The tax that residents of Dona Ana County voted to impose upon themselves to help fund the development of Spaceport America has no expiration date, meaning it could continue indefinitely after bonds used to pay for the construction are paid off in 2028, according to a review by KRWG TV/Radio.
Critics of the spaceport have said the .25 cent increase in the gross receipts tax should end after the construction bonds are paid off. They have also objected to the use of taxes in excess of what is needed to pay off the bonds to plug holes in the spaceport’s budget. They want the money to be used to pay off the bonds early.
KRWG’s Fred Martino did something that apparently had not occurred to anyone: he dug up the 2007 ordinance that county commissioners approved for the tax. The document has no expiration date and no restrictions on using revenues for spaceport operations.
To change the situation, county commissioners would need to pass an ordinance ending the tax and restricting the use of surplus tax revenues for operations.
New Mexico Spaceport Authority (NMSA) CEO Dan Hicks said he needs the tax to continue so the authority will have funding to expand the spaceport and attract new tenants to it. Spaceport America is in stiff competition with other spaceports around the country, he said.
NMSA has struggled financially due to years of delays by anchor tenant Virgin Galactic in flying suborbital space tourist flights from the southern New Mexico facility.
Sierra County voters also approved a similar tax increase to help pay for the spaceport.
The Sunday Times of London has an update on Virgin Galactic that seems to be based around an upcoming Brian Cox documentary on space tourism, which is set to air early next month in Britain.
Branson could be first in the mass tourism market despite a disastrous 2014 test flight in which a pilot died. Unity is to start rocket tests this autumn, and two more craft are under construction.
“We are hoping to be into space by the end of the year,” said Branson, who has spent £450m on the project. “The cost has been a lot more than we thought . . . but we can see the price falling and we could have 20 spaceships operating so that . . . enormous numbers of people could go into space.”
The story mostly features interviews with Virgin Galactic officials outlining their plans to start commercial operations from New Mexico. There will be a series of additional flight tests in Mojave, Calif., and then SpaceShipTwo will move down to Spaceport America for some additional tests before the start of commercial flights. Richard Branson has been prediction ticket holders will start flying in 2018.
In other words, nothing we haven’t been hearing for years and years, albeit with a shiny new set of dates.
Picking up on a theme covered in the third installment, this story details the lengths to which Spaceport America officials have gone to keep secret details of deals they have concluded with tenants.
“If you were to ask them would they want their leases out in the public they would say no,” [New Mexico Spaceport Authority CEO Dan] Hicks said. “…We just don’t want to have additional burdens on them or scrutiny on them.”
That’s a controversial stance in a poor state that has invested more than $220 million in Spaceport America – a state whose law intends that the public be given access to “the greatest possible information regarding the affairs of government,” which it calls “an essential function of a representative government.”
There’s a real tension created by the public/private partnership that is the spaceport. On one hand, greater secrecy may help attract companies that demand it, and with them may come good-paying jobs the state needs. On the other hand is the principle that opening the spaceport’s finances builds accountability and public trust that is key to winning the government funding on which the spaceport also depends.
Senate President Pro Tem Mary Kay Papen, D-Las Cruces, sponsored legislation on behalf of the spaceport earlier this year that would have let the agency keep rent payments, trade secrets and other information secret. One committee approved the bill, but then it died.
These days Papen says she supports withholding company trade secrets from the public. But she no longer backs secrecy for money coming into the spaceport from private companies.
The spaceport authority didn’t always keep agreement terms secret. For example, Virgin Galactic’s development and lease agreements were released years ago without anything being redacted.
The situation is different at the Mojave Air and Space Port, which is a public general aviation airport run by an elected board. Lease agreements are included in board packets that are available to the public.
The fifth and final installment looking at anchor tenant Virgin Galactic’s preparations for space tourism flights from Spaceport America will be published on Friday.
This one deals with financing at Spaceport America. It requires a bit of understanding of the history of how it was funded.
So, here’s the back story: In 2007 and 2008, residents of Dona Ana and Sierra counties approved a quarter cent increase in the sales tax to help pay for the construction of Spaceport America, where billionaire Richard Branson plans to send rich people on suborbital joy rides.
The piece is fairly optimistic on the financial front, perhaps too much so. It examines positive financial impact on the local economy to date and projects forward to when Virgin Galactic begins flying commercially from the facility, possibly next year. (more…)
Struggling XCOR Aerospace has laid off its remaining employees in Mojave, Calif. and Midland, Texas.
“Due to adverse financial conditions XCOR had to terminate all employees as of 30 June 2017,” the company said in a statement. “XCOR management will retain critical employees on a contract basis to maintain the company’s intellectual property and is actively seeking other options that would allow it to resume full employment and activity.”
The move follows the news last month that CEO Jay Gibson was leaving the company after President Donald Trump nominated him for a high-level position at the Department of Defense. Gibson left the company at the end of June.
XCOR hired Gibson in March 2015 to replace founder Jeff Greason. The objective was for Gibson to focus on the business side while Greason focused on completing construction on the two-seat Lynx suborbital space plane.
That arrangement did not work out. By November, Greason and two other founders, Dan DeLong and Aleta Jackson, had left the company to found Agile Aerospace.
Greason, DeLong, Jackson and Doug Jones founded the company in 1999 after being laid off from Rotary Rocket.
In May 2016, XCOR laid off about 25 employees — roughly half of its workforce — and suspended work on the Lynx. The company has since refocused its energies on its rocket engine work.
XCOR had been working on an upper stage for United Launch Alliance’s Vulcan launch vehicle.
The New Mexico Finance Authority agreed to let the spaceport for one year use extra money from the taxes that shoppers pay in two Southern New Mexico counties. But the spaceport wanted the excess tax money in perpetuity, a proposal that the finance authority declined to grant as its chairman raised questions about the facility’s financial strength.
Though some politicians have supported the spaceport’s proposal, others have argued the tax money was only intended to help build the facility, not cover its day-to-day expenses.
I’ve been working for months on an investigative project into the status of Spaceport America. The question of whether the spaceport is providing an economic benefit to the state is front-and-center, but I’m also exploring transparency and other issues. I’ve visited the spaceport, interviewed Virgin Galactic employees, dug deep into documents and researched what’s happening in other states that have spaceports. I’ve obtained information the public has never seen and am excited to publish this series. Look for it sometime in July.
After a decade of broken promises and delays, the next year could bring some very good news for New Mexico’s $225 million taxpayer-funded Spaceport America.
Anchor tenant Virgin Galactic’s lease payments are increasing. And Richard Branson’s prediction for the start of commercial spaceflights there in 2018 appear (for once) to be on the mark, barring major problems with SpaceShipTwo’s flight test program.
So, it would seem that at long last, New Mexico’s hard-pressed taxpayers will finally be off the hook for supporting the spaceport. Right?…I mean, right?
Now that the second SpaceShipTwo Unity has five glide flights under its belt, the “we’ll fly when we’re ready, we don’t make predictions” era appears to be officially over at Virgin Galactic.
“I certainly would be very disappointed if I don’t go up next year. And I would hope it’s earlier than later in the year,” Richard Branson told British GQ. “The programme says that we should be [testing] in space by December, as long as we don’t have any setbacks between now and then.”
Back in February, Professor Brian Cox traveled here to Mojave with his friends Richard and Sam Branson to watch the third glide flight of Virgin Galactic’s SpaceShipTwo Unity.
Bowled over by what he saw even before the suborbital tourism vehicle glided overhead, Cox gave what amounted to a rousing endorsement of Virgin Galactic and SpaceShipTwo to a gathering of company employees.
“People ask me a lot because I’m a space geek and I’m obviously an evangelist for space, ‘Would you fly to space?” Cox said with Richard Branson seated beside him. “And I’ve always said, ‘Well yes and no, because in some sense it’s a dangerous thing to do.’ However, the moment I walked in this hangar and saw that aircraft, I thought, I want to get on that aircraft. So the answer is now is 100 percent yes.”
What was not widely known at the time was that Cox was filming a BBC-commissioned documentary about commercial space. And the company the corporation commissioned to co-produce it, Sundog Pictures, is owned and run by none other than Cox’s good friend, Sam Branson.
Let’s face it: by any rational measure so-called space tourism is a preposterously frivolous idea. Nonetheless, hundreds of thrill-seekers were willing to pay around $2,300 a minute for the ride as soon as Sir Richard Branson’s Virgin Galactic venture was launched in 2005. The first passenger-carrying flight was supposed to happen 10 years ago, in 2007. It slipped to 2009, 2010, 2011, 2012, 2013…now…maybe… next year.
But if once it seemed like an idea whose time would never come (leaving aside for the moment the issue of whether it ever should) Jeff Bezos and his Blue Origin team—not Branson—now seems more than ever likely to be the first to deliver….
Whereas Branson over the years staged numerous junkets for the media in which success was claimed to be imminent, this April Bezos staged his first preview of the ride on Blue Shepard at the annual Space Symposium in Colorado Springs with the warning that, “It’s a mistake to race to a deadline when you’re talking about a flying vehicle, especially one that you’re going to put people on.”
In less than a year of testing, Bezos has been able to do something that Branson has failed to do in more than a decade: demonstrate proof of concept….
Technically, New Shepard is the precursor of the much more ambitious New Glenn, Blue Origin’s multi-stage rocket program that will launch astronauts and satellites into orbit. (The Virgin Galactic design is an evolutionary dead end – it cannot be scaled up for orbital flight.) As he did with Amazon, Bezos has always had a very clear-eyed idea of what it would cost to get into the business, of the technical challenges, and of the time needed to master them.
It’s a good story that’s worth a read. I did notice one factual error: the tail stall and inverted spin that SpaceShipTwo experienced during a flight test occurred in 2011, not 2013.
Virgin Galactic’s SpaceShipTwo Unity made its fifth glide flight over the Mojave Desert on Thursday. According to the company
Today, VSS Unity pilots Dave Mackay and CJ Sturckow, had an equally busy test-card, but with the emphasis on proving the spaceship’s handling qualities, particularly at low speeds, with more weight on board than previously, and with a centre of gravity shifted towards the back of the vehicle.
This was achieved by loading around 1000lbs of water into a specially installed ballast tank in the rear of the spaceship’s fuselage. That enabled us to explore the flight conditions we will experience during rocket powered flights. By jettisoning the water ballast on descent, we were also able to confirm handling characteristics as the vehicle’s centre of gravity moved forward. Unity completed the flight with a safe and smooth landing in its lighter-weight configuration.
Today’s events represent another important milestone as we move towards the end of the of the initial glide test portion of the program and turn our attention to the spaceship’s propulsion system. To that end, as we analyse the data from today’s flight, we will be moving into a period of ground-based activity focussed on preparation for fuelled and then powered flights. As always, meticulous preparation and a focus on safety will determine next steps and timelines, but we expect to be back in the air in the not too distant future.