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Developer urges Lovington to consider hybrid plan for Squire Subdivision after state cites water limits
Summary
Developer Daniel John Cox asked the commission to consider annexation or a hybrid county-city approach to build about 40 affordable-acre lots, saying the Office of the State Engineer denied the subdivision over a 40‑year water-availability requirement; council members and staff discussed septic options, lift station costs and available EDC incentives.
Developer Daniel John Cox presented a revised plan for the Squire Subdivision and asked the Lovington City Commission to consider options to keep the project affordable after the Office of the State Engineer denied the county application on water-availability grounds.
Cox said the state engineer’s hydrology review requires proof of a 40-year water supply for a subdivision of the size proposed and that his original 2021 submission had received a different determination. ‘‘They gave us a denial based on water availability,’’ Cox said, arguing a 2009 USGS review of the Ogallala Aquifer suggested local supplies are adequate. He told commissioners the product being offered is 1‑acre lots aimed at buyers wanting acreage and that city-spec development (curbs, gutters, sidewalks) would make the homes unaffordable to his customers.
Cox proposed several options: build a county subdivision using septic systems; annex the land into city limits and pursue a conditional subdivision or PUD to phase infrastructure; or partner on a lift station and sewer tie-in if grant/EDC funding is available. He said prior Hobbs-area projects used county and grant funding to reimburse infrastructure costs and that a lift station could be funded through available EDC housing incentives or developer participation if the commission supported the approach.
Commissioners and staff questioned the legal/regulatory constraints and potential city liabilities, including whether annexation would obligate the city to upgrade chip-seal roads to full city standards and who would pay for future ADA-compliant sidewalks and curb infrastructure. Planning staff explained current city code allows septic tanks only where state certification is possible and that the commission can approve preliminary plats but not a final plat if the state engineer objects.
No formal action was taken; commissioners asked the developer to pursue planning-and-zoning review, consult the EDC about infrastructure incentives and return with a more detailed PUD or cost-sharing proposal. Several commissioners acknowledged the project’s potential to add housing but cautioned the commission must protect the city from unfunded infrastructure obligations.
Next steps: developer to coordinate with city planning, explore EDC incentives and return with a formal PUD/conditional-subdivision proposal for planning-and-zoning and subsequent commission consideration.
