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Mesa del Sol developers say growth is exceeding expectations

Not such a surprise

Fidelity Investments' arrival in New Mexico caused a stir not just because it's big news — but because of how the news was delivered.

Albuquerque Mayor Martin Chavez released the news of the company's arrival ahead of Gov. Bill Richardson's Thursday afternoon news conference.

Richardson said public officials signed a nondisclosure agreement prohibiting them from speaking publicly of the deal. He and Fred Mondragon, the state's economic development secretary, expressed disappointment over the mayor's decision.

"The first thing I said to Pat (Goepel, president of Fidelity Human Resources Services) when I saw him this morning was, `I'm sorry about the leak,' " Richardson said Thursday. "These are the situations that shouldn't happen with economic development."

The mayor's spokeswoman, Deborah James, said the news is "fabulous" for economic development in New Mexico.

"The spirit of Mayor Chavez's announcement," she said, "was to welcome Fidelity to Albuquerque."

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— If economic development had a box score, Forest City Covington would be racking up some impressive numbers.

The developer of Mesa del Sol in just three years has lured companies pledging to bring 6,600 jobs to the mixed-use development south of Albuquerque International Sunport. A large number of those jobs are expected to be in the $50,000 range or higher, company officials said.

They're figures that have surprised even the company's economic development chief.

"I thought it was going to be six to seven years before we got that kind of job count," said Mark Lautman, who joined Forest City Covington in February 2005 as its economic development director.

The latest big news for the developer, a subsidiary of Forest City Enterprises of Cleveland, came at the Roundhouse on Thursday. Fidelity Human Resources Services Co. announced plans to open an operations center at Mesa del Sol that will employ 300 by this summer, and rise to 1,250 mostly high-paying jobs within five years.

"New Mexico is on a roll in creating new, high-paying jobs," Richardson said from his Cabinet room while announcing Fidelity's arrival.

It was the second major job-creation announcement this week for Mesa del Sol.

On Monday, German glass giant Schott AG announced its subsidiary, Schott Solar, would build a solar technology manufacturing plant at Mesa del Sol. The company's initial $100 million investment could one day grow to $500 million at an 800,000-square-foot plant employing 1,500.

Both companies, should they reach their projected job growth numbers, would become among the state's largest private employers.

They also fit into Forest City's strategy of luring jobs to its development before housing. The company has placed specific targets on five industries: renewable energy, digital media and entertainment, government services and financial services.

Already operating at the nearly 13,000-acre development are solar technology firm Advent Solar; Albuquerque Studios, a full-service film production facility; and coming soon will be Sony Pictures Imageworks, which is bringing part of its digital film production work to the movie studios.

Lautman said Forest City has pushed to create up to 500 jobs a year to support the creation of 600 new homes per year.

Mike Daly, CEO of Forest City Covington, said the job announcements could help the company push forward on housing growth. The arrival of new companies, he said, gives them ammunition to convince home builders that the time is right to build at Mesa del Sol despite the current downturn in the housing market.

Grading for the first residential lots is expected to start in March; model homes will be available by mid-2009, and the first homebuyers moving in by late 2009.

But because homes aren't now available there, the arrival of Schott and Fidelity are likely to benefit the lagging housing market elsewhere in the city.

"Most of the jobs will go to people living in other parts of New Mexico or Albuquerque," Lautman said.

Fidelity Human Resources Services Co., headquartered in Marlborough, Mass., provides corporate clients with payroll, health and welfare and other human resources services — a $24 billion a year market that's growing by 14 percent a year, said Pat Goepel, the company's president.

The company is part of Fidelity Investments, the world's largest mutual fund firm, which employs 46,000 people worldwide and has $1.6 trillion in assets under management.

The company by this spring will begin hiring 300 employees while it's based out of the University of New Mexico's Lockheed Martin building at 1155 University Blvd. S.E. It will spend $2 million to renovate the building, which will then be used by UNM for a Student Success Center, Richardson said.

Fidelity will then move into a 210,000-square-foot office complex at Mesa del Sol, the first phase of which will be ready for occupancy by December with the final phase being completed in March 2009.

Within five years the company plans to employ 1,250 people with a salary range of $25,000 to $65,000 a year, Richardson said.

Fidelity will receive a $47 million incentive package from state, local and private sector sources. That includes $14 million being requested by Richardson from the Legislature — $8 million this year and $6 million next year — another $1 million from the city, and $2 million from Forest City, Richardson said.

Goepel said that as the company sought a location for the operations center, its search found them returning to Albuquerque.

"After all the work we did analyzing potential sites . . . we kept coming back to the people," he said. "It's really incumbent upon us to have a work force of people that care. We're confident we have those people in New Mexico."

Albert Ratner, co-chairman of the board for Forest City Enterprises, said the company came to New Mexico and saw no private sector. So they sought to build one.

The arrival of Schott and Fidelity "have validated what we believe: that New Mexico is the best place in the country to do business," Ratner said.

Daly agreed. And he said there's more to come.

"We're still not satisfied with 6,600 jobs," Daly said. "This is recognition that this is the top location in the U.S.

"We should see more to follow."