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Council finalizes LETA closeout for X2NSat, releases $150,000 guarantee
Summary
Las Cruces approved ordinance 3066 to close out a Local Economic Development Act project with X2NSat and release a $150,000 city guarantee; staff said the city recovered its investment and the state contributed $300,000 to the project.
The Las Cruces City Council unanimously approved ordinance 3066 on April 15 to close out a Local Economic Development Act (LEDA) project for satellite-communications firm X2NSat and release a $150,000 city guarantee that had served as security for the project.
Elizabeth Teeters, speaking for city economic-development staff, summarized the LETA program and said the city had provided $150,000 toward the project while the New Mexico Economic Development Department contributed $300,000. She said the project recovered the city's investment in about four and a half years and the state reached its return on investment in under seven years.
A representative from the state economic development office explained there is no single "average" ROI timeline because awards and project sizes differ; return schedules are proportional to the amount invested by each participating entity.
Councilors asked clarifying questions about how reimbursements and returns are calculated; staff said the program operates on a reimbursement basis and that the administration is finalizing the project closeout paperwork. The ordinance passed on a recorded vote with all present councilors voting yes.
The council also referenced related LEDA business on the agenda and a separate proposed LEDA amendment (ordinance 3067) that staff provided as notice for a future hearing.
