Title
Authorization to Submit a Funding Request to the New Mexico Department of Transportation Aviation Division in the Amount of $400,455 for Additional Funds for the Construction of an 8-Unit T-Hangar at Los Alamos Airport and Authorizing the County Manager to Execute a Related Grant Amendment.
Recommended Action
I move that Council approve the submission of a funding request to the New Mexico Department of Transportation Aviation Division in the Amount of $400,455 for additional funds for the construction of a 8-Unit T-Hangar at Los Alamos Airport and authorizing the County Manager to execute a related grant amendment.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
In May 2023, the New Mexico Department of Transportation Aviation Division (NMDOT-AD) announced it had received an additional $55 million from the Legislature to support airport development projects across the State. The NMDOT-AD invited Los Alamos County and other eligible airports to submit for funding consideration development projects with a well-defined timeline to completion.
As a result of the County’s submission, Los Alamos Airport was awarded a $1.5 million grant in August 2023 for the design and construction of a new 8-Unit T-Hangar. After three bidding efforts, the costs to construct the 8-Unit T-Hangar came in considerably higher than the amount awarded by the grant. The escalation in labor, materials, and equipment costs observed in the construction market continues to be an ongoing trend.
In July 2025, the Airport Manager was notified by the NMDOT-AD that an additional $400,455 in grant funding is available to help offset approximately 50% of the project funding shortfall. This additional funding will be incorporated through Amendment No. 3 to the original grant agreement between NMDOT and the County.
A forthcoming Services Agreement No. AGR 26-809 for hangar construction is scheduled to be presented to Council for approval in the near future to include approval of a budget revision that will consider this additional funding, if awarded.
Alternatives
Council could choose to not approve the additional funding request. However, this action will result in the loss of an opportunity for the County to offset the project funding shortfall.
Fiscal and Staff Impact/Planned Item
Upon grant approval, the adopted FY2026 budget will be amended via a budget revision to include $400,455 in the Airport Capital Grants Fund. The grant does not require additional County matching funds, except for covering 50% of the identified shortfall.
The Airport Manager will oversee the construction contract and manage grant compliance in coordination with the County’s Finance Division.
Attachments
A - Grant Analysis and Financial Matrix Form - $1.5 Million (Original Grant Award)
B - Grant Analysis and Financial Matrix Form - $400,455 (Additional Funding Request)