Date: October 2, 2026
To: Mayor Michael J. Garcia
Members of the Governing Body
From: Heather L. Lamboy, AICP, Planning & Land Use Director
Subject: Tri-Party Agreement to Construct Required Development Infrastructure
ACTION:
Request for Approval of a Professional Services Contract and an Intergovernmental Agreement with the
State of New Mexico Department of Workforce Solutions, Homewise, and the City of Santa Fe for the
construction of spine infrastructure serving the planned Tierra Contenta Phase 3 project in the total
amount of $8,975,000.
BACKGROUND & SUMMARY:
The attached exhibit, Agreement to Construct Required Development Infrastructure, is required as a
part of the planning process to ensure that Homewise, the master developer of the Tierra Contenta
Phase 3 project, completes the infrastructure that is a part of their housing development. This
agreement is between the City of Santa Fe, Homewise, and the Department of Workforce Solutions
(DWS), which is the grantor. At the 2025 regular session of the New Mexico State Legislature, the
Legislature granted Homewise a capital outlay of $8,975,000 for the planning, design, and construction
of the spine infrastructure for Tierra Contenta Phase 3. The Planning Commission has approved both a
Master Plan and a subdivision plat. With the consent of both DWS and the City, Homewise added a
few redlines to clarify that this agreement also ensures a financial guarantee is in place to provide
capital outlay to a private entity for public infrastructure. Homewise added a section (Section 4) titled
State of New Mexico Capital Outlay that describes the purpose and amount of the capital outlay, as well
as the roles of the Department of Workforce Solutions and the City of Santa Fe.
The State of New Mexico has begun requiring local jurisdictions to serve as fiscal agents for private-
company grantees. This adds an additional level of review, and the City will ensure that the funds are
being expended consistent with the agreement. The City will also ensure that all improvements are
inspected and constructed to Code, with the eventual goal of having the infrastructure accepted by the
City as public right-of-way.
This Agreement to Construct document for Tierra Contenta is also serving as an intergovernmental
agreement between the City of Santa Fe and the DWS. DWS is serving as our fiscal agent for capital
outlay from the Governor and Santa Fe legislative delegation. Sarita Nair, Cabinet Secretary for DWS;
Gregory Lauer, DWS attorney; Maria Garcia Cunningham, ASD Deputy Director; Marcos Martinez, City
Attorney; and Dee Beingessner, City Engineer, reviewed and approved this document. The Governing
Body is requested to approve this so Mayor Garcia can sign and complete the agreement.
ATTACHMENTS:
Tri-Party Agreement to Construct Infrastructure
Approved Tierra Contenta Phase 3 Subdivision Plat
City of Santa Fe Memorandum200 Lincoln Ave, Santa Fe, NM 87501 I santafenm.gov