Rio Rancho, Sandoval County Settle Emergency Response Dispute Over Project Ranger

Rio Rancho and Sandoval County settled their disagreement over emergency services for Project Ranger, clearing a key hurdle for the release of economic development funds tied to Castelion Corporation's proposed solid rocket motor manufacturing campus west of the city. One final agreement must still be signed before those funds can proceed.

The settlement resolves, at least in part, a months-long standoff over which agency holds authority for fire inspections, emergency pre-plans, and incident action planning at the 1,000-acre facility. Rio Rancho Fire Rescue Chief James Wenzel had flagged three unresolved jurisdiction issues after the city received a proposed memorandum of understanding from Sandoval County administration on Nov. 21 and returned comments on Dec. 10. Wenzel's position was direct: Rio Rancho, as the de facto first responder, should conduct annual fire inspections, produce pre-plans, and craft incident action plans for the site. He told city councilors that if Sandoval County would not accept those changes, the city might revisit its automatic-aid arrangements entirely.

The geography drives the stakes. Rio Rancho Fire and Rescue operates under an intergovernmental agreement with Sandoval County Fire and Rescue to provide automatic mutual aid for Intel and the unincorporated area west of city limits, a relationship established in 2013, updated in 2023, and due for renegotiation in 2027. That arrangement exists precisely because Rio Rancho crews are closer to those areas than any county unit. The nearest Sandoval County fire station sits approximately 15 miles, or 26 minutes, from the Project Ranger site at the intersection of US 550 and NM 528.

Wenzel projected six categories of emergency calls from the facility: fire alarm activations, EMS calls for employee injuries and health issues, motor vehicle accidents, hazardous material transport accidents, small-scale fire suppression, and large-scale fires. He compared the workload to Intel's Sandoval County operations, which average 75 calls annually for Rio Rancho Fire Rescue. Project Ranger would draw primarily from Fire Stations 2 and 6, forcing other stations to backfill those zones and potentially spreading crews thin across the city.

The financial picture is equally complicated. At a recent Thursday night council meeting, Rio Rancho officials voted on three resolutions related to the project, including a $1 million budget amendment for economic development expenditures. The funds would be dedicated to extending NM347/Paseo del Volcan within city limits, from Unser Boulevard to Rainbow Boulevard. That road project is part of a roughly $24 million program, of which about $11.2 million is currently funded, leaving a shortfall of approximately $12.5 million. Sandoval County has submitted a capital-outlay request of roughly $20.7 million to state legislators to cover two projects, including the 28th and 29th Street extension, though construction timing depends on the legislative appropriation.

Sandoval County separately approved $125 million in industrial revenue bonds for Project Ranger in August, with full clawbacks written in if Castelion fails to meet job creation and safety benchmarks.

"We're the caboose of this project," Mayor Gregg Hull and city councilors said repeatedly during the council meeting, a phrase that captured the city's frustration at being drawn into obligations for a facility built on county land.

Castelion, whose cofounder and CFO Andrew Kreitz presented at the Rio Rancho meeting, expects the facility to be operational in 2027. Site clearing has already begun and construction footings were visible at the groundbreaking, which drew dozens of state and local officials including Gov. Michelle Lujan Grisham and representatives from the state Economic Development Department. The campus would manufacture solid rocket booster motors and conduct static motor tests, producing components for hypersonic missiles.

Community concern has centered on the facility's explosive materials. Technical safety documents indicate that emergency explosion scenarios could affect structures up to five miles away. The site sits 2.9 miles from Rio Rancho's Northern Meadows neighborhood, with safety zones that overlap homes, schools, and parks. Sandoval County Manager Wayne Johnson pushed back on the most alarming characterizations: "They're not making bombs. What they're manufacturing on site is the motor."

If Rio Rancho declines to provide water service to the facility, Castelion could pursue a private well through the Office of the State Engineer, though city documents noted that "a new well most likely would have impact on the city's wells and water production from these wells."

With one agreement still to finalize and the automatic-aid arrangement due for renegotiation next year, the jurisdictional questions surrounding Project Ranger are settled for now, not permanently.