Rio Rancho council approves funding, water IGA and road/fire MOUs for Project Ranger after extended debate

Rio Rancho's governing body voted to approve three measures linked to Project Ranger on motions passed the same night, but only after adopting two amendments that require explicit written MOUs on fire safety/authority and on road construction before the city releases funds.

The council voted to approve an intergovernmental agreement with Sandoval County (R‑136) and to authorize the city manager to negotiate a water (and potential wastewater) agreement with the applicant (R‑135). The council also approved a $1,000,000 budget adjustment for economic development expenditures tied to Project Ranger (R‑134). Councilors supported adding two binding conditions into the IGA: (1) a MOU that spells out which agency is the authority having jurisdiction (AHJ) and who is responsible for plan review, inspections, pre‑incident planning and incident action plans; and (2) a MOU that lays out a Paseo Del Vulcan/28th Avenue construction plan, timelines and identified funding sources, before any city funds are transmitted to the county.

City manager and county staff framed the measures as narrowly focused, saying the three items do not themselves authorize construction of the manufacturing operations. "These 3 items are really narrow action items," the city manager said, adding that county and state agencies led the recruitment and permitting work to date. Mark Roper, director of economic development for the state, told council that his office's analysis projects about $650 million in overall economic impact over 10 years from the project and noted $5 million in state lead funds already committed.

The applicant, Castellian Corporation, presented detailed plans and safety commitments. "Project Ranger is a scale production site for solid rocket motors," Andrew Kreitz, Castellian's chief financial officer, said, describing the plant's mixing, casting and static‑fire test operations and emphasizing the company's safety procedures and regulatory compliance. Kreitz said the company would not "synthesize ammonium perchlorate" on site and would not conduct flight testing.

But public commenters and several councilors pressed for stronger, written safeguards. Longtime resident Steve Van Horn urged caution on water and groundwater risks, telling the council: "I hope that you don't end up making a decision that comes down to what it usually comes down to. It's all about the money." Fire Chief James Winslow urged formal agreements that give Rio Rancho Fire Rescue a seat at the table and that clarify responsibilities. "We have to have an ability to understand any variances and exceptions in the suppression systems so that our first responders and their safety is kept as a paramount requirement," Winslow said.

Council members who had pressed for the amendments argued the MOUs put enforceable steps between the council and the eventual operation. The first amendment — requiring the MOU on AHJ, plan review, inspections and pre‑incident planning — passed on a roll call. The second amendment, which requires a written construction/road MOU before funds disbursement, also passed. With those changes, the IGA passed on a roll call vote (Councilor Culbreth recorded a No vote on the IGA; other councilors voted Yes).

Implementation details remain to be settled. Staff and the applicant said several technical studies are under way: a plume study in coordination with Sandia National Laboratories, a transportation study that county staff said is complete for current phases, and additional safety and permitting reviews with the State Fire Marshal and the New Mexico Environment Department. Castellian representatives said they do not expect to bring energetics onto the site immediately; construction might begin earlier, but energetics and operations requiring DOD 4145 certification would come later, with federal and state inspections required before operations.

The council asked staff to report back on progress. City manager said Project Ranger and county staff will return with a status update on community outreach and the MOUs at the council's December 18 meeting.

Notes on votes and next steps: the council approved R‑136 as amended by roll call, then approved R‑135 (authorization to negotiate water/wastewater agreement) and R‑134 (budget adjustment). The MOUs required by the amendments must be executed by the parties before any city funds are released under the IGA.

The council's actions do not change the underlying county land lease or state approvals; the measures before Rio Rancho were procedural and financial steps meant to protect the city's interests while recognizing the regional economic development effort.