A group of Belen citizens on Monday night expressed discontent with the city’s handling of questions surrounding the lease of the former city hall building on Becker Avenue to Tim and Janice Lardner.

Three members of the Belen City Council have publicly questioned the legality of the lease, which was signed in 2006, allowing the Lardners to lease the city-owned building for $1 a year over 20 years.

The Lardners have intended to develop the property as Lardner Cellars and Winery.

While the issue had been under discussion internally since March and publicly since May, it became particularly sensitive when Tim Lardner was diagnosed with cancer in May.

Five citizens spoke up at last night’s city council meeting to ask the city to be understanding of the situation.

Herman Tabet said Tim Lardner is a “good man,” explaining some of the positive contributions Lardner has made to the community.

Nino Trujillo asked the city council to defer the issue in light of Lardner’s recent diagnosis.

Cynthia Martin asked the city council to “show compassion” and said the city should refrain from taking any action as Lardner fights his illness.

Former Mayor Ronnie Torres defended his actions on the issue, saying he believes his administration followed the proper procedures prior to leasing the property, but said if anything was missed, the city should seek to correct it.

Mike Vallejos said the city needs to support people who step up to try to bring economic development to Belen.

The city has taken no action on the lease, other than to request information about it and the laws that may be applicable to it.

The questions surrounding the lease involve potential violations of the New Mexico Constitution’s anti-donation clause and at least two state statutes that provide procedures for leasing and selling government property.

The city also has an ordinance in place that bans the consumption of alcohol in city-owned buildings, which, without amendment, is problematic for the Lardners’ intended use.

“It is unlawful for any person to sell, serve, or permit the consumption of alcoholic beverages in any municipal/public buildings,” the law reads in part.

Additionally, city officials have looked into possible breaches of the terms of the lease.

City officials haven’t determined when or if any formal action might be taken on the issue.

The Belen City Council last night began discussing the possibility of terminating two agreements and two ordinances related to Rancho Cielo, the proposed development west of Los Chavez.

In June, the New Mexico Department of Transportation (NMDOT) ran out of money for the project after the developer, Coast Range Investments, also known as New Mexico Development Partners, refused to fund the remaining cost of the project.

The agreements under consideration for termination are related to the North Belen interchange improvements.

The first is a two-party agreement between the City of Belen and NMDOT. Should the council take no action on that agreement it’ll expire under its own terms in 2012.

The second agreement is between the City of Belen, NMDOT and New Mexico Development Partners.

That agreement was an issue of contention in February when it was revealed that the agreement required New Mexico Development Partners to place its portion of the interchange project’s funding in escrow prior to construction, which the developer never did. NMDOT moved forward with the project.

Under that agreement, NMDOT was responsible for putting $4 million into the project, and New Mexico Development Partners was responsible for $4 million to complete the project.

The project ceased construction in June, without the $4 million from the developer. NMDOT has said it was terminating its construction contract with AS Horner.

Should the council terminate the second agreement, it wouldn’t keep the developer from signing a new agreement with the City of Belen and NMDOT.

The council is also considering repealing two ordinances related to a $3-million state appropriation for economic development. The ordinances bind the use of the money directly to Signet Solar, a solar technology manufacturer.

Signet Solar, which intended to build in Rancho Cielo, pulled out of the development earlier this year after it was unable to secure a loan guarantee from the United States Department of Energy.

The $3-million appropriation is earmarked for “a solar project” in Belen, and the city has been actively pursuing solar companies with the help of the state in an attempt to use the money to benefit economic development in Belen.

Repealing the ordinances frees up the $3 million for use by a company other than Signet Solar.

If New Mexico Development Partners found another solar company willing to build, the city could recommit the money to the developer through the same process used for Signet Solar.

The issue was discussed at last night’s council meeting at the request of Councilor Jerah R. Cordova.

Because there wasn’t a representative of New Mexico Development Partners present at the meeting, all action was tabled for a later meeting.

Mayor Pro Tem Wayne Gallegos, who ran the meeting in the absence of the mayor, allowed the public to speak about the issue.

Former City Councilor David Lopez said the city should avoid terminating any agreements or repealing the ordinances because it would “kill the project.”

Cordova explained that all other plans, studies and agreements related to Rancho Cielo would remain in place for the development, including the annexation agreement for the entire 6,000-acre development.

Nino Trujillo, who has worked closely with the developer on the project, also said the project would be harmed by any termination or repeal. He said Cordova was “trying to kill everything.”

The Belen City Council voted 4-1 on Monday night to approve a change order that had sparked pointed questions about the process used to approve change orders.

According to Molzen-Corbin & Associates, the city’s engineer and project manager, the change order for $16,000 worth of work at Belen Alexander Municipal airport had been verbally approved by the former city manager, but there were no record of the approval.

In the meantime, based on the former city manager’s approval, the work in the change order was completed.

When it came time to pay for it under the new administration, the city’s finance director refused, wanting to either see documented approval or receive approval from the city council.

On Monday night, the city council voted 3-1 to approve the change order, understanding that the city would pay less than $400 of the $16,000, with the rest paid through a grant match.

While voting in favor of the change order, Councilor Lorenzo Carrillo expressed deep concern about the approval process for change orders.

Councilor Jerah R. Cordova voted against the payment, wanting to see records approving the work.

Mayor Rudy Jaramillo vowed all change orders would be brought to the city council to be approved.

Belen city councilors last night pointedly questioned the approval process for change orders related to projects managed for the city by Molzen-Corbin & Associates, the city’s contract engineer.

According to documents provided to the council by Belen Alexander Municipal Airport Manager Robert Uecker, Molzen-Corbin, on behalf of an airport project contractor, is requesting payment for more than $16,000 for work the engineering firm says had been approved as a change order by former City Manager Sally Garley.

The work relates to the recent installation of an Automated Weather Observing System, or AWOS, at the airport.

Finance Director Michael Steininger has refused to pay the bill, saying he’s never seen any documents showing the city manager actually approved the change order.

Under the previous administration, change orders were approved solely by the city manager, with payment made after the work in the change order was completed, according to a Molzen-Corbin employee.

While project bids were awarded by the city council, change orders never came before the council for approval.

Neither the city nor Molzen-Corbin has been able to locate documents showing the approval of the $16,000 change order, so it remains unclear exactly how it was approved, if at all.

The city council will vote to approve or deny payment of the change order at its meeting on June 21.

Coast Range Investments yesterday pushed back on the claim by Belen City Councilor Jerah R. Cordova that its subsidiary’s corporate license has been revoked.

Last week, Cordova posted information on this website claiming that New Mexico Development Partners license with the New Mexico Public Regulation Commission (PRC) had been revoked.

In a letter delivered to Cordova today, Jim Wood, the vice president of Coast Range Investments, wrote that Cordova’s assertions were “inaccurate” and “egregious.”

Part of the documentation Wood has provided to the city to prove there was no revocation included Coast Range Investments PRC filing, which lists that company’s status as “exempt.”

Wood has requested that a correction be issued.

According to the PRC’s website, the corporate license for New Mexico Development SPE Corp., the general partner of New Mexico Development Partners, is listed as “revoked.”

A PRC official in Santa Fe said the license was revoked on April 21, 2009, for “failure to file reports.”

Technically, New Mexico Development Partners doesn’t have a corporate license with the PRC and is listed as “active” with the New Mexico Secretary of State’s office. New Mexico Development SPE Corp. held the license. Both are partners and both were registered with the State of New Mexico on November 19, 2004.

Cordova called the Secretary of State’s office, as well as the PRC, to ask what happens when a partnership no longer has a partner, and if a corporation with a revoked license can continue to transact business within the state.

Officials in both offices refused to answer any “legal questions.”

The revocation could be a concern because the City of Belen signed agreements with the partnership in the latter half of 2009.

The Belen City Council unanimously approved on Monday night bids for three point-of-use arsenic treatment systems in the Belen Industrial Park.

The work was awarded to TLC Plumbing and Utility of Albuquerque for just under $75,000.

The company will install arsenic filtration systems south of Belen at the New Mexico National Guard Armory, the Middle Rio Grande Conservancy District and the New Mexico Department of Transportation Patrol Yard.

Right now, the city well at the Belen Industrial Park has more than 10 parts per billion of arsenic in the water, which means the well isn’t in compliance with federal arsenic regulations.

The project is funded by a grant from the State of New Mexico, with a completion date of May 15.

Once the project is completed, all of Belen’s wells will be in compliance with federal arsenic regulations.

The city has one well — referred to as the CAVCO well — that’s at or just under 10 parts per billion. Should that well require an arsenic removal system, the cost to the city could be as high as $2.4 million.

The Valencia County Commission on Wednesday night again gave the county manager the authority to enter into contracts valued at under $5,000 without bringing the contract to the commission for approval.

The commission first delegated that authority to County Manager Eric Zamora last August, at the time setting an expiration date for the policy of December 31, 2009.

The county manager’s authority over small-dollar contracts is intended to expedite minor expenditures.

“Authorizing the manager to enter into contracts of $5,000 or less is something that just makes this operation a little bit easier and smoother. You don’t have to come to the commission every single time you have to purchase something,” said Commissioner Pedro Rael.

The Belen City Council last night approved a $3-million project assistance agreement with a solar manufacturer and land developer, money the city is committing for infrastructure.

Signet Solar plans to build a 75-acre, multimillion dollar manufacturing facility for commercial photovoltaic technology in what’s referred to as the Belen Energy Hub, an industrial park within the Rancho Cielo housing, commercial and industrial development.

The financial assistance is coming from the state. The city council accepted the $3 million from the state in October and last night formally committed the money to Signet Solar and New Mexico Development Partners, LP, also called Rancho Cielo.

“The $3 million the state will be issuing will be for the build-out of infrastructure to the 80-acre site where Signet Solar will be located,” said Claudette Riley, the executive director of the Greater Belen Economic Development Corporation, who has worked on the agreement.

The money, however, might not be available for the development because of the state’s budget deficit.

“I think all state funding right now is in jeopardy,” Riley said.

She said the New Mexico Economic Development Department has advised her to continue going through the steps as if the money is secure.

“We’re still moving through with this as if the funding is there, and if they pull it, they pull it,” she said.

The city wouldn’t be at fault, under the terms of the contract, should the state pull the funding.

Michael Castillo, who’s working to develop Rancho Cielo, suggested Signet Solar could move forward without the funding.

“It would make it more difficult. It would make it more difficult if the funding wasn’t there,” he said.

“Just like any project that comes through the state, this is one of the biggest incentives offered to locate here in New Mexico,” Riley added.

Road crews have begun readying major improvements to the North Belen interchange that will allow access to the west side of Interstate 25, where the industrial park and Rancho Cielo will be located. Construction is expected to begin next month.

“We’re working very hard to make this project happen. We’ll continue to do so,” Castillo said. “Personally, and in addition to the excellent football team and putting Belen on the map in terms of athletics and city spirit, I’m hoping we can also do that from an economic point of view.”

The Valencia Health Commons contract with Valencia County has been a point of major contention in the hospital issue.

The contract is, for the most part, the only serious remaining question in the hospital lawsuit’s appeal to the New Mexico Court of Appeals.

The original question was about how the mill levy money passed by voters in 2006 would be used: for construction or for operation and maintenance? The district court decided and the subsequent contract says the money will be used only for operation and maintenance.

Someday, the appeals court will decide whether or not the contract itself is legal. The question posed to the court is whether or not state law required that the county contract with a “hospital” in New Mexico.

Bob Davey, the chairman of Valencia Health Commons, has clearly stated that Valencia Health Commons is not a hospital.

(Valencia! redacted five signatures.)

(We’re also missing one page — an addendum — which the county failed to provide to us today. We’ll add it once we get it.)

UPDATE (9/15/09): Added.