Hemp company proceeds with renovations of Mesilla Park greenhouses
After a hiccup over safety codes, the company moves forward with $24 million investment in Doña Ana County.
Hemp company proceeds with renovations of Mesilla Park greenhouses After a hiccup over safety codes, the company moves forward with $24 million investment in Doña Ana County. Check out this story on lcsun-news.com: https://www.lcsun-news.com/story/news/local/2019/07/01/rich-global-hemp-boutique-unlimited-proceeds-renovations-aldershot-greenhouses-dona-ana-county-nm/1383923001/
Algernon D'Ammassa, Las Cruces Sun-News Published 4:36 p.m. MT July 1, 2019 | Updated 4:37 p.m. MT July 1, 2019
Facility back in operation after temporary closure in May over safety codes
County to hold public hearing on July 23 on economic development grant.
Company promises $24 million investment, 180 full-time jobs in 5 years.
Safety violations temporarily closed the plant in May.
Rich Global Hemp has opened offices and production facilities at 4884 S. Main Street in Las Cruces. Seen on Monday, May 20, 2019. (Photo: Algernon D'Ammassa/Sun-News)
LAS CRUCES - After a hiccup over safety codes, the new occupant of the former Aldershot Nursery in the Mesilla Park neighborhood — a hemp cultivation company — is moving forward with an expected $24 million investment over the next two years.
Boutique Unlimited Doña Ana, or BUDA, is a startup owned by California-based Rich Global Hemp. The business' arrival in Doña Ana County was announced at a public event with New Mexico Gov. Michelle Lujan Grisham in May.
Although safety code violations forced the facility to close just after the announcement, the company was cleared to resume operations as it proceeded to interview job applicants and make repairs and modifications to the property's greenhouses in June.
This month, Doña Ana County's Board of Commissioners will hold a public hearing to adopt an ordinance officially making the project eligible for a $1.25 million state grant under the Local Economic Development Act (LEDA). The county will serve as the grant's fiscal agent, dispersing money to the company as it meets specific milestones.
In addition to the LEDA grant, the company is eligible for $1.4 million in funding from the state's Job Training Incentive Program.
Among the conditions for LEDA funding is the company's promise to employ 180 full-time personnel by June 30, 2024. Incremental employment targets take effect in 2020, and "clawback" penalties apply if the company does not meet them.
Greenhouses at Rich Global Hemp on South Main Street in Las Cruces, Friday June 7, 2019. (Photo: Bethany Freudenthal/ Sun-News)
The property's previous owner, New Mexico Greenhouse, received a $250,000 LEDA grant in 2016. After that company failed to maintain the jobs it promised and ceased operations last year, it agreed to repay $170,000 of LEDA funds in quarterly payments. As of May, it had repaid $98,000, according to New Mexico's Economic Development Department.
Temporary closure in May
Rich Global Hemp's investment in Doña Ana County was celebrated at a public announcement on May 20 with Gov. Lujan Grisham and Economic Development Secretary Alicia Keyes.
The welcome, organized by the Mesilla Valley Economic Development Alliance, took place under a tent at New Mexico State University's Leyendecker Plant Science Center in La Mesa.
New Mexico Gov. Michelle Lujan Grisham welcomes Rich Global Hemp to Las Cruces at an announcement event in La Mesa on Monday, May 20, 2019. (Photo: Algernon D'Ammassa/Sun-News)
That same day, county building and fire inspectors visited the facility at 4884 S. Main St., and identified "life safety issues of significant concern which were too numerous list."
Staff collected photographs of emergency exits that were locked and/or lacked panic bars, exits lacking adequate signage or lighting, and trip hazards. There were not enough fire extinguishers, and passages to some exits were blocked with debris including combustible material.
A memo by county building official George Phillips dated May 21 also stated there were "too many electrical and plumbing violations to list," and that the company had started construction of grow tables and racks without required permits.
More: Fire hazards close Rich Global Hemp days after opening announcement
Citing previous inspections and meetings with company representatives about compliance with safety codes and obtaining business licenses, Phillips wrote, "To date the facility has expanded operations to more areas of the buildings without pursuing a means of compliance," and declared the entire facility unsafe for human occupancy.
Josh Rich, founder and CEO of Rich Global Hemp, addresses spectators at the event announcing his business has opened offices and production facilities in Las Cruces. Monday, May 20, 2019. (Photo: Algernon D'Ammassa/Sun-News)
The inspections and other documents were obtained from the county through public records requests.
"This business inherited a property in disrepair with building and infrastructure challenges," said Bruce Krasnow, spokesman for the state Economic Development Department. "That is one reason for the LEDA grant, which is targeted toward these improvements."
On June 7, Phillips told the Sun-News the company had made sufficient progress to resume operations at the site "on a limited basis."
"Our technical staff working with Rich Global did not know the extent of these problems until after the public LEDA announcement," Krasnow said. "Knowing what we do today, the EDD would have postponed the announcement until after these issues were resolved to the county's satisfaction."
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