County council approves $2.7 million from regional fund for Rio Arriba skilled nursing project

Los Alamos County Council on June 10 approved a $2.7 million allocation from the county’s Regional Strategic Fund to help finance construction of a new skilled nursing and rehabilitation center in Rio Arriba County.

The $2.7 million allocation was presented to council after a briefing by Rio Arriba officials, who said construction is already under way and that the project — originally budgeted much lower in 2019 — now faces a shortfall of about $8 million because of rising costs. Christine Bustos, Rio Arriba’s economic development manager, told council the project will provide 60 skilled nursing beds and 15 rehabilitation beds and that operators have been identified and a contract offer is pending.

Why it matters: Rio Arriba officials said the new facility will serve northern valley residents who now face long transfers to Santa Fe, Albuquerque or beyond when local nursing beds are full. Council’s regional fund was created to support projects that serve the broader region and the county’s memorandum of understanding with regional partners allows allocations for public infrastructure and social services. Councilors said the project was considered by a standing working group and recommended for funding.

Motion and vote: Councilor Rady moved the allocation and Councilor Neil Clinton seconded. The motion passed unanimously on a roll call vote of 7–0.

Funding context and council discussion: Staff informed council that the Regional Strategic Fund balance for FY 2026 stood at roughly $3.7 million; councilors discussed preserving some of that balance for future requests and settled on $2.7 million for Rio Arriba to avoid depleting the fund. County Manager Jeremy Maestas said Rio Arriba will pursue a loan through the New Mexico Finance Authority to cover remaining shortfalls.

Next steps: The funding is to be provided on a reimbursement basis under the terms described to council; Rio Arriba officials and county staff will complete the formal grant/agreement language required by the county’s fund procedures and return to the county for compliance steps.

Quotes: "We will have a new nursing and rehabilitation centre in about a year," Christine Bustos said during her briefing. "We sincerely thank Los Alamos County for being neighbors who consider the needs and help to achieve the betterment of the whole region."

Ending: Councilors said they supported the regional nature of the project and the working group’s recommendation. The allocation was recorded as approved 7–0.