The nonprofit would provide community services instead of paying rent at a district-owned building in Hatch, while assuming responsibility for utilities.

Damien Willis, Organ Mountain News

HATCH - The Hatch Valley Board of Education has approved a proposed lease allowing Casa de Peregrinos to use a district-owned building for community food assistance, with services provided in place of rent and the nonprofit assuming responsibility for utility costs.

The board voted 4-0 Wednesday, Oct. 14, to approve the arrangement for the property at 321 N. Main St. in Hatch. Board President Chris Montez recused himself from the vote. The agreement still requires state approval before it can take effect.

Hatch Valley Public Schools Superintendent Fred Montalvo told trustees that the district already had a memorandum of understanding with Casa de Peregrinos for use of the building as a food pantry. The new lease is intended to formalize that arrangement as the nonprofit pursues funding for construction and improvements at the site.

Montalvo said the district and nonprofit have been working through state and federal requirements associated with the proposed improvements. Attorneys representing both organizations have helped prepare the documents needed for state review.

Community services in place of rent

Under the proposal, Casa de Peregrinos would continue providing food assistance and other community services instead of making rental payments to the school district.

Montalvo explained that leasing public school property raises legal questions because districts generally must account for the value of publicly owned assets and comply with New Mexico's restrictions on donations of public resources.

"And as a district we're not looking to make any money, we're not looking to recoup funding for that," Montalvo said.

He told trustees the district is seeking authorization to recognize Casa de Peregrinos' community services as consideration for use of the building rather than charging conventional rent.

The arrangement would also shift responsibility for utilities to the nonprofit. Montalvo said the school district has been paying those expenses under the existing arrangement.

Casa de Peregrinos Executive Director Lorenzo Alba, who participated remotely, told trustees that assuming the utility costs would not pose a problem. The nonprofit already pays for telephone service, trash collection and some other expenses at the location, Alba said.

"So we're glad to to take on the utilities and provide the absolute best services possible for the community on on behalf of everybody, all our partners, including Hatch Valley Public Schools."

State authorization still required

Montalvo said district representatives expect to present the proposed lease to the New Mexico Finance Authority the week of Oct. 19. He and another district representative plan to participate remotely while he attends a rural school districts conference in San Antonio.

The superintendent said he expects to update the board on the outcome at its November meeting.

Trustees approved the district's lease resolution without opposition among the four participating members. Montez did not explain his recusal during the discussion captured in the meeting transcript.

The district's publicly posted agenda identifies the property, Casa de Peregrinos and the proposed services-in-lieu-of-rent arrangement, but does not include the lease, proposed resolution or supporting financial documents. As a result, the agreement's duration, the property's assessed rental value and the anticipated utility expenses could not be independently established from the posted materials.

The board's next regular meeting is scheduled for Nov. 11.

Damien Willis is founder and editor of Organ Mountain News. If you have a personal story to share or a lead we should follow up on, reach out at OrganMountainNews@gmail.com or connect with him on X at @damienwillis.