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Commission approves infrastructure agreement for South 40 subdivision; lift station, water extension addressed

5764088 · March 17, 2025
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Summary

Resolution 7597 was approved to support the South 40 subdivision (YMH Inc.), including construction of a lift station and extension of city water; staff cited nitrate-plume monitoring as a project consideration and said Lee County housing grant funds would be used for the $750,000 project.

The Hobbs City Commission approved Resolution No. 7597, authorizing an infrastructure development agreement with YMH Incorporated for the South 40 subdivision.

Todd Randall, assistant city manager and planner, told the commission the site (at the southeast corner of Marlin and 14th Street) sits outside city limits and that the agreement is primarily to build a lift station because the nearest sewer line at Fourteenth and Marlin is not deep enough to serve the subdivision without pumping. The project also includes extending city water into the subdivision.

Randall said the area is monitored for nitrate plumes and that the city is concerned about avoiding further adverse impacts to groundwater contamination. He described the city’s participation in constructing the lift station as unusual but necessary for public health and responsible development. The total development cost presented was $750,000; Randall said the city would use funds from the Lee County Housing Grant Fund (about $2,000,000 on hand) to support the work. He said lots will average between 125 and 150 feet of frontage and that the development favors a more “country living” lot size.

Commissioner Penick moved to approve Resolution 7597; Commissioner Fields seconded. The roll call recorded Commissioners Smith, Mills, Fields, Calderon, Penick, Girth and Mayor Kopp (recorded vote) voting yes; the motion carried.

Why this matters: the agreement funds infrastructure (lift station and water) to allow housing development outside city limits while addressing known groundwater nitrate concerns; funding will come in part from a county housing grant fund.

Staff said future economic development in the area may follow as rooftops attract retail and warehouses.