A previous version of this story did not adequately detail the ownership group that bought the Bank of the West Building. Additional context about the building’s future was also added.
LAS CRUCES — The apparent failure of a California tech firm is having ripples across the U.S. and into Las Cruces’ downtown.
Bitwise Industries, a company that specializes in training workers for tech jobs, furloughed 900 employees and fired its CEOs last week. Nine of those employees worked in El Paso or Las Cruces, according to reporting for the El Paso Times.
But aside from the human cost, the situation has also raised questions about a $1 million grant from the City of Las Cruces and an agreement to purchase one of the largest buildings within the city limits.
Prior to its layoffs, BitWise promised to inject skilled tech workers into Las Cruces by training residents without a traditional education. To do this, it purchased the former Bank of the West at the corner of Church Street and Las Cruces Avenue. The 45,217 square feet within the building was meant for classrooms.
Las Cruces was one city among several BitWise expanded into in recent years ― New York, Texas, Colorado, and Wyoming. Las Cruces was the only city in New Mexico, however.
About the money
After a tumultuous and ultimately failed attempt to distribute the money once, the City of Las Cruces Council gave 10 organizations $9.59 million to carry out various community and economic assistance projects. The vote came after applicants alleged they’d been deemed ineligible wrongly and noted contradictory and arbitrary decisions which lacked adequate explanations.
The City then decided to reset the process and, in September 2022, allocated the funds again. One such recipient was BitWise Industries through the Community Foundation of Southern New Mexico. According to the application, the money was to be used for workforce development. This week, both the City and Community Foundation confirmed the $1 million was never dispersed.
Mandy Guss, communications director for the City, said in an emailed statement that the money – which was meant to be spent on projects to revitalize the community after the pandemic – could still be dispersed. However, the Community Foundation would have to work with City Staff to amend the contract, Guss said. It also may have to be approved again by the council.
“Economic Development staff will work to determine a recommendation for a reuse of the funds that will align with the original workforce development intent and still comply with ARPA guidelines,” Guss said.
President and CEO of the Community Foundation Terra Winter said in an interview they would do just that.
“An updated proposal for continued community grantmaking will go to the Economic Development Policy Review Committee in July and City Council review will follow,” Winter said. “This proposal will remove BitWise Industries as a sub-grantee and focus on local trusted partners to ensure the intent of the granted funds is fulfilled.”
About the Bank of the West building
While the money remains accounted for, the future of the former Bank of the West building is less certain.
The Sun-News reached out to BitWise for comment about the building. No one responded to the request, and it’s unclear if the company’s public relations employees were also furloughed.
But a person with knowledge about the deal to sell the building agreed to speak to the Sun-News but asked to remain anonymous. Additionally, John Hummer, a majority owner of the building, provided details after this article was published.
BitWise was a minority partner in an ownership group that bought the building outright last year. The company planned to renovate the two lower floors to be used as classroom space. The upper floors would be rented out to other tenants. But the renovation never happened, the person said.
According to Hummer, BitWise forfeited its position in the group. The building is now 100% owned by Las Cruces Technology Investors, LLC, which Hummer said is comprised of Las Cruces locals.
“We are not selling the building. Rather, we have new potential tenants to replace the space Bitwise would have taken. We will also be upgrading the common areas of the building,” Hummer said.
Justin Garcia covers public safety and local government in Las Cruces. He can be reached via email at JEGarcia@lcsun-news.com, via phone or text at 575-541-5449, or on Twitter @Just516Garc.
