By Marty Mayfield
KRTN Multi-Media
The Raton City Commission met with a huge crowd in attendance for their May 27, 2025, regular meeting with the crowd in attendance to voice their feelings concerning the repeal of the Ramel Family Farms LEDA agreement.
The Introduction of an ordinance to repeal Ordinance #1013 pertaining to the adoption of Ramel Family Farms, LLC as an economic development project was presented to the commission. It is noted that this is the introduction of an ordinance only and that no action will be taken by the commission at this time. The introduction of the ordinance was postponed until further negotiations can be completed.
The original agreement required Ramel Family Farms to provide job reports on a timely basis in order to track the company’s hiring throughout the term of the project. The agreement states that the farm shall create and sustain not less than 15 new jobs within the five years of the project commencement for a period of three years. It also says that 10 new jobs within 10 years of the project commencement are required for a total of 25. Ramel Family Farms only started paying utilities in January 2023. The ordinance goes on to state that those requirements have not been met and that Ramel Farms stated that if certain things were not met that they would terminate the agreement no later than June 30, 2025. This condition was not accepted by the city and therefore accepted the verbal termination of the agreement.
From City Manager Rick Mestas,
“At the May 9th meeting Mr. Khalatbari made it abundantly clear that if the city did not meet three specific demands, he would cease operations on June 30, 2025. These are his words…not the City’s. The demands were that the city:
1) Authorize acquisition of the public asset at year five.
2) Allow a deduction from a newly appraised value—a series of expenses some of which appeared be out compliance with LEDA
3) Secure a new appraisal that he viewed as acceptable…essentially enabling him to acquire the property without cost.”
“The owner was granted a five-year rent-free lease under a ten-year Local Economic Development Act agreement, specifically designed for job creation and to encourage investment and substantial improvements to the property. The city even built a $700,000.00 greenhouse as an incentive to Ramel Family Farms without cost to them.
The written agreement states that the property may be purchased at fair market value after five years, and with Local Economic Development incentives subtracted off the price of the property after 10 years. I understand that Mr. Khalatbari is an experienced businessman. He signed this agreement willingly and if there was any question about clarity regarding our lease, that should have been addressed when he signed the agreement on May 21st 2021…some four years and six days ago. Despite this generous arrangement, the building has seen little to no meaningful development and remains underutilized since the agreement began.“
“Link to City of Raton and Ramel Family Farms Agreement”
Public comment began after the comments by City Manager Rick Mestas covering the details of the reasons for repealing the LEDA agreement. Businesses from Trinidad to Las Vegas are dependent on Ramel Family Farms for produce and other items and them leaving the area would be very detrimental to their businesses. Others spoke about trying to negotiate to keep the business going even having a mediator come in and help with the negotiations. Several people who spoke Tuesday evening said they were from Denver as well expressing why they love living here and that Ramel Family Farms are such an important part of why they moved here.
Kayvan Khalatbari spoke about the problems he has had dealing with the city indicating that he has spent $500,000 on the building and doesn’t want to have to pay that amount again to purchase the building. He has been asking the city what he can write off against the purchase price of the building. The appraisal for the building was over $1 million which Khalatbari disputed especially in the shape that the building was in when he occupied it. He has had to spend money to repair the building and again he doesn’t want to pay for it again when he purchases the building according to the LEDA agreement after five years.
Commissioners Schuster was present at the meeting earlier in the month and feels that the city needs to work through this and suggests that the city use mediation. She feels there are errors on both sides and that the city pursues a mediation approach. Mayor Neil Segotta spoke that the city is not trying to close a business. The city has never said that they are trying to close Ramel Family Farms down. The city is just looking at repealing the agreement with Ramel Family Farms.
Commissioners held a public hearing on Affordable Housing Ordinance 1030 to implement the Colfax County Affordable Housing Plan which addresses affordable housing in Raton. The county will handle the work for affordable housing as well as a housing coordinator with North Central Council of governments.
The commission then held a public hearing on Ordinance 1031 amending Ordinance 1018 which deals with sewer and water rates. The Ordinance will raise the fee for water service applications and raises construction water rates. This is a continuation from the previous meeting. The amendment was approved.
The report on the Skillsharp program indicates that the job position is still part-time as grant applications to make it a full-time position were not accepted. Enrollment is about half what it was due to the part-time position, yet enrollment remains stable. Duran went on to talk about some of the certifications that have been earned and how they are helping people improve skills for jobs they are currently in or for other jobs that might be available. They see many 30-year-olds who need to attain their GED or equivalent.
Commissioners also heard about a Cooperative Marketing agreement with the State of New Mexico tourism Department, City of Raton and Colfax County. The agreement allows the city to tap into $4,123.50 for tourism promotions.
Commissioners once again began public input on the Infrastructure Capital Improvement plan for FY26-FY31. This is a document that the city needs to have to present to legislators for capital improvement funding. The city is adding $75 million for a multi-use city hall apartment building. Roundhouse Park improvements for $10 million and El Portal Lot improvements for $75,000. Lake Maloya Dam and drainage improvements are still at the top of the list. Mayor Segotta noted this is a living document and it will change. He went on to say that the state has received money for dam improvements and the city needs to really concentrate on obtaining money to do the dam work.
Commissioners then approved the event forms for the Raton Mainstreet Independence Day Festival and July 4th parade as well as the Raton Little League All-Star Tournaments to be held June 13-16 and June 20-27.
Commissioners heard the Lodger’s Tax Advisory Board recommendations for four advertising requests and approved those requests.
$7,357.11 to Raton Mainstreet for International Santa Fe Trail Balloon Rally advertising. It will also help cover brochure posters, sanitation, fire protection and swag bags for pilots and sponsors.
$ 21,555.43 to Raton Mainstreet for the Gate City Music Festival.
$ 7890 to Phillips Broadcasting for advertising on the radio and web page.
$ 3085 to KRDO TV for advertising for the balloon rally and the gate city music festival.
The city received a quote from American Ramp Company for additional Skate Park elements utilizing the Sourcewell Procurement. The proposal quotes a street run for $33,625 and a Half pipe height upgrade for $16,561. These are for work at Optimist Park.
Commissioners then heard about a subrecipient agreement between the city of Raton and the Department of Finance for a quality-of-life grant Subrecipient agreement amendment #2. The agreement allowed for $399,000.00 for improvements at the Raton Ball Field complex. The main reason for the amendment is in reporting, which changes from monthly to quarterly.
Commissioners approved the change from a franchise agreement to a business license for Resound Networks, LLC. This allows the company to provide fiber optic line and internet service within the city. This agenda item was postponed.
The City of Raton is seeking professional consulting services from Better City, LLC. The agreement is an extension of the contract from the previous year.
Raton PD has decided to change the bid request for their new radio system from a VHF system and will join the New Mexico Digital Trunk System that the state is in the process of implementing. Commissioners approved the change.
Commissioners heard about an amendment for a Professional Services Contract with Ayers Associates, Inc. for work on the Brownfield program.
Mestas has requested out of state travel for Jaden Welch and Synthia Molina for the Brownfield Conference in Chicago on August 5th – 8th. The cost of the trip is funded by EPA and will be $4108.00.
Commissioners discussed the FY26 interim budget for the City of Raton, Raton Water Works and Raton Public Service Co. All three interim budgets were approved and will be sent on to DFA by June 1, 2025, for their approval. Antonucci noted the city is budgeting an additional 2.5% increase in GRT. The city is projecting a 5% increase for non-union employees; however, all employees will see a 20% increase in health insurance premiums.
Commissioners approved the April 2025 financial reports and the FY25 Budget Adjustment #14. The GRT was only 1% above budget. The city is still working on finding an audit firm as the current firm did not submit a proposal due to staffing issues. The adjustments are primarily line-item adjustments this month.
Commissioners acted on Resolution 2025-34 adopting the Colfax County Affordable housing plan. This will allow Raton to act as an affordable housing agent.
Resolution 2025-35 was adopted confirming that affordable housing is among the purposes of the City of Raton.
Resolution 2025-36 was discussed. This will allow the creation of land banks in New Mexico for modernizing legal tools needed to address vacant, abandoned, and tax delinquent properties.
Summit of Governments will be held on June 3rd at Vermejo Park Ranch to help create a bi-state regional transportation plan. It is hoped to create a possible transportation authority to support commerce between New Mexico and Colorado.
The next Regular meeting for the Raton City Commission will June 10, 2025, at 6:00 p.m. in the city commission chambers.
