A bill that would allow a tax district in Las Cruces to issue tax-exempt bonds to help pay for revitalizing downtown cleared the Senate unanimously Monday morning.
The bonds would be backed by future state and local tax proceeds.
The district, known as a Tax Increment Development District, was created in 2007. The legislation would allow for up to $8 million to be issued, according to an analysis of the bill.
Las Cruces wants to use the money to “finance road construction projects designed to open Main Street to automobile traffic and create a more pedestrian friendly environment,” the analysis said.
According to the analysis, Main Street, which runs directly down the center of the district, was “closed off to automobile traffic in the 1970s turning all of the street’s storefronts into store backs. This seriously hampered the efforts of local businesses causing the downtown section of Main Street to become largely vacant.”
The legislation failed to get through the Legislature last year.
The bill passed by the Senate on Monday now heads to the House, where it failed last year.