Colorado Air and Space Port Spaceport Competitive Assessment
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Colorado Air and Space Port Spaceport Competitive Assessment August 24, 2020 1 Overview Task Description Definitions Spaceport Property Area Comparison Competitive Assessment of Peer Spaceports • Incentives • Capabilities Case Study Spaceports Potential Areas of Differentiation for CASP Subarea Plan 2 Task Description Provide a competitive analysis of how CASP is likely to compare to other spaceports with associated enterprise parks Characterize the types of unique incentives (financing, training, tax credits, etc.) employed by other spaceports to attract tenants Characterize the capabilities (access to specific orbits, types of testing facilities, local workforce expertise, etc.) in use or proposed at several of these enterprise parks Suggest potential areas of differentiation for the subarea plan adjacent to the Colorado Spaceport This assessment will help Adams County effectively position itself within the emerging commercial spaceport marketplace 3 Definitions Peer spaceport • Air and space port ‒ Active operations supporting Concept X, Y, and Z suborbital horizontal take off and/or landing (HTHL) ‒ Inactive, but planned or proposed as a spaceport supporting Concept X, Y, and Z HTHL • Features an existing or planned enterprise/industrial park • Inland location (20 miles or more from coast) Case study spaceport: Not a peer spaceport, but features capabilities and/or incentives considered of potential interest to CASP 4 CASP Competitive Analysis Peer Spaceports – Overview Evaluated peer spaceports in 6 incentive categories • Economic development partnerships • Informed consent* • Job training and education programs • Availability of tax credits, exemptions, and deductions • Availability of grants • Access to state and/or local funding (bonds, etc.) Evaluated peer spaceports in 7 capability categories • Enterprise park • Agreements/partnerships with space vehicle developers • Existing infrastructure • Tourism potential • Proximity to technical workforce • Geographic accessibility • Congestion of airspace * Under Section 50905 of Title 51 of the USC and part 460 of Title 14 of the CFR an operator must inform each crew member in writing that: “The U.S. Government has not certified the launch vehicle and any reentry vehicle as safe for carrying flight crew or space flight participants.” States may then require, by law, that providers inform the spaceflight participant that there is limited civil liability for bodily injury sustained as a result of the inherent risks associated with spaceflight. This would limit liability of a spaceflight entity 5 that complies with the provisions of the law. Peer spaceports Case study spaceports Number of missions flown to space 6 12 from peer spaceports to date Spaceport Property Area Comparison All Diagrams to Scale 7 Spaceport Property Area Comparison Overview Maps are to scale Colorado Air and Space Port Cape Canaveral Spaceport Houston Spaceport Oklahoma Air and Space Port (Launch and Landing Facility) Cecil Spaceport Mojave Air and Space Port Midland International Air Spaceport America 8 and Space Port Spaceport Property Area Comparison Colorado Air and Space Port Existing/Proposed Industrial Park Denver 25 miles Colorado Springs/USAF Academy/Peterson AFB 68 miles 1 mile 9 Spaceport Property Area Comparison Mojave Air and Space Port Existing/Proposed Industrial Park Vandenberg AFB 144 miles Los Angeles/NASA Jet Propulsion Laboratory 76 miles 1 mile 10 Spaceport Property Area Comparison Houston Spaceport Existing/Proposed Industrial Park Gulf Coast 33 miles NASA Johnson Space Center 7 miles 1 mile 11 Spaceport Property Area Comparison Cecil Spaceport Existing/Proposed Industrial Park Atlantic Coast 31 miles 1 mile 12 Spaceport Property Area Comparison Albuquerque 138 miles Spaceport America Existing/Proposed Industrial Park Full extent of spaceport property El Paso Las Cruces 91 miles 48 miles 1 mile 13 Spaceport Property Area Comparison Midland International Air and Space Port Existing/Proposed Industrial Park El Paso Dallas-Fort Worth 256 miles 306 miles 1 mile 14 Spaceport Property Area Comparison Oklahoma Air and Space Port Existing/Proposed Industrial Park Due to lack of published materials, these undeveloped areas are assumed to be the most likely for tenants Amarillo Oklahoma City 150 miles 94 miles 1 mile 15 Spaceport Property Full extent of spaceport property, which encompasses Area Comparison KSC and CCAFS Cape Canaveral Spaceport Launch and Landing Existing/Proposed Facility (LLF) Industrial Park Orlando Atlantic Coast 44 miles 6 miles Space Florida Exploration Park 7 miles 1 mile 16 Peer Spaceports Competitive Assessment of Incentives 17 Competitive Assessment of Incentives Peer Spaceports – Incentives Snapshot State and Local Incentives 2019 State Relative Aerospace State- Job Training Access to Competitive Availability Availability Availability Magnitude Peer Spaceport Manufacturing Level Informed and Availability State/ Ranking of Tax of Tax of Tax of State/ Attractiveness Space Consent Education of Grants Local Credits Exemptions Deductions Local Rating Authority Programs Funding Funding* Colorado Air and Space Port, 14 CO X ✔ ✔ ✔ ✔ X ✔ ✔ $ Spaceport 1 America, NM 41 ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ $$ Cecil Spaceport, ** 2 FL 22 ✔ ✔ ✔ ✔ ✔ X ✔ ✔ $$$ Oklahoma Air 3 and Space Port, 30 OK ✔ ✔ ✔ ✔ ✔ X X ✔ $ Houston 4 Spaceport, TX 12 X ✔ ✔ ✔ X X ✔ ✔ $$ Midland International Air 4 and Space Port, 12 X ✔ ✔ ✔ X X ✔ ✔ $$ TX Mojave Air and 6 Space Port, CA 3 X ✔ ✔ X ✔ X ! ! $$ ** Note that the magnitude represented is for the State of Florida, not the amount dedicated to Cecil Spaceport only ✔ Incentive in place ! Minimal incentives X Incentive not in place Source for 2019 state aerospace manufacturing 18 attractiveness rating: PWC 2018 Aerospace * $$$ - billion+ per year, $$ - millions per year, $ - hundreds of thousands or less per year Manufacturing Attractiveness Rankings. Competitive Assessment of Incentives Spaceport America – Incentives Space authority – Spaceport authority administratively attached to State-Level Space the Economic Development Department (EDD) Authority ✔ • Overall $220M in spaceport construction Informed Consent ✔ ‒ Partially funded by 0.25% gross receipts tax in neighboring counties ‒ Totaled $43.8M in 2017 and expected to pay off another $74.2M in bonds Job Training and through 2029 Education ✔ Programs ‒ Spaceport lease with Virgin Galactic – company expected to repay construction cost over 20-year period per reported lease provisions Availability of Tax • New Mexico government annually budgets $10+M for the Spaceport Credits ✔ Authority Availability of Tax Exemptions ✔ Informed consent – signed into law in April 2013 Availability of Tax Job training and education programs Deductions ✔ • Job Training Incentive Program (JTIP) – Reimburses 50-75% of Availability of employee wages during training for up to 6 months. Actual cost varies Grants ✔ by company Access to Federal, • Local Economic Development Act (LEDA) – Varies based on amount State, and Local ✔ privately invested. In 2020 public-provided amount was $500,000 Funding matching $2.5M Relative Magnitude of State/Local $$ Funding* * $$$ - billion+ per year, $$ - millions per year, $ - hundreds of thousands or less per year 19 Competitive Assessment of Incentives Spaceport America – Incentives Availability of tax credits, exemptions, and deductions • High Wage Jobs Tax Credit – 8.5% of wages and benefits up to $12,750/job • Manufacturing Investment Tax Credit – 5.125% against gross receipts for the value of equipment, capped by ratio of employees to amount claimed • Military Acquisition Program Tax Deduction – “Receipts from transformational acquisition programs performing research and development, testing, and evaluation at New Mexico major range and test facility bases pursuant to contracts entered into with the U. S. Department of Defense may be deducted from gross receipts.” • Technology Jobs and Research & Development Tax Credit ‒ 10% against the taxpayer’s compensating tax, withholding tax or gross receipts tax, excluding local option gross receipts tax (5% in urban areas) ‒ 10% against the taxpayer’s income tax or corporate income tax liability (5% in urban areas) Availability of grants and federal, state, and local funding • Small business innovation research matching grants ‒ Phase 1 capped at $25,000 ‒ Phase 2 capped at $100,000 • Access to state and/or local funding (bonds, etc.) – Industrial Revenue Bonds (IRB) • Federal incentives – Spaceport America has used U.S. Department of Urban Housing and Development Opportunity Zones 20 Competitive Assessment of Incentives Cecil Spaceport – Incentives Space Florida is the state’s space authority (received $18.5M in State-Level Space latest budget). Local authority is Jacksonville Airport Authority Authority ✔ Informed consent – law became effective in October 2008 Informed Consent ✔ Job training and education programs – Training funds are provided Job Training and through Workforce Florida Education ✔ Programs Availability of tax credits, exemptions, and deductions Availability of Tax • Provides tax credits to attract launch, payload, research and Credits ✔ development, and other space business to Florida. To qualify, Availability of Tax businesses must have created 35 new jobs in Florida and invest at least Exemptions ✔ $15M in Florida on a spaceflight project in the three previous taxable years Availability of Tax Deductions X • 25% of sales tax exemption on machinery and equipment for space technology products and research Availability of Grants ✔ • 100%