Understanding Metropolitan Redevelopment Areas

As Albuquerque grows and changes, long-established commercial corridors like San Pedro face a familiar challenge: how to reinvest in aging infrastructure, support existing businesses, and encourage thoughtful redevelopment—without losing the character, affordability, and local ownership that define the corridor.

One of the primary tools cities use to meet that challenge is a Metropolitan Redevelopment Area, or MRA.

With an upcoming public meeting focused on a proposed extension of the Near Heights MRA, this Bulletin provides a clear, plain-language explanation of what MRAs are, how they work, and why this tool matters for revitalization along San Pedro Main Street.

Metropolitan Redevelopment Areas are not a silver bullet—but when understood and used carefully, they can be a powerful tool for supporting corridors like San Pedro as places to do business, build community, and invest for the long term.


What Is a Metropolitan Redevelopment Area?

A Metropolitan Redevelopment Area (MRA) is a revitalization framework created by a city and authorized under New Mexico state law. It allows a municipality to focus resources, incentives, and coordination efforts within a defined area where reinvestment is needed to support long-term economic health.

MRAs exist because cities recognize an important reality: many established corridors face systemic challenges that individual property owners or businesses cannot solve alone.

These challenges often include:

  • Aging infrastructure

  • Underutilized or vacant buildings

  • Fragmented ownership patterns

  • Higher costs for rehabilitation than new development

  • Limited access to capital for small and local owners

An MRA gives the City a way to intentionally support reinvestment in existing neighborhoods, rather than defaulting to outward expansion or greenfield development.


How MRAs Are Created and Governed

MRAs are:

  • Initiated by the City, not private developers

  • Authorized by state statute

  • Approved by elected officials through a public process

  • Bound by a specific geographic boundary and time period

Once established, MRAs are administered by the City and guided by adopted redevelopment plans and policies. In Albuquerque, redevelopment activities within MRAs are reviewed and advised by the Albuquerque Development Commission, ensuring public oversight and accountability.

An MRA does not dictate what must happen in an area. Instead, it creates a policy and financial framework that allows the City to respond strategically when opportunities arise.

In Albuquerque, MRAs are administered by the Metropolitan Redevelopment Agency (https://www.cabq.gov/mra).


What Tools an MRA Makes Available

An MRA allows the City to use tools that are not otherwise available under standard municipal authority. These tools can include:

  • Targeted public infrastructure investment such as:

    • the use of Tax Increment Financing to pool gross receipts and property tax for reinvestment back into the area it generated from

  • Redevelopment incentives to help close financing gaps including:

    • 7 yr tax abatement

    • Property Improvement Programs and other grant programs

    • Waiver of certain public fees to lower the cost of development

  • Support for public–private partnerships

  • Strategic coordination around land use, transportation, and utilities

    • Land banking (the City can purchase, hold, and grant property to future projects).

  • Long-term planning that aligns public investment with community priorities

These tools are used selectively and must meet established criteria. They are designed to reduce barriers to reinvestment, not to subsidize speculative development.




Clearing Up Common Misunderstandings

MRAs are best understood as enabling tools, not mandates. Because MRAs involve public policy and redevelopment, they are often misunderstood. A few important clarifications:

MRAs do not:

  • ❌ Raise property taxes

  • ❌ Change zoning automatically

  • ❌ Force property owners to sell

  • ❌ Allow development without public review

Any redevelopment project within an MRA must still comply with:

  • Existing zoning and land-use regulations

  • Public hearing and approval processes

  • City design, safety, and environmental standards


Metropolitan Redevelopment Areas: Myths & Facts

MYTH: An MRA means my property taxes will go up.

FACT: An MRA does not raise property taxes. Property tax rates are set separately through existing tax policy and voter-approved measures. Being located within an MRA does not change how your property is taxed.


MYTH: The City can force property owners to sell if an area becomes an MRA.

FACT: An MRA does not require property owners to sell or redevelop. Participation in redevelopment projects is voluntary, and property ownership remains unchanged.


MYTH: An MRA automatically changes zoning or allows bigger buildings.

FACT: An MRA does not change zoning. Any zoning changes or development proposals must still go through the City’s normal public review and approval processes.


MYTH: MRAs only benefit large developers.

FACT: MRAs are commonly used to support small and locally owned businesses, legacy properties, and incremental reinvestment—especially in established Main Street corridors where redevelopment costs can be high.


MYTH: Once an MRA is approved, projects move forward without public input.

FACT: Redevelopment projects within an MRA still require public oversight, including City review, compliance with adopted plans, and approval processes involving the Albuquerque Development Commission.


MYTH: An MRA guarantees that redevelopment will happen.

FACT: An MRA does not guarantee development. It provides tools the City can use if and when opportunities arise, based on market conditions and community priorities.


MYTH: This public meeting is where final decisions will be made.

FACT: The upcoming meeting is informational only. Its purpose is to explain the proposal, answer questions, and gather feedback—not to approve projects or finalize outcomes.


Why MRAs Matter for the San Pedro Main Street Corridor

San Pedro Main Street is a corridor defined by small businesses, long-time property owners, and neighborhoods that rely on it for daily services—not a single large redevelopment project. That makes corridor-scale tools especially important. An MRA can help:

  • Support reinvestment in existing buildings

  • Improve streets, sidewalks, lighting, and utilities that serve everyone

  • Encourage business retention and expansion

  • Reinforce walkability and safety improvements

  • Align public investment with Main Street revitalization goals

Rather than focusing on isolated projects, MRAs allow the City to take a long-term, coordinated approach—one that complements local organizing and private reinvestment already happening along San Pedro.




MRAs and the Main Street Approach

MRAs work best when paired with community-based revitalization strategies like the Main Street Approach, which emphasizes:

  • Design – improving the physical environment

  • Economic Vitality – strengthening local businesses

  • Organization – coordinating partners and resources

  • Promotion – reinforcing corridor identity and activity

Used thoughtfully, an MRA can help align municipal tools with these principles—supporting revitalization that is incremental, locally grounded, and responsive to community needs.





The Near Heights MRA Extension Proposal

The City of Albuquerque is proposing to extend the existing Near Heights MRA to include additional areas along San Pedro Drive. The intent is to expand the City’s ability to support reinvestment and infrastructure improvements in this portion of the corridor.

The upcoming public meeting is intended to:

  • Share information about the proposal

  • Explain what tools an MRA provides

  • Answer questions from business owners, property owners, and residents

  • Clarify next steps and timelines

This meeting is informational only. No final decisions will be made at the meeting.




RSPP’s Role

The Revitalize San Pedro Partnership (RSPP) serves as a community-based intermediary for the corridor. In this process, RSPP’s role is to:

  • Help translate public policy tools into plain language

  • Create space for informed community discussion

  • Elevate corridor priorities and concerns

  • Support transparency and early engagement

Our focus is ensuring that decisions affecting San Pedro are made with a clear understanding of local conditions and long-term community goals.



Participate and Stay Informed

Public Meeting: Near Heights MRA Extension Proposal

📅 Tuesday, January 13, 2026 | 6:00–7:30 PM
📍 Revitalize San Pedro Partnership Office | 1307 San Pedro Dr NE, Albuquerque, NM 87110
🔗 Event details: https://www.sanpedroabq.org/events/public-meeting-near-heights-mra-extension-proposal

Community members are encouraged to attend and to submit questions in advance to connect@sanpedroabq.org.

Next
Next

San Pedro Is Competing With Uncertainty. Stability Is How We Win.