Title
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
Recommended Action
I move thaI move that Council adopt 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 adopt 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 LEDA and 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 LANL employees, seasonal interns, postdoctoral researchers, visiting professionals, and contractors traveling for business. Rooms would also be available to leisure travelers. 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 $11 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 D shows the public benefit evaluation for this project.
Fiscal and Staff Impact/Planned Item
There is adequate fund balance within the Economic Development Fund for this LEDA and MRA project. There will be no staff impact outside of contract management.
Attachments
A - Incorporated County Los Alamos Ordinance No. 763
B - Publication Notice
C - Presentation Slides
D - The Guest House Public Benefit Evaluation