New Mexico’s capital city


Native American and Spanish Influences

During prehistoric times a village built by the Tano tribe stood on the site now occupied by Santa Fe. Evidence from the Tano culture, uncovered in the few ruins left by Spanish settlers, indicates that civilization existed on the site as far back as 1050 to 1150 A.D. The settlement was abandoned around 200 years before the arrival of the Spanish. The spot was called Kuapoga -"place of the shell beads near the water"- by the Pueblos. Santa Fe was founded in either 1607 or 1609 (there is some confusion about the year) by Don Pedre de Peralta, the third governor of the Province of New Mexico, who built the Palace of Governors and the Plaza and planned a walled city. The palace was occupied by a succession of sixty Spanish governors for more than 200 years, and Santa Fe has been a seat of government since its founding.
Throughout Spanish rule of the territory Santa Fe was a center for exploration and mission work. Franciscan friars built eleven churches and by 1617 had converted more than 14,000 Native Americans to their form of Christianity. Conflict arose, however, when the Native Americans continued to practice their own religion. In 1680 a number of the Spanish settlers were killed in a conflict with natives; the survivors fled to El Paso del Norte, abandoning the town. The Native Americans established their own community in Santa Fe; occupying the palace and appointing a governor, they held the town for twelve years until the arrival of De Vargas, Spanish governor of the province. He made peace and returned the following year with a statue of the Christian New Testament's Virgin Mary. Making his entry on the site of present day Rosario Chapel, he vowed to pay yearly homage to "Our Lady of Victory." Since that time, in fulfillment of this vow the De Vargas Procession has been held in Santa Fe.
Mexico and United States Claim Santa Fe

When Mexico won independence from Spain in 1821, Santa Fe came under its control. Trade was then opened between Santa Fe and the United States over a route that came to be known as the Santa Fe Trail. In 1846 the United States claimed Santa Fe; the city has been under U.S. jurisdiction ever since, except for two weeks during the Civil War when the Confederates seized control after the battle of Valverde. The Santa Fe Trail eventually fell into disuse when rail travel advanced to the region. Santa Fe flourished, however, benefiting from the new trade connections that were made possible by the railroad.
City Becomes Art Colony, Capital of State

Around the turn of the century, artists, attracted by the climate and the beauty of the area, moved to Santa Fe, and the city soon became popular as an art colony. When New Mexico attained statehood in 1912, Santa Fe, as the capital, entered a period of prosperity; government workers arrived to live in the city and federal and state buildings were constructed around the Plaza. By 1920 the population had grown from 5,000 to more than 7,000 people, and by the 1940s it was over 20,000 people.
In 1957 the city established zoning codes designed to maintain a uniform architectural style. Two types of architecture are permitted: Pueblo, characterized by rounded parapets and rough-hewn woodwork, and Territorial, featuring brick coping and milled, often decorative woodworking.

Santa Fe's populace reflects the city's Native American, Spanish, and Anglo heritage, and the cultural traditions of these groups have been retained. However, after an influx of new residents in the 1980s, the 1990 census reported that for the first time since the city's founding, Hispanic residents were a minority. During the 1990s the city experienced some tensions between locals—many of them poor—and newcomers, who are driving up the cost of housing and otherwise altering the landscape. Economic frustrations continue into the early 2000s, as wages linger at almost 20 percent below the national average, while the cost of living has remained well above the national average. The city has taken steps to remedy the issue; a "living wage" city ordinance was passed in 2003 to raise minimum wages.

Major Industries and Commercial Activity

Santa Fe's economy has been based largely on tourism and state government. As capitol of New Mexico, the government is the largest employer in the area. Santa Fe receives an average of 1.6 million visitors annually; in 2004, readers of Condé Nast Traveler magazine ranked Santa Fe second only to San Francisco as the best travel destination in the country. Tourism boosts the city's retail industry, which brings in more than $1 billion annually.

Because of the city's proximity to Los Alamos National Laboratory (LANL), 45 miles away, scientific research has also become a factor. Operated by the University of California for the U.S. Department of Energy, LANL is one of the largest research laboratories in the nation. It is an important center for work on defense-related projects, conducting research on technology associated with nuclear weapons and deterrence, as well as energy production and health, safety, and environmental concerns, among other areas. Over one third of LANL's employees live in Santa Fe, and several new research-related firms and high-technology spinoff companies have located in Santa Fe.

Health care and light manufacturing are other significant economic sectors. Santa Fe has emerged as a regional medical center; St. Vincent Regional Medical Center is one of the city's largest employers and serves seven counties. Products manufactured by local companies include electronic instruments and textiles.
Items and goods produced: art, pumice products, weavings, Native American arts and crafts, textiles, electronic instruments, aluminum ware
Local programs

The Santa Fe Business Incubator, considered one of the best of its kind in the nation, assists new businesses with all aspects of start-up. The Small Business Development Center provides one-on-one business advising, encourages and instructs entrepreneurs, and is a strong advocate for local business growth and development.

SCORE (Service Corps of Retired Executives) provides business counseling and support. Santa Fe Economic Development, Inc. supports entrepreneurs and works with businesses interested in relocating to the area.
State programs

New Mexico offers a variety of incentives to all new and expanding businesses. Its Build to Suit program facilitates building construction, and ePort New Mexico is a "one-stop" information source offering permitting and licensing. The state's financial incentives include: no inventory taxes; tax credits for high-wage jobs, technology jobs, and childcare; a tax deduction for research and development services; a job training incentive program (the cornerstone of the state's incentives: New Mexico can pay half the salary for new hires for up to half a year); exemptions for qualified businesses from property taxes on land, buildings, and equipment, and from personal property tax on equipment; and laboratory partnerships with small businesses. Further incentives are available for manufacturers, customer support centers, aerospace and aircraft industries, producers of agriculture or energy, and filmmakers. In addition, the state enacted a major personal income tax reduction in 2003, and New Mexico's property taxes are second lowest in the nation.
Development Projects

To attract businesses that rely on high-speed technology, Santa Fe is constructing a "Santa Fe Light Trail" system of digital microwave and fiber facilities; it will be a hybrid network available to the business community as well as educational facilities and local and state government agencies. A new civic center for the city is scheduled for completion in 2007.
Commercial Shipping

Santa Fe is linked with major western and midwestern markets via rail freight service provided by the Santa Fe Southern Railroad, which maintains a main line through nearby Lamy. Several rail sidings are conveniently located in the city's industrial areas. Several interstate motor freight carriers connect Santa Fe with markets on both the East and West Coasts; major parcel express lines also serve the city. Air cargo service is available at Santa Fe Municipal Airport.
Labor Force and Employment Outlook

Santa Fe's economy is lead by government and tourism, and as of 2005, two out of three jobs in the city are in either the government or service sector. Corporations of substantial size are absent from the economy, and recruitment efforts encourage entrepreneurship and small business development. Unemployment is relatively low. Wages, especially in the service industry, have remained low (nearly 20 percent less than the national average) while the cost of living index is high (up to 20 percent higher than the national average). A "living wage" ordinance, passed in 2003, attempts to raise minimum wages to remedy this problem.

The following is a summary of data regarding the Santa Fe metropolitan area labor force, 2004 annual averages.
Size of non-agricultural labor force: 60,600
Number of workers employed in . . .
construction and mining: 4,500
manufacturing: 1,200
trade, transportation and utilities: 10,200
information: 900
financial activities: 2,900
professional and business services: 5,100
educational and health services: 8,300
leisure and hospitality: 8,900
other services: 3,000
government: 15,500
Average hourly earnings of production workers employed in manufacturing: $14.64
Unemployment rate: 4.2%