Posts Tagged ‘Deming’

The New Mexico Finance Authority, New Mexico Economic Development Department, and Baker Tilly invite you to attend a complimentary seminar to learn how to access nearly $100 million in funding through New Markets Tax Credits and Collateral Support Participation programs for your qualified business or real estate development.

New Markets Tax Credits have helped developers and business owners gain access to a low-cost source of capital to solve a portion of their capital needs while creating significant community and economic impact in distressed areas. The Collateral Support Participation program is a new program initiated to leverage private lending to help finance small businesses which are creditworthy but unable to obtain the capital required to expand and create jobs.

These seminars are designed to inform and acquaint community officials, planners, economic development professionals, developers, and business owners. A special addendum has been added to these sessions which will focus on the unique interests of investors and lenders of New Markets Tax Credits.

Seminar schedule

Representatives will be traveling throughout New Mexico to provide information on how we can help your business realize the vision of your communities’ needs and growth potential. We look forward to seeing you at an upcoming seminar! Please RSVP at least a day prior to the event using the links below.

Monday, November 14, 2011

City Hall – Commission Chambers

1376 East Ninth Street, Alamogordo, NM  88301

9:00 a.m. – 12:00 p.m.

Yes, I plan to attend >

Tuesday, November 15, 2011

Morgan Hall

109 E Pine Street, Deming, NM  88030

9:00 a.m. – 12:00 p.m.

Yes, I plan to attend >

Wednesday, November 16, 2011

Hotel Encanto

705 South Telshor Boulevard, Las Cruces, NM  88011

9:00 a.m. – 12:00 p.m.

Yes, I plan to attend >

For questions regarding these events, please contact:

John Brooks
jbrooks@nmfa.net
505 992 9638

Celina Sandoval
csandoval@nmfa.net
505 992 9642

Article courtesy of the Las Cruces Sun-News

By Diana M. Alba

LAS CRUCES – NASA‘s recently announced plan to buy flights from two companies that will launch from Spaceport America gives the $209 million project a shot in the arm, as the facility preps for a ceremonial dedication of its largest building on Monday and the overall project inches closer to completion, supporters said last week.

NASA’s involvement adds credibility and boosts the viability of the spaceport, said state Sen. Mary Kay Papen, D-Las Cruces, who chairs the state oversight panel for the project. “We’re not just depending on Virgin Galactic,” she said of the spaceport’s future. “I think it’s something that we’d been hoping would happen.”

NASA booked at least one suborbital flight – with the option for buying two more – from Virgin Galactic, a space tourism company and the main Spaceport America tenant, the company said last week. And UP Aerospace Inc., a Denver-based commercial launch company, announced about a week ago that NASA awarded it a contract to launch payloads on two rocket flights, with the option for six additional flights.

“There’s some serendipity happening, where some of these research companies are finding the use of the Virgin system is a good way to test things and is certainly cheaper than launching rockets into orbit,” said Rick Holdridge of Deming, chairman of the New Mexico Spaceport Authority. “There’s a market Virgin Galactic never really thought much of, but it’s starting to grow rapidly.”

Also, Virgin Galactic – a British company headed by billionaire Richard Branson – said last week it has collected $58 million in deposits from 455 would-be tourists who’ll launch to suborbital space from the spaceport, possibly starting in 2013, officials said.

‘Almost an icon’

About 500 people – invited guests only – are expected to attend a Virgin Galactic-hosted event Monday at the spaceport to christen the $32.5-million terminal-hangar facility, a sting ray-looking structure often depicted in spaceport images.  Gov. Susana Martinez, Congressman Steve Pearce and NASA representatives are expected to attend the ceremony, called the “Keys to a New Dawn.”

Monday’s event is significant because the terminal-hangar is “almost an icon” that signifies a major shift in the space industry, said New Mexico Spaceport Authority Executive Director Christine Anderson. “You can say it’s just a building, but it’s really ushering in a new era,” said Anderson, who’s in charge of the state-owned spaceport. “And it’s happening right here in New Mexico.”

Still, spaceport opponents criticize the project, saying that they doubt it will be the economic engine backers claim and that it was a poor use of state Legislature funds. Others take aim at two sales taxes passed by voters in Dona Ana and Sierra counties that are helping to pay for spaceport construction.

Dona Ana County Commissioner Karen Perez said she remains skeptical about the spaceport and how many jobs it will create. Plus, she’s concerned there’s not yet a route paved for easier access to the spaceport from the south. “There’s nothing in the project that has changed substantially,” she said. “It’s a project we’re paying for and we’re still not benefiting from it.”

Not finished

The terminal-hangar construction, originally slated for completion in December 2010, was plagued by a series of problems, ranging from the lack of a permanent power supply to the remoteness of the southeastern Sierra County site to sluggish payments by the state to contractors. Despite Monday’s ceremony, the building isn’t ready for Virgin Galactic to take occupancy. Construction is expected to wrap up in late November, officials said. And a certificate of occupancy must be issued, at which point Virgin Galactic will take over and begin what could be a year of work further outfitting the building.

Overall, the first phase of construction – the terminal-hangar, an operations building, a 10,000-foot runway, three vertical launch pads, the paving of a northern road to the facility, water and wastewater systems and a power line to the site – is about 93 percent finished, Anderson said Friday.  Construction on the dome-shaped operations building, which will house security, EMS, firefighters, grounds keeping, the spaceport’s technical operations manager and the Spaceport Authority offices, likely will conclude in January or February 2012, according to Anderson.

The terminal-hangar on Monday will be dubbed the “Virgin Galactic Gateway to Space Building,” Holdridge said.

The installation of a power line to the spaceport site had potential to further stall the project’s first phase, considering a permanent electricity source is needed before the state can sign off on spaceport contractors’ work. But spaceport officials said the line is nearing completion. The power line had been installed and set to go online last week, when a company installing telecommunications accidentally cut through it. It could be repaired as early as next week, Anderson said.

State Rep. Andy Nunez, I-Hatch, a spaceport supporter, visited the site in August with a panel of lawmakers, and expressed concern construction wasn’t further along. “I hope they’ll be doing some catch-up,” he said. “I’d love to see that thing dedicated.”

The Spaceport Authority has begun Phase 2 of the project, which includes the visitors’ centers and a paved southern road to Spaceport America, Anderson said.

Lease payments

After the formal takeover, Virgin Galactic will begin paying $1 million a year in lease payments for use of the facility, Holdridge said. The payments would be prorated because its tenant status would start in the middle of the fiscal year.

“It’s going to be nice to see that major milestone take place with the dedication and the fact Virgin Galactic is going to be taking over responsibility for the facility,” said Jim Hayhoe, president of Spaceport America Consultants, a local company. “It’s a major milestone and it also starts some significant cash flow for the state to start getting some money back.”

Virgin Galactic has begun relocating staff to the Las Cruces area in preparation for the start of its space tourism flights, officials said.

Space vehicles

The development of Virgin Galactic’s two-vehicle system by the firm Scaled Composites continues at Mojave, Calif. In all, WhiteKnightTwo, the plane that will carry a spaceship aloft for a mid-air launch, had completed 73 flights through Sept. 29, according to a Scaled Composites flight log. Meanwhile, SpaceShipTwo had been dropped from the plane 16 times. It lands as a glider. The rocket motor that will power the spaceship to suborbital space after detaching from the plane is currently in testing, also at Mojave.

Symposium week

Also this week, industry officials, government officials and researchers will meet Tuesday to Thursday for the International Symposium for Personal Commercial Spaceflight in Las Cruces. A tour of Spaceport America is slated for participants on Friday. Holdridge said the symposium is a chance to showcase the spaceport. “Are there ways we can get more customers to the spaceport?” he said. “I’d love to see us find some new customers.”

Release courtesy of the New Mexico Economic Development Department

SANTA FE – New Mexico Economic Development Department Secretary Jon Barela announced Tuesday that New Mexico has been approved by U.S. Department of the Treasury to participate in the State Small Business Credit Initiative Program (SSCBI).

New Mexico will receive nearly $13.2 million in federal funds to put toward programs that leverage private lending to help finance small businesses and manufacturers that are creditworthy, but are not able to access the capital required to expand and create jobs. The New Mexico Economic Development Department (NMEDD) will contract with the New Mexico Finance Authority (NMFA) to operate the program.

“Small businesses are the backbone of New Mexico’s economy and the engines of economic recovery,” said Governor Martinez. “It is a priority for this administration to create a more business-friendly environment that encourages growth, investment, and job creation right here in New Mexico. This program is an important step toward accomplishing that goal and putting New Mexicans back to work.”

“These funds will help creditworthy small businesses access the lending they need to invest and hire, providing a powerful boost for economic growth and job creation,” said Deputy Secretary of the Treasury Neal S. Wolin. “Expanding access to credit will help ensure that more entrepreneurs and small businesses can invest in their local communities to put more Americans back to work.”

NMEDD and NMFA have agreed to initially focus the State Small Business Credit Initiative Program funding to a bank loan participation program, branded the Collateral Support Program (CSP), focusing on shorter term working capital loans, particularly for projects located in rural and underserved areas of New Mexico. NMFA will base CSP on its existing loan participation program Smart Money which allows NMFA to purchase from a regulated bank or credit union up to 49 percent of a loan it makes to a New Mexico business or non-profit. The rules limit the amount of NMFA participation to $5 million and that no more than $2 million be directed to any project unless significant economic development will occur as a result. More specifically, the business must create at least one full-time job for each $50,000 invested by the NMFA.  These same guidelines will be used in implementing the CSP.  Additional federal requirements are:

1) the funds are directed to small businesses that do not employ more than 500, and that credit support will not be extended to borrowers that have more than 750 employees, and

2) for every $1 in CSP utilized, it must be leveraged with a minimum of $10 in new private lending.

 “The Economic Development Department worked hard to make this funding available to small businesses in our state,” Barela said.  “The SSCBI funds will go a long way in our efforts to expand economic development throughout the state.”

Under SSBCI, all states were offered the opportunity to apply for federal funds for state-run programs that partner with private lenders and investors to increase the amount of credit available to small businesses. States must demonstrate that every $1 in federal funding will generate a minimum of $10 in new private lending.  Accordingly, the overall $1.5 billion federal funding commitment for this program is expected to result in at least $15 billion in additional private lending nationwide.

“We are in a unique position to help the state develop public-private partnerships for business growth and job creation,” said Denise Baker, chair of the New Mexico Finance Authority. “These new funds will increase our ability to partner with local banks and strengthen communities.”

The NMEDD and NMFA will be hosting outreach sessions for the CSP on the following dates and locations:

Monday, November 14, 2011 in Alamogordo site to be determined at 9 a.m.

Tuesday, November 15, 2011 at Morgan Hall in Deming, NM at 9 a.m.

Wednesday, November 16, 2011 in at the Hotel Encanto in Las Cruces, NM at 9 a.m.

Release courtesy of the New Mexico Economic Development Department

SANTA FE – The New Mexico Economic Development Department’s Office of Business Advocacy was contacted in May by Border Foods, Inc., a Deming green chile processor, on the status of the company’s minor-use permit application process, which was needed for the use of new equipment with the late July through early August harvest season. The standard application process is 60 days but the non-issuance of the minor source permit within 60 days would have impacted the company’s ability to hire the next growing season of employees and impact its ability to enter into purchase agreements with a host of local farmers.

“It was critical that we assisted Border Foods in getting the permit process completed,” Economic Development Department Secretary Jon Barela said. “And with cooperation and assistance across many lines, Border Foods was able to save many jobs and continue to contribute to the Luna County economy.”

Border Foods is touted as the largest processor of green chile in the U.S. and a major employer in Luna County with 900 employees during chile season. Border Foods processes green chile, jalapeno peppers, and tomatillos and manufactures enchilada sauces for both the branded and private label markets. During peak chile harvest season, the facility processes about 1.25 million pounds of product a day.

 The Office of Business Advocacy contacted the New Mexico Environment Department (NMED) Air Quality Bureau regarding the 60-day timeline to issue the permit. Working with an NMED permit writer, the company was able to detail its request and need to have the permit within 60 days. Despite a host of other very complex permitting actions pending, the permit writer understood the production timelines unique to New Mexico’s agricultural industry and agreed to work toward the requested timeline.

“Without the permit, which had to be received to coincide with the chile harvest, we would have been running at a reduced rate of throughput, approximately 25 percent less. That would translate into almost 200 jobs,” said Randy Clarke, CEO of Border Foods.

Border Foods officials in Deming along with the Deming-Luna County Economic Development organization were please the company was able to meet all its contracted agreements with local chile farmers and the seasonal workers required. Border Foods continues to increase both seasonal and full-time employees.

“We are proud to say that Border Foods is still in our community,” said Linda Smrkovsky, executive director of Deming Luna County Economic Development. “This positive outcome would not have occurred without the collaboration and support of the New Mexico Economic Development Department and Deming Luna County Economic Development.  Success comes from strong networks, partnership and people caring about people.”

In May, the company announced its acquisition by condiment maker, Mizkan EuroAmericas. Mizkan EuroAmericas produces retail condiments brands and is the leading supplier of Asian condiments. The acquisition of Border Foods is expected to broaden the product diversification opportunities for Border Foods.

For more information on the Office of Business Advocacy visit http://www.edd.state.nm.us/businessAdvocacy/index.html.

Article courtesy of the Las Cruces Sun-News

By Diana M. Alba

LAS CRUCES – Squeezing in a stop here while en route to London, Virgin Galactic’s president and CEO told spaceport officials Tuesday that the company remains committed to basing its suborbital flight operations in New Mexico.

George Whitesides addressed the new board of directors of Spaceport America for the first time since an abrupt change in spaceport leadership that was carried out by Gov. Susana Martinez. It was also the first session attended by Spaceport Authority Executive Director Christine Anderson, hired last week by the board.

“The primary message we wanted to share, and the reason I’m here is to express a desire to continue to be a strong partner with the spaceport for the taxpayers of New Mexico,” Whitesides said. “We are all making a very big investment together.”

While addressing the board, Whitesides noted the state is planning to spend about $200 million in constructing the spaceport and said Virgin Galactic is “investing somewhere on the order of $400 million to develop its spaceflight vehicles.” “These are nontrivial investments,” he said. “We take this project very seriously at all levels. And the relationship between our organization and the state and particularly the Spaceport Authority and staff is going to be of critical importance as we drive to successful commercial operations over the coming years.”

Whitesides, a former chief of staff for NASA, was hired last year as CEO for Virgin Galactic, considered the spaceport’s anchor tenant company. This year, he was named president, too.

Spaceport board Chairman Rick Holdridge of Deming said he invited Whitesides to the board’s meeting during a teleconference soon after Anderson was hired on Feb. 28, and, “to his credit, he made it happen.” Holdridge said he didn’t pick up any new message Tuesday. “I very much appreciated his commitment to this new board,” he said. “They’re reiterating the commitment Virgin Galactic has to New Mexico in the form of having operations out of New Mexico.”

Virgin Galactic has signed a 20-year agreement with the state, committing to launch suborbital spaceflights from Spaceport America in southeastern Sierra County. Whitesides said the company is “very encouraged with the progress of Spaceport America.”

Construction of the $209 million spaceport is about 70 to 80 percent complete, Chad Rabon, a spaceport staff member, told the board Tuesday.

Martinez didn’t waste time making spaceport leadership changes upon taking office Jan. 1. She called for the resignations of the previous board, appointed by Gov. Bill Richardson, and former Director Rick Homans. The board was reappointed in February, but the abruptness of the change and the fact the agency was without a director or deputy director had stirred concern among some spaceport advocates. Martinez confirmed that at one point, billionaire Richard Branson – who heads Virgin Group, the parent company of Virgin Galactic – called and asked her to retain Homans as director.

Holdridge said he met Whitesides once before, when he flew in for a visit with him and state Economic Development Secretary Jon Barela. That was not long after Holdridge was appointed to the chairman post.

Branson said during a visit to the spaceport last fall that the company was expecting to launch its first suborbital flights from Spaceport America between mid-summer of this year and spring of 2012.

Tuesday, Whitesides said the company’s flight test program is progressing, but “we still have a ways to go.” Virgin Galactic plans to use a two-vehicle system, comprised of a carrier plane and a rocket-powered spaceship, to carry passengers to suborbital space.

In all, the carrier plane, WhiteKnightTwo, has completed 49 flights, Whitesides told the spaceport board. The spaceship’s rocket motor is being developed, but glide testing, in which the vehicle is carried aloft and released, is continuing, he said. “We’ve got four glide tests of the spaceship successfully completed,” he said. “A fifth will be coming up soon.”

Holdridge said Whitesides flew to the Las Cruces airport Tuesday morning on a charter plane, and then left from El Paso on his way to London.

Anderson was present at Tuesday’s meeting but deferred most presentations to spaceport staff, saying she’s still catching up to speed on the spaceport project. All but one member of the spaceport board were present in person at the meeting, held at New Mexico State University’s main campus. Board member Scott Krahling, also a Dona Ana County commissioner, didn’t attend because a county commission meeting was held at the same time.

Diana M. Alba can be reached at (575) 541-5443.