Alamogordo NM
11-06-2025 2:44pm

Xtreme Aptitude’s $1.9M LEDA Request Sparks Debate Over LEDA Funding, Its Future Effectiveness and Economic Priorities and Feasibility in Alamogordo

A local youth athletics studio Xtreme Aptitude, is making waves with a bold expansion proposal that could reshape the city’s recreational landscape—or test its economic development strategy. Xtreme Aptitude, known for its high-energy tumbling, gymnastics, jazz, and cheerleading programs, has submitted a $1.9 million funding request to the City of Alamogordo under New Mexico’s Local Economic Development Act (LEDA) to acquire and renovate a 25,000-square-foot facility on U.S. Highway 70.

The owner in Tuesday City Commission review was drilled by the commission on the financials given staff recommendation of around $500,000 versus the requested $1.9 Million. She made a stunning suggestion at one point of an exchange with the commission that she was considering asking for $3 Million but was told only $1.9 Million was available. Mayor Susan Payne expressed significant concerns with the request. She cited a need for more children’s activities and that her heart supports the concept but her brain will not allow her to support the full requested amount. Mayor Payne expressed that citizens are watching and would raise lot of questions. The discussion was again delayed pending further information to be reviewed by commission members. Commissioner Warren Robinson wanted to fair and provide the applicant the ability to offer more information as did Commissioner Tapley, thus a vote to table till next meeting was 3 -2-2.

The video of the meeting has been viewed by 274 citizens and can be seen at https://www.youtube.com/live/lsvJKtRC5Kk?si=VEkqC7_XBzajR7Uz

The Expansion Vision

Studio owner Echo Johnson presented the plan to the Alamogordo City Commission on multiple occasions, seeking LEDA funds to purchase and build-out the former United Moving building. At one point the 84 Lumber Yard had been in consideration. The expansion would allow Xtreme Aptitude to scale its programs, add competitive teams, and host regional events.

The projected revenue—$127,500 per month or $1.53 Million Annually—would require:

Enrollment of 400–500 students across multiple disciplines

60–80 weekly sessions

Regional draw from Holloman AFB, Tularosa, and Ruidoso

Merchandise, team fees, and event hosting could contribute $100,000–$200,000 annually based upon national trends.

The Ambition: $1.5 Million in a Mid-Sized Market

According to the studio’s application, the expansion would allow Xtreme Aptitude to increase its class offerings, add competitive cheer and dance teams, and host regional events. The projected revenue—$127,500 per month—would place it in the top 1% of youth athletics studios nationwide.

Owner statements suggest the studio plans to grow its enrollment to over 400 students or more, with multiple classes running simultaneously across disciplines. Additional revenue would come from merchandise, camps, private lessons, and competition hosting.

National Benchmarks: A Rare Tier

National data suggests that Xtreme Aptitude’s projections are overly aggressive for a town of Alamogordo’s size:

Industry data and benchmarks paint a sobering picture:

  • The average medium-sized studio in the U.S. earns between $30,000 and $50,000 per month, or $360,000 to $600,000 annually.
  • Only 34 studios nationwide reach seven-figure revenues—most located in metro areas with populations over 250,000.
  • Studios offering multiple disciplines (dance, gymnastics, cheer) in towns under 50,000 typically cap out at $700,000–$900,000/year, even with strong community support.

Sources like IBISWorld and Jackrabbit Technologies confirm that studios offering dance, gymnastics, and cheer in towns under 50,000 typically cap out at $700,000–$900,000 annually—even with strong community support.

Financial Analysis: Xtreme Aptitude vs. Industry Reality

Local Context: Alamogordo, NM

  • Population: ~31,000
  • Median household income: ~$52,000
  • Youth sports participation: High, but fragmented across dance, cheer, martial arts, and school athletics

Studio Expansion Proposal

  • LEDA request: $1.9 million for acquisition and renovation of two buildings (25,000 sq ft total)
  • Revenue projection: $1.53 million/year or $127,500/month
  • Program mix: Tumbling, gymnastics, jazz, cheerleading, competitive teams, events

Revenue Feasibility

To reach $1.5M annually, Xtreme Aptitude would need:

  • 400–500 active students paying $100–$150/month from day one
  • 60–80 weekly sessions across disciplines
  • Event hosting generating $5,000–$20,000 per event (4–6 annually)
  • Merchandise and team fees contributing $100,000–$200,000/year

The model presented assumes:

  • High retention and multi-program enrollment
  • Regional draw from Holloman AFB, Tularosa, Las Cruces and Ruidoso
  • Minimal local competition

Alamogordo’s Market Reality

With a population of 31,000 and a median household income below the national average with Alamogordo presents both opportunity and constraint.

In Alamogordo, NM, the poverty rate among children is a significant concern. As of 2023, 17.7% of Alamogordo residents had an income below the poverty level, which is similar to the state average of 17.8%. Among these, 13.0% of high school graduates and 46.7% of non-high school graduates live in poverty. The renting rate among poor residents was 70.6%, indicating a high prevalence of low-income housing. These statistics highlight the challenges faced by families in Alamogordo and the need for targeted support programs to address income inequality and improve access to affordable housing and nutrition for children.

In Alamogordo, the total population is 31,063, with the following age distribution:

  • Children under 15: Approximately 17.5% of the population or 5436 children.
  • Pros: Limited competition, strong youth sports culture, and regional draw from nearby towns.
  • Challenges: Smaller customer base, seasonal enrollment dips, and limited discretionary income.

To reach $1.5 million, Xtreme Aptitude would need to:

  • Enroll 400–500 students paying $100–$150/month or 1 out of every 11 children residing in Alamogordo
  • Run 60–80 sessions weekly across multiple age groups
  • Host 4–6 large-scale events annually
  • Maintain high retention and upsell rates

LEDA’s Mixed Track Record

Roughly one-third of LEDA-funded projects in New Mexico from 2016 to 2021 failed to meet job creation targets, exposing gaps in oversight and accountability.

The LEDA program, designed to stimulate private-sector job creation through public investment, has faced scrutiny in many municipalities and statewide:

  • A Legislative Finance Committee report found that one-third of LEDA-funded companies failed to meet job creation goals between 2016 and 2021.
  • Of 101 evaluated projects, 33 did not meet job requirements, and some retained funding despite underperformance.
  • Alamogordo’s own LEDA history includes mixed results, with recent actions of a failure at the cookie factory location questioning oversight and political favoritism.
  • Failure rate: ~33%, though not all failures resulted in claw back provisions being exercised.

Root Causes of LEDA Underperformance

  • Overestimated job projections: Companies especially small business owners often promise ambitious hiring goals that aren’t met, especially in rural or volatile sectors.
  • Weak monitoring systems: The state and most municipalities do not consistently track actual job creation especially in the early and mid-stages of a grant nor measure long-term economic impact, limiting strategic adjustments.
  • Inconsistent claw back enforcement: While some contracts include strong claw back clauses, others lack mechanisms to recover funds when promises go unmet and the taxpayers our out the dollars.
  • Political influence and local discretion: Municipalities have broad latitude in selecting projects, which can lead to favoritism or misaligned priorities.

Municipal LEDA Performance: Uneven Outcome

  • No centralized municipal failure dashboard: The New Mexico Economic Development Department (EDD) publishes LEDA program results by fiscal year, but does not break down failure rates by city or county in a consistent format.
  • Alamogordo’s mixed record: While some projects like Medlin Ramps have delivered on job creation, others have faced scrutiny for inflated projections and lack of follow-through and the city is stuck with the property which may be the case of the cookie factory on Levelle Road. The drama around the Bowling Fun Centers LEDA funding created significant issues and a state audit.
  • Bernalillo County and Albuquerque: These urban centers tend to have stronger LEDA oversight and better outcomes due to larger economic ecosystems and more robust project vetting.
  • Rural municipalities: Smaller towns often struggle with LEDA execution due to limited staff capacity, political influence, and economic volatility. Projects may be approved with optimistic projections that aren’t grounded in market realities.

Factors Driving Local LEDA Failures

  • Weak due diligence: Some municipalities lack the technical expertise to evaluate business plans or enforce claw back clauses.
  • Political discretion: Local councils may override staff recommendations, leading to funding of projects with questionable viability.
  • Limited public engagement: Without watchdog journalism or civic oversight, LEDA decisions may go unchecked until after funds are spent.

Community Response to the $1.9 Million LEDA Request

Parents and students have voiced excitement about expanded programs and competitive opportunities. “My daughter’s excited about an expanded offering of elite cheer team here,” said local parent Maria Sanchez. “We figured we'd have to just plan on a drive to Las Cruces.”

Multiple people have spoken before the commission concerning the proposal in favor of funding however the question the disturbs most is the amount of the grant. A large contingent of emails, phone calls and texts to the commissioners has supported the $475,000, but many argue that $1.9 Million does not make sense considering other worthy businesses received less.

The Alamogordo City Commission Meets in 2 weeks and must consider rather to award zero, the staff recommendation of $475,000 or the requested $1.9 Million.

Strategic Considerations of award and or increase...

Benefits:

  • Youth engagement and benefit potential to military families
  • Job creation and facility reuse
  • Diversification of local economy

Risks:

  • High revenue projection for market size
  • LEDA exposure without claw back guarantees
  • Opportunity cost vs. housing and essential services

The risks of an increase over staff recommendation of $475,000 to $1.9 Million. Is it worth it to the city to face a potential audit and costly legal review?

A state audit of a LEDA (Local Economic Development Act) project can expose a city to financial claw backs, reputational damage, and legal scrutiny—especially if the project lacks documentation, or fails to meet job targets, or violates procurement rules or city oversight.

During a state audit of a LEDA project, the Office of the State Auditor (OSA) or the Legislative Finance Committee (LFC) conducts a thorough review of proposal, past business financials and consideration, contracts, disbursement records, job creation history, and overall compliance with LEDA statutes. Auditors verify whether the funded entity qualifies under LEDA’s legal definition and whether the project delivers a strong public benefit as required by law. They track performance by comparing promised outcomes—such as job creation and capital investment—with actual results, and assess whether claw back provisions were enforced when targets were missed. If the project has not yet launched, they will review the business history prior to the award, compare to similar grants, compare to industry norms and financial norm. The audit also examines procurement practices and transparency, flagging issues like conflicts of interest, violations of public meeting laws, contact that the applicant had with individual commissioners prior and into voting, how the presentation was presented, how many revisions were submitted and justifications. Finally, the audit report identifies deficiencies, recommends corrective actions, and may refer violations to the Attorney General or State Ethics Commission for further investigation and or potential prosecution.

Conclusion and Alamogordo Town News Board Commentary:

Xtreme Aptitude’s deserves an investment of LEDA money by the city, but limited the staff recommendation amount.

Xtreme Aptitude’s expansion is aspirational and potentially transformative—but hinges on aggressive enrollment growth, regional outreach, and disciplined execution. The application is outside the normal of historical business trends in the industry. The projected revenue of $127,500 per month; would place it in the top 1% of youth athletics studio revenue operations nationwide. National data suggests that Xtreme Aptitude’s projections are overly aggressive for a town of Alamogordo’s size. Industry data and benchmarks paint a sobering picture: The average medium-sized studio in the U.S. earns between $30,000 and $50,000 per month, or $360,000 to $600,000 annually. Only 34 studios nationwide reach seven-figure revenues—most located in metro areas with populations over 250,000.

LEDA requests demand consideration but when awarded demand rigorous oversight and clear performance benchmarks to ensure public investment yields public benefit proposed. Applicants should be required to present public city commission board updates every 6 months, in person, subject to questions and answers; given it is taxpayer dollars being invested into a private business.

The board of Alamogordo Town News takes a conservative approach toward LEDA funding and questions its effectiveness and rather any public money should go into any private business unless said business offers public benefit pricing for those economically challenged, the elderly and provides diverse outreach to underrepresented communities as a condition of funding. Then and only then should LEDA funding be considered for any project. The structure of a company should also be considered. Is the company a public benefit company, a 501C3 or a private enterprise?

The law allows for the applications that have been submitted to date to include the proposal under consideration. AlamogordoTownNews.org questions the law itself and rather the public truly benefits the broader community or a chosen few and if it is highest and best use of taxpayer dollars.

As the Alamogordo City Commission weighs its options, the decision will test city leadership the city’s priorities of transparency, accountability, and the promise of success and growth against the lessons of LEDA’s past.

Source Materials to Learn More:

Industry Benchmarks and Studio Financials

LEDA Program and Oversight

Audit and Legislative Oversight

New Mexico Administrative Code – LEDA Compliance (§2.94.1.9)
https://www.law.cornell.edu/regulations/new-mexico/N-M-Admin-Code-SS-2…

Alamogordo and Local LEDA Coverage

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