The talk about a Downtown Arena seems to have died down recently, and I'm fine with that, having stated my thoughts on that proposal before. However, I would agree that Albuquerque could do with a nice civic arena (not that anything could ever replace our wonderful Pit, now newly refurbished) tied to some sort of entertainment complex. That's when it struck me: we already have an arena: it's called Tingley Coliseum.

Of course, Tingley is a rather small arena and is something of fixer-upper. But it does have quite a bit going for it: being in the lower reaches of the Heights it is centrally located to a large population (why do you think they keep building new grocery stores out there?) and the Fairgrounds, being a large entertainment complex, is already home to a wide variety of events both large and small. The State Fair is the big one, but there's also the Flea Market and the occasional concert or small convention, like the Home and Garden ones. While a Downtown Arena was touted in part as a means to expand convention space, we forgot that we already have a large area for major events just a few miles east. It just needs a little refurbishing...
This is a rough sketch of the layout of the Fairgrounds today. The red area is the public area of the Fairgrounds, where the exhibit buildings are; the brown area at the north end is the service area; the large gray area on the east side is the racetrack; and the blue area at the bottom is parking, with the bluish-green area being the part of the parking lot taken up by the midway when the State Fair rolls around.
Recently, the racetrack/casino complex closed up shop with plans to move elsewhere, leaving a gaping area of the Fairgrounds that is now unused. There is an incredible opportunity here.

Here's another rough sketch, this one of what could be. The public areas of the Fairgrounds has been mostly left alone due to their historic nature (I find the main street that's there today quite charming, myself), but everything else has been rather dramatically altered. The service area has been pushed south, so that it has about the same amount of space as it does today but with new space facing Lomas Boulevard. That space, along with the space along Louisiana and Central has been filled with private development - I'm thinking midrise office and retail buildings here myself, something that's a higher density than what's across the street today and situated next to the sidewalk with parking behind, so as to create a decent pedestrian environment on the street.
The dark green lines extending out from the center are meant to be large sidewalks, to improve the pedestrian connection from the street to the fairgrounds. The large green squares in the middle are park space; desperately needed in this part of town. There's enough room here for soccer fields and large lawns, which can also be closed off and used for the State Fair two weeks out of the year.
And then of course, you'll notice the large round structure in the very heart of it all - a new civic arena, much larger than the current Tingley Coliseum. Whereas a Downtown Arena would have a limited size, all the space vacated by the racetrack here means a new arena here can be as big as desired.
Downtown already has plenty of entertainment options - there's plenty of bars and theaters there; adding yet one more venue, one for which there's limited room in Downtown, isn't necessary. What Downtown really needs is more residential and more retail, to accomplish the goal of a truly mixed-use area and make it more vibrant and livable. Why build yet one more major entertainment complex when we have a perfectly good one just to the east that's also well-served by mass transit?
Not to mention that this neighborhood could use it; a massive influx of public dollars into this area could really spruce things up here. Developments like Talin are already helping out, but more is needed. Plus, it's an area that tourists are already seeing - think of everyone who gets off I-40 and drives down Central (or for that matter, goes to the State Fair). Wouldn't it make a greater impression on our visitors if we improved a part of town that really needed it, rather than pour yet more money into a neighborhood that's already seen a lot of gentrification?