Title
Authorization to Submit a Capital Development Fund Grant Application to the New Mexico Department of Finance and Administration 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 Agreement
Recommended Action
I move that Council approve the submission of a Capital Development Fund Grant Application to the New Mexico Department of Finance and Administration 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 agreement.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
In 2025, $24,000,000 in Capital Development Program Funds (CDPF) were allocated as part of the Capital Outlay bill, HB 450. Statutory language in the bill allocated the funding specifically for project completion with amounts not to exceed $1,000,000 or 20% of the total project cost. Capital projects will be prioritized based on project readiness, demonstrated community need, economic impact, the applicant’s history of effective capital outlay expenditures, and alignment with state infrastructure goals.
The New Mexico Department of Finance and Administration administers this program and invited state agencies, tribal governments, counties, municipalities, and political subdivisions to apply. Applications will close August 31, 2025 and entities will be notified of grant awards by October 15, 2025.
In August 2023, the Los Alamos Airport was awarded a $1.5 million grant from the New Mexico Department of Transportation Aviation Division (NMDOT-AD) for the design and construction of a new 8-Unit T-Hangar.
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. On August 5, 2025, Council approved the submission of this funding request to NMDOT and an amendment for this additional funding is currently pending NMDOT.
Should the County be awarded this grant, it will cover the remaining 50% of the identified funding shortfall required for project completion, consistent with the purpose of the fund.
Approval to amend the Infrastructure Capital Improvement Plan (ICIP) to include this project to ensure grant eligibility and Agreement No. AGR 26-809 for hangar construction are concurrently scheduled for Council approval on August 26. The associated staff report and attachments for the hangar construction agreement provides more information about the project scope, project budget and associated budget revision that considers this additional funding, if awarded.
Alternatives
Council could choose not to 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. However, the County will be responsible for any contingency funds.
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