Agreements Signed Today in Truth or Consequences Among New Mexico Spaceport Authority, State Land Office, Sierra County and Two Ranch Owners
TRUTH OR CONSEQUENCES -- The New Mexico Spaceport Authority has secured long term access to 18,000 acres for Spaceport America by signing legal agreements with the State Land Office, Sierra County, and two private ranch operations, announced Rick Homans, Chairman of the NM Spaceport Authority and the state’s Secretary of Economic Development.
“The agreements, taken together, provide the ranchers and the State Land Office fair compensation for the land, and they make it possible for us to proceed with planning for Spaceport America,” Homans said. “The agreements also protect the ranching heritage of this beautiful valley, and prohibit any further mineral exploration, road development or commercial development that could impair the state’s ability to operate a commercial spaceport.”
“We are very happy to be accommodating the Spaceport and to ensure that ranching operations continue in this valley for many generations to come,” said Commissioner Patrick Lyons. “We view this lease as a partnership that puts us on the ground floor of an exciting new industry for our state.”
“Sierra County is proud to be the home to the world’s first, purpose-built, commercial spaceport in the world that will provide jobs and opportunities for future generations,” said Russ Peterson, chairman of the Sierra County Commission.
Homans credited Lyons, Peterson, and the ranchers, including Ben and Jane Cain, and Phil and Judy Wallin, for their willingness to persevere in the challenging negotiations.
“These agreements are critical to our ability to build Spaceport America, and to build a new industry in New Mexico,” said Lonnie Sumpter, Executive Director of the NM Spaceport Authority. “They reflect an extraordinary partnership between the State Land Office, Sierra County and the ranching families who have lived and worked in this valley for many, many years.”
There are three basic agreements, and each is outlined below:
Joint Powers Agreement between the NM Spaceport Authority and Sierra County.
The Spaceport Authority has entered into a Joint Powers Agreement with Sierra County for the County to be a named “lessee,” and for the Spaceport Authority to be the "managing lessee" under the business lease with the State Land Office. The Spaceport Authority entered into this agreement out of respect for Sierra County, and to achieve certain rights in the lease relationship only available to county governments.
Agreement to Co-Exist Between NM Spaceport Authority and Two Ranch Owners
These are separate, but identical, agreements with two ranches, the Bar Cross Ranch, Inc. and the Lewis Cain Ranch, Inc., owned, respectively, by Ben and Jane Cain, and Phil and Judy Wallin.
The basic terms of the agreements are as follows:
- the ranchers will support the State Land Office to issue a separate business lease on 18,000 acres to the Spaceport that will overlay the ranchers' agricultural lease, meaning the ranching and spaceport operations will co-exist;
- the ranchers will be consulted during the design, construction and operation of the spaceport, especially in regards to issues directly affecting ranching operations, such as fencing, roads and water use;
- if, anytime after 12 years, it is determined that the spaceport operations have damaged the ability of the ranchers to operate so that the ranches are no longer economically viable, the ranchers can require the Spaceport Authority to purchase the ranches at a price based on the ranches' full value as working ranches;
- the NM Spaceport Authority will pay to each ranch family the following combination of payments: (1) an upfront fee, $637,500, to compensate each rancher for actual impacts to their ranches, (2) an annual fee, $75,000, that will compensate each ranch owner for evacuating their properties when necessary, (3) an annual fee, $12,500, to compensate the ranchers for ongoing impacts to their ranching operations, (4) a Reconstruction or Modification Fund, $750,000, that may be used to pay for actual relocation of structures, if necessary, including cattle pens, watering facilities, and other structures;
- the term of the agreement will be 25 years, and then it can be renewed for subsequent five year intervals.
The Spaceport Authority has also agreed to create a permanent, standing memorial to commemorate the Cain and Wallin family history and ranching heritage in the valley.
The agreement will provide the Spaceport Authority with virtually complete control and unimpeded access to and use of the spaceport area, for design, planning, construction and operation for decades to come.
Agreement for NM Spaceport Authority to Lease 18,000 Acres from State Land Office
Commissioner Patrick Lyons established early in the negotiation process that the NM Spaceport Authority had to reach agreement with the ranchers before he would enter into a separate, but overlaid, business lease for Spaceport America.
The lease contains the following key elements:
- 25 year lease, with option to renew for successive 25 year terms;
- access to 18,000 acres;
- base rent of $25,000/year, adjusted upwards by three percent each year, converting to a negotiated percentage rent after 15 years;
- deferral by the State Land Office, for payment of $1,000/year, of rights during the term of the lease to develop mineral rights or to construct roads or grant other easements that might impair the operation of the spaceport.
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