Economic Development

Introduction

San Cristobal is a quiet, close-knit town in central New Mexico with a population of approximately 8,000 people. Located along the Rio Grande, it is bordered by mountains to both the east and west. National parks, small lakes, and open grasslands are nearby. There is a small but first-rate college on the outskirts of San Cristobal that draws from both the local community and the surrounding region. There is also an airport that was once used for military training and is acceptable for propeller aircraft and small jets. Like most other New Mexico towns, there is evidence of diverse streams of cultures and traditions in San Cristobal that have merged together over the years to form a pleasant environment that many individuals are proud to call home. Yet, while San Cristobal remains a lovely place to live in the minds of many, a series of problems has arisen recently that threaten the very fabric of the community.

The first problem is that two of the largest employers in town – Smith Industries and Logic Manufacturing – have been forced to close their facilities over the past two years as a result of restructuring guidelines from corporate headquarters. The immediate effect of these closures has been a radical increase in unemployment in San Cristobal, with no obvious replacement jobs in sight. An equally significant long-term effect of these closures has been a decrease in the tax base that will seriously impact the town's ability to pay for much-needed services such as education, health care, police, fire prevention, emergency medical services, and street maintenance. The lack of tax revenue has also forced a temporary freeze on salaries and benefits for local government employees in the areas mentioned above, causing a gradual but consistent loss of expertise from the town.

A second problem relates to the arrival of a Super Wal-Mart store last year. This is considered a blessing by some because of its "one-stop shopping" advantages, but for others this has resulted in the closure of small businesses that have been in the family for several generations. Many of the small stores that once circled a thriving town plaza are now empty and have been replaced by "For Sale" signs. This, in turn, has decreased the number of tourists who once came to the town, attracted previously by the quaintness of the town and its proximity to nearby national parks.

While San Cristobal still has the potential to be someplace special, the question that must now be addressed is how to revitalize the community and return it to its standing as a "livable" town. The current prospects for economic development in San Cristobal are minimal, and unless things change, there will be little opportunity for individuals to make a decent living. Although the college currently offers "trade-school" type classes, there are no jobs available after graduation that would allow one to raise a family or save for the future. High school students must be satisfied with working low-wage jobs if they wish to stay in town. Students who choose to attend four-year universities find that there is little reason to return to San Cristobal after graduation and typically stay in the Albuquerque area after finding decent jobs. Individuals who come to San Cristobal and are captivated by its small-town charm frequently consider moving there, but after discovering its current condition, decide to look elsewhere. Industries that contemplate locating in San Cristobal because of its relative proximity to national laboratories and the Mexican border see instability and inertia, and find little reason to invest in the community.

State officials have made it clear that funding to sustain local communities will not come from them. Rather, they have stated explicitly that the decline in rural New Mexico is not the state government's problem. While some funds are available from the federal government to assist in re-structuring, the fact remains that this will not be enough and will do little good if applied in a haphazard fashion. The bottom line is this: a long-term strategic vision must be created for the town if it is to survive.

In this seminar you are part of the local leadership group that must create a viable economic development plan. Consider the four options and decide what you consider to be the most feasible, active response to the problems you now face. The question you face is this: How are you going to jump-start your community?

The Options>

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