Title
Incorporated County of Los Alamos Ordinance No. 718: An Ordinance Terminating the Economic Development Project for Public Support of TNJLA LLC, a New Mexico Corporation
Recommended Action
I introduce, without prejudice, Incorporated County of Los Alamos Code Ordinance No. 718 and ask the staff to assure that it is published as provided in the County Charter.
County Manager's Recommendation
The County Manager recommends that Council introduce this Code Ordinance.
Body
The purpose of this Ordinance is to terminate the economic development agreement with TNJLA LLC ("TNJLA") facilitated by the Local Economic Development Act ("LEDA"). If approved, Ordinance No. 718 (Attachment A) terminates the Project Participation Agreement ("PPA") as agreed to by TNJLA in the executed Waiver and Release Agreement attached with Ordinance No. 718. The Waiver and Release Agreement outlines the process by which TNJLA releases and discharges the County from any future obligations in relation to the original PPA.
Brief History of the Project with TNJLA:
Pursuant to the State's Local Economic Development Act, Sections 5-10-1 through 5-10-17 NMSA 1978 and County Ordinance No. 695 adopted by the Los Alamos County Council on November 16, 2019 (Attachment B), the County and TNJLA entered into a Project Participation Agreement ("PPA") dated November 16, 2019, pursuant to which the County agreed to transfer certain County-owned property located on the 20th Street Extension, platted and recorded in Los Alamos County Records as Instrument Document No. 231237 ("Real Property"), the value of which was appraised at One Million Eight Hundred Twenty-Five Thousand Dollars ($1,825,000.00).
Pursuant to the PPA, the transfer of the Real Property from County to TNJLA was conditioned upon TNJLA securing a constructing financing commitment in an amount sufficient to support the development of an extended stay hotel facility, including a 250 to 300-person banquet-style conference center, and a minimum of 1,800 square feet of stand-alone food and beverage space on the 20th Street Extension properties in Los Alamos County (the "Project".) TNJLA was unable to provide evidence to the County of having secured a construction financing commitment in an amount sufficient to support the Project. As such, the County-owned Real Property has not been transferred. Subsequently, TNJLA has requested that the County agree to terminate the PPA. On June 23, 2022, TNJLA and the County executed a Waiver and Release Agreement, in which TNJLA agreed to waive and release County from any and all rights and obligations it has or could exercise under the PPA. In turn, the County agrees to pay the sum of Seventeen Thousand Dollars ($17,000.00) in consideration of all claims and demands against the County to the date of this agreement.
This Ordinance and attached executed Waiver and Release Agreement provides an orderly path forward for both parties, and if approved, makes the County whole.
Proposed Public Hearing Schedule
It is anticipated that the public hearing for this ordinance will be held on August 9, 2022.
Alternatives
Council denies the recommendation and asks staff to return with alternative recommendations.
Fiscal and Staff Impact/Planned Item
There should be minimal staff impact and the County would be made whole.
Attachments
A - Incorporated County of Los Alamos Code Ordinance No. 718
B - Incorporated County of Los Alamos Code Ordinance No. 695