Las Cruces City Council Recap November 2, 2026

At its regular meeting on Monday, Nov. 2, 2026, the Las Cruces City Council discussed and voted on six resolutions and one ordinance, and passed all seven items unanimously. One of the resolutions approves a City allocation from the film MOU of $1.3 million to assist with the construction of a film studio campus at New Mexico State University’s Arrowhead Park. Two other resolutions commit City funding to senior housing projects, and the ordinance approves a City land donation to provide additional affordable housing.

The resolutions:

• Approve a memorandum of understanding between the City, Arrowhead Center, Inc., and the Regents of NMSU that allocates $1.3 million to NMSU for a film studio campus project. In 2015, City Council designated approximately $2.8 million from Hold Harmless GRT to be used for cinematic infrastructure within Las Cruces. The funds allocated for this project will come from the approximate $1.8 million that is left from that pot. NMSU received $15 million from the New Mexico Economic Development Department to create a southern hub for the New Mexico film industry that will attract larger productions, drive economic development and help grow a sustainable workforce base in Las Cruces for the film industry. To fully build out the film studio’s interior spaces and ensure the facility meets industry standards for full-scale productions, an additional $3.9 million was requested from the City of Las Cruces, Doña Ana County and NMSU. With the City Council’s approval of this resolution, the entire amount has been approved. Construction on the site, including a 22,400 square-foot sound stage and a 10,000 square-foot production support building, began last August and is expected to be completed in July 2027. City funds for the project come from a 2015 allocation for cinematic infrastructure.
• Approve a loan up to $4 million from the City’s Affordable Housing Trust Fund to Thomas Development Group for the development of The Residence at Sonoma Ranch, a 96-unit affordable senior housing community featuring one- and two-bedroom apartments. The project will be located near Fire Station 9, at the intersection of Sonoma Ranch Boulevard and Central Avenue. 
• Approve a loan of up to $3 million from the City’s Affordable Housing Trust Fund for Royal Crossing, an affordable housing project for seniors of 80 one- and two-bedroom units to be constructed in the new Royal Crossing subdivision, just north of Apodaca Park on Samaritan Drive. As the City is the owner of the property where the project will be constructed, it will require a ground lease with the developer for a term of 80 years with annual payments of $12,000.

The City’s proposed $7 million investment will be funded primarily through Affordable Housing General Obligation Bond proceeds and Telshor Facility Fund resources allocated to the Affordable Housing Trust Fund. 

The developers of both projects will apply for Low Income Housing Tax Credits (LIHTC) from Housing New Mexico, the state's housing finance agency. The City’s funding commitment will strengthen the competitiveness of both applications and help leverage additional investment in affordable housing. City funding is contingent upon each project receiving an LIHTC award. If awarded, construction is anticipated to begin before the end of 2027, with an estimated construction period of 12–14 months. Both developments will serve seniors ages 55 and older with household incomes at or below 60 percent of area median income.

The proposed investments reflect the City's continued commitment to addressing the critical need for affordable housing in Las Cruces. The City's 2026–2030 Consolidated Plan identifies a shortage of nearly 4,500 rental units for low-income households. Older adults are among the fastest-growing populations experiencing housing insecurity and housing cost burdens, making the need for affordable senior housing increasingly urgent. New Mexico's senior population is projected to grow by 13–23% by 2035, and more than 40% of seniors statewide have low or moderate incomes (less than $40,000 annually). Many seniors also live on fixed incomes, making them particularly vulnerable to rising housing costs.

• Amend the City’s 2027-32 Capital Improvements Program budget to reallocate more than $287,000 in gross receipts tax bond funds from the $2 million allocated to the CIP program for projects needing additional funding. The funds will cover the remaining fund gap for the South Main Trail segment from University Avenue to Boutz Road, fully funding construction. Construction is expected to be completed by June 2027.
• Approve a City contract purchase agreement with EMS Management Consultants, Inc. (EMS|MC) of Lewisville, North Carolina for emergency medical transport billing services through April 1, 2029 in an amount not to exceed $500,000 annually. The Las Cruces Fire Department provides both basic and advanced life support to the Las Cruces community and was granted authority by the state to provide fee-based emergency medical transportation in 2021. A qualified firm is required to provide emergency medical transport billing, collection, financial reports and other related customer service and analysis. 
• Approve a request for the transfer of ownership and change of location of a dispenser liquor license with on-premises consumption only to Rare Hospitality International, Inc., doing business as Longhorn Steakhouse, at 500 S. Telshor Blvd. (the former location of Pecan Grill). The liquor license will be transferred from a restaurant in Santa Fe. The City Council held a public hearing on the request, which had been given preliminary approval by the Alcoholic Beverage Control Division (ABC) of the New Mexico Regulation and Licensing Department. The public hearing, which elicited no public comment, is required by state law to determine if ABC should move forward on approving the transfer. 
• The ordinance approves the transfer of two City-owned vacant parcels of land in the May Street Heritage Subdivision to Tierra del Sol Housing Corp. (TDS) to develop affordable housing. The donation is allowed under the state’s Affordable Housing Act. The land was acquired by the City in 2019 and classified as a nuisance property because of its deteriorated condition. The City’s Nuisance Abatement Team brought the land up to code and it was placed in the City Affordable Land Bank. The property was replatted into two parcels, on which TDS plans to construct two single-family homes to be sold to income-qualified households. 

This meeting and all City Council meetings can be viewed on the City's YouTube channel.