COMMUNITY

Ultra Health to assume LEDA obligation from cookie factory

Nicole Maxwell
Alamogordo Daily News

Cannabis company Ultra Health, which moved into the former-Western Baking facility earlier this year, proposed to the City of Alamogordo that it pay off Western Baking's Local Economic Development Act project obligations.

At the regular Alamogordo City Commission meeting Oct. 26, the commission approved an ordinance approving the suggestion. The LEDA project under Western Baking was never secured so when Ultra Health bought the Western Baking facility there was not a City obligation on it for LEDA, Alamogordo City Attorney Petria Bengoechea said at the meeting.

New Mexico-based cannabis company Ultra Health will be moving into the former Western Baking Corporation at 1301 LaVelle Road in Alamogordo.

"Ultra Health understands that this has been a big deal to this City for many years and they have agreed to actually pay off, via job creation, Western Baking's... LEDA obligation," Bengoechea said.

"This is not going to be secured because it has not been secured for many, many years. But (Ultra Health) has agreed in writing that if, for some reason, they go out of business and they don't create jobs they will pay the obligation back in cash. They will write us a check."

Ultra Health does not have to do this, Bengoechea said.

More:Ultra Health cannabis company to move into former Western Baking facility in Otero County

"Ultra Health picked up the obligations in order to assist the City of Alamogordo with the goals they wanted to achieve with the prior LEDA grants," Ultra Health spokeswoman Marissa Novel said via email Oct. 27.

" We look forward to creating a sustainable and thriving business in the City of Alamogordo." 

Ultra Health CEO Duke Rodriguez, an Alamogordo native, surveys the factory floor at Western Baking Corporation in August 2021.

New Mexico-based cannabis company Ultra Health will be moving into the former Western Baking Corporation at 1301 LaVelle Road in Alamogordo.

The original LEDA grant agreement was for financial assistance to Western Baking to upgrade its LaVelle Road factory. The outstanding amount is $346,449.07.

Enjoying our stories? Why not subscribe? Click here to subscribe.

To complete its voluntary obligation to pay back the LEDA obligation, Ultra Health will create and maintain at least 50 new jobs that pay $13 per hour minimum "and create sufficient additional new jobs necessary to satisfy the obligation to fulfill the Economic Development Incentive during the term of this Agreement," the ordinance states.

LEDA allows municipalities to establish a tax to help qualified businesses grow the local economy.

Nicole Maxwell can be contacted by email at nmaxwell@alamogordonews.com, by phone at 575-415-6605 or on Twitter at @nicmaxreporter.