A Metropolitan Redevelopment Area is a designated area within a municipality that has been targeted for rehabilitation, redevelopment, and private investment in order to stimulate economic development and community building.

The designation of an MRA allows for the contribution of Public Resources to Private Redevelopment projects, thereby providing a workaround to the State’s Anti-Donation Clause. The designation of an area includes a corresponding MRA Plan that outlines specific redevelopment projects and activities.

MRA Benefits

Incentivize property development

• MRAs facilitate the development of city-owned properties that are vacant or underutilized. The MRA designation allows municipalities to sell or lease properties to private owners for a nominal sum, and/ or negotiate land swaps between property owners.
  • Incentives can include direct contributions of public funds, infrastructure improvements, below-market leases, land swaps, zoning changes, favorable development bonds, and others.

Opportunity for public-private partnerships

• MRAs allow the city to engage with private investors in projects that involve the contribution of public funds to private redevelopment projects, including entering into development agreements to develop city-owned property and underutilized properties.

Improve infrastructure in district

• MRAs allow for the effective planning and construction of public infrastructure improvements including streetscape and placemaking projects, and utility upgrades. It allows the municipality to contribute public resources to infrastructure upgrades that benefit private landowners (including waiving fees).

Attract private investment

• Through the designation and planning for MRAs, communities can attract and sustain new private investment and encourage reinvestment in the area. This growth in commercial activity leads to long-term redevelopment and a stronger local business market.

Tax incentives and tools

• A municipality may offer tax abatements, establish a Tax Increment Financing District (TIF) or Tax Increment Development District (TIDD). They may also issue MRA Bonds for private projects. These tools do not change or increase taxes.

Resources

• Toolkit (2020)
• Benefits (2020):
  • Local Governments
  • Property Owners

MRA Project Library

NM MainStreet is currently building a library of projects located in MainStreet districts!

To submit projects for the library, fill out this form: https://forms.gle/Z95EyEvUTCtcTFtf6