Dona Ana County approves IRBs and GRT-share for Project Jupiter amid heavy public debate

The Dona Ana County Board of County Commissioners on Sept. 19 approved an ordinance authorizing the issuance of taxable industrial revenue bonds (IRBs) for Project Jupiter and separately approved a Local Economic Development Act (LITA) gross‑receipts tax share agreement tied to the same project, each by a 4–1 roll‑call vote.

The measures authorize up to $165,000,000,000 in IRBs to support construction of a hyperscale data‑center campus, an on‑site microgrid and related infrastructure and equipment. Commissioners voted to adopt the IRB ordinance after public presentations and more than three hours of public comment and questions. The final votes were recorded as: Commissioners Gamedos (yes), Reynolds (yes), Sanchez (yes), Chaparro (no), and Chair Sheldu Hernandez (yes).

Why it matters: Project Jupiter’s proponents say the campus would be the largest private investment in New Mexico history and would bring large construction activity, long‑term jobs and a package of community payments that county staff say will boost local revenues and fund water and workforce projects. Opponents urged delay, citing water use, air and climate impacts, the speed of the process, and a perceived lack of transparency.

Most important facts - The companies that proposed Project Jupiter told the commission they expect to invest up to $165,000,000,000 over a multi‑decade buildout. Presenters described the figure as driven largely by the cost of equipment and future refresh cycles. (Denise Carter; Lan Manapier; Mark Roper) - Job projections presented to the commission: about 750 full‑time on‑site permanent jobs, 50 part‑time permanent jobs, and roughly 2,500 construction jobs during build‑out. Reported average annual full‑time wages were in the $75,000–$100,000 range (not including benefits). (Project representatives) - Community and fiscal commitments described by company representatives and county staff included: a series of pilot (PILOT) payments to the county estimated in the aggregate during presentations at roughly $360,000,000 over the project lifetime, a $50,000,000 commitment targeted to water and wastewater projects, and $6,900,000 for other community priorities (workforce development, shovel‑ready projects). Presenters summed those commitments at roughly $417,000,000 (figures presented by the company). (Lan Manapier; Mark Roper) - Company statements on water use: project presenters said the data center would employ a closed‑loop, air‑cooled design with average operational water use described as about 20,000 gallons per day for the data center and a similar ~20,000 gallons per day for the microgrid when in steady state (roughly 40,000 gallons/day total as presented). The company said the microgrid would require a limited initial fill over a multi‑month period. (Lan Manapier) - Process and timing: adoption of the ordinance authorizes the county’s approval of the IRB application. If adopted, the ordinance would be published and the transaction could move to closing no earlier than 30 days after publication. Bond closing and final legal opinions and closing documents are prepared between adoption and closing as part of common IRB practice described to the commission. (Bond counsel; county staff)

What presenters told the commission - Lan Manapier, chairman of Borderplex Digital Assets, described Project Jupiter as a privately financed campus combining hyperscale data centers with an on‑site microgrid and said the companies had conducted community outreach. "This will be the largest private investment in New Mexico history," he said, and he repeated company commitments to water funding, workforce programs and community grants. (Lan Manapier) - Mark Roper, Division Director at the New Mexico Economic Development Department, presented state analysis of fiscal impacts and comparisons to other data‑center projects in New Mexico. He highlighted projected near‑term gross‑receipts tax activity during construction and a multi‑decade fiscal uplift to county taxing entities if the project proceeds. (Mark Roper) - Denise Carter, Dona Ana County economic development administrator, and county bond counsel summarized the IRB process and emphasized that the bonds would not be a county debt or obligation; the county’s role is to approve the IRB application and related transaction documents. "This is not an obligation of the county," counsel said in explaining the typical IRB structure and the private financing model in these transactions.

Public comment and concerns More than an hour of organized public comment opposed the project and raised recurring concerns: water supply and water quality in Sunland Park/Santa Teresa; potential air‑pollution and greenhouse‑gas emissions from proposed on‑site generation; nuclear energy and small modular reactor (SMR) risks (several speakers asked the county to rule out nuclear); the speed and transparency of negotiations and redacted or draft documents in the packet; and the sufficiency of enforceable community protections and clawbacks. - "If you vote yes today, you are turning your back on your constituents," public commenter Daisy Maldonado told commissioners during the public‑comment period. - Opponents also repeatedly requested more time to review final closing documents and attachments that several commissioners said contained blank or draft pages.

Supporters and local workforce representatives Supporters included construction‑trade and labor leaders, local economic development organizations, higher education officials and students who said the project would create construction and technical jobs and expand local workforce pathways. - Rosendo Najjar, president of Carpenters Local 1319, urged passage so union trades could work on the project and local apprentices could be trained and employed. - Dona Ana Community College and New Mexico State University speakers described workforce training capacity and said their institutions would engage if the project proceeds.

Formal actions taken - Action: Adoption of IRB ordinance (Item 10). Motion text (as discussed in the meeting): "Adopt an ordinance authorizing the issuance and sale of Dona Ana County taxable industrial revenue bonds for Project Jupiter, in a maximum aggregate principal amount of up to $165,000,000,000, and approve related bond documents." Mover: Commissioner Sanchez. Second: Commissioner Reynolds. Vote record: Gamedos (yes), Reynolds (yes), Sanchez (yes), Chaparro (no), Chair Sheldu Hernandez (yes). Outcome: approved. - Action: Approval of LITA/GRT share project participation agreement (Item 11). Motion text: "Approve the project participation agreement for a Local Economic Development Act (LITA/GRT share) for Project Jupiter (Red Chili/Yucca Growth entities)." Mover: Commissioner Reynolds. Second: Commissioner Sanchez. Vote: motion carried (roll call recorded as carried). Outcome: approved. - Other procedural motions: Vice Chair Chaparro moved several times to table or postpone the matter (including motions for a 60‑day or a date‑certain postponement); those tabling motions failed for lack of a second or by vote.

Legal and permitting context - Presenters and staff noted multiple regulatory steps remain if the project proceeds: local approvals (IRB and LITA), state and federal environmental reviews, New Mexico Environment Department permits (including air permits for on‑site generation), and other required agency reviews. The county and company said the project must meet state and federal environmental standards prior to construction.

Distinction: discussion vs. decision - Discussion: the record shows extensive discussion of project economics, water use, emissions controls, microgrid law changes, community commitments and document availability. Multiple commissioners pressed for clarifications, enforceable clawbacks, and timelines for receiving final closing documents. - Direction/assignment: county staff and counsel described the sequence of adoption, publication and a 30‑day statutory waiting period before closing, during which final closing documents and legal opinions will be completed and circulated. - Formal decision: the commission approved the IRB ordinance and the LITA/GRT share agreement (see vote record above).

Key clarifying details from the meeting record - Project investment described by proponents: up to $165,000,000,000 total; about $50,000,000 of initial investment to be spent on water‑related projects; $6,900,000 in other community investments; and company commitments to PILOT payments described in presentations as totaling roughly $360,000,000 over the project life (company figures reported at the hearing varied as presenters described pilot and other payments). (Lan Manapier; Mark Roper) - Jobs: 750 full‑time on‑site, 50 part‑time, an estimated 2,500 construction jobs during build‑out. (Project representatives) - Water: presenters described closed‑loop, air‑cooled data‑center design with an operational water use stated in the hearing as approximately 20,000 gallons/day for the data center and a similar amount for the microgrid; the microgrid initial fill was described as a multi‑month one‑time activity. (Project representatives) - Timetable: If the commission adopts the ordinance, notice of adoption is published and the transaction can move toward closing 30 days after publication; many ancillary closing documents and legal opinions are finalized in the interval between adoption and closing. (Bond counsel)

Next steps and follow‑up - Publication and statutory waiting period: the ordinance must be published; a 30‑day timeline described by bond counsel and staff precedes closing. - Permitting: proponents and county staff said state and federal environmental reviews and required permits from the New Mexico Environment Department for air and related permits remain to be completed before construction can begin. - Enforcement: county staff and bond counsel described usual IRB enforcement tools (defaults, cure periods, and potential clawbacks) and said the project participation agreement and lease contain terms intended to make company commitments enforceable; commissioners asked staff to confirm enforcement mechanics and to ensure annual reporting requirements and clawback provisions are clear in final closing documents.

Ending: the commission’s vote authorizes county staff and counsel to continue the transaction toward closing, subject to the statutory notice period and remaining permit and closing steps. Several commissioners and community groups said they will continue to press for more transparency, fully documented closing materials, and enforceable community protections in the coming weeks.