What’s not to like? Amerigreen Organics, a hemp-growing, extraction-bottling and retail-sales company will bring about 90 inside jobs to Truth or Consequences’ 54,000 square-feet of long-empty space at Lakeway Shopping Center at 1900 N. Date St. and up to 300 agricultural jobs in the county, according to Loveless Johnson III, the owner of the company.
The company has applied for a $500,000 Local Economic Development Act (LEDA) grant with the New Mexico Economic Development Department, which will be used to set up operations at the shopping center.
Under LEDA, the local governmental agency—the City of Truth or Consequences in this case–must act as the fiscal agent, paying out money as the company proves it has created jobs. The City would not be responsible for matching any state funds, just for administrative oversight.
At the May 13 meeting, the City Commission approved putting the ordinance out to “publication,” that is, giving public notice in the Sentinel it was going to hold a public hearing on the City being the local oversight agent. But the ordinance never went to public hearing and the City has not explained why.
At the July 21 Sierra County Commission meeting, Commissioner Travis Day said he had been working with Loveless Johnson III and was “disappointed with the lack of support for Amerigreen by the city.”
“We, as elected officials, are obligated to create jobs here,” Day said. “If the city doesn’t want jobs here, then the county does.”
At the July 22 Truth or Consequences City Commission meeting, Commissioner Amanda Forrister said she had been informed, “No one from the City is attending Amerigreen’s meetings.”
City Manager Morris Madrid responded, “The state has placed the funds on hold for administrative review. The funding is not even assured anymore.”
Loveless Johnson III, in an interview July 27 said, “The fact that the City is completely disinterested in working with us beyond the LEDA grant speaks volumes.”
Johnson also said, “The state has not put the project on hold. The state Economic Development Department has been extremely transparent with us and has kept us abreast with the process.”
The City, on the other hand, has chosen to wait until the state awards the grant, but Johnson said, “The City doesn’t have to wait.” It could pass the ordinance in preparation of the award.
“We were waiting for the big announcement from the state,” Johnson said, “but we’ve gotten enough information and far enough in the process that investors have fallen in love with the project and are committed to it even if the LEDA grant doesn’t come through. The state is welcome to catch up with us with a LEDA grant.”
“We expect to take possession [of the shopping center buildings] in August. When we are fully operational we will provide about 90 jobs,” Johnson said.
“We will spend $7 million in the first year, “Johnson said, “so half a million is great, but it will not make or break this project.”
County Commissioner Day’s complaint about lack of City support for the project is not the first. Truth or Consequences Chamber of Commerce President Hans Townsend complained to the City Commission three months ago that Madrid was not returning calls or communicating with Amerigreen.
Mayor Sandra Whitehead said at the time that Townsend’s remarks were “unfair,” and Madrid said he “lacked confidence in the Chamber’s ability to negotiate” with Amerigreen.
“If it were not for Hans Townsend there would be no deal,” Johnson said. “He made sure I met all the right people who have been supportive of the project. He has been nothing but a leader.”
“Then there are those who are throwing rocks and then hiding their hand, like what we see the city manager doing,” Johnson said.
Johnson praised County Commissioner Day for helping him with the outdoor growing portion of Amerigreen in the county. Day is also helping investigate whether the Western New Mexico University building in Williamsburg can be used as a technical training center for hemp growing.
“The state has funding for $7,000 in tuition for each student,” Johnson said, pointing out students could get local jobs with him after training, a win-win for his company and the students.
Representative Rebecca Dow and County Manager Bruce Swingle “have also been extremely helpful,” Johnson said.
“We’re coming,” Johnson said. “This is a now project for us.”