Hot Springs Land Development is auctioning its land

It was around 2008 that the City of Truth or Consequences annexed Hot Springs Land Development’s 7,181 acres that surrounds the city’s airport, doubling the city’s land mass.

HSLD’s plans were synergistic with and complementary to Spaceport America’s, both of which were heralded with strong approval by T or C officials who believed projections that the spaceport would bring 200,000 visitors a year and many jobs and expanded growth to the area.

HSLD would build a race track, shopping center and hotel, as well as to be the fixed base operator of the city’s airport, greatly beefing up its services that would in part cater to the posh entourages accompanying civilian astronauts paying hundreds of thousands of dollars to fly to the edge of space in Richard Branson’s space ships.

Supposedly Branson’s Virgin Galactic, about a dozen years late, will conduct its first commercial space flight in August. HSLD, however, is pulling the plug.

The deal between the city and HSLD fell apart ten years ago, the company suing the city for not delivering on its promise to extend its water and wastewater utilities over six miles to the north to HSLD land.

HSLD, around 2008 or so, paid the city $200,000 for a percentage of the city’s remaining water and sewer capacity. The city had not delivered and didn’t have the capacity promised, HSLD claimed. In an out-of-court settlement, it was agreed that the city would pay back HSLD $100,000 when the city land was de-annexed. Currently there is no state law that allows a city to de-annex land.

About four years ago HSLD approached the city trying to work out a different deal. HSLD wanted to build its own water and sewer system. HSLD wanted assurances that it would be sole owner of those systems and that HSLD would not be required to turn them over to the city and that their systems would not be considered extensions of the city’s water and sewer systems. The city would not consider the proposal and filed a motion to have the HSLD settlement agreement and pending court case’s resolution dismissed. The district court sided with HSLD’s claim it was still negotiating in earnest with the city but the city was not being responsive. The judge refused to dismiss the case and its resolution is still pending.

The 7,181 acres surrounding the airport will be put up for auction on July 29 at 10 a.m. at the T or C Civic Center, located at 400 W. 4^th Street. The land is divided into 17 parcels. Of the 17 parcels, 4 are to be “absolute” sales, which mean there are no reserve prices on those parcels and that they will sell at the auction to the highest bidder. They are parcels 1, 2, 3 and 4 at 94, 132, 128 and 98 acres, respectively. They are the most northern lots, north of and fronting Highway 52.

It is unclear what the land is zoned, but it is likely the 7,181 acres are zoned “transitional.” The city did not return calls seeking the zoning designation and the city’s zoning map, available on the city’s website, does not extend north of the old northern boundary.

In addition to the land surrounding the airport, about 705 acres contiguous with and midway and east of the HSLD 7,181 acres, will also go up for auction. This land is owned by BK Family Investment Partners, which is probably Bing Kearny, an HSLD partner and Florida developer. This land is in Sierra County, which has no comprehensive plan and therefore no zoning. Private wells and private septic systems will likely be the means of getting services to the properties.

HSLD and BK Family Investment Partnership hired Higgenbotham Auctioneers of Lakeland, Fla., to hold the auction.

The Higgenbotham brochure describes the 705 acres as “abutting” Lakeshore Highlands, which were once plotted for 196 residential lots. Those lots will be the units by which the land is auctioned.

The auctioneers have coordinated with Homesteaders Realty, located at 507 Highway 195 in Elephant Butte. On Thursday, July 27 and Friday, July 28, the Higgenbotham Auctioneers will be at Homesteaders Realty from 10 a.m. to 4 p.m. to answer any questions.

Greg Neal, once Chief Executive Officer of HSLD, did not respond immediately to a phone call in which this reporter intended to ask him why HSLD is selling.