ALBUQUERQUE — State officials on Monday approved the first phase of a sweeping redevelopment of the New Mexico State Fairgrounds, advancing a long-debated plan that could reshape a central Albuquerque site while leaving unresolved whether the annual State Fair will ultimately be moved.

The State Fairgrounds District Board voted 6-1 to move forward with an initial phase that includes housing, public parks and a proposed sports stadium as part of a broader effort to transform the area into a year-round destination, according to state officials.

The decision marks a significant step in a multi-year initiative to redevelop the roughly 200-acre property, long known as Expo New Mexico, into a mixed-use district aimed at boosting economic activity and improving conditions in the surrounding International District.

Officials say the plan is intended to create a “walkable, mixed-use” environment with new housing, green space and community amenities while generating jobs and attracting visitors.

However, the broader redevelopment effort has been closely tied to an ongoing discussion: whether the State Fair itself should remain at its current location or be relocated elsewhere in central New Mexico.

Three planning concepts have been under consideration. Two would keep the fair at its current site with upgrades and reconfiguration, while a third, more expansive proposal would move the fair entirely and redevelop the land for housing, commercial uses and public space.

While Monday’s vote advances redevelopment, current plans for the first phase assume the fair will remain in place for now, with no final decision made on relocation.

The question of moving the fair has drawn mixed reactions from policymakers and residents. Gov. Michelle Lujan Grisham has previously expressed support for the most transformative option, which would relocate the fair and free up more land for redevelopment.

At the same time, some residents in and around the International District have voiced concerns about the proposal, including skepticism about whether redevelopment will address longstanding issues in the area, such as crime, homelessness and economic instability.

The International District, where the fairgrounds are located, has faced persistent challenges in recent years, including concentrated poverty and a visible homeless population along Central Avenue. Local leaders have linked the redevelopment effort to broader goals of improving safety, infrastructure and quality of life in the neighborhood.

Lawmakers earlier this year approved approximately $92 million in bond funding for infrastructure improvements, land acquisition and pedestrian safety upgrades tied to the project. Additional state funding has also been committed for early phases of construction.

The State Fair, which dates back to the late 19th century and has been held at its current Albuquerque location since 1938, draws hundreds of thousands of attendees annually and remains one of the state’s largest cultural events.

For now, officials say redevelopment and planning will continue in parallel, with future decisions expected to determine the long-term role of the fairgrounds site.

The board is scheduled to revisit elements of the plan, including housing and stadium development, at a future meeting in May.