OBSERVER CORPS REPORT – COUNTY COUNCIL – JUNE 23, 2026
The video of the full meeting may be seen at: https://losalamos.granicus.com/player/clip/4808?view_id=2&redirect=true
Housing Projects in Los Alamos County, Foxtail Flats Solar and Storage Projects, LEDA Agreements for Downtown Redevelopment Projects
The session was attended by Councilors Ryn Herrmann (Chair), Theresa Cull, Melanee Hand, Suzie Havemann, Beverly Neal-Clinton, David Reagor, and Randall Ryti.
Housing Projects in Los Alamos County
Dan Osborn, Housing and Special Project Manager, updated the Council on the County’s housing production initiatives.
Overview of Housing Projects
Osborn cited projections from the 2024 Affordable Housing Plan indicating that by 2029 the County needs:
- 1,300 new units just to maintain the status quo and allow for limited growth, and
- 2,400 new units to satisfy market demand and achieve long-term affordability.
Osborn reported that housing projects comprising a total of nearly 2,400 residential units have gone through the entitlements process with the County and now have a by-right ability to build. This inventory of housing in the pipeline includes private as well as County-supported projects. Of this total, about 500 units have been brought to market.
The graph below shows potential (green) and completed (blue) residential units by type.
- Apartments for rent: 1600 units have been approved, with 372 brought to market, largely from The Hills, Canyon Walk, and The Bluffs.
- Condos for sale: This category is largely Arkansas Place. Forty-four units were originally approved, of which five are completed. The developer is finalizing new investment to move the project forward.
- Mixed-Use Neighborhoods include North Mesa and Arbolada as potential projects.
- Single-Family for sale: 275 units have been approved, with 126 brought to market. Projects include Mirador, Arbolada, and Ponderosa Estates in Los Alamos, and Sherwood Rounds in White Rock.
Osborn acknowledged that the count of potential units includes projects that are not currently active, such as North Mesa, Ponderosa Estates and Cañada Bonita. The inventory did not take into account whether financing and infrastructure were in place, only whether the County had approved the project.
Housing Project Website
Osborn announced that the Economic Development Division is working with developers to implement a new housing webpage that will make housing project information more transparent and easier for the public to follow.
Key features of the new housing webpage include interactive project listings where each housing development has its own clickable entry. Eventually, a dropdown menu will expand project details showing status, project type, number of units, unit types, and development phase.
The redesigned housing website will be rolled out over the next few weeks and months. A preliminary version of the housing webpage under construction is available here: https://www.losalamosnm.gov/
Local and National Housing Trends
Osborn summarized national trends that are also affecting local housing production and sales.
- Market Outlook. Interest rates remain higher than many would like and have stayed elevated longer than anticipated, contributing to a persistent “lock-in” effect in the housing market. Many homeowners who secured historically low mortgage rates during the COVID-19 pandemic are choosing not to move or relocate because doing so would require giving up those favorable interest rates.
- Home Sales. While home sales have remained modest, buyers are beginning to adapt to the current market. People increasingly recognize that interest rates are likely to remain elevated for an extended period and are starting to move forward with their housing decisions rather than waiting for rates to decline.
- New Construction. As more buyers turn to new construction, developers continue to face challenges associated with higher financing costs, elevated material prices, and ongoing labor shortages.
- Local Market Strength. The housing market is gradually becoming more favorable for buyers, evidenced by more seller concessions.
Despite these challenges, Osborn expressed confidence that Los Alamos County remains well-positioned for future investment and growth. He said the County’s advantages include its rapid review timelines and a high-functioning Building Division, Department of Public Utilities, and Public Works Department, coupled to the County’s progressive land-use plans, regulations, and policies.
Council Discussion and Questions
Councilor Cull asked about creating economic incentive programs to get vacant houses on the market. Osborn listed possible programs that the County could look into, such as providing funding to bring a vacant home into compliance or providing the owner with a list of property management companies that could help with home rentals.
Osborn added the caveat that any rental incentive program would need to be under the auspices of the Affordable Housing Plan.
Councilor Havemann estimated that the housing projects currently underway could increase the County’s population by approximately 5,000 residents. She noted that the current and previous Councils had determined that that level of growth would be appropriate, provided feasibility studies, infrastructure improvements, and school capacity could support it. Havemann observed that accommodating this growth would help the community achieve broader goals, including downtown revitalization in both Los Alamos and White Rock, increased economic vibrancy, and attracting more young people to create a growing rather than declining community.
Councilor Reagor requested additional information about the proof-of-concept study for the RV park referenced on a presentation slide. Osborn explained that the County has engaged an on-call contractor to conduct a rough order-of-magnitude feasibility study for a potential extended-stay RV park on a narrow strip of County-owned land along NM 502, across from the airport. He noted that the property is currently zoned for industrial use and that the study is intended to assess the site’s feasibility before any further planning or development decisions are considered.
Foxtail Flats Solar and Storage Projects
Ben Olbrich, Deputy Utility Manager for Power Supply, updated Council on progress of the Foxtail Flats Solar and Storage projects under construction in San Juan County, New Mexico.
Olbrich reminded Council that the Foxtail Flats projects consist of a 170-megawatt (MW) solar generation facility paired with an 80-MW/320-megawatt-hour (MWh) battery energy storage system, which are being developed under a long-term power purchase agreement with Los Alamos County.
Olbrich announced that groundbreaking for both facilities began on May 14, 2026. He said that the developer anticipates achieving full commercial operations by June 2027.
LEDA Agreements for Downtown Redevelopment Projects
County Manager Anne Laurent introduced the topic of Local Economic Development Act (LEDA) agreements for two redevelopment projects in downtown Los Alamos and downtown White Rock.
1735 Central Avenue Redevelopment Project (former CB Fox Building)
Local developer Philip Gursky has proposed an $18M redevelopment of the long-vacant former CB Fox Building at 1735 Central Avenue.
Gursky plans to transform this building into a mixed-use destination featuring a food hall, performance venue, private dining rooms, retail kiosks, a 20-unit boutique hotel, and a rooftop bar.
Gursky explained that the high cost of renovating this historic building requires charging market-rents for retail space. However, to support local businesses, the project design also includes a dozen smaller spaces and kiosks designed to be affordable for local vendors selling New Mexico-made products, regional goods, and souvenirs.
Laurent said that the proposed Project Participation Agreement (PPA) between the County and Gursky includes a $4M LEDA grant placed into escrow during construction and released to the developer only after a certificate of occupancy has been issued. This financing arrangement allows the County to retain equity in the improved building during the construction period.
She said that the County will also provide a $2M interest-free loan to be repaid over years 4 through 10. This loan reduces the developer’s financing costs compared to a conventional commercial loan.
Laurent and Gursky estimate that the redevelopment project will provide a return economic benefit for the County by generating about $4.27M in local taxes over 10 years. The project will produce gross receipts taxes during the construction phase and subsequent retail operations as well as substantially increased property taxes. Lodgers’ tax revenue will be generated from the boutique hotel. The business will also create 25 new full-time jobs.
The site plan will be presented to the Planning and Zoning Commission for review at its first meeting in July. Details of the LEDA PPA will be presented to the Council in the near future.
The Rock Redevelopment Project (former Time Out Pizza Building)
Laurent introduced a proposed $1.2M project called The Rock Redevelopment Project (aka former Time Out Pizza Building) located at 116 and 118 State Route 4 in White Rock. VE Holdings, which is a partnership between local residents Janet Lovato and Timoteo Martinez, submitted a LEDA application for the project. This would renovate the existing building into a bar, frozen yogurt shop and laundromat, and provide additional infrastructure to accommodate food trucks and new electric vehicle chargers.
According to the County staff report, the requested County fiscal participation from the Economic Development fund is $868K in the form of a 10-year, zero interest loan to be paid back starting in year 3 through year 10 of the participation agreement. The developer has stated their intent to apply for an additional $400K of Metropolitan Redevelopment Area (MRA) funding for exterior building and site improvements and amenities.
The economic benefit of the redevelopment project is estimated to exceed $1M of gross receipts tax on construction and food/beverage and sales over ten years of the participation agreement term. Additionally, the project is anticipated to generate 17 new full-time equivalent jobs.
A LEDA PPA has been drafted by County legal counsel. The public hearing for consideration of its approval is anticipated for July 28, 2026.