In a major blow to the El Paseo Road retail area in Las Cruces, the Los Altos Ranch Market is closing. Advertisements note that a store closing sale is currently underway, but there is no specific date of closing listed.
Los Altos Ranch Markets recently purchased the store after Pro's Ranch Markets filed for bankruptcy.
There were high hopes with the opening of Pro's Ranch a few years ago, as the company conducted some renovations on the retail stores that surround the supermarket. A number of new tenants moved into those stores, but there are still vacancies. Now, with the closing of the market, the shopping center will lack an anchor tenant.
Across the street, the Kmart store also closed. But that vacancy did not secure a new retailer. Instead, a local church purchased the building.
The setback on El Paseo Road not only has implications for remaining retailers, but also the city of Las Cruces. The city depends heavily on gross receipts tax revenue. In addition, the city has been planning major infrastructure improvements on El Paseo Road.
The news comes as concerns are high over a proposed increase in the gross receipts tax. On Tuesday, the Dona Ana County Commission is debating a 3/8 of one percent increase. The GRT is already nearly eight percent in Las Cruces, after the city council raised the tax in 2014.
Both GRT increases were proposed after the state legislature approved a corporate tax cut in 2013. To pay for that tax cut, state funding to municipalities, so called "hold harmless" funds, are gradually being reduced starting this year.