Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Lita topic
No spam. Unsubscribe anytime.
Alamogordo tables decision on LITA fund uses until staff provides demolition plans and full applications
Summary
The City Commission voted unanimously to table consideration of Local Infrastructure and Tax Allocation (LITA) fund uses and requested written demolition cost estimates and distribution of all LITA applications before making funding decisions.
The Alamogordo City Commission on Feb. 10 voted unanimously to table consideration of how to spend LITA funds and asked staff to return with a written plan and all received applications.
At the meeting, Acting City Manager Stephanie Hernandez said roughly $1,000,000 remained in the LITA fund and reviewed prior allocations, including a $4 million transfer tied to the pool referendum. Hernandez and staff noted that, according to Economic Development Department guidance, LITA funds are not appropriately used for some city‑owned facility projects unless authorized by referendum or other specific directive.
Commissioners pressed staff for approximate demolition costs on three properties under consideration (Hernandez cited earlier estimates: about $100,000 for the Oregon school portion and roughly $400,000 for a hotel near Applebee's that is in foreclosure). The commission asked for a consolidated packet that includes applications from businesses seeking LITA support, basic staff recommendations and a demolition cost estimate for each property. One commissioner moved to table the item and to have staff bring back application materials and a written plan; that motion passed 6–0.
The nut graf: commissioners deferred allocation decisions to allow staff to assemble full applications, cost estimates and recommended strategy so the commission can evaluate trade‑offs among potential economic development uses, demolition needs and ongoing foreclosures.
Staff said foreclosure timelines limit when the city could assume ownership and act on properties (a redemption period of up to a year after judgment), and that demolition timelines depend on judge calendars and potential health‑and‑safety exceptions. Commissioners also asked whether leaving funds in the LITA account presented any restrictions; staff said there were no immediate harms to tabling and that it was a commission decision whether to leave funds in the account.
The commission directed staff to distribute the existing LITA applications and provide written demolition estimates and recommendations for the three properties; the item will return for further action when staff completes that packet.
