BY LWV LOS ALAMOS OBSERVER CORPS
Editor’s note: Members of the League of Woman Voters of Los Alamos Observer Corps have been providing LWV members with reports on certain meetings in the County for many years. These reports have been included in the LWV’s monthly newsletter and now, at the invitation of the Los Alamos Reporter, will also be submitted to the Reporter for publication. The video of the full meeting may be seen at https://losalamos.granicus.com/player/clip/4415?view_id=2&redirect=true
The Sept. 30 session of the Los Alamos County Council was attended by Councilors Theresa Cull (Chair), Melanee Hand, Suzie Havemann, Ryn Herrmann, Beverly Neal-Clinton, David Reagor, and Randall Ryti.
Affordable and Market Rate Housing on DP Road
Voting unanimously (7–0), Council approved an ordinance for the sale of undeveloped County property known as Parcel A-8-A (also known as 125 DP Road) to Servitas LLC for redevelopment as a mixed-density, mixed-income residential development.
Proposed Housing Project
Dan Osborn, Housing and Special Projects Manager, provided an overview of the proposed housing project on the parcel, which is located east of the intersection of Trinity Drive and DP Road. He said that the project’s goal is to increase housing supply and to broaden the variety of housing types available to support a growing population, paying special attention to missing middle housing.
The project will be developed by Servitas, with the County selling the ~22-acre parcel to them for $5.5M, slightly above its appraised value of $5.25M. Osborn said that the project will deliver 380 one-, two- and three-bedroom residential units. Of these, 260 units will be rented at market rate and 120 will be deed- restricted “in perpetuity” for households earning between 60% and 100% AMI (Area Median Income), with an average of 80% AMI.
Osborn said the County will purchase a permanent rent restriction on 88 of the 120 units for $5.5M. The remaining 32 deed-restricted units will be acquired by the County as reimbursement for pre-development expenses such as design, permitting fees, and studies. The cost for these deed restrictions, and maximum reimbursement, will be $2M. The total County investment for the 120 deed-restricted units is $7.5M, Osborn said. This equates to a cost to the County of about $23K per bedroom. He noted that, with a GRT rate of 7.0625%, the County will receive about $5M in GRT revenue from the construction of the project.
Public Access to Trails
Garrett Scharton, Senior Vice President with Servitas, pointed out a provision in the new Purchase Agreement added to address a concern raised by Councilor Ryti about public access to the trails within the property. The new agreement contains explicit provisions for public access. The developer has consented to build an extension of the Canyon Rim Trail along the Los Alamos Canyon rim and out to DP Road and to grant an easement to the County for this segment. There will also be a publicly accessible path on the north edge of the development, along the south rim of DP Canyon.
Project Schedule
The project is expected to be completed within 30 months. Scharton said that the development would have a phased opening, with the first unit being open for occupancy about 16–18 months after the start of construction.
Wildlife Feeding Ordinance
Voting 6–1, Council adopted an ordinance prohibiting the intentional feeding of wildlife on both public and private land within the County. The ordinance makes an exception for feeding songbirds and pollinators. Police Chief Sgambellone emphasized that the ordinance is not intended to target activities like maintaining gardens or flower beds.
Councilor Reagor voted in opposition because he felt the ordinance would be ineffective.
Provisions in the Ordinance
The ordinance defines wild animals as “any animal that is wild by nature and cannot normally be domesticated or controlled, including any animal regulated by the NM Department of Game and Fish, including but not limited to bears, cougars, deer, and elk.”
The preamble to the ordinance enumerates public health and safety issues that can be exacerbated by wildlife feeding, such as damage to public and private property, the spread of diseases among wildlife, pets, and people, and more vehicle-animal collisions. Feeding can interrupt natural migration patterns and cause nutritional problems. By eliminating their natural fear of humans and predators, intentional feeding by people can make wild animals more aggressive in demanding food as well as exposing them to more danger.
Violations would result in fines, starting at a minimum of $25 for the first offense and ranging from $100 to $750 for repeat offenses.
Electric Vehicle (EV) Chargers at Mesa Public Library
Voting unanimously (7–0), Council adopted a resolution of support for the Electric Vehicle (EV) Infrastructure Project funded by the NM Department of Transportation (NMDOT) to construct EV chargers at Mesa Public Library. Explaining why this draft resolution was brought before Council, the County staff report said that the County was selected by NMDOT to receive a grant of $435K to construct two Direct Current Fast Charger (DCFC) stations at Mesa Public Library. As part of the grant application, the County was required to provide a resolution affirming its commitment to fund, build, and maintain the project.
Gross Receipts Tax (GRT) and Financial Overview
Voting 6–1, Council directed the County Manager to return with a proposed ordinance for Council consideration to increase the County’s GRT rate by 5/8 cent, to be introduced on October 7, 2025, followed by a public hearing on October 28, 2025. The ordinance would be effective July 1, 2026.
Current GRT Revenue and Long-Range Projections
Helen Perraglio, County Administrative Services Director, began by reporting that an unanticipated 14% reduction in GRT revenue in FY2025 caused a $4M shortfall. The budget adopted by Council in April 2025 was based on the assumption that GRT revenue would only be 10% lower.
The current GRT is 7.0620%. This comprises a base GRT rate of 5.125% imposed by the State supplemented by a local rate of 2.1875% set by Los Alamos County. GRT revenue is used to fund local projects and services. Under the current GRT rate, by FY2028 the County is projected to lack enough revenue to cover its expenses. Perraglio’s projections indicate that, at a minimum, the GRT rate will need to be increased by 1/2-cent in order for the County to maintain financial stability.
Options for GRT Rate Increases
Perraglio presented three scenarios for an increase to the County’s GRT rate: 1/2 cent, 9/16 cent, and 5/8 cent.
● A 1/2-cent increase to the current GRT rate (to 7.5625%) would result in a small deficit in the County’s reserves starting in FY2029, requiring a 10% reduction in expenditures, or close to $11M. The deficit would increase in FY2030 and beyond. With a 1/2-cent rate increase, a consumer would have to pay an additional $0.50 for a $100 purchase of taxable goods or services.
● A 9/16-cent increase (to 7.6250%) would maintain a positive reserve and provide more flexibility, allowing for more discretion in programming such as transfers for affordable housing or capital projects. The County’s target reserves would remain positive throughout the 10-year financial projection. The increase amounts to an additional $0.57 for a $100 purchase.
● A 5/8-cent increase (to 7.6875%) would provide the most room for growth, allowing for expansion in the out years and weathering tough years more comfortably. This rate increase amounts to an additional $0.63 for a $100 purchase.
The presentation included a comparison of Los Alamos’s current GRT rate of 7.0625% to that of its neighbors. Los Alamos has the next to lowest GRT rate (ranking 32 out of 33) in New Mexico. Taos (9.1750%) and Española (8.6875%) have the two highest rates.
Impact if the GRT Rate is not Increased
Perraglio discussed the consequences if the GRT rate were not increased:
● The County would need immediate budget guidance from Council on where to make significant cuts in expenditures.
● Perraglio would recommend pulling the proposed $40M bond ordinance that is slated to finance the Community Broadband Project. The County’s bond rating score is based partially on its fiscal management, so a lower bond rating would translate into higher interest charges.
● For the same reason, Perraglio said she would not recommend that the County issue bonds to fund other Capital Improvement Projects already programmed in the County’s long-range budget, which total about $35M
Impact to LANL if the GRT Rate is Increased
Perraglio’s presentation emphasized the County’s heavy dependence on GRT paid by LANL and N3B, the contractor for environmental waste management. The current budget shortfall is attributed to the decline in GRT revenue from this sector. Even though the Lab’s budget has grown, its expenditures are shifting from construction activities to manufacturing.
Manufacturing activities are exempt from GRT
State Rep. Christine Chandler explained that the GRT exemption for manufacturing resulted from action by the State Legislature a few years ago. The intent of the exemption was to recruit manufacturing into the state.
“I don’t think it dawned on folks that some of the new activities over at TA-55 [Plutonium Facility] would be characterized as a manufacturing activity,” said Chandler. “It was not on the radar. And, from my perspective, it does not fall within the intent of what the exemptions were
intended to do, which is to draw manufacturing in this state…That exemption, I am told, has created the significant portion of the shortfall that you all have seen.”
Chandler pointed out that, although a GRT increase would have a relatively small effect on County residents, by far the largest portion would be paid by the Lab, “probably about 75%,” she estimated. She contended that it was appropriate that the Lab bear the brunt of the increase, given all that the community and the County do to support the Lab’s activities.
Funding for Affordable Housing Programs
Perraglio concluded with a discussion of two options by which the increased GRT revenue could
potentially be used for an Affordable Housing Fund. She said Council could budget transfers from the County’s General Fund. This approach, which the County staff recommend, would allow for flexibility given the fiscal climate. It’s similar to the way the County supplements and/or funds capital projects, Los Alamos Public Schools and UNM-LA grants, the Regional Fund, and other housing and economic development programs. Alternatively, Council could opt to dedicate an increment of the GRT revenue to the Affordable Housing Fund.
Council Discussion
Councilor Havemann moved to direct the County Manager to return with a proposed ordinance for a 5/8- cent increase in the GRT rate, with a public hearing on October 28, 2025.
Points listed by councilors in favor of the rate increase emphasized the overall benefit to the community. These benefits include enhanced services for residents as well as more funding support for regional partners, local businesses, and affordable housing initiatives.
Councilor Neal-Clinton noted that Los Alamos remains the most affluent county in the state and suggested that, even with the increase, the County still offers a good value compared to other area.
Although she voted in favor of the motion, Councilor Hand expressed concern about the impact on the community, particularly on those already facing multiple increases in the cost of living and the uncertainty of future economic stability.
Councilor Reagor opposed the motion, saying, “It’s way too soon to do this.” He proposed that Council delay a decision until after its strategic planning session so that it could more thoroughly review the financial projections.
“I don’t know what’s in this number,” he continued. “There’s not enough detail to figure out what’s going on at all.”
Los Alamos Local Business Coalition
Members of the Los Alamos Local Business Coalition presented Council with their findings and recommendations to address key challenges faced by local businesses. The Coalition is a volunteer, grass-roots initiative formed in November 2024, which has grown to 80 members.
Key Challenges for Local Businesses
Leslie Linke, a member of the steering team for the Coalition, summarized the key challenges discussed in the Coalition’s report which it shared with Council. To identify issues affecting local businesses, the Coalition hosted public forums and reviewed County plans, including the Comprehensive Plan, Housing Plan, and Tourism Plan. Linke reported the Coalition’s conclusion that, although County plans did a good job addressing issues, implementation was very poor. She said that the Coalition also found restrictive bureaucracy, describing an opaque regulatory environment with lots of rules to be followed and confusion among inspectors and permit approvers in interpreting those rules. Linke noted that entities that were supposed to help businesses were often unwilling or unable to support business ideas effectively. Trust issues were also identified, she said, with several businesses hesitant to engage due to fear of retribution from the County.
Linke listed specific challenges discussed in the report, such as affordable commercial space, high rents, workforce shortages and high housing costs, which make it difficult for businesses to find and house workers. Lack of support and access to funding is another problem, with businesses struggling to navigate grant processes. Linke also highlighted poor communication and underdeveloped tourism strategies which have led to missed opportunities.
Overarching Strategic Priorities
Local businessman Allan Saenz, also a Coalition member, presented the Coalition’s suggested options for Council to consider when it sets its upcoming strategic priorities, especially as it seeks to balance investment in local businesses alongside other priorities. The proposed options prioritize economic development plans and a pro-business culture:
● Robust Implementation of Economic Development Plans: Focus on executing existing plans with measurable metrics for accountability and transparency. Encourage a “Get-to-Yes” mindset to facilitate business operations.
● Pro-Business Culture and Collaborative Governance: Shift from a risk-averse mentality to one that embraces opportunities, fostering trust and open communication with the business community. Ensure that local business impacts are considered in all County decisions and
mitigate disruptions from County projects.
Recommendations to Address Key Challenges
Linke listed practical actions presented in the Coalition’s report:
● Initiate programs to increase affordable commercial spaces, such as a Storefront Recapture Initiative and incentives for owner-occupied spaces.
● Simplify permit processes and ensure consistent information for businesses, promoting a “can-do” approach in regulatory interpretation.
● Prioritize housing initiatives and potential voucher programs for workers earning hourly wages of $15–20.
● Enhance support for small businesses through grant-writing resources and local procurement initiatives, while reforming the Local Economic Development Act (LEDA).
● Strengthen tourism efforts by improving communication with local businesses and enhancing visibility through marketing initiatives, such as a Local Business Billboard Collective.
Saenz said that implementation of these actions would require commitment and leadership from the Council. He also emphasized the need for performance metrics and collaboration.
Recommendations to Co-create a Better Business Environment
Linke and Saenz listed the following requests for action by the County:
● Collaborate with the Coalition to review their recommendations and explore implementation.
● Facilitate open dialogue between the County and local businesses to address concerns and build trust.
● Consider establishing regular public meetings to provide updates on the LEDA grant program and engage the business community.
● Investigate specific examples of issues raised by businesses and identify opportunities to improve consistency and transparency in the County’s processes.
Local/Small Business Engagement Working Group
The Small Business Working Group, comprising Councilors Herrmann, Reagor, and Ryti, presented findings on the local business climate and LEDA programs. The mission of this working group was to engage local small businesses and related community organizations andreport to Council on issues and recommendations for future actions.
The Working Group’s report highlighted the successful LEDA program in Clovis, NM, and how that city implemented an economic development strategy using LEDA laws. The report also summarized commercial vacancy rates in Los Alamos and White Rock. The report incorporates many of the same topics as the Los Alamos Local Business Coalition report.
Recommended Action Items
The working group recommended two actions to address the loss of vacant commercial land:
● Gather more information about the Smith’s Marketplace property and its development status.
● Explore the development potential of land owned by the County in Santa Fe County, east of East Gate, and other lands in Pueblo Canyon. The land there is relatively flat, and some infrastructure is already available.
Elias Isaacson, Community Development Director, provided an update regarding the County-owned land in Santa Fe County. He and Deputy County Manager Juan Rael met with representatives of Santa Fe County to discuss the potential to develop that property. Those conversations are ongoing but the initial feedback is that Santa Fe County is receptive.
Other actions proposed by the group to improve the local business climate included enhancing advertising for small businesses, streamlining business startup processes, and improving the transparency and speed of the Change of Use process. The group also suggested that the County monitor and track the amount of business procured locally, look for ways to facilitate professional services (architects, engineers, grant writers, etc.) needed by local businesses, and collaborate with local economic development groups to help review Retail LEDA applications.
During discussion, councilors agreed to add two additional recommendations:
● Investigate ways to improve communication with businesses, property owners, and other stakeholders who are, or could be, impacted by County activities and projects.
● Work with the State to authorize the County to hire electrical and plumbing inspectors to conduct some of the building inspections in-house, so that property owners do not have to wait long periods of time for a State inspector to show up.
Voting unanimously (7–0), Council agreed to accept the Working Group’s report as amended, dismantled the Working Group, and directed staff to work on assignments for the next steps as recommended in the report.
For more information on the League of Women Voters of Los Alamos, go to https://my.lwv.org/new-mexico/los-alamos.The League of Women Voters is a nonpartisan political organization encouraging informed and active participation in government. It influences public policy through education and advocacy. Watch local media for announcements pertaining to the LWV’s monthly “Lunch with a Leader” event.