ALAMOGORDO, N.M. — Six applicants are competing for what is left of the city's Local Economic Development Act (LEDA) fund, with combined requests approaching $4.8 million — far more than the roughly $1.3 million the city last publicly reported as unallocated. And in an unusual move, city staff has declined to tell commissioners which, if any, of the projects qualify.
According to an agenda report submitted by Acting City Manager Stephanie Hernandez for the commission's consideration in May, staff brought forward every submitted LEDA application "without staff screening, scoring, ranking, recommendation, or eligibility determination," at the commission's own direction. The report cautions that the applications are "preliminary and unverified," that staff has not audited the financials or completed a legal eligibility review, and that the matter is "for discussion and direction only."
The report also contains a notable admission. "Because there is a potential conflict or perceived conflict," Hernandez wrote, she sought outside guidance, which recommended that the city lean on the regional Council of Governments and a state-certified economic development organization. On that advice, staff is recommending a third-party review before the commission makes any final award.
The applications now before the commission, as submitted:
Rather than fund the applications, the report lays out a competing use for the money: demolishing aging, city-owned buildings. It cites quotes to remove asbestos and tear down La Placita at 3102 N. Florida for $134,834.08 (a March estimate from G.W.C. Construction of Lovington), and several options for the former Oregon Avenue Elementary School — $434,589.19 for the entire school, $189,436.31 for the north section, or $289,726.13 for the south/court section.
The report also raises the possibility of reserving the funds for the planned Natatorium or putting them toward a city-owned hotel the city does not yet control — a property carrying an estimated $400,000 to $500,000 in asbestos and demolition costs, tied up in a default judgment that could take about a year to resolve.
For Xtreme Amplitude, the $1 million request marks at least the third time owner Echo Johnson's expansion bid has come before the commission. The studio first sought $1.9 million in the fall of 2025 to acquire a 25,000-square-foot building on U.S. Highway 70, against a staff recommendation closer to $460,000 to $500,000; Johnson ultimately withdrew a reduced, roughly $475,000 version of the application through public comment at a November meeting, and the item was tabled on a 5-0 vote, with Commissioners Guthrie and Burnett abstaining.
The new application scales the ask to $1 million to buy and refurbish the former B&W Transfer and Storage building at 1210 U.S. Highway 70 West, with construction projected for 2027. In its filing, the studio reports no debt, $320,000 in 2025 gross revenue, and a community-benefit case built around youth fitness, suicide and crime prevention, and service to Holloman military families. The roughly 10 new jobs it proposes are part-time, paying $13 to $15 an hour.
The renewed request revives questions that shadowed the studio's earlier bids. In reporting last fall, this outlet noted that Johnson is the sister-in-law of Commissioner Stephen Burnett, and that Burnett and Commissioner Josh Rardin were alleged to be lobbying fellow commissioners to approve far more than staff had recommended. Johnson has also been described in that coverage as a member of the politically prominent Herrell family. During the fall debate, Rardin was reported to have argued that the commission could allocate funds in excess of any staff recommendation.
Burnett abstained on the studio's application in November. Whether he will again step aside — and how broadly — is now squarely in play, particularly given the Acting City Manager's written acknowledgment of a "potential or perceived conflict" and her recommendation that an outside party vet the awards before the commission acts.
The LEDA conflict question does not stand alone. Both Burnett and Rardin are already under public and legal scrutiny over the city's handling of the city manager search. On April 29, the commission voted 4–3 to accept a financial settlement of an EEOC complaint filed by Acting City Manager Dr. Stephanie Hernandez, ending her 28-month tenure — a reversal of the prior commission's unanimous 7–0 March vote to negotiate a permanent contract with her. All has been done with limited public disclosures and little to no public debate among the commission members leading to accusations of deals being stuck in closed executive session outside of public view. Now the commission is considering a settlement with Dr Hernandez to make her go away. Commissioners Burnett, Rardin, Al Hernandez and Pattillo are championing a gag order on the settlement amount for "60 days" to keep the public in the dark. Burnett and Rardin were among the four who voted for the settlement reversing, without reason or comments the 7-0 decision to hire Dr Hernandez. Mayor Sharon McDonald and Commissioners Mark Tapley and Warren Robinson opposed it. The City Attorney has also resigned, leaving the city without permanent leadership in its two top administrative roles and no plan for leadership except for rumors of an insider to be appointed by the 4.
According to this outlet's reporting, multiple residents have filed formal complaints with the New Mexico State Ethics Commission and the state Attorney General's Office seeking investigations into the commissioners' conduct, and public-records requests have been filed to compel disclosure of the settlement terms. The same reporting has documented more than $1 million in taxpayer-funded settlements over the past decade tied to alleged oversteps involving Rardin, Burnett and Al Hernandez.
Beyond the manager dispute, the outlet and some former city officials have alleged that the same faction has improperly directed or pressured staff — conduct that, if substantiated, could implicate the Commission-Manager Act's prohibition on commissioners directing staff and the state's Whistleblower Protection Act — and have warned of further staff departures and the prospect of additional litigation and investigations into the commissioners' use of influence. These remain allegations; no findings have been issued as of yet.
The commission has not finalized any LEDA award; the applications remain pending, with staff recommending third-party review first.
Commentary — Alamogordo Town News: The cleanest way to put the conflict question to rest is for Commissioner Burnett to remove himself entirely from the LEDA matter — not just from a final vote, but from the discussion, debate and any behind-the-scenes advocacy — for as long as his sister-in-law's application is pending. Abstaining on a single vote, as he did in November, does not cure the perception problem when a relative is competing against five other applicants for a limited pool of public money, and when the city's own acting manager has flagged a perceived conflict serious enough to seek outside guidance. Given the prior questions about his influence over the process, his alignment with Commissioner Rardin in pushing past staff's recommendation, and the broader scrutiny both men now face over the city manager settlement and pending ethics complaints, full recusal is the responsible standard. The same caution applies to any commissioner with a stake in the outcome.
a neutral third party would be the cleanest and most above-board answer - but i imagine that the "usual suspects" will band together and work to circumvent that solution. and the very concept of shady operators "recusing themselves" is a quaint relic from the past - our supreme court judges have spearheaded it's demise.
Napoleon’s maxim: Never interfere with the enemy when he is in the process of destroying himself.
Absolutely! The Otero County Democrat Party already self destructed.
actually the difference is profound - the county democratic party was in disarray, and the state party stepped in to address that fact. both the county AND state republican party are in disarray - due to one person's action - and they have been for
For the couple that used mudslinging tactics in their political careers, them chickens came home karma like.
"there's no menu at the karma cafe - you get what you deserve."
Sunny, with a high of 97 and low of 67 degrees. Sunny in the morning, clear overnight.
all in all, a fair and equitable solution...and intelligent to focus on sensible answers rather than continued litigation. now, if we can keep monster data centers away from the water and electrical markets, the little folks might be ahead - for a change.
by all means, please drag them, kicking and screaming, out into the daylight...
