Cost estimate for spaceport drops
DATELINE: LAS CRUCES N.M.
The New Mexico Spaceport Authority now estimates a state-backed spaceport will cost $198 million, down from the previous estimate of $225 million.
The latest figure for Spaceport America was released in advance of an April 3 vote by Dona Ana County residents on a tax to help pay for the facility, planned near the Upham exit off Interstate 25 in Sierra County between Las Cruces and Truth or Consequences.
The spaceport board approved the estimate Tuesday at a meeting in Santa Fe. The estimate was developed by a California firm selected to design the project.
The 2006 Legislature passed a measure allowing local governments to impose a local option gross receipts tax levy to provide money for the facility.
Dona Ana County voters are being asked to decide on a one-quarter percent tax.
County money is essential for the spaceport, said Economic Development Secretary Rick Homans, chairman of the spaceport authority.
"This report makes it very clear, in black and white, that we absolutely need a yes vote on April 3 to move forward," he said. "Without financial support from Dona Ana County, we have to stop the project and all the plans to create a new industry and new jobs in southern New Mexico."
The state factored in $58 million in local option gross receipts taxes from Dona Ana, Otero and Sierra counties as spaceport revenue. Most of the money $49 million would come from Dona Ana County.
The state already has appropriated $115 million for the project and also expects about $25 million in federal funds over the next five years.
Sierra and Otero counties have not set referendums.
Dona Ana County Commissioner Oscar Vasquez-Butler, who has expressed reservations about the project, said the lower estimate did nothing to address his concerns.
Earlier this month, Dona Ana County commissioners set restrictions on the tax and said it would be revoked if the project falls through or if the state fails to get an FAA license by the end of next year, if anchor tenant Virgin Galactic doesn't sign a lease and if construction exceeds $225 million.
The state set the same conditions for the project to receive $100 million in capital outlay funds.
Most of the funds will go to build a 10,000-foot-long runway, pave 37 miles of roads, build hangars and put in utilities. Some $1 million was added for welcome centers and park-and-ride facilities in nearby communities.
Homans said the estimate dropped after officials axed one of two runways from the design. Only one is needed, although a second could be added as business develops, he said.
Gov. Bill Richardson has touted the spaceport as a way to develop a commercial space industry in New Mexico. The facility is expected to open in late 2009 or early 2010.
Studies commissioned by the state Economic Development Department said the project has the potential to create thousands of jobs and bring hundreds of millions of dollars to the state.