Las Cruces council adopts new park impact fee schedule, approves $2.1 million in park and road grants

The Las Cruces City Council on June 2 adopted a revised park impact fee schedule and approved four recently awarded grants that together direct state and federal funds to trails, a regional bike park and street work.

The fees adopted by the council use the “without neighborhood parks” option from the city consultant’s study and are structured by residential unit size rather than by housing type, city staff said. Gabriela Pratz, grants manager in the finance department, told the council the resolution before them implements “the maximum amount without neighborhood parks” as presented in the study and that council could choose a lower amount.

The action matters because impact fees are a one-time payment collected at building permit to help pay for infrastructure capacity created by new growth; they cannot be used for operations or maintenance. Julie Herlins, vice president with consulting firm Tishler Bice, told the council the study establishes a legal nexus under the New Mexico Impact Fee Act by documenting need, proportionality and benefit for future growth.

Pratz summarized the grants the council approved in a companion resolution. The New Mexico Department of Public Safety awarded $132,545.92 to the Las Cruces Police Department for a third-year retention differential program for qualified officers. The New Mexico Department of Transportation reauthorized $412,104 in Federal Highway Administration funds for the Las Cruces lateral multi-use trail project, with a required local match of $176,387. The New Mexico Economic Development Department Outdoor Recreation Division awarded $1,000,000 through the Trails Plus Program for the Las Cruces Bike Park, which requires a $1,000,000 local match. The Department of Finance and Administration awarded $550,000 for planning, design and road improvements on Cortez Drive.

Steve Bigham, parks and recreation director, described the bike park as a regional draw. “This project is probably the most ecstatic prop I am of anything I've done since I've come here with Las Cruces. I'm really excited about what we're doing with the legacy parks and the construction that's about to start at Apodaca,” he said. Bigham said the bike park will include a pump track, a National Interscholastic Cycling Association course and features for beginner riders and will be sited at the East Mesa Recreation Complex.

Julie Herlins reviewed key figures from the city’s impact-fee study. The report presented the maximum allowable fees (the council may adopt a lower fee). Sample figures in the adopted option (excluding neighborhood parks and assessed by unit size) included: $2,480 for units under 1,300 square feet; $4,499 for units 1,301 to 2,100 square feet; and $6,931 for units 2,101 square feet and larger. The consultant reported a combined 10-year growth-related parks need of about $37 million and projected total potential fee revenue of roughly $26.4 million over ten years under the option excluding neighborhood parks.

Council discussion noted delivery risks and follow-up. Councilor Bencomo requested a one-year check-in to see whether the fee structure affects small-unit multifamily development; Catherine (staff member) said the city could add a work-session tickler or report to monitor outcomes. Parks director Bigham and public works staff said the lateral trail procurement will be rebid after aligning procurement language with state requirements and that the parks bike-park funding will support planning, design and initial construction.

The council voted to approve the grants resolution (Resolution 25-148) and the park impact fee resolution (Resolution 25-149). Christine Rivera, city clerk, recorded the vote as unanimous in favor: Councilor McClure — yes; Councilor Matisse — yes; Councilor Graham — yes; Councilor Kran — yes; Councilor Flores — yes; Councilor Bencomo — yes; Mayor — yes.

The approvals set funding and policy in motion: grant-funded planning and project procurement will proceed and the new impact-fee schedule will be used for new building permits under the adopted option. Staff said some projects (the lateral trail) have extended deadlines (to March 2027) and that Parks and Recreation will move forward with design and bids for the East Mesa Bike Park.