Rebecca Hauschild
For the Daily Press

A housing shortage in Artesia had city councilors looking for solutions as the council approved a program to reimburse some utility expenses for companies building housing developments in the city.

The partial reimbursements will be paid through the city’s Housing Infrastructure Reimbursement Plan, which was approved by councilors at their May 27 meeting.

Hayley Klein, executive director of the Artesia Chamber of Commerce, presented the plan for approval after it was developed in conjunction with the chamber and city officials over the past decade.

Klein, who also serves as a board member of the Greater Artesia Economic Development Corporation and as an Eddy County commissioner, said the economic development corporation also needed to determine if providing the reimbursement was allowable under state law.

“We found the right people who told us that it is possible and defensible,” she said.

She said the program was initially approved several years ago, modeled after a similar program put in place by Hobbs in 2011 but set aside due to “funding issues.”

The program’s utility reimbursements will be based on the number of rooftops built, proposed at $10,000 a rooftop, but Klein said the amount could change before the project is implemented. The rooftop could be a single-family unit, a duplex, a triplex or a quadplex.

Each development must include at least three homes, with the total reimbursement limited to $100,000, according to initial plans. Developers could not be reimbursed for more than they spend on installing public infrastructure including water, sewer, sidewalks, curbs or gutters.

A developer who has had subdivision or development plans approved by the Infrastructure Department and filed with the City Clerk’s Office can complete an application that will be reviewed by the economic development corporation, then would come to City Council before an agreement is signed.

Developers who complete their projects and receive the certificate of occupancy will be reimbursed, and they can apply again when they have another project ready. The program is on a first-come, first-served basis.

“We have to remember this is a partial reimbursement, not an incentive,” said Mayor Jon Henry. “We are reimbursing them for the utilities they are putting in the ground that the city will then own.”

The city has $500,000 set aside for the program, according to Summer Valverde, city clerk/treasurer. The council did not approve the funding, only the plan, and will vote on the money for the program at a later meeting.

Artesia averages about 15 new homes a year, according to Henry. He said Artesia doesn’t have many lots available and has identified over 300 acres within the city limits that are undeveloped.

“The more towns around us are building, the more we struggle to keep up,” Henry said. “This helps at least make us competitive. Hobbs has seen a lot of success with it. You can see the growth and change in Hobbs in the last 10 or 15 years.

“This has been at least three years of hard work of putting this plan together to make it the most successful plan to put forward.”

Other business

Scott Hicks of Smith Engineering shared details of the new retaining wall on 26th Street. The new design allows room for a sidewalk and existing utilities in addition to holding the slope. The block wall design is saving the city $40,000, according to Hicks.

The council approved an amendment to the safety pay plan. City employees will be eligible to receive an additional $100 for a full-time employee, or $50 for a part-time employee, for every month the city as a whole completes an accident-free month, according to Fernando Valdez, safety coordinator.