Las Cruces approves sale of 15.3 acres in industrial park for speculative warehouse development

The Las Cruces City Council voted to sell a 15.3-acre city parcel at 300 Raya Boulevard in the Las Cruces Innovation and Industrial Park to CLS Development Partners LLC for $573,792, the city’s economic development staff said.

Isaac Colguin of Economic Development described the property as fully served by utilities and presented two independent appraisals ($617,585 and $530,000). The negotiated purchase price is $573,792; the city and buyer will split closing costs. Colguin said the buyer’s first phase is a 75,000-square-foot speculative warehouse, with a second 75,000-square-foot building proposed later. Developer Leon Aloy said the firm expects to deliver a ‘‘Class A’’ industrial product to attract tenants and create jobs.

Councilor inquiries focused on how sale proceeds will be used. Economic development staff said 50% of proceeds will be allocated to the affordable housing land bank and trust, and the remaining 50% will be held in economic development accounts to support operations and park infrastructure projects. Colguin and Elizabeth Teeters referenced prior strategic-site designation funds and potential use of congressional dollars and incentives to build out surrounding infrastructure.

Council approved the ordinance on a roll-call vote. Staff said construction is expected to proceed in phases and emphasized the sale’s alignment with the city’s strategic economic plans.