When Albuquerque city councilorsa 30- to 50-year approved a proposed land lease and development agreement for the Orion Center with Theia Group, their decision was unanimous.
It passed on an 8-0 vote on April 19, 2021, giving Mayor Tim Keller's administration permission to finalize the agreement. According to the letter of intent between the city and Theia Group from 2020, the lease needed to be signed by Theia Group and Albuquerque's chief administrative officer, Sarita Nair, to become active.
So, what information was made available to councilors before they voted to approve the lease?
The process was detailed for Albuquerque Business First by Cynthia Borrego, who represented the city's fifth council district but failed in her re-election bid last November, and council services director Chris Melendrez.
Ahead of the vote, two key documents with information about the Orion Center and the related lease were prepared.
First, the councilreceived an "inter-office memorandum," dated March 30, 2021, from Keller that had three parts:
- A cover analysis that featured questions and answers about the project. The questions included: What is it? What will this piece of legislation do? Why is this project needed? How much will it cost and what is the funding source? Is there a revenue source associated with this plan? If so, what level of income is projected?
- A fiscal impact analysis which declared that "this will create major economic development momentum for the city of Albuquerque" and that "no impact on fund balance over and above existing appropriations" was anticipated.
- A copy of the 64-page ground lease and development agreement — which was anticipated to commence in June 2021. The agreement included requirements for the development of the property, and according to the cover analysis, Theia Group would've had to develop about 95 acres by 2029. If the company did not meet that milestone, the city could've adjusted rent or reclaimed undeveloped land.
Second, council staff received a memo with an analysis and explanation of the agreement. The estimated construction value was set to exceed $1 billion, according to the memo. It also stated that Theia Group would bring "large pieces of satellite from various locations in France" and construct them in Albuquerque. Theia Group "could have up to 3000 employees working on the campus," the memo continued.
In general, for proposed projects, counselors can also be briefed with additional details outside of a council meeting.
Emails obtained by Business First through a public records request show James Reid Gorman, the local lead for the Orion Center, told councilor Pat Davis, one week before the vote, that he was "happy to address any questions." Davis represents the city's sixth district, where the Orion Center would have been located.
Then-Albuquerque economic development director Synthia Jaramillo also briefed Borrego on the Orion Center, however "additional details on the development agreement" outside of what was disclosed at the council meeting were not provided, Borrego and Melendrez said in an email to Business First.
At the Aprilmeeting, Gorman acknowledged Theia Group's local expansion into former Raytheon space. He also mentioned how Colorado-based construction company Hensel Phelps had "done outreach to as many qualified subcontractors as possible that already exist in this area."
"I went into the council meeting in a neutral position and was ready to make a decision based on information provided," Borrego told Business First in October 2021.
In an interview that same month, then city councilor Diane Gibson, who representedAlbuquerque's seventh district, said "overall, I think that we made the correct decision for that time."
