By KIRSTEN LASKEY
Los Alamos Daily Post
kirsten@ladailypost.com

Los Alamos County Council voted 5-1 Tuesday night to terminate the economic development agreement between Los Alamos County and TNJLA LLC.

Councilor Keith Lepsch was absent, and Council Chair Randall Ryti cast the opposing vote.

In 2019, TNJLA LLC entered a project participation agreement to transfer County-owned property located off 20th Street to TNJLA in exchange for constructing an extended-stay hotel as well as a conference center.

According to the staff report in Tuesday’s agenda, TNJLA was unable to provide sufficient evidence to the County for securing a construction financing commitment. As a result, the company requested that the County terminate the agreement.

In an email to the Los Alamos Daily Post Wednesday, Ryti explained his opposition.

“I was in favor of terminating the agreement so that the lots can now be used to benefit businesses and the community,” he said. “I was concerned about the payment ($17,000) to TNJLA and the length of time that has elapsed since the site plan was approved.”

Los Alamos County Manager Steven Lynne touched on one detail about the agreement termination: that the County pay $17,000 in consideration of all claims and demands against the County to the date of the agreement.

“We have talked with them and negotiated a waiver agreement, which includes a payment for release and what this ordinance does … (is it) will fully unencumber the property and allow the County to move ahead to consider other options for this property …,” Lynne said.
He added that after negotiations, the $17,000 amount was agreed upon in part because it was approximately what TNJLA paid the County in planning fees. Lynne said TNJLA most likely paid much more in expenses for the project, but this is what TNJLA gave to the County.

“…this seemed like a reasonable settlement amount in order to free the property up a year early for the County’s purposes,” Lynne said.

Ryti asked what stage TNJLA was at when it decided to abandon the project. Economic Development Administrator Dan Ungerleider explained the last step TNJLA started was applying for a building permit. All other approvals were received but they did not have a building permit.

Ryti also wondered if a precedent was being set on refunds if council approved terminating the agreement, but Lynne said no.

Ryti also wondered about any lesson learned from this experience.

Lynne and Ungerleider said that it was determined a few incremental milestones are needed for these development agreements instead of having a single point.

In other business, Council:

• Heard a presentation from Environmental Services Division Manager Angelica Gurule regarding a proposal for a municipal food compost program. The recommendation is to provide drop off sites at the Eco Station and Overlook Collection Center to collect residential food waste and provide curbside collection for businesses. The food waste would be transported to Bayo Canyon to be turned into compost soil.
• Heard a second presentation from Gurule regarding raising Environmental Services rates. She reported that Environmental Services’ expenses are rising but its fees are not covering the costs. As a result, the division’s ending working capital is being depleted and gross receipt taxes are being used to subsidize services. This, she said, is not a long-term solution. As a result, Environmental Services is proposing raising rates. At the transfer station, it is proposed to implement a 12 percent increase for trash, construction and demolition in fiscal year (FY) 2023-2026 and then have a 3 percent increase in FY2026-2027. For residential, the proposal is for a 11.5 percent increase in FY2023 and then implement a 6 percent increase for FY2024 and increase the rate by 3 percent for each proceeding fiscal year through FY2027. For commercial, the rates would increase by 5.6 percent in FY2023, 6 percent in FY2024 and 3 percent for each proceeding fiscal year through FY2027.
• Approved 5-1, with Councilor David Reagor opposed, five projects to submit for funding through the State Infrastructure and Capital Improvement Plan. The projects are: the WAC building restoration, DP Road commercial development infrastructure and road construction, Jemez Mountain Regional Fire Protection (a new water tank and underground electric), Aspen School area water line, sewer line and road improvements and White Rock non potable water system expansion and trail improvements. Reagor explained he couldn’t support the motion because he didn’t have enough information on how the different projects were ranked. For instance, he wondered why the WAC building was put above broadband.
• Introduced an ordinance to modify the Department of Public Utilities’ gas rates.