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NEW MEXICO SPACEPORT AUTHORITY (NMSA

)
BOARD OF DIRECTORS SPECIAL MEETING
TUESDAY, JULY 1 10:00AM
NMSA OFFICES
901 E. UNIVERSITY AVENUE, STE. 965L
LAS CRUCES, NM 88001
The meeting was called to order by Rick Holdridge at 10:00am.
Roll Call: Quorum Confirmed
Rick Holdridge is present
David Buchholtz is present via telephone
J erry Stagner is present
Paul Deason is present
Laura Conniff is not present
Sid Gutierrez is present via telephone
Irvin Diamond is present via telephone
Lt J ohn Sanchez, represented by Vince Torres, is present via telephone
NMSA Staff: Christine Anderson, Aaron Prescott, Lou Gomez, Doreen Sieburg
Public: Phil San Filippo, Diana Alba
Approval of the Agenda: Director Paul Deason moved, seconded by Director J erry Stagner.
NMSA Update:
NMSA Executive Director Christine Anderson began by describing the NMSA service contracts.
NMSA is assuming direct control over many services from the existing General Services support
contractor to reduce expenses. Water services will be the first one. The contractor will provide
maintenance of the campus water infrastructure at Spaceport America. She said the RFP for
Water Services was released on May 21, and proposals were due on J une 11. The evaluators
were Anderson as well as NMSA staff members Bill Gutman and Chad Rabon. Advisors were
Chris Lopez from WBD. NMSA received one proposals and it was deemed responsive. The
maximum score possible was 1000 points, including 600 Technical points and 400 Cost points.
Anderson described Pure Operations, LLC of Las Cruces, NM as having a strong, responsive bid.
They received a score of 975 (Technical 575, Cost 400). The time and materials contract is
expected to cost ~$75k/year. She recommended that the board award the contract to Pure
Operations, LLC.
THESE DRAFT MINUTES ARE NOT THE OFFICIAL MINUTES AND
ARE SUBJECT TO APPROVAL BY THE NM SPACEPORT
AUTHORITY BOARD
Director Deason moved approval. Director Stagner seconded. No comments. Unanimous
approval.
Director Deason asked if the board was going to also give HVAC contract approval. Anderson
said this had been deferred to a future meeting.
Next, Anderson began to discuss the Visitor Center Financing. She reviewed how the agency has
spent a long time trying to figure out how to finance the development of the visitor experience
buildings. In 2012, NMSA sought a $20M New Mexico Finance Authority (NMFA) Loan, but it
was not accepted by NMFA. In 2013, NMSA released a RFP for a third party developer with
NMSA lease back, but that didn’t yield good results. In 2013, NMSA also sought a $20M Private
Loan, but the interest rate started escalating at the end of the process. Anderson said the agency
has now pared things down and are revisiting discussions with NMFA, seeking a $6.5M NMFA
Loan.
She said it will take approx. $6.5M to construct the Truth or Consequences Visitor Center;
including land purchase, construction, landscaping, construction and architectural administration,
archaeological mitigation as required. NMFA has proposed multiple sources of loan repayment,
including GRT Excess Pledged Revenue and Virgin Galactic Lease payments. Generally, NMFA
is more comfortable with the GRT Excess Pledged Revenue as a source of repayment. The
Spaceport America Regional Spaceport District Board approved use of GRT Excess Pledged
Revenue on J une 27, 2014. This was the first step, and now it is before the NMSA board for
approval. Anderson recommended the NMSA Board approve the resolution authorizing use of
GRT Excess Pledged Revenue and/or Virgin Galactic Lease payments to cover the loan debt
service.
Anderson thanked Director David Buchholtz on helping with the resolution, alongside NMSA
General Counsel Ryan Noble. The resolution directs staff to proceed with arrangements for
financing the Visitors Center, in compliance with the Spaceport Development Act and subject to
the authority of the State Board of Finance, and further authorizes staff to take such other action
as may be requested by the NMFA in connection with the financing.
Anderson explained that the Board will see this topic come back to it once NMSA has the loan
docs from NMFA for approval.
Chairman Rick Holdridge asked Anderson to review with everyone that the $6.5M for the
Visitor Center is not all that NMSA has spent on the visitor experience.
Anderson agreed and stated that NMSA has been working with its contractor Team IDEAS for
several years on the design of the visitor facilities and the content, displays, media and exhibits.
Holdridge thanked Anderson for the clarification and asked for further comments from the Board.
Director Buchholtz announced that he now works for the Rodey Law firm, and because NMSA
also contracts the Rodey firm, he felt a duty to clarify his circumstances. He stated for the record
he has no compensation from Rodey for helping with this resolution. He has committed as a
board member without compensation to assist in the matter, since it is in his expertise. NMSA
will be represented by in-house counsel, Ryan Noble, not by Director Buchholtz. Director
Buchholtz didn’t think this was necessary to seek outside counsel.
Director Buchholtz stated again that he worked this resolution with Mr. Noble, and that it will
not be the final action by this board. This resolution does not commit NMSA to any financing,
but signals permission to staff to explore this financing with NMFA. It allows NMFA to consider
using Excess Pledged Revenues and Virgin Galactic lease revenue to cover debt service. Staff
will need to come back to this board with the details of the financing. It will be, of course,
subject to NMFA and State Board of Finance approvals as well.
Chair Holdridge thanked Director Buchholtz for helping Mr. Noble on this resolution.
Director Deason moved approval of Resolution 2014-002. Director Stagner seconded.
Director Deason asked about Section 5 of the resolution, which declares that all prior acts in
conflict with the resolution were thereby repealed. He wanted to know if there were any acts
NMSA knew of that were in conflict with the resolution.
Anderson replied no, NMSA was not aware of anything.
Director Buchholtz answered no, it was part of the resolution boilerplate. He was also not aware
of any acts in conflict.
The vote was unanimous in favor.
Public Comment: No public comment.
Director Stagner moved to adjourn the meeting. Director Deason seconded. Unanimous approval.
Meeting adjourned at 10:19am
Approved:
______________________________ _________________________
Chairman Date