City to sell Market Station space for $6M

Council expected to vote on lease to Specifica to expand its facilities in S.F. Railyard

The city of Santa Fe plans to sell its portion of the Market Station building in the Railyard for more than $6 million to Tim Thompson’s State Properties of New Mexico LLC, a company that owns the rest of the building.

An ordinance scheduled to be introduced at the City Council meeting Wednesday indicates the proposed deal could be approved by the council in late April.

Under the ordinance, the city would sell the property for the appraised value plus an additional 1.5%, which totals $6.09 million.

The city owns 21,474 square feet on the second floor of the building at 500 Market St., some of which is used as office space for the Economic Development, Community Services, Affordable Housing and Public Works departments.

According to a staff memorandum by Economic Development Director Rich Brown, revenue from the sale of the property would be used for “sustainable economic development,” including “business retention, industry diversity, additional jobs growth, and revenue to offset any losses to the City’s balance sheet.”

The council is also is expected to vote on final approval of a lease of 11,908 square feet in Market Station to the biotech company Specifica, which already operates in part of the building and plans to expand. The proposed lease agreement was introduced to the council in January.

According to the contract, the city would receive $18,854.33 monthly from Specifica, which describes itself as an “antibody engineering company,” to lease offices now occupied by city staff. The city would move out of the space by June to free up the space in exchange for a $500,000 payment from the company.