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LEDA in Alamogordo: Economic Engine or Political Slush Fund?
Alamogordo’s use of LEDA (Local Economic Development Act) funding is once again under scrutiny—this time over a proposed $1.9 million allocation that has sparked allegations of favoritism, inflated promises, and a troubling disregard for staff recommendations.
What LEDA Is Meant For
LEDA is a New Mexico state law designed to spur economic growth at the local level. Under LEDA, municipalities can use public funds to partner with private businesses for economic development projects, but only under strict conditions. The law essentially creates an exception to the state’s constitutional anti-donation clause (which normally prohibits gifting public money to private entities) by allowing cities to invest in projects that create jobs and expand the local economy.
The City of Alamogordo adopted its local LEDA ordinance in 1996, establishing a framework to evaluate and fund such projects. In theory, LEDA investments should be transparent, justified, and performance-based. The intent is to ensure taxpayer funds yield a good return in the form of economic growth.
In practice, however, LEDA has sometimes been criticized as a slush fund for politically connected deals. A 2022 Legislative Finance Committee report noted that New Mexico lacks strong monitoring of actual outcomes from LEDA projects, which “hamper[s] economic development decision-making.” In early 2024, State Auditor Joseph Maestas launched an examination into LEDA and other incentive programs, amid concerns that some companies may be inflating job creation figures or receiving special treatment to qualify for public money.
This statewide scrutiny set the stage for heightened skepticism toward any LEDA deal that didn’t obviously serve the public interest—especially in Alamogordo, where memories of the Fun Center’s rocky history were still fresh.
Background: Alamogordo’s Family Fun Center Fiasco
In the late 2010s, Alamogordo embarked on a Family Fun Center project, envisioning a bowling alley, arcade, and entertainment venue to boost local recreation. Voters eventually approved a bond measure—after an initial rejection—and nearly $6 million in municipal bonds were issued to build the city-owned facility. In 2017, city officials also tapped into LEDA funds, allocating about $1.5 million for equipment and upgrades.
Despite this heavy public investment, the project quickly unraveled. Downtown Venture Corp., a California-based operator led by CEO Jay Chun, was contracted to manage the facility. By late 2018, the New Mexico State Auditor’s Office issued a 12-page letter outlining alleged violations of state and city statutes, including potential breaches of LEDA requirements and anti-donation clause rules. Auditor Wayne Johnson cited “ignorance of state laws and the requirements of LEDA,” though no intentional wrongdoing was found.
City leaders pledged reforms, but the Fun Center continued to struggle. Construction delays, cost overruns, and the COVID-19 pandemic compounded its woes. In late 2023, Downtown Venture Corp. withdrew and shuttered the facility, citing “unforeseen circumstances, building troubles, and constant staff turnaround.” The closure left Alamogordo with a taxpayer-funded venue sitting idle—and a community frustrated by broken promises.
A New Chapter: Tribal Partnership Brings Revival
In early 2025, the Fun Center reopened under a new management agreement with the Inn of the Mountain Gods—a local corporation operated by the Mescalero Apache Tribe. The partnership marked a turning point. With tribal leadership bringing hospitality expertise and regional investment capacity, the facility began showing signs of success.
Under the new arrangement, the Fun Center has expanded its offerings, improved staffing stability, and begun attracting steady foot traffic. Locals have praised the revitalized venue for its professionalism and renewed energy. For many, the turnaround is a testament to what can happen when public assets are managed with accountability and vision.
A Choice before the Commission A Worthy Project that aids in Military Housing Development : The Sedora Apartment Project or a $1.9 Million Family Favor
The $1.9 Million Controversy: Burnett’s Push vs. Staff’s Advice
What follows is a flashpoint in local good governance with a possibility of Nepotism by family members or those close to the family.
According to sources inside city hall and the business community, it appears City Commissioner Stephen Burnett (District 2) and Commissioner Josh Rardin are using their positions (each up for reelection) to advocate an extraordinarily generous LEDA package for a proposal tied to his own family and a close friend to Riardin.
Burnett’s sister-in-law requested the entire $1.9 million remaining in the LEDA fund forcthus fiscal year to expand her business—Xtreme Amplitude.
City staff has evaluated the proposal and recommended a far smaller amount, approximately $460,000, as an appropriate incentive. Yet Commissioner Burnett and his colleague Josh Rardin allegedly are lobbying hard fellow commissioners and city officials to approve over four times that amount in Tuesday's upcoming commission meeting.
Critics and city staff questions the rationale behind the $1.9 million figure, noting that Xtreme Amplitude’s projected economic impact was modest at best. The business reportedly promises to create just 12 part-time jobs in the near term.
“How on earth do 12 part-time positions justify nearly two million dollars in tax money?” Has become a common refrain among incredulous citizens questioning this proposal as an insider political favor.
The math implied hundreds of thousands of dollars per job—an absurd subsidy rate that no objective economic development policy would endorse.
LEDA grants at the state level are typically tied to permanent full-time jobs, not part-time roles.
City staff’s reluctance to endorse the $1.9 million figure further underscored the issue.
It is highly unusual for the City Commission to override staff’s LEDA funding recommendation by such a large margin without clear justification. Staff are tasked with vetting LEDA projects to ensure compliance with the law and alignment with community economic goals.
Commissioner Josh Rardin is reported to alluding to that "we can allocate whatever we want, in excess of any staff recommendation if we want to."
Commissioner Burnett appears to be leveraging his influence to benefit his sister-in-law, effectively asking Alamogordo taxpayers to foot an inflated bill.
Nepotism and the Herrell Connection
Allegations of nepotism swiftly come to the forefront. Burnett’s sister-in-law is the granddaughter of former county commissioner Tommie Herrell and the niece of former State Representative and two time US Congresswomen, Yvette Herrell.
This familial tie means that if the $1.9 million LEDA deal were approved on Tuesday, a close relative of Commissioner Burnett’s family—and a member of one of Alamogordo’s most politically recognizable families—would receive an enormous public windfall.
The situation epitomizes a conflict of interest: an elected official and his close friend on the commission advocating public funding that personally benefits family.
Locals familiar with Alamogordo politics pointed out that the Herrell family is not without influence. Some noted that the Harrells have long been involved in local business and civic circles, fueling speculation that their clout may be greasinf the wheels for this proposal behind closed doors.
Thus, the burning question becomes: Is this LEDA award being pushed through because of Commissioner Burnett’s involvement, or because the owner of the company was a Harrell, or both? In either case, it looks bad. Very bad.
For many in the community, it hardly matters whether it is Burnett’s personal nepotism, Rardin friendship or the Harrell's name’s sway
Either scenario is a betrayal of public trust
The proposal in excess of $460,000 seems to violate the spirit, if not the letter, of LEDA. LEDA funds are supposed to promote broad economic benefits, not serve as personal piggybanks for the well-connected.
The optics of two commissioners steering nearly $2 million to his in-law’s or a close family friends business, for a project yielding negligible public benefit, is so poor that it quickly becomes a public scandal and a disaster waiting to happen.
A Vote Approaches: Public Ethics on the Line
This Tuesday, the Alamogordo City Commission will vote on the Burnett-Rardin LEDA proposal.
The item is on the official agenda, and the stakes could not be higher. The public is urged to respond with clarity and conviction. This is not just a vote on a funding request—it is a referendum on whether Alamogordo will tolerate nepotism cloaked in economic development language.
Both Commissioner Burnett and Commissioner Rardin are up for reelection on November 4. Riardin is running unopposed. Burnett, however, faces a competitive race against challenger Evan Christopher Ross
Tuesday’s vote will be fresh in the minds of voters as they head to the polls in early voting and the election on Nov 4th.
A Worthy Alternative: The Sedora Apartment Project
Also on Tuesday’s agenda is a markedly different proposal: the Sedora Apartment project, planned near Mesa Village. This initiative aims to create affordable, military-focused housing that strengthens ties with Holloman Air Force Base. The developers are seeking approximately $600,000 in LEDA funding.
Unlike the Burnett proposal, Sedora promises tangible public benefits. The project would generate several high-paying jobs—some exceeding $75,000 annually—and address a critical shortage of affordable housing for military families. In a city where housing pressures and military retention are real concerns, this proposal aligns with LEDA’s original intent: to foster sustainable economic growth and community well-being.
With a limited pool of LEDA funds available, the contrast is stark. On one side: a proposal benefiting a commissioner’s family with minimal public return. On the other: a project that supports military families, creates quality jobs, and strengthens regional partnerships.
The Choice Before Us
Tuesday’s vote is more than a procedural matter. It is a test of values. Will Alamogordo choose ethics, transparency, and responsible stewardship of public funds—or allow personal connections to override public interest?
The dais is set. The decision belongs to the commissioners—but the voice of the public must be heard. Let it be a voice for integrity.
Alamogordo Town News – “Rocket City Fun Center Update and What to Do Next?” (background on Fun Center funding and auditor’s 2018 letter)2ndlifemediaalamogordo.town.news2ndlifemediaalamogordo.town.news.•
Alamogordo Town News – “Rocket City Fun Center Closes”(state auditor Wayne Johnson’s comments on LEDA mismanagement)2ndlifemediaalamogordo.town.news.
City of Alamogordo – Local Economic Development Act (LEDA) Application (definition and purpose of LEDA)ci.alamogordo.nm.us.
The CANDLE – “Auditor Examining Use of State Economic Development Funds…” (statewide concerns about LEDA, lack of job monitoring)thecandlepublishing.comthecandlepublishing.com.•
2nd Life Media Alamogordo News – “Inn of the Mountain Gods to Manage Alamogordo Fun Center” (new private investment plan, no LEDA funds)2ndlifemediaalamogordo.town.news2ndlifemediaalamogordo.town.news.
Citizen Portal AI (Alamogordo Commission meeting summary, Apr. 8, 2025) – confirmation that the Fun Center reopening will use private funds not LEDAcitizenportal.ai.
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