Taos council authorizes application for $7.5 million loan to revitalize Philemon Sanchez and Echo parks

The Taos Town Council on May 13 approved a resolution to submit a $7.5 million loan application to the New Mexico Finance Authority to fund a multi‑phase revitalization of the Philemon Sanchez Sports Park complex and Echo Park.

The measure, Resolution 25‑25, authorizes submission of an application; council members were told the Finance Authority would review the project at its June board meeting and—if approved—the town would return in July for an authorizing ordinance and final loan terms. Chris Muirhead, the town's bond counsel, said the council’s vote tonight is “the first step in the process” and that closing was expected in mid to late August if all proceeds as planned.

The finance committee earlier recommended the town pursue scenario 3: a 20‑year maturity with annual debt service estimated at roughly $675,000. Eric Harrigan, who addressed council as part of the presentation on loan structure and interest expectations, said the team used a conservative interest‑rate assumption but expected market rates around 4.5% to 4.7% at the current market conditions and would return to the council with final numbers.

Mayor Pro Tem Fambro, who chairs the finance committee, told council members the committee discussed the proposal at length and voted unanimously to recommend submission of the application. Council members raised questions about the plan’s impact on existing debt service. Harrigan and Muirhead told council that the loan would be a special limited obligation secured by a specific increment of state shared gross receipts tax and would not be a general obligation of the town; they said no property‑tax increase or new gross‑receipts tax levy was required for the loan.

Council members were also told the town expects to replace an existing note that is retiring this year and that, when combined with the new loan, the town’s overall debt service would not materially increase. Supporters said the financing would allow reconstruction of foundational plaza and park infrastructure and fund amenities intended to serve youth and broader recreation needs for at least 20 years.

The motion to adopt Resolution 25‑25 was moved by Mayor Pro Tem Fambro and seconded by Councilor Ortega. The council voted unanimously to approve the application submission.

Council members and staff said the decision is preliminary: a public hearing and a full authorizing ordinance will be required at a future meeting before any loan documents are signed, and the council will be updated on final interest rates and covenants before closing.