Alamogordo lot owners, city clash over Quail Hollow permit denials, drainage and bonding

Dusty Wright of Arrowhead Investment Group told the Alamogordo City Commission on Nov. 18 that his firm and other lot owners face prolonged permit denials in Quail Hollow Subdivision No. 2 after the city determined the subdivision has not been formally accepted. Wright said utilities and roads were completed and that 40 of 44 lots previously were permitted; four lots are now unbuildable pending punch-list corrections the city says remain outstanding.

The dispute centers on a city-issued punch list that Wright summarized for commissioners: drainage work and creation of a drainage channel on the east side of the property, sidewalk tie-ins where private property meets a city walk path, fire-hydrant grade issues, valve collars, and documentation of ADA inspections. Wright said his group has installed meters, paid monthly service charges on three lots, and invested in improvements; he argued that enforcement actions should be directed at the original developer and the city should pursue the developers financial guarantee (the bond) rather than withhold permits from third-party lot owners.

City staff and the city legal office told the commission that staff recently discovered noncompliance and are enforcing technical standards. Shelby Abbott, assistant city planner, described the principal safety concern as the missing drainage channel; she said the developer has the recorded easement needed to create the channel but staff have been unable to get commitments from the developer's partners. City legal staff said that while earlier administrations may not have enforced the standards consistently, that fact does not justify continuing noncompliance now that it has been found.

Commissioners pressed for next steps. Staff said their immediate priority is to contact the developer and get a timeline for correcting the drainage channel; once an agreed plan is in hand, staff can authorize permit approvals for the affected lots. Staff also offered options to address monthly water charges: the city can remove installed meters and issue refunds, or terminate the accounts so property owners do not continue to be billed while lots remain unbuildable. Wright and other lot owners said they are willing to help contact the developer and urged the commission to prioritize legal or contractual remedies to compel corrections or draw on a bond if one exists.

Commissioners also asked staff to compile a list of other subdivisions that have not been formally accepted, including the number of unfinished lots and phase status, and to prioritize consultant work and ordinance updates that will reduce future confusion. No formal action was taken on the Quail Hollow item at the meeting; staff said they would continue attempts to reach the developer and report progress to the commission.

Next steps: staff will try to contact the developer and return an update to the commission; staff also will email technical billing details and compile a list of unaccepted subdivisions and outstanding lots.