards suffer from difficult road access fortrucks because of the distance from I-25 and theneed to travel through a residential area to reachthe site. This access deficiency will inhibit demandfrom conventional industrial users, particularlywarehouse/distribution uses that depend on effi-cient truck movements. Those users will continueto favor low-cost sites with superior accessibility.The rail yards site is also less competitive becauseof its distance from other industrial users and theoperational efficiencies provided by location with-in a cluster of industries.

Figure 2Albuquerque Metropolitan Employment by Sector, 2006

Industry Employment Percentage

Information 9,400 2.4

Transportation, Utilities 10,500 2.7

Other Services 12,200 3.1

Wholesale Trade 13,300 3.4

Financial Activities 19,300 4.9

Manufacturing 24,000 6.1

Mining/Construction 31,200 8.0

Leisure and Hospitality 38,400 9.8

Retail Trade 43,800 11.2

Education and Health Services 47,900 12.2

Professional and Business Services 63,200 16.1

Government 78,600 20.1

Total 391,800 100.0

Source: U.S. Census, 2006.


The specialized facilities at the rail yards mayhave appeal and use for specific manufacturerswho can benefit from a southwest location withgood rail access. The building heights, overheadcranes, and load-bearing floors of rail yards facili-ties may offer opportunities for such industries asprefabricated housing. They have already provento be attractive to film studios that can make gooduse of the high ceilings and clear spans.

Hotel MarketAlbuquerque has more than 16,700 hotel rooms:2,746 in downtown and Old Town. Albuquerqueattracts 5 million overnight visitors annually, in-cluding tourists from around the country who cometo enjoy the Albuquerque/Santa Fe/Taos region.About 71 percent are leisure visitors, with the re-maining 29 percent split between business visitorsand those attending conventions, meetings, ortraining. The city’s convention business has laggedover the last decade or two as other cities have in-vested in their convention facilities, hotels, attrac-tions, and downtown amenities.

Overall, the region’s hotels achieved a 62 percentoccupancy rate with an average room rate of $70.96per night in 2007. Typically, a healthy hotel marketwill have an overall occupancy rate in excess of70 percent.

Downtown’s hotel market has been constrained bythe limited inventory of hotel rooms and limitedsupport infrastructure. Associations, trade shows,and meeting planners seek locations that will at-tract attendance and typically want to see enoughhotel rooms close to the convention center andeach other to house their delegates in one place.They also want to see walkable access to goodrestaurants, entertainment, services, and attrac-tions. Compared with other convention destina-tions, downtown Albuquerque has trouble com-peting. With the renovation of La Posada Hotel,extension of the Rail Runner to Santa Fe, andother investments in downtown attractions, thedemand for additional hotel space will grow.

Currently, the rail yards cannot compete for ahotel. The site does not have the access and visi-bility typically required by hotels, and it is toofar from downtown and the convention center.However, a dynamic mixed-use development on therail yards may create an environment sufficientlyactive and attractive to support an extended-stayhotel in a later phase, either on the site itself or onthe 7.2-acre site to the north, closer to downtown.

Housing MarketWith Albuquerque’s rapid growth, the region hasseen construction of an average of almost 4,900new housing units annually from 2000 through2006. Much of that development has moved out-ward from the city and is now focused to the north-east and west, well away from the rail yards. Theregion’s development pattern is relatively lowdensity with single-family units accounting for 87percent of all new residential construction since2000. Although the trend has been toward thecity’s urban fringe and beyond, the renovation ofthe old Albuquerque High School in East Down-town to residential units, as well as several otherresidential infill projects downtown, shows promisefor future housing market viability proximate tothe rail yards.

For-Sale HousingIn the residential for-sale market, 5,410 single-family units were sold in the Greater AlbuquerqueArea in 2007. They had a median price of $197,000and an average price of $242,000 in the first half of

Figure 3Residential Units Authorized by Building Permits,City of Albuquerque

Single MultifamilyYear Family Duplex 3–4 Units 5+ Units Total

2006 3,420 – 27 730 4,177

2005 4,764 – 41 273 5,078

2004 5,119 – 54 324 5,497

2003 5,084 298 97 702 6,181

2002 4,217 – 91 1,121 5,429

2001 3,671 – 24 646 4,341

2000 3,412 – 40 70 3,522

Average – – – – 4,889

Source: U.S. Census, 2006.


2007. Townhouses and condominiums accountedfor another 582 units with a median price of$149,500 and an average price of $161,000. Thosefigures mean that not much more than 300 unitssold for less than $150,000 in the entire region.

Median prices have increased 34 percent since2003, but trouble in the mortgage financing indus-try has led to a slowdown in development. Permitsissued in September 2007 were about half thenumber issued in 2006.

Rental HousingIn the regional rental-housing market, the Apart-ment Association of New Mexico surveyed almost7,500 apartment units in the city. Just under 5 per-cent of the units were vacant, which indicates amarket in healthy balance between supply and de-mand. The age of rental apartments in the city av-eraged 24.2 years, reflecting the limited construc-tion of new rental apartments in recent years.

In the summer of 2007, rents for a one-bedroomapartment averaged $575 per month without utili-ties; a two-bedroom, two-bathroom apartment av-eraged $761 per month without utilities. Theserents compare with the roughly $1,500 monthlyrent that would be required to justify private newconstruction on fairly inexpensive land.

Workforce HousingWorkforce housing is in high demand. The medianincome for all households in the city in 2006 was$43,021. To afford a two-bedroom, one-bathroomapartment at $585 per month, a household wouldneed an annual income of at least $25,000. Morethan 57,000 Albuquerque households have incomesbelow that level. Of Albuquerque households, 37percent had documented housing problems in2000, according to the U.S. Census. That meansthey were spending more than 30 percent of theirincome for housing or they were living in over-crowded housing or in units with physical defects.

Among renters, the problems are even more wide-spread. More than 18,700 renter households spenta higher share of their income for housing than theU.S. Department of Housing and Development(HUD) judges to be affordable. In 2006, only 331affordable rental-housing units were built.

Downtown/Barelas/South BroadwayDevelopmentsThe Downtown 2010 Sector Development Planemphasizes development of downtown and near-downtown housing to provide greater vitality dur-ing nonwork hours and to support downtownrestaurants, retail, and amenities. Almost all ofthe new downtown housing has occurred north ofCoal Avenue. A major new development has beenannounced for the old Greyhound site opposite theAlvarado Transportation Center. It will bring 120workforce housing units, live/work units, and 72market-rate townhouses to the area. Prices of newtownhouses range from $240,000 to $495,000, or$220 to $240 per square foot. This rate compareswith development costs of $190 to $200 per squarefoot. Rental housing is only affordable with out-side financial support from low-income housingtax credits or other federal or city incentives.

Housing in the Barelas and South Broadwayneighborhoods is only about one-half owner occu-pied; the remainder is rented. The neighborhoodshave seen a few new small infill developments todate. Some new households are being attracted tobuy in the neighborhoods by the availability ofgood-quality historic houses at relatively afford-able prices close to downtown. Some reports indi-cate significant buying activity in the area as spec-

New infill housing projectrecently constructed inthe Barelas neighbor-hood.


ulators buy properties, anticipating that housingdemand and prices will increase in future years.

For the rail yards, these market conditions meanthat new housing development should includeworkforce units with permanent affordability pro-tections. Although mixed-income housing will beimportant for the community’s development, theprivate market will be unable to build mixed-income developments without continued financialsupport from the public sector.

Market-rate housing of any size will need to wait afew years until stronger connections to the down-town can be created and current projects begin tocreate a new image and market acceptance for thearea. Attracting a major user for the rail yardscould accelerate residential development by bring-ing new jobs and activity to the area. Ideally, newresidential development would be focused on the7.2-acre site to the north of the rail yards and oninfill lots in both the Barelas and South Broadwayneighborhoods.

In the short term, opportunities exist to developsome workforce housing on the site, which wouldhave particular appeal for artists and young peo-ple. Industrial loft space is very appropriate forartists who need large work spaces that can ac-commodate large pieces of art and quasi-industrialfabrication techniques (for example, welding orkiln firing).

In the longer term, the demand for market-ratehousing in the area is likely to focus on youngersingle people and childless couples who valueproximity to work or transit and do not depend onlocal schools. New developments will need to em-phasize the quality of public spaces and provide avariety of units to appeal to different segments ofthe market, including townhouses, duplexes, loftapartments, and conventional three- to four-storyapartment buildings.

Retail MarketThe potential for retail as a major part of the railyards redevelopment is critical for two reasons.First, it is the presence that people often first seeand most easily recognize on a site; thus it willplay a major role in defining the project’s identity.

Second, retail can help cross-subsidize other de-sired, but less profitable, uses in the project’soverall mix.

For this reason, it is important that retail poten-tial for the site is analyzed in depth so specificrecommendations can be made. The followinganalysis addresses relevant factors and constraintsof the site, assesses potential competition, refer-ences key demographic data, and introduces mar-ket possibilities.

Site Factors and ConstraintsDespite the rail yards’ prominent location indowntown Albuquerque, the following factorsboth support and limit the property’s potential forredevelopment.

Visibility and Access. The rail yards site is visiblefrom I-25 because of the sheer size of its buildings,namely the machine shop. This factor alone posi-tions the property’s redevelopment as high profileand will generate attention, giving the chosenproject a chance to establish itself while effectiveretail anchors will provide longer-term exposureto the target market.

The streets abutting and leading to the rail yardsare primarily residential in character and there-fore lightly trafficked. Both 2nd and 3rd streetsaccommodate 3,600 cars per day; 4th Street, 7,000.

Conversely, the nearby Avenida Cesar Chavez isa major arterial road connecting Yale Boulevardto the southwest side, offering access to and fromI-25 and providing one of the few crossings of theRio Grande in the Albuquerque region. It accom-modates 39,000 cars per day.

In terms of regional access to the site, motoristscoming from I-25 would rely on 3rd Street (viaLead Street) or 4th Street (via Avenida CesarChavez). Switching 3rd Street from one way totwo ways would mean that those using AvenidaCesar Chavez would take 3rd Street rather than4th. In either case, development on the site wouldgenerate additional automobile traffic on localroads.

An alternative is to build an off-ramp fromAvenida Cesar Chavez westbound into the rail-road-owned property to the immediate south of


the site. Access from I-25 would then be more di-rect. Current estimates place the cost of such in-frastructure at $2 million to $4 million.

With regard to pedestrian access, residents ofBarelas can use perpendicular side streets likePacific Avenue or Santa Fe Avenue to access therail yards. No crossing to or from the South Broad-way neighborhood exists between Coal Avenueand Avenida Cesar Chavez, however, and littleprospect exists of one at grade (street level).

Historic Buildings. Two of the existing buildings onthe site—the 165,000-square-foot Machine Shopand the 58,100-square-foot Boiler Shop—offer thelarge, high-ceilinged, open spaces that can be eas-ily adapted for big- and medium-box retail, al-though these sorts of tenants tend to prefer tostack merchandise and shelving along walls, whichin this case could block natural light from enteringlower portions of the buildings. Other structures,such as the 24,867-square-foot Blacksmith Shop,the 18,900-square-foot Storehouse, and the 18,654-square-foot Tank Shop, do not have the proper di-mensions for such users, but could be appropriatefor smaller retailers or even vendor-filled markets.

Stand-alone buildings, such as the 3,936-square-foot Firehouse, have been considered for sit-downrestaurants. They would be just large enough forsuch purposes, but buildings smaller than 3,000square feet would have to content themselves withfast casual food or specialty food/drink operators.

Site Planning. Retail use will present certain prac-tical challenges to site designers, with parkingbeing the most formidable. In addition, particularretail categories might have a locational bias. Gro-cery stores and other convenience-oriented uses,for example, would want to be placed on the edgeof the development, with in-front parking, to facil-itate easy in-and-out access for residents from sur-rounding communities.

At the same time, on-site retail will benefit fromthe traffic generated by other uses. For example,the WHEELS Museum would function synergisti-cally with food and drink operators, while the resi-dential housing component would direct customersto convenience-oriented businesses. Care shouldbe taken, however, not to overestimate the level of

such on-site demand: the sales generated by up to30 workforce housing units, for example, repre-sent just a drop in the bucket in comparison towhat merchants would need to be viable.

Adjacent Neighborhoods. The retail mix on the railyards site would need to complement the busi-nesses that exist (or could materialize) on thenearby commercial corridors of 4th Street andSouth Broadway. Currently, not much impactwould occur, given the limited offerings on each ofthose two streets, but successful redevelopmentwould almost certainly generate new customersfor what does exist. This possibility is especiallypertinent for the 4th Street corridor and its exist-ing retailers, because many are a short two-blockdistance from the property and located near sev-eral key access points to the rail yards.

Retail possibilities complementary to what cur-rently exists downtown, however, are anotherstory. The region views the rail yards site as partof downtown, but in certain categories, some retailcategories would compete directly with existingdowntown businesses or with ones that would oth-erwise consider locating there in the future. Sit-down restaurants are a prime example.

CompetitionAn analysis of competitive retailing is essential tothe task of determining how the property’s retailpotential may fit within the larger marketplaceand what niches it might try to occupy or capture.Moreover, retail will have to contend not only withexisting competitors in the community but alsowith ones that will materialize after redevelop-ment is underway. The panel has made redevelop-ment recommendations for both consumers andtenants on site.

Regional Shopping Destinations. At present, theAlbuquerque region consists of four shoppingareas with the ability to draw from across the re-gion. Two are conventional enclosed malls, one is alifestyle center, and the fourth is a traditionalbusiness district.

The Coronado Center is in the city’s Uptown dis-trict, on Louisiana Avenue north of I-40. Openedin 1964, it is now owned by General Growth Prop-erties, the nation’s second-largest mall developer.

At 1,150,000 square feet, Coronado Center is NewMexico’s largest mall. With Sears, JCPenney,Mervyn’s, Macy’s, and Barnes & Noble as anchors,it can be characterized as a middle-market center,and with sales of roughly $350 per square foot asof 2003, as an average performer.

The Cottonwood Mall is in the West Mesa area,at the intersection of Coors Boulevard and CoorsBoulevard Bypass. Opened in 1996, it is ownedby Simon Property Group, the nation’s largestmall developer. At 1,041,000 square feet, it is NewMexico’s second-largest mall. Sears, JC Penney,Mervyn’s, Macy’s, Dillard’s, and United Artistsanchor the complex, making it another middle-market center, with sales in the $300s per square footas of 2003. It, too, qualifies an average performer.

The newest addition is ABQ Uptown, in the Up-town district on Louisiana Avenue north of I-40.Developed by Hunt Development Group andopened in 2006, it is New Mexico’s first lifestyle


center. Its 220,000-square-foot retail space, in theform of an open-air, faux-downtown setting, con-sists primarily of upmarket national comparisongoods (for example, clothing, shoes, and furniture)and sit-down restaurant brands, most of which arenew to the state. Future phases will include resi-dential and hotel uses as well as additional retail.

Nob Hill, on Central Avenue, roughly betweenGirard Boulevard and Carlisle Boulevard, is Albu-querque’s most vibrant and successful walkableshopping precinct, with a stylish mix of boutiquesand restaurants, including a smattering of smallernational and regional “chain-lets” (for example,Buffalo Exchange, Il Vicino, El Paso Imports, Fly-ing Star/Satellite Coffee). Although driven largelyby its proximity to the University of New Mexico,this area has become the region’s consensus “cool”business district.

With a clutch of bars and clubs as well as a moviemultiplex, Downtown is a regional nightlife desti-nation for the 20-something set, but it has yet toestablish itself as a serious dining or shopping al-ternative. It has a surprisingly small number ofsit-down restaurants and a limited collection ofhigh-end boutiques (on Gold Avenue) that are re-portedly struggling. Furthermore, its focus on an“events center” with a decidedly mass-market ori-entation is unlikely to change its current underly-ing dynamic.

Finally, East Downtown, while not yet a regionalforce in terms of location, is fast emerging as Al-buquerque’s newest “hip” district, largely a resultof Rob Dickson’s energy and creativity. Indeed,East Downtown is developing the restaurant clus-ter that Downtown has been unable to realize, andwith its effective branding and superior visibility,it will be increasingly competitive for retailers aswell. Also, with an inventory of available ground-floor space, it will be able to take advantage of aspillover from Nob Hill in regard to attractingnew business.

Regional Shopping Destinations: The Future. The12,500-acre Mesa del Sol project, being developedby Forest City Covington to the south of the Al-buquerque International Sunport, will likely cre-ate a fifth major shopping destination for the Al-buquerque region. The project includes plans to

Right and below: Retailmix in Nob Hill, Albu-querque’s vibrant, walka-ble shopping district.


develop in 2010 an “urban center” (that is, a big-box/faux-downtown hybrid) at the project’s pri-mary gateway, a new I-25 interchange, less thanfive miles from the site.

Community Draws. The rail yards site has the po-tential to look to other community-level draws asanchors for retail development. Examples includediscount department stores (general merchandise)and full-service supermarkets or supercenters (gen-eral merchandise plus full-service supermarket).

Target’s current locations in the Albuquerqueregion suggest the possibility of an additionalstore in the South Valley. However, a Super-Target is planned as part of a large-scale devel-opment at the intersection of I-40 and UnserBoulevard, roughly 4.5 miles from the property.Meanwhile, two Wal-Mart Supercenter stores al-ready exist approximately 3.6 miles away, onCoors Boulevard Northwest and on San MateoBoulevard Southeast.

The surrounding neighborhoods include a numberof smaller or second-tier grocery operators. Theclosest full-service chain is Albertsons, with branchesat Central Avenue and Coors Boulevard, and atIsleta Boulevard and Rio Bravo Boulevard, bothless than four miles away. Smith’s operates a smaller,30,000-square-foot location at Yale Boulevard andCoal Avenue, less than three miles away.

In regard to ethnic specialty markets, Pro’s RanchMarket, a small regional chain with locations inCalifornia’s Central Valley, Arizona, and Texas, isopening its first Albuquerque store. It is a 60,000-square-foot category killer in a former Wal-Martspace at Central Avenue and Atrisco Drive, justacross the Rio Grande from downtown Albuquer-que. El Mezquite, a smaller local chain, operates a9,000-square-foot grocery at Isleta Boulevard andRio Bravo Boulevard, also across the river.

Basic Demographics. At least 35,000 people livewithin a five-minute drive of the rail yards. In-come levels are low, with a median of roughly$29,000—and even lower in subareas like Barelas.About 65 percent is characterized as Hispanic,with that population rising. Almost 16 percent ofthe households do not own cars, and this percent-

age is likely higher in the neighborhoods closestto the site.

Within a ten-minute drive of the property areroughly 186,000 people. The median income of thislarger radius is higher, approximately $38,000.

Retail PotentialThe rail yards site is unlikely to be the location forAlbuquerque’s next regional shopping destination.Presently, the city’s southwest quadrant is themost undersupplied, and the demographics sug-gest the possibility of midmarket draws. But thebig-box centers to the west of the Rio Grande andthe highway-accessible retail development plannedfor Mesa del Sol will absorb a considerable amountof consumer demand and tenant interest in theSouth Valley going forward. Furthermore, the re-development of this site cannot accommodate theretail square footage or the accompanying parkingthat would be needed to create such a regional-scale retail destination.

Community Draws. Given the low income levelsin nearby neighborhoods and the SuperTargetplanned at I-40 and Unser Boulevard, a Targetstore is probably unrealistic at this juncture. Wal-Mart is more likely to be interested, although witheither of these operators, the parking requirement—ranging from 500 to 1,000 spaces, depending onthe size of the store—would prove prohibitive.

Given the absence of a top-tier, ethnic-orientedbrand (for example, Pro’s Ranch Market or ElMezquite) east of the Rio Grande, and the nichesleft unoccupied by the conventional (Albertson’s,Smith’s) and low-cost (Wal-Mart) operators, thesite could probably support a specialty grocer. Inthis case, it should be a crossover hit similar toTalin Market World Food Fare, merchandised tocater directly to this particular market’s heavyconcentration of ethnic households as well as itsgrowing number of white loft-dwellers: for exam-ple, a cross between an El Mezquite and a Sun-flower Farmers Market.

Such a store would need one parking space per 150to 200 square feet and a location on the edge of thedevelopment with storefront parking. Further-more, better pedestrian access to surroundingneighborhoods would need to be secured. Never-


theless, a specialty grocer would indeed help an-chor other retail uses, such as a growers or publicmarket, and promote nonretail uses, such as hous-ing, not to mention respond to the oft-stated wishesof local residents.

Smaller, convenience-oriented businesses, such asa coin-operated laundry, have also been proposedas a needed amenity accompanying redevelop-ment. Unlike a grocery store, however, such busi-nesses could be accommodated on 4th Street or aspart of a larger, targeted local economic develop-ment effort focused on promoting commercial ac-tivity nodes on Avenida Cesar Chavez and PacificStreet. There, they would be more convenient tothe residents of Barelas, would not have to com-pete so fiercely for access or parking, and wouldnot require space that might be more attractive toa wider range of potential retailers interested inthe rail yards redevelopment.

Public Market. A growers market or public marketthat includes a more substantial crafts componentwould help generate activity as part of the rede-velopment program and promote an emergingbrand of the project at large. Examples fromacross the country should be analyzed and con-sulted, not only the well-known ones, such asPhiladelphia’s Reading Terminal Market, but alsolower-profile, more ethnic-specific successes, suchas Grand Central Market in Downtown Los Ange-les and Mercado Central on Minneapolis’s LakeStreet corridor.

A growers or public market would not be a money-making use in this case and would require consid-erable subsidy. Some sort of anchor store, how-ever, would help increase general traffic and sales.At Plaza Fiesta, an ethnic-themed mall in subur-ban Atlanta, the central flea market, with itsnearly 300 vendor booths, is provided a streamof possible customers by the presence of a Bur-lington Coat Factory and Marshalls. At the railyards, such a large-footprint retailer would re-quire too much parking, but a smaller-formatspecialty grocer, as previously mentioned, wouldhave a similar effect.

Food and Drink. Food and drink concepts—sit-downand “fast-casual” eateries (for example, PaneraBread, which offers higher-quality ingredients),

cafés, and so on—can take advantage of on-sitetraffic generators like growers markets, univer-sity departments or programs, and film studios.Also, restaurants are an appropriate “pioneer”use in untested areas, because diners are oftenwilling to travel significant distances and suffergreat inconveniences for destinations with distinc-tiveness, reputations, or “buzz.” Local examplesin this case include the Barelas Coffee House andthe Red Ball Café.

Market ConclusionsTraditional uses will not provide sufficient eco-nomic support for a feasible development. Suc-cessful redevelopment will need a major user orgroup of users that can do any or all of the follow-ing: take advantage of the historic buildings withlimited changes, bring their own funding, anddraw regional support.

The following uses offer potential for portions ofthe site:

• specialized manufacturers;

• artist studios;

• a growers market;

• film studios;

• departments or specialized training programsfrom the University of New Mexico or CentralNew Mexico Community College focused onmedia arts or film-related programs;

• a charter school specializing in the media arts;and

• possible increases in mixed-income and market-rate housing.

After a major user anchors the site, joining theWHEELS Museum, additional users will follow totake advantage of the new environment created,the pedestrian activity, or connections to the an-chor use. The mix of uses can expand, and theproject will be able to achieve the synergies of amixed-use development.

That anchor user is not likely to emerge from ana-lyzing the current market. The uses cannot be


prescribed or the site planned in advance. The an-chor user will need to be sought out and recruitedto the site by the master developer, working inpartnership with the city, the state, and other en-tities. The city will need to attract the developerand the major user and then plan the redevelop-ment together with the community.


Because the redevelopment of the rail yardsis expected to provide the city of Albuquer-que and its surrounding neighborhoodswith “a unique physical asset,” the develop-

ment scenarios in this section represent a mix ofuses potentially feasible for the property.

The assessment of market potential indicates thatto achieve its objectives for redevelopment of therail yards, the city needs to take several steps toensure that the economic sustainability of the sitecan support the anticipated anchor and supportinguses. In addition to economic sustainability, nu-merous opportunities to embrace sustainabilitythat fosters resource conservation, energy effi-ciency, and sustainable landscaping are pertinentto the redevelopment vision for the site. Towardthe goal of achieving LEED (Leadership in En-ergy and Environmental Design) certification forthe redevelopment project, the panel has carefullyconsidered numerous principles of sustainable de-velopment. Mindful of this goal, the panel pro-poses including sustainable design principles fortheir community benefits.

In this section, the panel’s report begins with siteplan review and master planning, then discussessustainable design, and finally introduces the de-velopment scenario itself. The panel hopes thatthe developer ultimately selected for the redevel-opment of the property will pursue these planningand design recommendations to the greatest ex-tent possible.

Site Plan Review and Master-PlanningGuidelinesSite planning gives strong professional leadershipand technical expertise for all predesign, masterplanning, design, and construction activities. Thecity of Albuquerque should provide leadershipduring the planning phase and can be the bridgeand coordinator between different stakeholders

and agencies involved in the rail yards redevelop-ment. Stakeholders typically include the devel-oper, city public works departments, and the de-sign review committee. A comprehensive planningapproach involves providing support and guidanceto the developer regarding all preconstruction is-sues, as well as coordinating specialty consultants—environmental, architectural, urban design—that might take part.

The greatest benefits of a master-planning ap-proach to project development in an existing his-torical site derive from sound decisions made dur-ing the project’s planning phase. At this point,sufficient flexibility still exists to identify majorplanning objectives, such as community linkagesand open space (discussed later). Facilities forjoint use by services (businesses) and the publiccan be planned without the constraints of otherproject demands, such as cost and time limita-tions, and built into the project.

In addition, the project should be committed tocreating high-quality environments—places thatprovide well-planned, high-performing, healthyenvironments that foster tenant satisfaction andwell-being, as well as centering the community.

Master planning for adaptive use of the rail yardsshould create strategies for development of thephysical environment, recommend planning andimplementation guidelines, and established designcharacteristics. The planning process shouldachieve the following goals:

• Plan for the following specific uses: WHEELSMuseum, public market support shops, restau-rant at the Firehouse and other locations.

• Use outdoor gathering spaces as shared spacesfor community integration, and place smalleroutdoor spaces within each level of project use.

Planning and Design


Left and below: In addi-tion to any new construc-tion that may take placeon the rail yards, thepanel believes the existinghistoric buildings areideal candidates for reha-bilitation using the high-est standards of sustain-able design. The BoilerShop is shown at left andthe Machine Shop below.


What is and what couldbe: Architectural render-ings of adaptive usedesign styles potentiallyappropriate for the largeinterior spaces of theMachine Shop and otherexisting buildings on therail yards property.

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• Provide for general use facilities, including a li-brary, media center, fitness center, and dancecenters.

• Ensure that each level of land use occupies iden-tifiable, contiguous vertical or horizontal space.

Planning for the physical environment should ad-dress strategies for the use of public spaces amongusers of the rail yards and adjacent neighbor-hoods. Specifically, planning should

• Establish a unifying “identity.”

• Identify flexible/general-purpose spaces.

• Plan shared spaces to accommodate communityjoint uses.

• Use outdoor gathering spaces as shared spacesfor community integration, and place smalleroutdoor spaces within each level of project use.

During the planning process, design characteris-tics should be established to guide future devel-opment in the rail yards. The design characteris-tics should:

• Shape the identity and focus of the design witha shared and compelling vision for each land uselevel.

• Integrate open space with adjacent communities.

• Organize spaces for teaming and collaborationwithin each level of land use.

• Use flexible design for flexible and convertibleprograms.

These elements will work to guarantee that build-ings are “flexible and convertible” and that otherspaces are able to support a range of market po-tentials, including those proposed here and othersyet to be identified.

Sustainable DesignThe panel advocates the objective to build out theproperty as a sustainable community of multipleuses that supports energy conservation, minimizeslong-term maintenance of buildings and grounds,and uses water resources conscientiously.

Landscape Approach: High-Performance GreenSpacesAny adaptive use project can be sustainable andinclude high-performance facilities that are restor-able or designed, built, and operated in an ecologi-cal and resource-efficient manner. The panel rec-ommends the following as a goal of potentialredevelopment:

• Integrate the open spaces on the property withexisting structures to create a residential live/work community.

• Develop adjacent community parks, strategicallyplaced, that promote joint use of open spacesand buildings to serve the larger community.

• Include tree planting of native species that shadestructures and minimize the use of air condition-ing, encouraging the use of operable windows tolet fresh air circulate through buildings.

• Choose permeable xeriscaping as a stormwatermanagement strategy to capture rainwater,which can then be reused as graywater in theoperations of some buildings.

These strategies ultimately will allow the rail yardsbuildings and their surrounding landscapes to func-tion in harmony as both independent and collabora-tively sustainable environments.

Architectural Approach: Sustainable BuildingDesign GoalsBecause many of the rail yards buildings are in-tact and retain their stately character, theircontext, history, and service to the communityshould be considered in the context of overall re-development of the property. With sustainablebuilding design goals in mind, the panel recom-mends considering the following issues for retro-fitting existing buildings, where applicable, andnew construction:

• Explore contemporary architectural solutionsto enhance existing buildings.

• Maximize daylighting in buildings, and considerorienting views toward open spaces to connectinteriors and exteriors.


• Choose building materials that have low emis-sions of volatile organic compounds, are regionalin origin, are renewable, and are recycled.

• Consider building orientation and photovoltaicsystems as a renewable energy source, giventhe abundance of sunlight in New Mexico.

• Improve building energy performance byusing high-performance heating, ventilation,and air-conditioning systems; energy-efficientlighting systems and fixtures; and Energy Star–approved appliances.

• Consider other on-site alternative or renewableenergy sources (wind, biomass, geothermal).

• Consider locally generated or cogenerationpower systems if new infrastructure is requiredon site.

• Install low-flow plumbing fixtures for waterconservation.

• Reduce the heat-island effect by installing high-albedo roofing or skylights.

Community LinksGiven the rail yards’ location between two com-munities, a primary goal of the redevelopmentvision is to embrace the history and cultures ofthe Barelas and South Broadway neighborhoodsand to ensure adequate public amenities are in-cluded for their residents. The dedication of work-force housing and community open space can helpachieve this goal.

First, however, a review of the importance of de-sign conformity to complement and link the adja-cent neighborhoods is relevant. In traditionalneighborhoods, design conformity works to ensurethat each planning element evolves in unison andultimately provides a sense of place to the project.The approach to the development of such a designvision begins with a full understanding of existingland use plans and community expectations to en-sure conformity of the following elements:

• Pedestrian scale;

• Visual corridors;

Proposed community links to and from the rail yards. The linear greenway along1st and 2nd streets would strengthen the city’s urban fabric by promoting greaterpedestrian activity between downtown and the rail yards.

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• Open space/village greens/natural features;

• Residential corridor links;

• Urban edges;

• Opportunities for recreation and education;

• Appropriate barriers;

• Specified planting;

• Appropriate scale and proportion;

• Adequate pedestrian/bicycle linear corridors;

• Consistent design style; and

• Sensitive use of color and materials.

For the rail yards, a workforce housing componentmay use characteristics and elements of neighbor-hood housing styles together with design elementsderived from space and function, as well as influ-ences of neighboring architecture, traditional toNew Mexico.

To preserve and restore elements of the prop-erty’s historic character, rehabilitation of theTransfer Table to a plaza and of the Turntable tocommunity parkland can serve as interpretive,archeological open space with graphic depictionsof the historical significance of the site. This usewill remind community members of their connec-tion to the site and serve to introduce visitors tothe rich history of the rail yards.

The introduction of a community park, a “green”amenity including a pavilion for activities such asweddings, Cinco de Mayo festivities, and cookouts,as well as the potential inclusion of a soccer field,can provide the entire community with much-needed open space for active and passive recre-ation. This proposal for interpretive space thatboth preserves elements of the site as archeologi-cal remnants and offers “meeting space” is in-cluded in the Landscape Program section of thefollowing Development Scenario.

Development ScenarioThorough examination of relevant planningprocesses has informed and shaped the panel’s de-velopment program for the rail yards. Proceeding

Proposed Phase II and III development program.

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Phase IIIRemediation/Upgrade

Phase IIRemediation/Upgrade

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with site development, however, will require tak-ing some preliminary steps to prepare the prop-erty, including the abatement of soil contaminantspresently on the site.

Predevelopment PhaseThe predevelopment phase will prepare the railyards for future development by addressing envi-ronmental challenges and creating infrastructure.Specific actions include the following:

• Environmental remediation of the site, as nec-essary, including removal of contaminated soil;

• Demolition of structures determined to benonessential;

• Creation of surface-level parking at the northend of the project site (entry/exit adjacent tothe Firehouse) to accommodate approximately240 automobiles;

• Infrastructure improvements to accommodatenew development, including sewer trunk lines,stormwater management systems, and electri-cal upgrades;

• Community links via Cromwell Street, PacificStreet, and Garfield Avenue improvements; and

• Development of a linear greenway park toeventually connect the project site to down-town Albuquerque.

Phase I Development ProgramPhase I will begin the process of rehabilitatinghistoric buildings on the site and creating newuses, including the following:

• Architectural upgrades of the Storehouse,Blacksmith Shop, Tank Shop, and Flue Shop, in-cluding remediation of potential lead and as-bestos present in the buildings;

• Constructing at least 30 loft units of workforceresidential housing in the Storehouse and adja-cent new construction (totaling a minimum of37,800 square feet), using historic tax credits asa funding source;

• Housing the WHEELS Museum and gift shopin the Blacksmith Shop;

• Locating a public market in the Tank Shop; and

Summary of phased development program.

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First Stre

et SW

1. Workforce Housing2. Turntable Interpretive Park

3. Community Center4. WHEELS Museum

5. Zocalo6. Transfer Table Interpretive Plaza

An Advisory Services Panel Report


• Putting a 4,000-square-foot family restaurant inthe Firehouse.

Phase II Development ProgramPhase II will continue the development process byadding new residential and retail uses. Specific ac-tions include the following:

• Architectural upgrades of the Boiler Shop forpotential Phase II or new uses, including reme-diation of potential lead and asbestos present inthe building;

• Possible introduction of a medium-sized groceryfacility to the Tank Shop; and

• Alternative uses, including include retail spacededicated to live/work artisan studios (for ex-ample, jewelry, pottery, textiles).

Phase III Development ProgramThis phase of the development program featuresarchitectural upgrades of the Machine Shop, in-cluding remediation of potential lead and asbestospresent in the building, for future developmentyet to be determined. It offers possibilities forsound stage production, light manufacturing, orvertical loft convertible space combining office andapartments.

Landscape ProgramThe panel proposes an extensive landscape pro-gram designed to connect the rail yards to adja-cent neighborhoods and create dynamic publicspaces within the rail yards:

• Linear greenway (connection to downtown);

• Community links at Cromwell Avenue and Pa-cific Street;

• Turntable interpretive park;

• Transfer Table interpretive plaza; and

• Zocalo (central town square or plaza).

Potential Parking NeedsThe panel notes that parking assumptions made inthis report may not reflect actual parking demandfor the proposed uses. The site is both parking andcirculation constrained, and traffic studies shouldbe completed during the predevelopment phase tovalidate actual parking needs or the feasibility foralternative modes of transport most relevant forserving the project selected.

As indicated in the description of the predevelop-ment phase, the panel estimates that initial park-ing needs for the proposed development—totalingapproximately 240 spaces—can be built as part ofsite remediation and infrastructure development.A second parking development will be necessaryin conjunction with Phase II development. A sec-ond level could be constructed on top of the exist-ing surface parking area to accommodate 200 addi-tional automobiles (projected for Phase IIdemand).

Parking at the south end of the Machine Shopbuilding can accommodate the approximately 120spaces projected for Phase III (the Machine Shopbuilding).

8’8’16’ 5’ 19’

40’

4’ Hedge

Landscape rendering ofproposed design forpedestrian greenway andcommunity links connect-ing the rail yards to down-town Albuquerque andsurrounding communities.

Following the extensive analysis of marketpotential and the planning and design vision,the panel believes a specialized set of strate-gies will be necessary to put the city of Albu-

querque on a bold and exciting path toward build-ing on existing historical and cultural character toachieve a unique identity and thriving future forthe rail yards.

Goal for the Study AreaThe city’s goal for the study area must be to ulti-mately reach a development agreement with ahighly qualified and financially sound master de-veloper who will be in a position to repay all of thecity’s investment, bring jobs to the property, andinclude substantial components of permanently af-fordable housing and neighborhood-serving retailin the mix of uses on the rail yards site.

Strategic ApproachTo achieve the stated goal, the city must have theplanning process follow, not precede, the selectionof a master developer. The city should solicit a re-quest for proposal (RFP) to initiate this process.Ideally, developers who respond to an RFP willcontrol users (for example, light manufacturing,R&D, public marketplace, artist cooperative) whowill form the basis of an economic engine for theredevelopment project. Maximum flexibility mustbe maintained in the process to allow these en-gines to surface. After a developer is selected, thecity can complete the planning process in collabo-ration with the selected developer and negotiatethe public benefit features to be included in thescope of the overall plan.

Predevelopment StepsTo maximize the number and quality of applicants,the rail yards property must be rendered as ap-pealing as possible by eliminating existing hurdles

to successful development before exposing theproperty to the marketplace. To this end, beforeinitiating the development process, the city shouldconsider taking the following predevelopmentsteps that the panel believes are imperative.

Legal ConsiderationsThe deed from the BNSF Railway to a predeces-sor owner reserves two very broad easements forthe railroad that could have a material and ad-verse effect on development of the site. The firsteasement reserves extensive rights over a broadarea to access the Turntable and reserves theright to use, replace, and reconstruct the Turn-table and the surrounding area and tracks. Theeasement is so extensive it is the functionalequivalent of retained ownership.

The second easement seems to reserve the rightto repair and replace tracks, utilities, and the likeanywhere on the site where necessary for the op-eration of the railroad. This easement is extremelybroad and not well drafted. Its interpretation, in-cluding its time limit, if any, is not free from doubt.Both of these easements should be eliminated orat least clarified and limited.

The same deed passes all responsibilities for envi-ronmental cleanup to subsequent owners and con-tains an extremely broad indemnity in favor of therailroad. These provisions may very well be en-forceable, but an aggressive negotiating positionwith the railroad should test the public policylimitations of such provisions. The environmentalremediation of the property is critical. If appro-priate, the cause of these conditions should par-ticipate in the solution.

Currently, a practical and realistic short-termmanagement agreement is in place for the prop-erty. Subsequent agreements with the selecteddeveloper, any tenants (including the WHEELSMuseum), and all residents (tenants or purchasers)should be drafted with the highest standards of


Development Strategies


care and include clear statements of operationaland financial obligations to protect the city’s in-vestment and avoid subsequent, unintended sub-sidies of noncity operations.

Planning and Zoning ConsiderationsThe city’s ownership of the property presentsunique planning possibilities. Because the cityis now in complete control of all design and devel-opment issues, it should, as noted in the “Plan-ning and Design” section, use this period of own-ership to pursue an intense and creative master-planning process. The planning for the site shouldbe dynamic and evolutionary. During this period,the city can control the issues usually subjectto zoning through deed restrictions, land disposi-tion agreements, and short- or long-term leasearrangements.

Nevertheless, planning and zoning are differentfunctions. With the input of a qualified land useconsultant who has extensive national experience,planning should lead to the creation of a specialzoning district for the rail yards with use cate-gories and incentives specific to the site. The zon-ing district should contain provisions regardingan application process that requires appropriatedocumentation and studies of traffic, parking,environmental impacts, noise, design guidelines,landscaping, methods for determining public bene-fits, standards for seeking relief, incentives, andthe like.

The establishment of this zoning district givesthe city the opportunity to address use issues,such as the incorporation of affordable and work-force housing, density bonuses, parking bonusesand flexibility, and LEED-related building stan-dards. The zoning district should also be draftedwith the adjoining Barelas and South Broadwayneighborhood sector plans in mind but should beentirely separate. The current SU-2 special neigh-borhood zone is not sufficiently comprehensive.

The zoning district should specify the processfor negotiating and implementing a developmentagreement that will vest the rights of any devel-oper working with the site. This type of devel-opment agreement relates to the entitlementprocess and should be distinguished from the Al-varado or Paradigm Development agreements.

The panel believes that the city should also adopta flexible and creative regulatory approach to di-viding the property into separate lots or owner-ships. The site parcel is large yet tight. It is likelytoo large for one owner to own and develop, ormore important, for funding by one source of fi-nancing. A nontraditional approach to creatingseparate ownership will be required. Most likely,comprehensive cross-easement agreements, oper-ating agreements, shared parking, and utilityagreements similar to those for a large shoppingmall will be required.

Before redevelopment,the city must addresseasements held by BNSFRailway, which, if noteliminated or at least clar-ified, could adverselyaffect successful revital-ization of the rail yards.

An Advisory Services Panel Report

downtown and surrounding neighborhoods, andsite-specific activities.

MarketingThe implementation of this redevelopment projectwill require a very broad view of all the compo-nents that can create a great plan. The rail yardsproperty needs to be properly marketed andneeds to be made attractive for redevelopment.The marketing program should include the identi-fication of target industries and target marketsthat the site can serve.

New Mexico has been very successful in attract-ing and retaining business through aggressivebusiness incentives. The Albuquerque metropoli-tan area and the state of New Mexico provide thefollowing incentives to reduce the overall cost ofdoing business:

• Double-weighted sales option;

• Technology-jobs tax credit;

• Manufacturing investment tax credit;

• Gross receipts tax exemptions (Industrial Rev-enue Bonds);

• Property tax abatements (Industrial RevenueBonds);

• High-wage-jobs tax credit;

• Job-training incentive program;

• Interstate WATS tax exemption;

• Out-of-state tuition waiver and lottery scholar-ships; and

• New Mexico film incentives.

The city should also evaluate the potential of de-veloping a Foreign Trade Zone (FTZ) on the siteor using the site as an extension of an existing FTZ

The redevelopment of the historic rail yards isa project that has been highly anticipated be-cause of its size, history, and location withinthe downtown area of Albuquerque. The ef-

fect of the redevelopment on the adjoining neigh-borhoods of Barelas and South Broadway has alsobeen greatly anticipated. These neighborhoodsgrew in response to activity on the rail yards andnow are challenged to redefine their future whilenot losing their intrinsic character.

Guided by the themes of the assignment posed bythe sponsors, the panel has carefully consideredthe following implementation strategies. They arerelevant to both predevelopment planning and on-site development activities and begin by identify-ing “big-picture” strategies—marketing, job cre-ation and economic development, oversight of thedevelopment process, and the role of the WHEELSMuseum as it relates to implementation of the railyards redevelopment vision—that can be initiatedbefore redevelopment on the rail yards property.The panel then addresses two categories of tasksappropriate at the project level: connections to

Implementation

If Albuquerque’s rail yardsare to flourish again andserve both business andcommunity needs, theimplementation of prede-velopment planningstrategies as well as on-site development activi-ties is crucial.


as a means of extending the marketability of theproperty and maximizing the use of the active rail.The purpose of the FTZ is to attract and promoteU.S. participation in international commerce andtrade. Merchandise in an FTZ is considered to beoutside U.S. Customs territory and is subject toduty only when it leaves the FTZ for consumptionin the U.S. market. Exported FTZ merchandise isnot subject to duty liability.

The Albuquerque FTZ is just in the process ofbeing activated. In fact, the Barelas Sector Planidentifies the establishment of an FTZ as a recom-mended program enhancement for the community.

Job Creation and EconomicDevelopmentThe Enterprise Zone Act was enacted to stimu-late the creation of new jobs and to revitalize dis-tressed areas in qualified communities and coun-ties throughout New Mexico. With a strong public/private partnership and a focused strategic plan,such areas can be redeveloped to enhance thebusiness and job opportunities for local business-people and residents. The program offers specialincentives to businesses in the zone or who locatein the zone. The urban New Mexico zone is inthe southwest quadrant of Albuquerque. Thisprogram should be reviewed to identify any in-centives that could benefit job training and jobcreation, particularly for the communities of Bare-las and South Broadway that are adjacent to therail yards.

Program Implementation and OversightThe implementation of the panel’s recommendedplan must be guided by qualified professionalswith experience in development and managementof complex projects. These professionals include ahighly qualified asset manager to perform the pre-development work, including contracting for thedemolition of buildings that will not be incorpo-rated in the final plan and removal of hazardousmaterials. The firm should have national standingto write, disseminate, and manage the RFPprocess recommended to identify the developerfor the project. Furthermore, the services of anMAI appraiser with extensive experience in ap-praising industrial buildings should be engaged to

determine the market rent for the WHEELS Mu-seum and any other buildings that will be leasedto private entities.

The city has the opportunity to establish an imple-mentation and oversight process that is transpar-ent and inclusive of all the stakeholders who willbe affected by the redevelopment of Albuquerque’srail yards. In addition to engaging professionalswho are dedicated to the redevelopment process(city government representatives, communityrepresentatives, the University of New Mexico,local developers), the city should establish an advi-sory board. The responsibilities of such an advi-sory board should include the following:

• Hiring and supervising the asset manager;

• Hiring and supervising the appraiser;

• Supervising the property manager;

• Hiring the writer of the RFP;

• Selecting finalists for the RFP;

• Selecting the master developer; and

• Negotiating the development agreement.

The panel suggests the following membership forthe advisory board:

• An elected representative from the Barelasneighborhood;

• An elected representative from the SouthBroadway neighborhood;

• A professor of architecture from the Universityof New Mexico whose additional duty would beto protect the architectural integrity of the ex-isting buildings and assist in the negotiationsfor landmark designation;

• A professor from the University of New MexicoBusiness School whose duty would be to vet thefinancial strength of the developer applicantsand the viability of the financial plans presentedby the finalists;

• A representative from the mayor’s office;

• A representative from the governor’s office;

• A representative from the state legislature;


• A representative from the City Council; and

• A highly respected local developer whose dutywould be to assess the feasibility of proposeduses and the project as a whole.

Role of the WHEELS Museum inMoving ForwardBut for the persistence, energy, and dedication ofthe sponsors of the WHEELS Museum, the cur-rent motivation to discuss the redevelopment of

the rail yards property would not exist. Theircommitment to the history of the railroad and itssignificant effect on the development of Albu-querque has brought the redevelopment of the railyards to this level of discussion and evaluation.The panel, therefore, recommends that theWHEELS Museum is deserving of an honored po-sition in this development process. Given the sig-nificant amount of public monies that have beeninvested and that will be required to bring thisproject to fruition, however, the museum needs todemonstrate its viability and make an economiccontribution to the success of the project ulti-mately undertaken.

The panel proposes the following terms for theWHEELS Museum’s involvement in redevelop-ment procedures:

• The WHEELS Museum should be granted oc-cupancy of the Blacksmith Shop on a leasedbasis as part of Phase I of the developmentprogram.

• The lease should be for a term of five years withrecurring five-year options. No payment will bedue in the first year.

• Beginning in the second year, the museumshould pay market rent for the space. The rentwill be determined by the MAI appraiser.

The rail yards parcel isoccupied by a complex oflarge industrial buildings,formerly used by theBNSF Railway for loco-motive repair operations.


• During the first year, the museum must obtainpossession of at least two vintage locomotivesand establish a $60 million endowment for thepurpose of covering operating and rent ex-penses without depending on public subsidy.

• The WHEELS Museum may have a right offirst offer, with 30 working days’ notice, on adja-cent space, provided the museum is current inits obligations.

Museum planning and development is a specificniche activity within the broader world of institu-tional development. Museums serve a particulareducational and cultural function within a commu-nity. In addition, museum operations are a criticalcomponent to ensure viable programming basedon a strategic collection plan and supported by ad-equate staffing, an appropriate budget, and a gen-erous endowment sufficient to allow a museum in-stitution to serve its mission.

Albuquerque currently is home to several muse-ums, some located on the University of New Mex-ico campus. The Albuquerque Museum of Art andHistory, for example, had an attendance of 113,799in fiscal year 2007. Given the metropolitan popula-tion base in combination with 5 million annual visi-tors, the city seems to be particularly well servedby this market. As a result, the proximity of therail yards to downtown Albuquerque is a signifi-cant asset and can provide a link for those 5 mil-lion visitors to visit a new destination. TheWHEELS Museum needs to determine a reason-able “capture rate” for these visitors, as well asfor local, regional, and statewide residents.

Hard at work since 1999, the WHEELS Museumhas been laying the foundation for a transporta-tion museum in the city. The museum sees as itsmandate providing an appropriate venue to pre-serve artifacts and educate New Mexico nativesand the broader community about the importanceof transportation, particularly railroads, to the for-mation and growth of the state. The objectives ofthe WHEELS Museum are to collect pertinent ar-tifacts, assemble and preserve a collection pertain-ing to transportation, display and make the collec-tion available to the public, interpret the meaningbehind the objects through both temporary and

permanent exhibitions and educational program-ming, and provide excursion rail trips.

The WHEELS Museum board has done consider-able planning and consensus building relative tocarrying out its mission at the rail yards and nowmust turn its attention to taking advantage of theconsensus and goodwill engendered by its effortsthus far to work with local stakeholders to put inplace a viable plan that can birth a new museum atthis seemingly natural location. Next steps shouldinclude the following:

• Developing a realistic startup budget;

• Coming to agreement on the appropriate spaceto begin operations within the rail yards, includ-ing negotiation of a formal lease;

• Inventorying the railroad companies and otherparties for artifacts suitable for exhibition(whether temporary or permanent);

• Raising a collection budget of $50 million;

• Raising an endowment of $10 million;

• Developing a staffing plan with minimal relianceon city funding;

• Developing realistic attendance targets for theshort and long term;

• Cultivating a relationship with the SmithsonianInstitution;

• Developing a five-year program of work; and

• Engaging a third-party museum specialistwho can measure progress of the WHEELSMuseum.

The panel thinks the best location for the WHEELSMuseum in its startup phase is in the rail yard’sBlacksmith Shop, on the eastern portion of theproperty. The panel has recommended that theentire 27.3-acre site be developed in phases.Similarly, the WHEELS Museum should developa phased approach for its own potential growthand development on the rail yards property, basedon specific and measurable achievements. Suchachievements should be based in demand, eco-nomic, and programmatic-oriented measures.Accepted methods exist for measuring success


among nonprofit institutions, including museums.The WHEELS Museum’s potential expansion be-yond the Blacksmith Shop should be predicatedupon such success measures.

In addition, the museum’s planning and develop-ment activities should be integrated with the over-all planning vision for the property. The rail yardssite, as envisioned by the panel, will be mixed use,made up of workforce housing, open spaces andexhibit spaces, a public market, restaurants, lightindustrial (such as a film studio) uses, retail uses,and parking.

Historically, the rail yards have been an employ-ment center within the city of Albuquerque as wellas for the Barelas and South Broadway neighbor-hoods. This connection has been severed, and therail yards have now been dormant for severalyears. A viable redevelopment plan for the prop-erty can renew this economic connection. Such arenewed economic connection can serve to revital-ize these challenged neighborhoods and can at thesame time build upon the cultural identities thatare intrinsic to these communities.

To ensure such a revival of the rail yards, thisprocess should be framed within the followingthemes:

• Reconnect the rail yards with Albuquerque’scentral business district and humanize this cor-ridor of connection through business promotion.

• Invest in districts that surround the rail yards.

• Establish a new focus and identity for the fu-ture of the rail yards.

The WHEELS Museum is a critical component inestablishing a new focus and a new identity for therail yards redevelopment and that of its surround-ing neighborhoods by building upon the neighbor-hood’s traditional identities. The Barelas neighbor-hood is rich in history and proud traditions. It is acradle of Hispanic migration to the Albuquerquearea in search of employment with the railroad.Thus a long-term link exists between the Barelascommunity and the rail yards. This link is botheconomic and social in nature. Because so manymembers of the city’s Hispanic population claimroots in the Barelas neighborhood, they havestrong connections to family, friends, and the placeitself. This factor provides strength for the areaand gives the community a competitive advantagein capturing its share of the economic growth thatwill result from successful redevelopment.

Finally, the city’s Great Streets initiative can bean important element in upgrading transportationinfrastructure leading to the rail yards. In combi-nation, these assets will ideally overcome liabili-ties such as real and perceived crime and safetyconcerns. Another potential liability exists in thecity government’s strained financial resources,which make the range of physical, social, and eco-nomic problems relevant to redevelopment of therail yards and surrounding neighborhoods difficultto deal with.

A viable redevelopment plan for the rail yardsthat includes a measured role for the WHEELSMuseum can elevate the area to a point where theassets override the liabilities—thus potentially re-turning Barelas and South Broadway to their for-mer roles as key cultural identities inextricablylinked with Albuquerque’s rich history as a majorhub of the railroad industry.

Connection to Downtown andSurrounding NeighborhoodsDuring the interview process, the panel heardsuggestions from various stakeholders regardingthe need to “connect” the property to downtown.Residents of the surrounding neighborhoods wereespecially vocal about their desire to see the railyards reconnected in a manner that will not nega-tively affect their communities. At the project

The presence of theWHEELS Museum as partof the redevelopment planfor the rail yards wouldserve to both educate thepublic and celebrate thecity’s cultural history tiedto the railroad industry.


level, the following tasks can improve connectionand access to the rail yards:

• Acquire the 7.2-acre parcel to the north of therail yards, and evaluate the purchase of prop-erty to the south for enhanced accessibility andfuture expansion.

• Build a bicycle/pedestrian trail from the ex-panded site to Albuquerque’s central businessdistrict with appropriate landscape treatmentand amenities.

• Create an access point to the site from AvenidaCesar Chavez.

• Implement sector plans that address capital andinfrastructure needs.

Site-Specific ActivitiesIn addition to the zoning overlay described in the“Development Strategies” section, other site-specific tasks must be executed to implement theplanning design and redevelopment vision for therail yards, including the following:

• Develop a business marketing plan for the sitethat addresses the strategic positioning of theproperty and identifies development incentivesthat will attract the private sector to the site.Development incentives may include the desig-nation of the site as an Enterprise Zone or theestablishment of a Foreign Trade Zone.

• Negotiate with a utility company to provide ser-vices, including burying the gas line on the westside of the rail yards, and to construct a newelectrical substation.

• Retain the services of a nonprofit corporationfor the development of the workforce housing.

• Seek reimbursement from the railroad for haz-ardous materials remediation.

• Demolish nonessential buildings.

• Reach agreement with the WHEELS Museumregarding its occupancy of the Blacksmith Shopand possible expansion options.

• Construct 30 units of permanent workforcehousing in the existing Storehouse building (andexpansion thereof).

• Remediate hazardous materials on site, takingadvantage of the state’s Voluntary RemediationProgram. Specific remediation actions shouldinclude removing wood-block flooring in shopbuildings, establishing a groundwater monitor-ing program, thoroughly testing the site foradditional environmental contamination, en-capsulating lead paint, and remediating lead-contaminated soil and volatile organic compound–contaminated soil. The panel recommends leav-ing remediation of asbestos-containing windowglazing for cleanup by the master developer.

Implementation SequenceThe procedures described here outline the panel’sproposed steps for successful redevelopment ofthe rail yards. Prior to redevelopment, all organi-zational requirements should be put in place, regu-latory standards should be established, and tradi-tional predevelopment activities, such asclarifying title issues and remediation activities,should be attended to. Subsequent activities, fol-lowing the selection of the proper developer,should be implemented concomitantly during thephased-development scenario defined in the“Planning and Design” section of this report.


The city of Albuquerque is respectful of boththe historic significance and the future po-tential the rail yards possess. Their historyand future are, in fact, inseparable, and this

understanding helped the panel craft recommen-dations it believes will facilitate the city’s abilityto guide the redevelopment process and ulti-mately brand a new identity for the property thatbenefits not only the city but also its communitiesand their residents, the greater Albuquerque re-gion, and the entire Land of Enchantment.

For this grand vision to reach fruition, however,both practical and creative steps will need to betaken to ensure success. A redevelopment effortof this magnitude will take time, patience, and ofcourse, sound management, and the city shouldpursue each step with precision and diligence. Toinitiate this exciting course of action, the panelreemphasizes the following steps, which it deemsimperative prior to redevelopment of the railyards:

• Address the two easements held by the BNSFRailway so they can be eliminated, or at leastclarified and limited, before development.

• Identify responsibility for environmental reme-diation of the rail yards to render the propertyas appealing as possible to potential master de-velopers before exposing it to the marketplace.

• Establish an advisory board responsible for hir-ing and supervising an asset manager, an MAIappraiser, and a property manager, who will bethe author of the RFP to be solicited and theeventual selection of a master developer.

• Upon selection of a master developer, and to ini-tiate the planning process, create a zoning over-lay district for the rail yards with use categoriesand incentives specific to the site.

Following these steps, the city will be positionedto maximize the potential outcomes of a large-scale, mixed-use development scenario that in-cludes each of its desired elements—dedicatedworkforce housing, adaptive use of historic build-ings, improved connectivity to the surroundingcommunities of Barelas and South Broadway aswell as to Albuquerque’s central business district,use of sustainable design principles, and the futurehome of the WHEELS Museum—initially out-lined in this report. With progress, Albuquerque’surban fabric will significantly strengthen as infilldevelopment of this nature helps knit its distinctneighborhoods into a more seamless, prosperous,livable urban tapestry.

To this end, the panel challenges the city, as thepurveyor of civic leadership, to implement a visionfor the rail yards that is beyond everything thathas been discussed in the past. Such an ambitiousachievement can instill a new sense of prideamong neighboring communities, as residentswhose histories are deeply tied to the rail yardsagain are connected to and unified by a sharedpast and prospects of a future legacy. When com-plete, successful redevelopment of the rail yards issure to be heralded as iconic as both the buildingsand history that define them.

Conclusion


Christopher W. KurzPanel ChairBaltimore, Maryland

Kurz is currently president and chief executive of-ficer (CEO) of Linden Associates, Inc., a regionalreal estate services and mortgage banking com-pany engaged in the financing, acquisition, devel-opment, and management of commercial property.The firm also consults for corporations on real es-tate matters. Previously, he was a cofounder, chair-man, and CEO of McGill Development Company,which grew into the fourth-largest commercial realestate development company in the Baltimoremetropolitan area.

Kurz served as chairman of the board of directorsand cofounder of Columbia Bancorp and the Co-lumbia Bank, a billion-dollar, publicly traded bankholding company. As a principal at Alex BrownReal Estate Group, Inc., he acquired investmentsfor pension fund clients. Other companies withwhich Kurz has been involved include J.G. SmithyCompany, Maryland National Corporation, andthe Rouse Company.

His professional affiliations include membership inthe Urban Land Institute, where he has been amember of the national leadership group, chair ofthe Baltimore District Council, vice-chair of theSmall Scale Blue Development Council, and a Na-tional Program Committee member. Kurz is also amember of the International Council of ShoppingCenters, a past member of the National Associa-tion of Industrial and Office Properties (NAIOP)and the Mortgage Bankers Association, and a pastboard member of the Catherine McAuley HousingFoundation in Denver. He holds an MBA from theWharton School at the University of Pennsylvaniaand a BA from the University of Pennsylvania.

Guillermo AguilarIrvine, California

A member of the American Institute of Architects(AIA), Aguilar has more that 25 years of experi-ence managing and developing large complexprojects. As a project executive, he has providedprofessional services including development ser-vices, architectural design, program management,environmental planning and design, master plan-ning, and real estate development for constructionprojects totaling over $3 billion.

With his strong management approach and exten-sive development planning, design, and construc-tion experience, Aguilar has successfully com-pleted projects to meet program, design, andaesthetic goals, simultaneously meeting timeta-bles and budgetary requirements. The types ofprojects he has worked on include areawide devel-opment strategies and project implementation,retail/mixed-use development, medical/hospital fa-cilities, hotels and resorts, residential multifamilybuildings, and office and multiuse developments.Aguilar has proven his knowledge, professional-ism, and ability to work in various areas of thedevelopment and program management field inmultiple projects with many types of private andpublic institutions, including the Irvine Co., WaltDisney Co., the city of Los Angeles, and the LosAngeles Schools Bond Program.

Aguilar is a registered architect in California, afull member of the Urban Land Institute, a councilmember of the ULI’s Residential NeighborhoodDevelopment Council, and a thesis adviser for theGraduate School of Architecture at the Univer-sity of Southern California. In addition, he servesas a member of the Blue Ribbon Citizens Over-sight Committee for school construction in LosAngeles, overseeing over $15 billion of schoolbond construction.

About the Panel


Michael BerneNew York, New York

Berne is the president of MJB Consulting, a NewYork City–based retail real estate consulting con-cern. MJB is retained by a mix of municipalities,quasi-public/nonprofit organizations, and private,for-profit developers to work on market analyses,merchandising plans, revitalization strategies,tenant recruitment, and training sessions. Thefirm’s assignments span North America, with re-cent engagements in Atlantic City, New Jersey;Cleveland, Ohio; Las Cruces, New Mexico; Min-neapolis-St. Paul, Minnesota; Mobile, Alabama;Saskatoon, Saskatchewan; Wilmington, NorthCarolina; Winnipeg, Manitoba; and, of course,New York.

Berne has written extensively for Urban Landand has served on expert panels for the UrbanLand Institute and the International EconomicDevelopment Council (IEDC). He has presentedat the annual conventions of the IEDC, the Inter-national Downtown Association, the Local Initia-tives Support Corporation, the National MainStreet Center, and the International Council ofShopping Centers’ Alliance Program, as well asnumerous statewide conferences. He has lecturedat the University of Pennsylvania’s GraduateSchool of Planning and created his own course onurban retail for the Newman Real Estate Insti-tute (City University of New York). Last, he hasappeared in a wide range of periodicals, includingthe Washington Post and the Financial Times.

Berne received his undergraduate degree at Co-lumbia University, New York, and an MPhil fromColumbia University in the United Kingdom.

Modesto Bigas-ValedonPhiladelphia, Pennsylvania

AIA-member Bigas-Valedon is currently the proj-ect architect at Wallace Roberts & Todd (WRT)for the new Fraser Centre mixed-use project inState College, Pennsylvania, for SusquehannaReal Estate, LP. Most recently, he served as proj-ect architect for Charlottesville, Virginia’s newtransit station in its historic Downtown Pedes-

Aguilar received a bachelor of architecture fromthe National University of Mexico, a master of ar-chitecture from Tulane University, and a master oflandscape architecture from Harvard University.His work has been published in the Los AngelesTimes, Women in Architecture, Landscape Archi-tecture, and California Architects.

Luis BelmonteSan Francisco, California

Belmonte is a principal of Seven Hills Properties,developers of retail, multifamily, and industrialreal estate in California, Oregon, and Nevada.Previously, he was an executive vice president of,and one of the founders of, AMB Property Corpo-ration, where he ran the development program($250 million per year) and supervised manage-ment of assets (50 million square feet) in the west-ern United States. During his tenure at AMB,Belmonte spearheaded its effort to enter the Mex-ican market and developed its headquarters build-ing on the San Francisco waterfront.

Before his tenure at AMB, Belmonte was a part-ner with Lincoln Property Company, responsiblefor industrial development projects in northernCalifornia. Over the course of 16 years, he devel-oped in excess of 18 million square feet of indus-trial buildings. His responsibilities included siteselection, financing, construction management,leasing, and property management.

Belmonte spent three years on active duty withthe U.S. Navy, during which time he rode a de-stroyer escort on coastal patrol in Vietnam andspent 13 months as the Naval Gunfire Liaison Of-ficer, Fire Support Coordinator, and forward ob-server with the First Marine Regiment.

He is a member of the Urban Land Institute,where he chairs one of the Industrial and OfficePark Councils. He is a past president of the SanFrancisco chapter of NAIOP. He is a board mem-ber of Boys Hope Girls Hope San Francisco andEdgewood Center for Children, where he servesas finance chair. Belmonte graduated from theUniversity of Santa Clara with a BA (cum laude)and did graduate studies in political science at theUniversity of Chicago and the University of Cali-fornia, Berkeley.


struction. She began her career with Metro-DadeCounty immediately following the completion ofher master’s degree from Northeastern Univer-sity in 1979.

Beginning as a management intern, Gonzalezworked for most of her county career in the capi-tal improvement field. County land acquisitions,architect and engineer selection, and capitalbudget expenditure oversight were some of herresponsibilities in the Capital Improvements Divi-sion. This division was responsible for the devel-opment and implementation of the $200 millionCriminal Justice Program. This general obligationbond program modernized the county’s criminaljustice system through the development of newcourthouses, jails, police, and support facilities.In 1989, the Capital Improvements Division wasmerged with the county’s facilities and construc-tion management divisions and Gonzalez wasnamed director of the new Department of Devel-opment and Facilities Management.

She received her BA from the University ofFlorida. In 1989, she attended the Senior Execu-tive Program in State and Local Government atthe John F. Kennedy School of Government.

John J. Griffin, Jr.Boston, Massachusetts

Griffin joined Edwards Angell Palmer & DodgeLLP in the fall of 2002, bringing with him over 34years of experience in the field of real estate law.During the course of his career, he has repre-sented real estate developers, lending institutions,and educational institutions.

Griffin has represented the lender, developer, orinstitution in such varied projects as CopleyPlace, Natick Mall, Shopper’s World, the expan-sion of the Boston College football stadium, PointWest Office Center and Point West Place in Fram-ingham, Massachusetts, and University Place,University Green, Cambridge, Massachusetts. Inaddition, he recently represented ParametricTechnology Corp. in connection with the develop-ment and safe-leaseback of its new corporateheadquarters in Needham, Massachusetts.

trian Mall, which is the city of Charlottesville’sfirst new construction seeking to achieve LEEDcertification. The project is part of WRT’s largerurban design proposal developed for the city.

While at WRT, Bigas-Valedon has been involvedin the design of other projects of varying scale andcomplexity. They include the award-winning Broad& Washington high-rise complex in Philadelphiafor Pitcairn Properties, the Tempe Town Lakeproject in Arizona for Namwest, and the ArmedForces Retirement Homes Initiative in Washing-ton, D.C., for Clark Realty Capital. Prior to join-ing WRT, Bigas-Valedon was a senior designer atMachado & Silvetti Associates, where he partici-pated in a wide variety of projects, such as theOne Western Avenue Graduate Student Housingfor Harvard University, the Atelier 505 mixed-usedevelopment for the Druker Company, the Honan-Allston Branch of the Boston Public Library, andthe Getty Villa renovations in Malibu, California.

Bigas-Valedon received a bachelor of architecturefrom Cornell University and a master of architec-ture in urban design from Harvard University.He is a registered architect in Massachusetts anda LEED Accredited Professional. At Harvard,he was a teaching assistant to Professor RodolfoMachado, and he has served as part of the designfaculty at the Boston Architectural Center.

Diana GonzalezMiami, Florida

Gonzalez is the president of DMG Consulting Ser-vices, Inc., and the Consulting Group of SouthFlorida, Inc. Both firms engage in managementconsulting services in the areas of project manage-ment and facility development for nonprofit, gov-ernment, and for-profit clients. Current clients in-clude the Beacon Council, Carter Goble Lee, Fitchand Associates Dade Community Foundation,Miami-Dade County, and MGT of America.

Before entering the private sector, Gonzalez wasemployed by Dade County as the director of theDepartment of Development and Facilities Man-agement. This agency provided central supportservices in the areas of real estate acquisition andleasing, facility management, and building con-


In addition to his development and lending experi-ence, Griffin supervised, strategized, and success-fully argued before the Supreme Judicial Court ofMassachusetts the case that secured the develop-ment permits for the quarry site on Route 128 inWeston, Massachusetts. This case was probablythe longest-running land use battle in the historyof the commonwealth.

Griffin began his career at Herrick, Smith, Don-ald, Farley & Ketchum and moved to Bingham,Dana & Gould. After Bingham, Dana, he spent 18years as a partner, member of the executive com-mittee, and three years as managing partner ofRackemann, Sawyer & Brewster in Boston. Hethen spent nine years as a partner at Hutchins,Wheeler & Dittmar before coming to Edwards &Angell. For more than 20 years, Griffin has beenlisted in the real estate section of The BestLawyers in America.

Very active with Urban Land Institute on a na-tional level, Griffin has served on various councilsand as chairman of one of ULI’s councils. He hasspoken frequently at ULI meetings and is alsoprogram chair of the ULI District Council forBoston. Griffin has served on the executive com-mittee of NAIOP and currently serves on the Pro-grams Committee, which he has previouslychaired. His speaking engagements and publica-tions include “Legal Aspects of the DevelopmentProcess,” Urban Land Institute Real EstateSchool, 1986–2001, and “Professional ServiceFirms and the Real Estate Economy in Boston,”NAIOP, February 2003.

Philip HartLos Angeles, California

Hart is executive director of the Urban LandInstitute Los Angeles (ULI LA) District Council.ULI LA was the first of the 62 ULI DistrictCouncils in the United States, Europe, and Asiato reach 2,000 members. Hart also owns two smallbusinesses located in Hollywood, California, one areal estate development company and the other anentertainment company.

A ULI member for over 20 years, Hart initiallyjoined when he lived in Boston. With ULI LA,

Hart has been active with the Executive Commit-tee, the Program Committee, and the Inner Cityand Urban Policy Committee, which organizesthe annual Urban Marketplace. He has also beennamed a Senior Fellow at the University of Cali-fornia, Los Angeles (UCLA)’s School of Public Af-fairs for the 2007–2008 academic year.

Hart took early retirement as professor of sociol-ogy and director of the William Monroe TrotterInstitute at the University of Massachusetts,Boston, in 2002, after over 25 years with theuniversity. While there, he was also a Senior Fel-low with the John W. McCormack Institute ofPublic Affairs for three years. On two separateoccasions, Hart was a visiting research sociologistat UCLA’s Ralph Bunche Center for AfricanAmerican Studies.

As part of ULI Advisory Services panels, Hartserved in New Orleans in 2005 after HurricaneKatrina, helping guide the city’s redevelopment,and in Washington, D.C., in early 2006, assistingthat city with its $100 million, four-year GreatStreets initiative. Hart has also cosponsored ULIadvisory services panels, including a 2001 visit toHollywood, California. That ULI report, “A Strat-egy for Hollywood’s Comeback,” has been guidingredevelopment of this iconic neighborhood.

Hart’s 25-plus-year history as a real estate devel-oper includes serving as master developer ofCrossTown Industrial Park in Boston’s Roxburyneighborhood—a 75-acre urban business parkwith high-tech, biotech, university, office, retail,industrial, textile manufacturing, hotel, public util-ity, and residential tenants that opened in 1980.He was project manager for the $60 million, 5,000-seat West Angeles Cathedral in South Los Ange-les, which was dedicated in April 2001. He is se-nior adviser for the West Angeles BuildingStrategy Team for the West Angeles Campus andWest Angeles Village developments and part of ateam involved with brownfields remediation anddevelopment in Carson, California.

Active with issues of urban mass transit in bothBoston and Los Angeles, Hart directed the South-west Corridor Special Mobility Study in Boston inthe early 1970s, an origin-destination study thatwas an element in the regional Boston Transporta-


tion Planning Review that led to the relocation ofthe Massachusetts Bay Transportation Authority(MBTA) Orange Line, the creation of the MBTASilver Line, and the creation of a new cross-townarterial, Melnea Cass Boulevard. In Los Angeles,Hart was active with the Hollywood Chamber ofCommerce in support of the Metropolitan TransitAuthority (MTA) Red Line and currently serveson the MTA Expo Line Construction AuthorityUrban Design Committee.

Hart has published widely on a variety of topicsand produced documentary films and syndicatedradio programs over the past 25 years. His docu-mentary films Flyers in Search of a Dream, thestory of America’s first black aviator, and DarkPassages, the story of the Atlantic slave trade,have been best sellers in the PBS Video cataloguefor over a decade.

Hart earned his BA in sociology from the Univer-sity of Colorado, Boulder, where he was a cumlaude graduate as well as a student-athlete. Hewas inducted into the university’s DistinguishedAlumni Gallery in 1995. He earned master’s anddoctoral degrees in sociology at Michigan StateUniversity.

Anita MorrisonWashington, D.C.

Morrison manages Bay Area Economics (BAE)’sWashington, D.C., office, directing BAE assign-ments for the eastern United States. Since 1977,she has specialized in market and financial feasi-bility analysis, public agency land disposition, af-fordable housing, economic development for majorurban centers, and economic and fiscal impactanalysis.

She has extensive experience directing revitaliza-tion strategies, including work for neighborhoodsadjacent to downtown Hampton, Virginia; theButchertown neighborhood in Louisville, Ken-tucky; and the Park Place neighborhood in Nor-folk, Virgina. In Dayton, Ohio, Morrison evaluatedrevitalization and redevelopment options for nineobsolete shopping centers. She has developed spe-cial expertise in urban entertainment and arts dis-tricts through work in Pittsburgh’s Cultural Dis-

trict, the Illinois River waterfront in Peoria, Up-town Charlotte, and downtown Cleveland.

In addition, Morrison has recently focused on eco-nomic development through tourism, includingwork on the National Road Scenic Byway andAnacostia Trails Heritage Area. She is also expertin structuring and negotiating public/private part-nerships for major urban projects. She served for15 years as real estate adviser to the PennsylvaniaAvenue Development Corporation in Washington,D.C., facilitating $1.4 billion of private investmentin commercial and residential development proj-ects. She has also structured partnerships andconducted business planning for military basereuse projects, including the Fitzsimons ArmyMedical Center (Colorado), the David Taylor Re-search Center (Maryland), the Naval OrdnanceStation (Kentucky), and Newark Air ForceBase (Ohio).

Morrison’s housing work includes formulating anasset management strategy for the affordable port-folio held by the Albany, New York, HousingAuthority; analyzing the market support formixed-income housing in New Haven, Connecticut;evaluating affordable housing legislation in Wash-ington, D.C.; preparing the North Suburban Con-sortium’s Consolidated Plan in Massachusetts; andanalyzing the feasibility of a planned new urbanistneighborhood for Pennsylvania State University.

She also has extensive background in feasibilityanalysis and development planning for bioscienceand R&D parks, including assignments for theOregon Health Sciences University, Colorado Bio-science Park Aurora, the University of Wisconsin–Madison, and the Virginia Biotechnology Re-search Park. She has prepared a wide range ofeconomic and fiscal impact analyses, includingstudies for the Johns Hopkins University, theWashington Opera, the University of MarylandMedical System, and the District of Columbia. Herdetailed analyses of the fiscal impacts of proposedhistoric preservation tax credits in the state ofOregon and housing/economic development incen-tives in the District of Columbia have supportedelected officials’ legislative considerations.

Morrison earned a master of public policy from theUniversity of Michigan. She is a member of Wash-


ington’s Committee of 100 on the Federal City, theInternational Economic Development Council, theUrban Land Institute, and the National Associationof Installation Developers. She served on a ULIAdvisory Panel to develop guidelines for stripcommercial development and redevelopment.

$ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W.Suite 500 WestWashington, D.C. 20007-5201

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