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Wednesday, February 15, 2006

U.K. Space Company Pulling Out of Cruces


Associated Press
      LAS CRUCES — The first commercial space company to come to Las Cruces after the state's much-publicized push for a spaceport nearby is pulling out of a deal with the city for land.
    Starchaser Industries on Monday ended talks about building a rocket-assembly plant on 17.5 acres in an industrial park after a dispute over access to company financial information and business plan.
    Starchaser said it still wants to locate in New Mexico and launch from the proposed Southwest Regional Spaceport near Upham, 45 miles northeast of Las Cruces. The company could look at Hatch or Truth or Consequences.
    Starchaser official Richard Kestner said Tuesday officials were disappointed with city procedures.
    "They've got a pretty hefty bureaucratic administrative process there,'' he said.
    Earlier this month, city officials asked Starchaser for financial information and a business plan, information required by state law before public land can be donated to a private company for economic development.
    Kestner had told city officials he thought he could have the information by last Friday. That day, however, he said it was not available in the company's Las Cruces office and would have to come from its headquarters in Great Britain.
    On Monday, Starchaser notified the city it was no longer interested in the land.
    Kestner contended Starchaser gave the city financial information last November and wasn't willing to again.
    "Why would we give them information again that they've already lost?'' he said.
    City Manager Terrence Moore said Starchaser never turned over the documents, and questioned why Kestner said earlier it would provide the information if that was an issue.
    "I'm extremely disappointed that they felt the inclination to not demonstrate their ability to have a sound business plan and be solvent,'' Moore said. "...This is information that any company, large or small, would typically have available.''
    Starchaser opened a Las Cruces office over the summer to begin an educational outreach service. Its agreement with the city would have required it to create 30 new jobs over five years, with salaries at least 20 percent above the average for Dona Ana County.
    Starchaser, which announced plans for the industrial park in July, also is in discussions with a private landowner to buy five acres near the Hatch exit off Interstate 25 for a separate astronaut training facility.
    Hatch Mayor Judd Nordyke said Starchaser approached him months ago about locating its rocket facility there, but Hatch's industrial park didn't have what the company wanted.

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