Jan. 31–LAS CRUCES — Plans to build a new hotel adjacent to the Las Cruces Convention Center could be a little closer to becoming a reality, after New Mexico State University’s board of regents decided Friday to seek a developer for the project.
Regents met in Santa Fe and approved the leasing of 2.5 acres of land west of the convention center to Aggie Development Incorporated, a nonprofit corporation created to develop the university’s land, mineral and water resources around the state. The land will be subleased to a private development company that will finance, construct, own and operate the hotel, according to Ben Woods, president and CEO of Aggie Development and special adviser to the NMSU president.
The plan has been in the works for years, said Woods, but was derailed by the economic downturn.
“In 2007, we actually had a lease in place with a hotel developer,” said Woods. “In 2009, when the national economy went south, the financing dried up. We ended up terminating that lease, and waiting for the economy to recover.”
When President Garrey Carruthers was hired, efforts to pursue the hotel were renewed, and in July 2014, Aggie Development Incorporated was created. Now that the lease has been approved by regents, the development of the land will be turned over to Aggie Development’s board of directors.
“We know there are interested in parties. We’ve been trying to engage companies, and helping them understand why it makes sense,” said Woods. “We had a market feasibility study done in 2014 which indicated that this was a feasible, viable project. We’re eager to see what kind of proposals we get.”
As part of the process, regents also approved an amendment to the ground lease between the city of Las Cruces and the university for the convention center, which will now be forwarded for consideration by the City Council.
“We have been working with the city in planning where the best location for a hotel might be,” Woods explained. “We’ve worked with them in amending their lease to make sure that they have the capability to consider an expansion to the convention center in such a way that this hotel would adjoin, or be close to it.
Becky Bolton, general manager of the convention center, was excited to hear the news.
“It couldn’t be more fantastic,” she said. “A convention center in a city the size of Las Cruces has to have the right package to attract conventions from outside — particularly from outside the state. For our convention center to operate at its ideal usage, it would host conferences and conventions. And those types of groups prioritize proximity of a hotel.”
Bolton said that convention planners continually ask her if the convention center has an attached hotel.
“It’s one of the first questions that meeting planners ask,” she said. “If the answer is no, they ask for the nearest headquarter hotel, and how many rooms are within walking distance. Having a hotel attached, or next door, will help us attract much larger conventions, and will make Las Cruces much more attractive to those conventions.”
Having a hotel adjacent to the convention center is crucial, according to Philip San Filippo, executive director of the Las Cruces Convention & Visitors Bureau.
“The No. 1 reason that we lose conventions that we’ve bid on is because there’s not a hotel near enough to the convention center,” he said. “This is the most critical piece that we’ve been missing. It’s not just good for conventions, it’s also good for hotels. If we can host more conventions, attendees won’t all stay at the same hotel. The benefit will filter to the other hotels, as well.”
San Filippo said that he has been waiting for this news for a long time.
“This is something that we’ve been hoping for, and asking for,” he said. “It was a part of the original plan, and I’m just so excited that it looks like we’re going forward. I think this is a very significant step, and for NMSU is a great investment in the future of Las Cruces.”
Damien Willis can be reached at 575-541-5468.
