A lucrative rocket factory has moved closer to being a reality for Sandoval County.
County commissioners Wednesday approved a bond issue that could clear the way for the creation of hundreds of high-paying jobs in the Rio Rancho area.
Before approval, State Sen. Jay Block called the industrial revenue bonds “probably one of the most important IRBs in our county’s history.”
Block said Castelion Corporation’s hypersonic rocket manufacturing and testing site, if built in Sandoval County, would bring in at least 300 new jobs, with an average annual salary of more than $100,000. The plant would also be a $100 million investment by the El Segundo, California-based military contractor, and have a New Mexico economic impact of more than $660 million within a decade.
Block said once the plant is built and reaches its full production capacity, “we are looking at another 300 to 500 positions on the site over the next 10 years.”
He said that while some have raised safety concerns, Castelion will be bound by stringent state, federal and Defense Department regulations to maintain certification.
“I think this is going to help Rio Rancho, New Mexico, become, hopefully, maybe the next Huntsville, Alabama,” Block said, referencing that city’s extensive aerospace and military technology presence.
Industrial revenue bonds provide some tax breaks to offset the startup costs of a project. The developer is responsible for paying back the debt, and the government issuing the bonds takes on no obligation.
County financial advisor Rob Burpo said the county’s role is based on holding title to the equipment and the land, allowing for the tax exemptions to be passed on to the company.
Burpo said the company will get property tax exemptions, will be paying gross receipts tax on any purchases, and employees will pay various taxes.
Castelion will also make payments in lieu of taxes (PILOT) to the county, Burpo said.
“This project will end up generating about $26,600 in PILOT every year for the next 30 years,” he said. “But it’s all the other revenues that it’s going to bring that makes this such an attractive transaction. They will be making lease payments to the county on the portion of the land that the county owns, and they will be making two different lease payments on the land that’s owned by the State Land Office.”
Burpo said all the necessary reviews have been done, and that given the remote location of the site — 29th Avenue, near its intersection with Encino Road — there are no neighborhood associations that had to be notified.
In response to a question from Commission Chair Michael Meek, he said the next major step in the process will be Friday, when lease agreements with the State Land Office are finalized.
Commissioner Joshua Jones asked about noise. Burpo said he’s been told by company officials that there might be tests from time to time, but the plant will largely be devoted to engineering and similar functions, with rockets being taken to White Sands Missile Range.
“Nothing’s going up in the air from this site,” he said.
