Title
Introduction of Incorporated County of Los Alamos Ordinance No. 763 An Ordinance Adopting a Local Economic Development Act Project and Metropolitan Redevelopment Act Plan and Approving a Local Economic Development Act Project Participation Agreement and Metropolitan Redevelopment Agreement for Public Support of Grand Mesa Partners 400 Trinity Drive Hilltop Owners LLC, A Delaware Limited Liability Company Qualified to Conduct Business in the State of NewMexico
Recommended Action
I introduce, without prejudice, Incorporated County of Los Alamos Ordinance No. 763 An Ordinance Adopting a Local Economic Development Act Project and Metropolitan Redevelopment Act Plan and Approving a Local Economic Development Act Project Participation Agreement and Metropolitan Redevelopment Agreement for Public Support of Grand Mesa Partners 400 Trinity Drive Hilltop Owners LLC, a Delaware Limited Liability Company Qualified to Conduct Business in the State of New Mexico and ask 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 Ordinance.
Body
An initial LEDA/MRA application was submitted by GMP400 on April 12, 2026. Staff has worked collaboratively with the development team to clarify the project scope and public financial assistance request in order to finalize the Local Economic Development Act (LEDA) and Metropolitan Redevelopment Act (MRA) agreements.
The Guest House Hotel is a proposed redevelopment project at 400 Trinity Drive, the former Hilltop House property, located at a prominent gateway to downtown Los Alamos. The 1.8-acre site has undergone demolition and environmental remediation, including the removal of underground petroleum storage tanks and contaminated soil.
Grand Mesa Partners proposes developing an approximately 40,000-square-foot, 60-room extended-stay hotel designed to serve Los Alamos National Laboratory (LANL) employees, seasonal interns, postdoctoral researchers, visiting professionals, and contractors traveling for business. Rooms would also be available to business and leisure travelers not affiliated with LANL. The project is being designed with the intent of achieving LEED Gold certification and would include an outdoor patio, a third-floor amenity deck, and environmentally friendly landscaping.
The project is expected to generate economic benefits through construction-related gross receipts taxes, permanent job creation, increased visitor spending at local businesses, and ongoing lodgers’ tax revenues. It would also increase the availability of overnight accommodations in downtown Los Alamos.
Located within the East Downtown Metropolitan Redevelopment Area, the project would redevelop a vacant property, improve a prominent downtown gateway and streetscape, enhance walkability and urban design, support short-term workforce lodging needs, and increase economic activity in the downtown area.
The estimated project construction cost is more than $15.5 million. The requested County fiscal participation from the Economic Development Fund totals $4,025,000, consisting of:
$1,000,000 in the form of a loan;
$2,000,000 in the form of a LEDA grant; and
$1,025,000 in the form of an MRA grant.
The proposed loan is a ten-year, zero-interest loan, with repayment beginning in year three and continuing through year ten of the participation agreement.
The economic benefit of the redevelopment project is estimated to include more than $360,000 in construction-related gross receipts tax revenue, with additional revenues generated through food and beverage sales and lodgers’ taxes over the ten-year term of the participation and redevelopment agreements. In addition, the project is anticipated to create four new full-time equivalent (FTE) jobs. Attachment B shows the public benefit evaluation for this project.
Proposed Public Hearing Scheduled: November 10, 2026
Fiscal and Staff Impact/Planned Item
There is adequate fund balance within the Economic Development Fund for this LEDA and MRA project. Approved and executed LEDA / MRA Development Agreements and 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. 763
B - The Guest House Public Benefit Evaluation