To promote development, New Mexico's state and local governments offer companies tax credits and exemptions.

For example, businesses can apply for industrial revenue bond financing, which allows local governments to offer property tax exemptions for up to 30 years. At the end of the abatement period, the company faces low property taxes -- New Mexico's are among the lowest in the nation.

"One of the best incentives is New Mexico's In Plant Training program," says Gary Tonjes, president of Albuquerque Economic Development Inc. "That program can reimburse companies for up to 50 percent of an employee's wages for up to six months, which is certainly helpful."

The program pays for half the salary of production employees during training for up to 1,040 hours, and pays for a portion of the training costs incurred by the employer or training institution.

Incentives reward expansions
Albuquerque, home to Sandia national laboratories, Phillips Air Force base and Albuquerque Technical Vocational Institute, is New Mexico's largest city.

This July, Sun Healthcare Group, Inc. took advantage of $65 million in industrial revenue bonds and broke ground on two office buildings to expand its campus. A four-story, 85,000 square foot building is making room for 265 employees.

The second addition, a six-story, 185,000 square foot building, is expected to be completed by 2000.

EMCORE has also found Albuquerque a good place to do business. The Sommerset, N.J.,-based manufacturer of solar cells for space-based applications decided to extend its product lines and to expand to the West with a 50,000 square foot, $22 million facility.

"For a New Jersey-based company, the biggest benefit by far is that we've been able to staff up with internal talent," says Karen Schneider, director of business and administration for EMCOREWest. "With Sandia national laboratories, the University of New Mexico and Intel in the area, we haven't had to go beyond the city for staff at all levels."

Relocation leads to economic revival
The outlook for the small bedroom community of Rio Rancho started off bleak in 1997. The city had no major business developments planned -- despite its efforts to boost the economy.

When Intuit, the manufacturer of Quicken, left its Rio Rancho facility and took its business and approximately 350-500 jobs overseas, things looked even worse. But this misfortune turned out to be a boon for the community.

In the past 18 months:

• Gateway has created 450 jobs by opening a technical call center.

• Victoria's Secret Catalog has moved into the old Intuit building and created 700 jobs by consolidating its call center operations into one location.

• Incite Lighting, a manufacturer, has relocated from Albuquerque, adding 50 jobs.

• NationsBank Card Services has opened a call center that is expected to create 1,000 jobs as it gets up to full employment.

• Sprint PCS has plans to move into its new 75,000, square foot building while creating 1,100 jobs.

• Intel has added 1,000 jobs.

When NationsBank was looking for a site for its Card Services Center, which handles purchasing ATM, credit, commercial and debit cards, it considered nine cities. This was narrowed to three -- Oklahoma City, Rio Rancho and Tucson, and Rio Rancho made the final cut.

"We were looking to build a state-of-the-art facility, and because of the local business economy, the total package was right," says Laura Hunter, NationsBank spokeswoman.

Companies on the move statewide
Businesses aren't looking only at New Mexico's large cities as potential investment sites. The state's small and mid-sized communities are also finding success in attracting business.

Otero County, home to Alamogordo, is one example. Turbo Spin LLC., a start-up company, just announced it will be opening a facility in Alamogordo, the county's metropolitan center that's home to approximately 30,000 residents.

The city sold 2.5 acres to Turbo at $65 per acre. Alamogordo also will be working with the company to take advantage of the state's In Plant Training program and revolving loan fund, which may allow it to take advantage of low-interest rates.

In addition to its discounts on land in an industrial park, Otero County is also trying to take advantage of the facilities at Holloman Air Force Base and White Sands Missile Range.

"We're trying to attract manufacturing and research and development companies," says Colene Van Winkle, executive director for the Otero County Economic Development Council. "With the bases, there's an opportunity for testing and evaluating products that other communities don't have. Our weather also is conducive to flights, small model manufacturing and assembly industries."

Otero County is also targeting call centers. In Alamogordo, 70,000 square feet is available for 200-300 seat call centers or back offices. In addition, a vacant Wal-Mart could be converted for another use.

"Call centers are one of our major targets. We have an unemployment rate of about 6 to 7.5 percent, and also some underemployed people," Van Winkle said.

"The work force here tends to be loyal and will stay with a company."