Commission approves two industrial revenue bond inducements for solar projects and renews cannabis variance

San Juan County commissioners on April 15 voted to approve inducement resolutions that allow developers to pursue industrial revenue bond (IRB) financing for two solar-plus-storage projects and granted a renewal of a cannabis-distance variance for an indoor/outdoor microproducer.

The board approved: (1) Resolution No. 2425-74, an inducement for Foxtail Flats Solar LLC IRBs (motion carried); (2) Resolution No. 2425-75, an inducement for Fourmile Mesa Solar LLC IRBs (motion carried); and (3) renewal of the variance under San Juan County Cannabis Regulation Ordinance No. 120 for Sugar Skunk Farms LLC, granting a life-of-business variance subject to conditions set by the hearing officer.

Peter Kelton of Rodey Law Firm and Nate Runyon (Holland & Hart), representing the developers, described the Foxtail Flats and Fourmile Mesa projects as solar-plus-storage facilities sited largely on Ute Mountain Ute tribal lands within San Juan County. Nate Runyon said land rights are secured subject to Bureau of Indian Affairs approval of a lease to the tribe and that one of the projects (Foxtail Flats) has a partial PPA in place; he told commissioners the combined maximum bond amount across both inducements would be $621,000,000 and that the projects anticipate multi-year construction schedules.

Kelton and Runyon explained the IRB process: the inducement resolution establishes the county's agency relationship that allows the developer to order equipment and secure compensating gross-receipts and property-tax exemptions; the developer, not the county, would be responsible for any debt. "From the onset, these bonds that are issued are not a debt of the county," Kelton said. He described payments in lieu of taxes (PILOT) and statutory allocations to school districts under New Mexico law.

On the cannabis variance, community development staff reported the applicant had a three-year variance approved in 2022 and that a hearing officer reviewed the renewal application on April 2. The hearing officer recommended approval with the condition that no cannabis plant be closer than 88 feet to the residence at 703 Highway 575; the request was not opposed at the hearing and staff noted no formal complaints during the prior variance period. The commission voted to renew the variance "for the life of the business," subject to compliance and potential revocation for violations.

Why it matters: The IRB inducements do not obligate the county to finance the projects but clear a key administrative step that allows developers to secure tax-exemption structures and submit further bond and permitting documents. The cannabis variance renewal affects a local microproducer's operations and is grounded in the county ordinance process and a hearing officer's findings.

Votes at a glance: - Resolution 2425-74 (Foxtail Flats Solar LLC IRBs): approved (motion carried). Mover/second: not specified on record; no roll-call vote recorded in the transcript. Note: inducement amount described in presentation was $362,000,000 for this resolution. - Resolution 2425-75 (Fourmile Mesa Solar LLC IRBs): approved (motion carried). Mover/second: not specified on record; no roll-call vote recorded. Note: inducement amount described was $259,000,000 and combined inducement cap across both resolutions was cited at $621,000,000. - Sugar Skunk Farms LLC variance renewal (Ordinance No. 120): approved for the life of the business; hearing officer conditions apply; no formal opposition recorded.

Commissioners were advised by county counsel that the commission should not elicit new evidence at the meeting because the hearing officer had already taken testimony at the April 2 hearing. Commissioners approved the items without additional hearings.