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Commission tables Patriot Point request; housing incentives and redevelopment options flagged for study

5750765 · August 13, 2025
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Summary

Commissioners tabled a request from Patriot Point Apartments for waived tap and impact fees and city-funded sidewalks pending a broader housing workshop. Staff and commissioners discussed redevelopment-area tools, tax freezes and retooling a local incentive ordinance (GRIP).

The Alamogordo City Commission voted to table a request from Patriot Point Apartments for city funding of perimeter sidewalks and waivers of water/sewer tap and impact fees, directing staff to bring the item back after an upcoming housing workshop.

Commissioner Crystal Guthrie, who asked to bring the issue forward, said the developer’s request as presented conflicted with existing ordinances and that the city does not provide the type of incentive grant the applicant sought. Staff and commissioners described possible alternatives and legal approaches under consideration, including retooling the city’s GRIP (growth/redevelopment incentive) ordinance and exploring Otero County’s options to declare a redevelopment area.

City staff told the commission they are in contact with the county attorney and other municipal attorneys to review the legal implications of a redevelopment-area designation under New Mexico law; staff cautioned the term “blight” carries legal and political consequences and must be carefully evaluated. County staff had discussed options including a temporary property-tax freeze for new development in an identified area to incentivize construction.

Commissioners noted the developer reported HUD funding and expressed concerns about setting precedents that would single out one developer for tax or fee relief. Commissioner discussion mentioned local supplier capacity and the likelihood that a $22 million project would need out-of-area suppliers and contractors, complicating “buy local” incentives. Several commissioners asked staff to prepare options that would be available to all qualifying developers and include a clear application process and caps on assistance.

The commission formally moved to table the Patriot Point item and await the housing workshop; the vote to table passed 7-0. Staff said they will return with options for incentive criteria, legal implications of redevelopment-area designation, and possible revisions to the GRIP ordinance.