The meeting was called to order by Chairwoman Kelly O’Donnell at 10:00am. Roll call was taken with eight members present. Officials and guests present included: Steve Landeene, NMSA, Lou Gomez, NMSA, Mary Ann Myers, NMSA, Belinda Lucero, NMSA, Mike Holston, Procurement Solutions, Jim Hayhoe, Village of Hatch, Mayor Judd Nordyke, Village of Hatch, Luci Woodard, DMJM, Kent Evans, DA County, Jerry Larson, UP Aerospace, Steve Matier, Procurement Solutions, Cindy Cordova, EDD, Donnie Quintana, EDD and Steve Traver.

Authority Members Present:
Kelly O’Donnell, Chairwoman
Ben Woods
William Loomis
Richard Holdridge
Brent Westmoreland
Toots Green
Jerry Hanks – Designee
Jim Manatt

Donnie Quintana with the NM Economic Development Department presented on the Village of Hatch becoming a New Mexico certified economic development community.

Mayor Judd Nordyke commented on becoming certified and on the development of a brochure which includes highlights of the Village of Hatch and Spaceport America, information on destinations in Sierra County, Luna County, Otero County and Las Cruces.

Motion: Ben Woods moved to approve the agenda. Toots Green seconded the motion. Motion carried.

Motion: Jim Manatt moved to approve the minutes from the December 6, 2007 meeting. Brent Westmoreland seconded the motion. Motion carried.

Motion: Toots Green moved to approve the 2008 Open Meetings Resolution. William Loomis seconded the motion. Motion carried.

Legislative Issues:
Chairwoman Kelly O’Donnell gave an update on the legislative session. She advised that SB99 carried by Senator Lee Rawson which protects from the Public Inspection Act, those documents with information such as trade secrets, and business plans. She also stated that HB386 carried by Representative Andy Nunez changes the name from Southwest Regional Spaceport to Spaceport America.

She continued with an update on the FY09 Budget recommendation stating that the original request was $1.4 million, the executive recommendation was $825.7 and the legislative recommendation being $663.1 to include two new FTE’s. Discussion followed on the funding that is needed for marketing purposes to diversify clients utilizing the spaceport. Chairwoman O’Donnell discussed the funding for the XPrize Cup event and the expectation that it become self sustaining which it has not. She advised that they have requested additional funding and that the legislature included an appropriation of $500, 000 for the event contingent on the passing of the spaceport tax by another local government in addition to Dona Ana County and that a third local government has passed a resolution to seek a spaceport district tax and schedule the election before December 2008. The Chair will take steps to have the contingency language altered or eliminated.

Spaceport America Project Update:
Steve Landeene shared a draft of the Spaceport America Vision, which emphasizes dedication to enhancing customer/partner experience. Mr. Landeene also reviewed Spaceport America’s objectives which included:

1. Foster economic and community development through spaceport related activities
2. Develop a World Class Enterprise
3. Instill organizational flexibility to accommodate customer needs safely
4. Symbiotic relationship with the El Camino Real Trail
5. Environmental leadership

1. Horizontal launch
2. Vertical launch
3. Community/News/Fundraising
4. Education
5. Tourism
6. Entertainment
7. Testing/R&D
8. Training

1. Virgin Galactic MOU
2. DMJM infrastructure design progress
3. Dona Ana gross receipts tax vote
4. Successful UP Aerospace launches
5. Engagement of Tetra Tech on the EIS
6. Collaboration with stakeholder agencies (SAPDAC & CAC creation)
7. Award to URS/Fosters for THF design

1. Creation of Spaceport District
2. Completion of EIS & ROD
3. FAA Site License
4. Additional UP Aerospace launches
5. Diversification of customer base and partnership agreements
6. Signed agreements with Virgin Galactic
7. Finalize design, prepare bid packages, initiate contractor selection
8. Spaceport America ground-breaking
9. Assist in attracting businesses to NM

Discussion followed on the importance of understanding the value of supporting a Spaceport America sales tax and how the spaceport tax district must be formed by December 31, 2008 in order to collect the gross receipts tax.

Mr. Landeene reviewed project activities for December and January including the Virgin Galactic Agreement, Personal Spaceflight Federation meeting, unveiling of the VG spacecraft, THF design meetings, FAA-AST meetings, and SAPDAC meeting.

Mr. Landeene reported that a draft EIS is now in development and will be reviewed by the Cooperating Agencies. He stated that the current schedule indicates a ROD date of January 1, 2009.

Mr. Landeene briefly reviewed the site design status stating that the design phase is nearing completion. He stated that the well rate is currently at 60 gallons per minute and that the offsite power lines have been reduced from two lines to one to reduce EIS impact and costs. Fencing issues are currently under review. He went on to discuss the scheduling, stating that construction documents are underway and moving forward will depend on the EIS and ROD.

Mr. Landeene gave a cost update stating that the budget is on track.

Mr. Landeene stated that some issues under review with the THF design are space requirements for Virgin Galactic needs, construction methodologies and materials and reconciliation of requirements against budget limitations.

Mr. Landeene stated that all outstanding issues with Virgin Galactic were addressed with potential solutions discussed at a negotiation session held on January 16th. Key issues identified were:

1. Base finishes
2. VG role in construction process
3. Key dates
4. Respective rights of termination
5. Fees and insurance

He stated that the agreements should be signed by March 2008.

Mr. Landeene commented on the Virgin Galactic events held in New York on January 21st and 22nd in which VG unveiled the WhiteKnightTwo and SpaceshipTwo.

Mr. Landeene briefly reviewed upcoming project milestones.

Discussion followed on the economic benefit analysis which was an action item from the last meeting after discussing NMSA’s role in the Sierra County tax. Potential resources would be Sierra Economic Development or NMSU Arrowhead Center or a contract. Chairwoman Kelly O’Donnell advised that the model that Economic Development Department has can be available in one day.

2008 NMSA Meeting Schedule:
The 2008 meetings will be scheduled every six weeks, with the next meeting on March 13th in Elephant Butte.

Public Comment:
Jim Hayhoe advised that funding has been approved for an intern for NMSA for this summer. He also announced that ISPS 2008 is scheduled for October 22nd and 23rd. Mr. Hayhoe announced that the Hatch Museum will be used as the interim welcome center and that they are in the process of applying for funding from Economic Development. He also discussed potential locations for the Hatch Welcome Center.

Discussion followed on applying for a federal appropriation of funds which are tied to infrastructure during this budget cycle.

William Loomis stated that the Work Force Development Board is applying for a $2 million federal grant to the Science Technology, Engineering and Mathematics workforce system initiative for the State of New Mexico and would like a letter of commitment from the NMSA. He circulated the letter to Board Members for review at the next NMSA meeting. He also announced that People for Aerospace are welcoming any new members to the group.

Motion: William Loomis moved to adjourn the meeting. Brent Westmoreland seconded the motion. Motion carried.

Meeting adjourned at 12:20pm.

Approved: ______________________ Date: ____________________                    Kelly O'Donnell, Chairman