Title
Incorporated County of Los Alamos Resolution No. 26-17 Approving the Issuance by the Public Finance Authority of Not To Exceed $230,000,000.00 of Its Workforce Housing Revenue Bonds On Behalf of Madrone - Los Alamos Housing I, LLC. [Related to Coyote Mesa Project]
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Resolution No. 26-17, a Resolution Approving the Issuance by the Public Finance Authority of Not to Exceed $230,000,000.00 of Its Workforce Housing Revenue Bonds On Behalf of Madrone - Los Alamos Housing I, LLC For Purposes of Section 147 (f) of the Internal Revenue Code of 1986, As Amended, and Wisconsin Statutes Section 66.0304(11)(a).
County Manager's Recommendation
The County Manager recommends that Council adopt Incorporated County of Los Alamos Resolution No. 26-17.
Body
Project Chronology
July 2024: The County issued a solicitation for the lease or sale and development of the A-8-A parcel to create affordable workforce housing in a higher-density residential neighborhood adjacent to downtown.
July 2025: The County and Servitas, LLC entered a nonbinding term sheet for the development of approximately 380 workforce housing units on the 22-acre parcel. The plan includes 120 County deed-restricted 1-, 2-, and 3-bedroom units for households earning between 60% Area Median Income (AMI) and 100% AMI, maintaining an average of 80% AMI. In addition, there will be 98 State of New Mexico deed-restricted 1-, 2-, and 3-bedroom units for households earning up to 120% AMI.
September 2025: Council approved Ordinance No. 746, authorizing the sale and development of the property by Servitas and outlining the additional steps necessary to complete the project.
March 2026: Following the completion of due diligence and site plan approval, property ownership was transferred from the County to Servitas-Los Alamos Housing 1, LLC, which currently holds fee simple title.
July 2026: The approved Memorandum of Understanding (MOU) has been completed and signed. The MOU formalizes the partnership between Los Alamos County and Madrone Community Development Corporation (Madrone), a California nonprofit 501(c)(3) public benefit corporation. Under this arrangement, Madrone will serve as the borrower and owner of the project to finance the development of the A-8-A parcel, now formally known as "Coyote Mesa".
Next steps
This action requests Council approval for the Public Finance Authority (the "Issuer") to issue workforce housing revenue bonds in an amount not to exceed $230,000,000 on behalf of Madrone - Los Alamos Housing I, LLC (the "Borrower"). The bond proceeds will fund the acquisition, construction, equipping, and improvement of a 380-unit workforce housing rental community situated on approximately 22 acres at 125 DP Road, Los Alamos, New Mexico (the "Project").
Under Section 147(f) of the Internal Revenue Code, the County must approve the issuance of tax-exempt bonds because it is the local jurisdiction where the project is physically located. This approval must follow a properly noticed public hearing.
Wisconsin Statues Section 66.0304(11)(a) and the Public Finance Authority (PFA) Joint Exercise Agreement require the highest elected body of the local political jurisdiction to approve the financing before the PFA can issue bonds for a project.
A Notice of Public Hearing was published in The Los Alamos Daily Post and posted on the County’s website as required. The mandatory public hearing has been completed.
Alternatives
The County Council could choose not to adopt Resolution 26-17. However, doing so would prevent the project from satisfying the mandatory federal tax code and statutory approval requirements. This would halt the Public Finance Authority’s plan of financing, thereby stopping the development of the 380 workforce housing units planned on the property.
Fiscal and Staff Impact/Unplanned Item
The proposed bonds will not represent a debt, liability, or financial obligation of the Incorporated County of Los Alamos or the State of New Mexico. There will be no impact to staff for their administration.
Attachments
A - Resolution No. 26-17
B - Publication Notice