Title
Introduction of Incorporated County Of Los Alamos Ordinance No. 765 An Ordinance Adopting A Local Economic Development Project For Public Support Of Nambé Pharmacare LA LLC, Dba Nambé Drugs Los Alamos, A Domestic Limited Liability Company Qualified To Conduct Business In The State Of New Mexico
Recommended Action
I introduce, without prejudice, Incorporated County of Los Alamos Code Ordinance No. 765 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
Nambé Drugs Los Alamos is an established independent pharmacy currently operating in Los Alamos. The business provides retail pharmacy services as well as specialized health care services, including sterile and non-sterile compounding, vaccinations, and other clinical services. Nambé Drugs currently employs approximately 26 people and is seeking to expand its operations and the health care and retail services available to the community.
An initial LEDA Retail application was submitted by Nambé Drugs to support the expansion of its Los Alamos operations. Following discussions with the applicant to clarify the project scope, financing, and requested public participation, the project has been evaluated for consideration under the County's LEDA program.
The proposed project will relocate Nambé Drugs within its existing office complex and expand the pharmacy from approximately 1,800 square feet to 4,500 square feet. The build-out will include dedicated sterile and non-sterile compounding rooms, expanded clinical consultation and treatment areas, improved work flow and staff support spaces, enhanced patient service and vaccination areas, and an expanded retail showroom featuring New Mexico-made products.
The total project cost is approximately $1.3 million. Nambé Drugs anticipates providing approximately $900,000 in private investment through a conventional construction loan, with the remaining $400,000 requested from Los Alamos County through the LEDA program as a grant subject to a four-year performance term. The requested County participation represents approximately 30.8 percent of the total project cost.
Nambé Drugs currently generates approximately $26,555 annually in gross receipts tax (GRT) revenue for Los Alamos County. The proposed expansion is projected to generate an additional $241,699.14 in County GRT revenue over the four-year performance period, above revenues generated at the business's current level of operations. This figure includes approximately $52,488.14 in one-time construction GRT and $189,211 in additional operating GRT from expanded pharmacy services and retail activities. The company projects an 8% annual increase in taxable goods and services resulting from the expansion.
The analysis estimates that every $1 of County participation will generate approximately $0.52 in public revenue over the four-year performance period, reflecting the projected fiscal return associated with the expansion of pharmacy services, retail operations, and other taxable goods and services.
In addition to the fiscal benefits, Nambé Drugs anticipates creating 10 new full-time-equivalent jobs with an average annual salary of approximately $68,692. Currently, 70% of the company's existing employees reside within Los Alamos County. The Company expects to fill as many new jobs locally as they can. The expansion will also increase local access to specialized pharmacy and clinical services while supporting additional retail activity and New Mexico-based products.
Overall Economic and Community Benefits
The proposed expansion represents an increase in economic activity beyond Nambé Drugs' existing operations. The business currently generates approximately $26,555 annually in County gross receipts tax (GRT) revenue, or $106,220 over four years at its current level of operations. The expansion is projected to generate an additional $241,699 in County GRT revenue over the four-year performance period.
Over the four-year period, the project is expected to generate:
• Approximately $241,699 in additional County GRT revenue, including $52,488 in one-time construction GRT and $189,211 in additional operating GRT, above the business's existing revenue contribution.
• 10 new permanent jobs, increasing employment from 26 to 36 positions.
• More than $2.63 million in additional payroll attributable to the new positions.
• At least $576,000 in local purchasing, supporting other businesses within Los Alamos County.
• Expanded access to specialized pharmacy compounding, clinical consultations, vaccinations, and other health care services, along with additional retail offerings featuring New Mexico-made products.
The requested County investment supports the expansion of an established local business into a larger commercial space within Central Park Square. This will allow Nambé Drugs continued growth and to expand their services.
The project advances the County Council's strategic goals of Economic Vitality and Quality of Life by supporting business expansion, creating employment opportunities, and enhancing essential services available to the community.
Proposed Public Hearing Schedule: December 8, 2026.
Fiscal and Staff Impact/Planned Item
There is adequate fund balance within the Economic Development Fund for this LEDA project. Approved and executed LEDA PPAs are funded from the Economic Development fund. There will be no staff impact outside of contract management
.Attachments
A - Incorporated County Los Alamos Ordinance No. 765
B - Nambé Drugs Public Benefit Evaluation