Eddy County approves funding agreement for Carlsbad's Kercher Street housing project

The Eddy County Commission voted to approve county funding and an associated agreement for the City of Carlsbad's Kercher Street affordable and attainable housing project after a presentation from city officials and county staff.

City representatives, including Mayor Lopez and city administrator Wendy Austin, told the commission the city acquired 20 acres originally intended for a middle school and has advanced a phased plan that includes a sliding-scale multifamily parcel (10 acres via an open RFP) and approximately 55 single-family lots in the initial phase. The city said preliminary designs are complete, final lot layouts are expected “next week,” and full engineering work could be ready within 90 to 120 days.

Under the county agreement presented, county funds would be disbursed in two parts: an initial tranche tied to the project and the remaining funds released after the city can show 50% completion. The draft contract specifies that construction must begin within 120 days of approval to be eligible for the funds and requires project completion within one year of that 120-day start window unless the commission chooses to grant an extension.

Commissioners discussed schedule risk and the need for final engineering before large disbursements. Supporters argued the project is shovel-ready enough to warrant county participation and that the county previously set aside municipal housing funds (the packet noted earlier awards left roughly $9.07 million available). One commissioner made the motion to approve; a second was recorded and the roll-call vote resulted in approval.

The commission's approval also included the attached agreement as presented; staff said changes could be made later if necessary to reflect final engineering or other conditions. The county will monitor engineering submissions and construction milestones under the terms described at the meeting.