Underground truth

“Where the best local secrets unfold in your very hands.”

+=+=+=+=+=+=+=+=+= JUNE 12, 2010

+=+=+=(575) 952-0162
Where’s the Pork? by Brad Grower

Chad Rabon of the New Mexico Spaceport Authority made a stunning

revelation to the assembled crowd at this week’s Sierra County
Spaceport Community Council Meeting on Wednesday, June 9, 2010.
The current number of Sierra County and Dona Ana County residents
employed at the site numbers less than 150… and that number will
most likely drop to less than 100 within the next year.

Contrary to the promise of vast employment opportunities offered in

order to promote the passage of bond levies in both counties, the
majority of contracts and the good paying jobs that go with them, have
been awarded to outside agencies and workers, translating into little
economic growth for either community.

When Secretary Rick Homans was asked whether any of the $200,000
plus dollars paid for a ticket into space on Virgin Galactic might be
subject to Sierra County or Dona Ana County’s General Revenue Tax,
the chief revenue collection agent in the state, and current director of
the Spaceport Authority, candidly admitted to the audience that he did
not know.

Luckily, T or C City Commissioner Steve Green was present, and able

to explain that the previous director of Spaceport America, Steve
Landeene, had determined that revenue from these pricey tickets
would be protected by specific state legislation written to shield the
space industry from local taxation.

It’s anybody’s guess whether there will actually be any long term
financial benefit for either Sierra County or Dona Ana County. With no
flights scheduled for more than two years, and with dwindling job
opportunities, water shortages at the job site, and a state budget
crunch, there is very little financial wiggle room. In fact, Secretary
Homans refused to offer a starting date for the paving of the southern
entry to Spaceport America from Hatch, when questioned by an
elected representative on the Sierra County Spaceport Community
Council.
Direct all questions, comments, or suggestions about the New Mexico
Spaceport Authority to Secretary Rick Homans at (505) 827-0341
T or c COMMIssioners say: No Pavement is good idea
by Brad Grower

Even after City Manager Dave Weiser was informed that the actual
loan agreement with the New Mexico Finance Authority authorizing the
City of Truth or Consequences to borrow more than $2 million from the
state, specifically requires using that money to pave the streets,
current plans of the city commission are to squander that money on
chip seal, a temporary top-coating process.

A representative of Sutin Thayer & Browne, the legal office responsible

for the language in the loan agreement, confirmed this week that the
“reasonably expected economic life of the Project which is at least
twenty (20) years (determined in accordance with Rev. Proc. 87-56),”
requires that the funds provided for this project must be spent on
materials which will last 20 years. Repayment of the loan is expected
to take 13 years, while chip seal only lasts 6 years at best.

The inclusion of factually inaccurate material in the Arbitrage and Tax

Certificate section of the loan application signed by City Attorney Jaime
Rubin and Mayor Lori Montgomery also raises other questions about
the honesty of the entire process of obtaining this money.

The claim that “There is no threatened action, suit, proceeding, inquiry

or investigation against the Governmental Unit (City of Truth or
Consequences)…” as of October 13, 2009, directly contradicts Mr.
Rubin’s publicly stated comments at commission meetings during that
month which clearly indicated that there were several suits currently
pending, or in litigation.

The claim that no “member of the Governing Body… is interested,

directly or indirectly in the profits of any contract, or job for work, or
services to be performed…” fails to take into account the relationship
between the city commissioner and the only contractor who provides
paving products to the City of Truth or Consequences.

Commissioner Evelyn Renfro has a direct interest in the profits of any

contract with Bartoo Sand & Gravel due to her blood relationship with
the owners of that company. Her suggestion to use a process which
will not even last as long as the repayment of the loan is suspect, as it
guarantees that future paving efforts at the expense of taxpayers will
be necessary, and does no “repairing and improving.”
You can contact City Manager Dave Weiser at (575) 894-6676