Otero County Approves 7-Year Tax Abatement for Patriot Pointe Apartments; Sundaro Apartments Project Also Pursues Metropolitan Redevelopment Incentives Amid Alamogordo Housing Push

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This is an excellent example of city and county political collaboration in an effort to provide the additional housing needed for our citizens, we are pleased with the collaboration to support expand housing opportunities in our community." - Mayor ShTown

ALAMOGORDO, N.M. (February 28, 2026) — Otero County commissioners took a major step Thursday to spur new multifamily housing in Alamogordo, unanimously adopting a metropolitan redevelopment area (MRA) plan that grants a seven-year incremental property tax abatement to the developers of the Patriot Pointe apartment complex. At the same time, city leaders are weighing a similar redevelopment designation for the Sundaro Apartments project, signaling continued momentum in the Tularosa Basin’s effort to address chronic housing shortages tied to Holloman Air Force Base growth and regional demand.

The special meeting on Feb. 26 marked the final statutory step for the Patriot Pointe MRA. County Attorney RB Nichols confirmed the resolution officially designates the 5.95-acre site at 305 Moonglow St. as a blighted redevelopment area, unlocking the incentive once the project is complete and operational. Developer Eddie Valencia’s 114-unit townhome-style gated community will benefit from the abatement, with county documents estimating deferred local revenue of approximately $1.13 million over the seven-year period.

MRA designations are one of the tools we have to encourage private investment in housing where market conditions make projects challenging,” Nichols told commissioners. The abatement “freezes” the taxable value at pre-development levels during the incentive window, helping offset high construction costs while still generating long-term tax revenue once the break expires.

The approval caps a multi-month coordination between Otero County and the City of Alamogordo:

• June 2025: Initial developer presentation to county officials.

• August 2025: City commission tables related fee-waiver requests and directs staff to explore broader housing incentives, including MRA.

• September 2025: County initiates formal MRA process.

• November 2025: City approves ordinance consenting to the county-led designation with conditions.

• Dec. 31, 2026: Required groundbreaking deadline to maintain the incentives.

Alamogordo Mayor Sharon McDonald expressed strong support for the collaborative approach by the city and county- “This is an excellent example of city and county political collaboration in an effort to provide the additional housing needed for our citizens, we are pleased with the collaboration to support expand housing opportunities in our community."

Second Project in the Pipeline: Sundaro Apartments

City commissioners are now considering a parallel MRA request for the Sundaro Apartments, another multifamily proposal in Alamogordo.

Developer Brenner Campbell has asked the city to designate the Sundaro area as a redevelopment zone to access similar tax and regulatory incentives.

During recent discussions, commissioners leaned toward allowing Otero County to lead the site-specific MRA process — mirroring the successful Patriot Pointe model — for greater speed and efficiency, while the city retains the option to pursue a broader, longer-range redevelopment plan for the surrounding neighborhood.

No formal vote has been taken on the Sundaro MRA, but the discussion highlights growing interest in using state-authorized redevelopment tools to attract investment without overburdening local taxpayers. Details on unit count, exact location, and projected abatement value for Sundaro remain under review, but the project is positioned as part of the same wave of private development responding to military and workforce housing needs.

Both projects come as Alamogordo and Otero County grapple with a housing crunch that has persisted for decades — the last major apartment complex opened more than 25 years ago. Supporters argue the incentives are necessary to make projects financially viable amid rising material and labor costs, while critics question whether market-rate rents (estimated $950–$1,650 at Patriot Pointe) truly serve local working families or rely too heavily on public subsidies.

County and city officials maintain the MRAs are narrowly tailored, time-limited, and conditioned on performance milestones to protect taxpayer interests. With state lawmakers recently extending maximum MRA abatement periods from 7 to up to 14 years under new legislation, more projects could follow.

The Patriot Pointe abatement takes effect upon completion and certification; construction must break ground by the end of 2026 to preserve eligibility per direction from the Alamogordo City Commission. Sundaro discussions are expected to continue at upcoming city and county meetings.

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