Alamogordo — At its Oct. 14 meeting, the Alamogordo City Commission gave staff guidance to prioritize the remaining balance in the Local Economic Investment (LITA) fund for business projects rather than housing developments and asked staff to bring a detailed proposal on Extreme Amplitude’s application to the next meeting.

The commission’s direction came after a lengthy staff briefing and a public presentation by Echo Johnson, owner of Extreme Amplitude, a local gymnastics and youth fitness business. City staff reported the LITA fund (Fund 105) has about $1.9 million remaining.

Johnson told commissioners she has placed an offer on a building she described as the United American Moving building on the north side of town and said the facility would meet Extreme Amplitude’s needs. “The United American Moving Building … is 17,000 square feet with 30 foot ceilings,” Johnson said. She said an offer of $1.8 million is on the table and that a full purchase would allow the gym to expand classes, add programs such as Ninja, host competitions and hire additional staff. Johnson said Extreme Amplitude currently employs about 30 people, has roughly 290 students enrolled and about 80 on a wait list.

Johnson also said the business has served military families and local youth since opening in August 2018 and has had “nearly 3,000 students, over 2,000 families, and over 100 employees walk through our doors” since then. She asked commissioners to consider using LITA funds to acquire the building and to support a build-out that would include classroom and safety upgrades; she added an additional $100,000 would be used for interior build-out and potentially a fire-suppression system if required.

Commissioners pressed staff on the LITA fund’s intended uses, job-creation goals, and repayment expectations for loans tied to the fund. City staff emphasized the commission should articulate whether LITA awards should prioritize job creation (the fund’s traditional aim) or other community benefits such as housing. Staff also noted that some housing applicants had proposed using LITA funds to offset gross receipts taxes (GRT) as part of project financing, and commissioners raised concerns about using public subsidy to pay a developer’s tax liability.

During the discussion, commissioners said housing is already being advanced through other city efforts and that the LITA fund should be reserved for projects that most directly demonstrate job creation or other measurable economic activity. Based on that exchange, the commission’s direction to staff was to pursue business-oriented uses for the remaining LITA balance and to schedule Extreme Amplitude’s formal LITA application for the next regular meeting for a vote.

City staff said they will return with a written recommendation and the full financial analysis used to estimate job creation and any proposed security (for example, a mortgage or lien on property) that would protect city funds if a project fails to perform.

Why it matters: The LITA fund is a discretionary local economic tool the city uses to incentivize projects the commission judges will deliver community benefit, typically jobs or property improvements tied to local spending. How the commission spends roughly $1.9 million will affect small-business growth, workforce opportunities and downtown and north-side development options.

What’s next: Staff will place Extreme Amplitude’s formal LITA application on a future agenda (staff indicated the next regular meeting was an option) with additional financial details, recommended award amount, and proposed terms including any security or payback mechanisms.