Colorado Air and Space Port Competitive Assessment

August 24, 2020

1 Overview

Task Description

Definitions

Spaceport Property Area Comparison

Competitive Assessment of Peer • 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 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 ✔ Incentive in place ! Minimal incentives X Incentive not in place Florida, not the amount dedicated to Cecil Spaceport only 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% tax exemption for rockets, satellites, payloads, space-related components, and rocket and satellite fuel Access to Federal, State, and Local ✔ • Florida offers an exemption from its 6% sales tax on real estate rents Funding for “spaceflight businesses” Relative Magnitude of State/Local $$$ Funding*

* $$$ - billion+ per year, $$ - millions per year, $ - hundreds of thousands or less per year. Note that the magnitude represented is for the State of Florida, not the amount dedicated to Cecil Spaceport only 21

Competitive Assessment of Incentives Cecil Spaceport – Incentives

Availability of grants and federal, state, and local funding • High Impact Industry Grants of $1-12M for new or expanding space-related manufacturers or R&D companies, based on new jobs and investment • Space Florida has bond authority and may own, acquire, construct, reconstruct, equip, and operate utility services • 2020: $1.8M Operations Center and $7M ATC tower. Costs covered by FDOT, FAA, and Space Florida (breakdown not published) • Strategic planning based on 2012 Master Plan: ‒ Near-term (2012-2016): $23M for roads, utilities, and “operator sites” ‒ Mid-term (2017-2021): $18M for Taxiways B and E ‒ Long-term (2022-2031): $49M for visitor center and runway reconstruction

22 Competitive Assessment of Incentives Oklahoma Air and Space Port – Incentives

State-level spaceport authority: Oklahoma Space Industry State-Level Space Development Agency with annual budget of about $300,000 and Authority ✔ $1.3M budget with “revolving” funding source Informed Consent ✔ Informed consent: Certain manufacturers and suppliers of components, services, or vehicles are not generally liable for Job Training and Education ✔ participant injury provided that the participant has been informed Programs of the risks of spaceflight activity Availability of Tax ✔ Job training and education programs – No-cost or low-cost Credits customized employee training Availability of Tax Exemptions ✔

Availability of tax credits, exemptions, and deductions Availability of Tax • Not been used to date Deductions X • Five-year ad valorem tax exemption Availability of • Sales of tangible personal property or services to any spaceport user Grants X • Purchase or lease of machinery and equipment used at a fixed location Access to Federal, in Oklahoma exclusively in the development of any space system State, and Local ✔ Funding • Sale, lease, use, storage, consumption, or distribution of spacecraft and launch vehicles in Oklahoma Relative Magnitude of State/Local $ • American Indian Land tax credits Funding*

Availability of grants and federal, state, and local funding * $$$ - billion+ per year, $$ - millions per year, $ - • OSIDA has bonding authority hundreds of thousands or less per year 23 • Availability of grants appears limited to non-existent Competitive Assessment of Incentives Houston Spaceport – Incentives

No state-level space industry or spaceport authority. Local authority State-Level Space is Houston Airport Authority Authority X Informed consent – legislation passed in 2011 Informed Consent ✔ Job training and education programs Job Training and • Governor’s University Research Initiative - though not specific to space Education ✔ activity, aimed at helping state public institutions of higher education Programs recruit researchers from around the world Availability of Tax Credits ✔ • Skills Development Fund – Assist Texas community and technical colleges with financing for customized job training Availability of Tax Exemptions X Availability of tax credits, exemptions, and deductions Availability of Tax • Manufacturing exemptions – State sales and use tax exemptions for Deductions X tangible property, natural gas, and electricity Availability of • Texas Enterprise Zone program – State sales and use tax refunds Grants ✔ Availability of grants and federal, state, and local funding Access to Federal, State, and Local ✔ • Spaceport Trust Fund, which provides grants to assist spaceport Funding development corporations with establishment of infrastructure needed to operate a launch facility, including job creation, capital investment, Relative Magnitude and building a pipeline of potential future hires of State/Local $$ Funding*

* $$$ - billion+ per year, $$ - millions per year, $ - hundreds of thousands or less per year 24 Competitive Assessment of Incentives Houston Spaceport – Incentives

Availability of grants and federal, state, and local funding (con’t) • Spaceport Trust Fund (STF) • Houston Airport System Airport Improvement Fund and Capital Improvement Program (CIP) ‒ Total investment as of 2019: $40.75M $12.4M ATC tower $6.8M Houston Area Safety Council (HASC) $18.5M Phase 1 (streets, water, wastewater, electrical power distribution facilities, and communications facilities necessary to attract future development) $3.75M to cover increased expenses under Phase 1 • Federal grants: $4M ‒ $3.1M, tower from TX Military Preparedness Commission ‒ $1M Phase 1 infrastructure from the U.S. Department of Commerce, Economic Development Administration

25 Competitive Assessment of Incentives Midland International Air and Space Port – Incentives

No state-level space industry or spaceport authority State-Level Space Authority X Informed consent – legislation passed in 2011 Informed Consent ✔ Job training and education programs • Governor’s University Research Initiative - though not specific to space Job Training and activity, aimed at helping state public institutions of higher education Education ✔ recruit researchers from around the world Programs • Skills Development Fund – Assist Texas community and technical Availability of Tax colleges with financing for customized job training Credits ✔ Availability of Tax Availability of tax credits, exemptions, and deductions Exemptions X • Manufacturing Exemptions – State sales and use tax exemptions for Availability of Tax tangible property, natural gas and electricity Deductions X • Texas Enterprise Zone Program – state sales and use tax refunds Availability of Grants ✔ Availability of grants – Spaceport Trust Fund, which provides grants to assist spaceport development corporations with job creation, Access to Federal, State, and Local ✔ capital investment, and building a pipeline of potential future hires Funding Availability of grants and federal, state, and local funding Relative Magnitude • Texas Enterprise Fund used to attract new business to the state or assist of State/Local $$ with substantial expansion of an existing business to enhance the Funding* competitive position of the state * $$$ - billion+ per year, $$ - millions per year, $ - • Airport Operations Fund – In 2018, city council approved spending of hundreds of thousands or less per year $100,000 on spaceport 26 Competitive Assessment of Incentives Mojave Air and Space Port – Incentives

State-level space authority State-Level Space • No state-level space industry or spaceport authority Authority X • California Space Authority was dissolved in 2011 due to lack of funding Informed Consent ✔ Informed consent – In 2012, California passed limited liability Job Training and legislation for commercial spaceflight operations (AB 2243) Education ✔ Programs Job training and education programs Availability of Tax • California’s Employment Training Panel (ETP) provides funding to Credits X employers to assist in skills training to employees Availability of Tax • Space start-up companies largely fueled airport growth. Mojave strategy Exemptions ✔ relies on a broader industry base to drive grow and reduce revenue risk Availability of Tax Availability of tax credits, exemptions, and deductions Deductions X • Tax exemption on gross receipts from the sale of, and the storage, use, Availability of or other consumption of qualified property for use in spaceflight Grants ! • Qualified spaceflight property exempted from property taxes Access to Federal, State, and Local ! Funding Relative Magnitude of State/Local $$ Funding*

* $$$ - billion+ per year, $$ - millions per year, $ - hundreds of thousands or less per year 27 Competitive Assessment of Incentives Mojave Air and Space Port – Incentives

Availability of grants and federal, state, and local funding • No state grants identified • FAA Airport Improvement Program (AIP) ‒ 2019: FAA issued $8M grant for capital improvement (Taxiway C) ‒ 2018: FAA issued $1.36M grant (with 5% matching grant from California Department of Transportation) for 900-foot runway extension • FAA Space Transportation Infrastructure Matching (STIM) grants (50/50) ‒ 2012: $23,750 to the East Kern Airport District for “development and expansion of commercial space transportation infrastructure” • 2019: $2,000,672 for perimeter road improvement project (bond)

28 Peer Spaceports Competitive Assessment of Capabilities

29 Competitive Assessment of Capabilities Peer Spaceports – Capabilities Snapshot

Agreements/ Proximity to Competitive Runway Enterprise Existing Tourism Geographic Uncongested Peer Spaceport Partnerships with Technical Ranking (ft) Park Infrastructure Potential Accessibility Airspace Vehicle Developers Workforce

Colorado Air and Space 8/26: 8,000 Port, Colorado 17/35: 8,000 ! ! ✔ ✔ ✔ ✔ X 9L/27R: 8,002 Cecil Spaceport, 18L/36R: 12,503 1 Florida 18R/36L: 8,002 ✔ ✔ ✔ ! ! ✔ ! 12/30: 12,503 Mojave Air and Space 08/26: 7,051 2 Port, California 04/22: 4,747 ! ✔ ✔ ! ✔ X ✔ 17R/35L: 9,000 Houston Spaceport, 4/22: 8,002 3 Texas 17L/35R: 4,610 ✔ X ✔ ✔ ✔ ✔ X

Spaceport America, 16/34: 12,000 4 New Mexico ! ✔ ✔ ! X X ✔ 4/22: 4,606 Midland International Air 10/28: 8,301 5 and Space Port, Texas 16L/34R: 4,341 ✔ X ✔ ! X ✔ ! 16R/34L: 9,501

Oklahoma Air and Space 17R/35L: 13,504 6 Port, Oklahoma 17L/35R: 5,194 ! X ! X X X ✔ • Enterprise Park – area designated as a business park • Agreements/Partnerships with Vehicle Developers – lease in place with vehicle designers and manufacturers, or builders of rocket engines and components Capability is under Capability or • Existing Infrastructure – Runways, taxiways, ATC tower, utilities in place development or characteristic doesn’t • Tourism Potential – Presence of hotels/resorts, dining and other attractions; infrastructure often desired by the kinds of affluent tourists ✔ Capability in place ! proposed; X exist. Note that • Proximity to Technical Workforce – Based on published sources, master plans, and similar materials characteristic is mitigation strategies • Geographic Accessibility – Relative proximity to a large urban area (population of 100,000 or more); road, rail, air, relatively weak may exist 30 and seaport • Uncongested Airspace – Airspace is relatively sparse of traffic (i.e., not near a large airport) Competitive Assessment of Capabilities Cecil Spaceport – Capabilities

Enterprise park Status Active • Master plan in place Jacksonville Airport Operator • $2M flight operations center being built Authority • $7M new ATC tower being built Population Density High 150 acres available for development • Spaceport FAA Agreements/partnerships with small space vehicle developers Regulatory (expires January 10, Approval 2025) • Aevum, Generation Orbit, and Ursa Major Technologies 9L/27R: 8,002 ft • Generation Orbit providing the air-launch X-60A as a hypersonic Runway Data 18L/36R: 12,503 ft test bed 18R/36L: 8,002 ft

Existing infrastructure AWOS Yes • Former naval air station Airframe Service Major • Currently an operating airport with three runways • Class D airspace Powerplant Service Major 100LL Fuels Available High tourism potential due to Jacksonville and beaches, and active Jet-A+ local tourist outreach Oxygen Bottled, bulk Proximity to technical workforce A/C Operations Per 104,390 Geographic accessibility Year (2018) Average Sunny 221 Somewhat congested airspace due to 3 major area airports and Days Per Year high traffic East Coast corridor 31 Competitive Assessment of Capabilities Mojave Air and Space Port – Capabilities

Enterprise park Status Active • 60+ tenants East Kern Airport Operator • Mix of flight operations, flight testing, engine testing, light industrial District design, advanced aerospace design, heavy rail industrial manufacturing Population Density Low

Agreements/partnerships with space vehicle developers, including Spaceport FAA InterOrbital Systems, Masten Space Systems, Northrop Grumman Regulatory (expires June 16, 2024) (Scaled Composites), Stratolaunch, and Virgin Galactic Approval

Existing infrastructure 12/30: 12,503 ft Runway Data 08/26: 7,051 ft • Long history of aviation testing and support 04/22: 4,747 ft • Licensed by FAA as spaceport in 2004 AWOS Yes Tourism potential Airframe Service Major • Location for aviation and space enthusiasts • Visitors center Powerplant Service Major 100LL Proximity to technical workforce due to large number of aerospace Fuels Available Jet-A companies on site Jet-A+ Geographic accessibility: 100 miles from Los Angeles, Pasadena, Oxygen None and Long Beach A/C Operations Per 21,302 Uncongested airspace Year (2019) Average Sunny 279 Days Per Year 32 Competitive Assessment of Capabilities Houston Spaceport – Capabilities

Enterprise park Status Active

• Master plan in place Population Density High • Agreement in place with NASA Safety and Mission Assurance Directorate Spaceport 2 FAA • Houston Aerospace Support Center (HASC), 53,000 ft of laboratory Regulatory (expires June 26, 2025) occupied Approval • 400 acres available for industrial development 17R/35L: 9,000 ft • Significant tax incentives (exemptions and deductions), access to state Runway Data 4/22: 8,002 ft grants and bonds, job training program in place 17L/35R: 4,610 ft Agreements/partnerships with space vehicle developers, including AWOS Yes Aerospace Corp. and Boeing Airframe Service Major Existing infrastructure: Operating airport with two runways, 17R/35L can be expanded 2,953 feet Powerplant Service Major 100LL Fuels Available High tourism potential due to popular, large urban area; active local Jet-A tourist outreach Oxygen Bottled, bulk

Proximity to technical workforce A/C Operations Per 102,200 • 59,000 engineers located in Houston area Year (2016) 7 miles north of NASA JSC Average Sunny • 204 Days Per Year Geographic accessibility Congested airspace due to 2 major airports and 30 minor airfields 33 Competitive Assessment of Capabilities Spaceport America – Capabilities

Enterprise park Status Active • Master plan in place New Mexico Spaceport Operator • Significant tax incentives (exemptions and deductions), access to state Authority grants and bonds, job training program in place Population Density Low Agreements/partnerships with space vehicle developers • Primary tenant is Virgin Galactic, launch operations expected to Spaceport FAA begin 2021 Regulatory (expires December 14, • EXOS Aerospace, SpinLaunch, UP Aerospace, and Virgin Galactic Approval 2023) • AeroVironment and HAPSMobile (SoftBank subsidiary) developing high Runway Data 16/34: 12,000 ft altitude uncrewed aerial systems (UAS) AWOS Yes Existing infrastructure • Purpose built commercial spaceport Airframe Service None

Tourism potential Powerplant Service None • Location for aviation and space enthusiasts and soon, space tourists 100LL • Visitor center not on site but in Truth or Consequences Fuels Available Jet-A • Distant from cities and commercial airports (El Paso 91 miles) Jet-A+ Not proximate to technical workforce beyond those that may locate Oxygen None on site A/C Operations Per <100 Geographic accessibility: Somewhat remote, 130 miles south of Year Albuquerque and 48 miles north of Las Cruces Average Sunny 340 Days Per Year Uncongested airspace 34 Competitive Assessment of Capabilities Midland International Air and Space Port – Capabilities

Enterprise park Status Active

No agreements/partnerships with space vehicle developers Operator City of Midland • XCOR Aerospace moved from Mojave Air and Space Port to Midland from 2014 to 2015, keeping Mojave presence for flight tests. Company Population Density Low filed for bankruptcy in 2017 Spaceport FAA • Orbital Outfitters had a presence at Midland, but the company also Regulatory (expires September 14, went out of business in 2017 Approval 2024) 4/22: 4,606 ft Existing infrastructure 10/28: 8,301 ft Runway Data 16L/34R: 4,341 ft Moderate to low tourism potential, but with active tourist outreach 16R/34L: 9,501 ft

Not proximate to technical workforce beyond those that may AWOS Yes locate on or near site Airframe Service Major Somewhat remote geographically • Located in county with almost 180,000 people Powerplant Service Major • Easily accessed via Interstate 20 100LL Fuels Available Jet-A • 200-300 miles from Austin, San Antonio, and Dallas-Fort Worth Jet-A1

Uncongested airspace Oxygen Bottled, bulk

A/C Operations Per 64,240 Year (2019) Average Sunny 266 35 Days Per Year Competitive Assessment of Capabilities Oklahoma Air and Space Port – Capabilities

Enterprise park Status Active • 2,000 undeveloped acres available for development. OSIDA has bond authority to issue funding for construction Oklahoma Space Operator Industry Development 2 • Six commercial hangars totaling 100,000 ft Authority • 50,000 ft2 manufacturing facility with rail Population Density Low No agreements/partnerships with space vehicle developers Spaceport FAA • Rocketplane Kistler plan never materialized – company no longer exists Regulatory (expires June 11, 2021) • Armadillo Aerospace conducted flight tests from 2004 to 2009; company Approval stopped operations and assets acquired by Exos Aerospace 17R/35L: 13,504 ft Runway Data Existing infrastructure 17L/35R: 5,194 ft Active control tower and flight operations center • AWOS Yes • Two runways, one close to length of KSC LLF • 158-mile space flight corridor, 50 miles wide Airframe Service None Low tourism potential and low tourism outreach Powerplant Service None No proximity to technical workforce or major university Fuels Available None • Ranks 20th in aerospace manufacturing attractiveness (2018 PWC) Oxygen None Geographic accessibility A/C Operations Per 25,000 Uncongested airspace and no obstructions at end of runways Year (2019) Average Sunny 231 Days Per Year 36 Case Study Spaceports Capabilities and/or Incentives Considered of Potential Interest

37 Case Study Spaceports Cape Canaveral Spaceport – Exploration Park

Cape Canaveral Spaceport (CCS) is a multi-nodal zone composed of KSC, CCAFS, and Space Florida assets • Busiest launch site in the U.S. • FAA license for launches from CCAFS and for Launch and Landing Facility (LLF) at KSC

Exploration Park • Located outside controlled area of KSC, facilitating ease of access • No state personal income tax, state-level property tax, business inventory tax, or corporate income tax on Limited Partnerships and S-Corporations • Developed land and facilities are ready for lease or build-to-suit, for office space, factories, etc. • State of Florida investment in LLC ‒ $322,500 to date (development of easement ‒ $193.5M planned through 2022 • Large manufacturing facilities on site ‒ Blue Origin New Glenn factory ‒ OneWeb Satellites factory OneWeb Satellites a joint venture with Airbus OneWeb, separate company: $1B in shares purchased by UK government and 38 Indian conglomerate Case Study Spaceports Cape Canaveral Spaceport – Launch and Landing Facility (LLF)

Former Space Shuttle Landing Facility (SSLF), with a runway length of 15,000 feet

Owned by NASA but operated by Space Florida under a 30-year use permit which is extendable up to 60-years

Existing facilities • Runway, apron, and taxiway • ATC tower and flight operations area • Fire station • RLV hangar • Equipment storage units • Vertical landing test area

Capital improvement projects pending • New flight operations facility State of Florida investment projections • New maintenance and storage facility from 2017 show $193.7M through 2022 • Fuel farm with propellant loading area to fulfill master plan for LLF • Taxiway and road extensions/improvements • Suborbital rocket test stand 39 Case Study Spaceports Stennis International Air and Space Port

NASA Stennis Space Center (SSC), Hancock County Port & Harbor Commission keen to develop Stennis International Airport as a spaceport • Airport has committed $16M to capital improvements • Needs FAA license; application appears pending

Leverages proximity to SSC and its acoustic buffer zone (unique in the country) and Gulf of Mexico port

Majority of SSC tenants are government, but some companies have established themselves on site • Relativity Space – selected SSC for low cost, secure location • Rolls Royce – moved to SSC to take advantage of acoustic buffer zone • SpaceX and Blue Origin used SSC facilities in the past and may again in the future, but these companies have their own sites. Blue Origin tests engines at NASA MSFC

SSC seeks tenants for proposed enterprise park for aerospace (red circle in map), uncrewed aerial systems, shared services, and R&D; marketing idea of integrated site with HQ, manufacturing, testing, and launch in one low cost-of-living area

40 Case Study Spaceports UK Spaceport Proposals

UK is pursuing establishment of a spaceport with vigor in recent years, following a policy for UK to capture 10% of global space economy by 2030

All proposed spaceports are coastal (most are airports, but some are not, requiring substantial development), focused on supporting suborbital RLVs and dedicated small launch capability Attracting spaceport business • In 2020, US and UK agreement allows US companies to launch from UK spaceports and US companies active in the launch industry supply chain can contribute to UK-based launch site setup and operation • Small and Medium Enterprises (SME) R&D tax credits ‒ Allows companies to deduct an extra 130% of their qualifying costs from their yearly profit, as well as the normal 100% deduction, to make a total 230% deduction ‒ SME Payable Tax Credits allows loss-making SME’s to ’surrender’ the losses relating to the R&D relief in return for a payment (non-taxable) of 14.5%. The maximum payment on £100 qualifying R&D spend is £33.35 • Patents – Government incentivizes companies to develop new, innovative patented products in the UK and allows an effective 10% corporation tax on profits from qualifying UK and qualifying foreign patents • Research and Development Expenditure Credit (RDEC), which is a form of tax relief aimed at larger organizations – RDEC is 12% (taxable) of eligible R&D project costs

Sutherland Spaceport received approval in August 2020, clearing way for construction. UK Space 41 Agency will fund part of the development Potential Areas of Differentiation for CASP Subarea Plan

42 Potential Areas of Differentiation for CASP Subarea Plan Attributes of CASP that Serve as Potential Areas of Differentiation from Peer Spaceports

Proximity to Existing or Proximity to Proximity to Proximity to Aerospace Geographic Tourism Peer Spaceport Planned Aerospace Military Technical Educational Accessibility Potential Enterprise Park Companies Installations Workforce Institutions Colorado Air and Space Port, Colorado ! ✔ ✔ ✔ ✔ ✔ ✔ Houston Spaceport, Texas ✔ ✔ ✔ ! ✔ ✔ ✔ Cecil Spaceport, Florida ✔ ! ! ✔ ! ✔ ! Mojave Air and Space Port, California ! ✔ X ✔ ✔ X !

Midland International Air and Space Port, Texas ✔ ! X X X ✔ ! Spaceport America, New Mexico ! ! X ✔ X X ! Oklahoma Air and Space Port, Oklahoma ! X X ! X X X

• Master Plan – strategic document(s) in place (adequacy of documents and/or plans may serve as a Capability is under Capability or differentiator) development or characteristic doesn’t • Enterprise Park – area designated as a business park • Proximity to Aerospace Companies – relative proximity to an aerospace industrial cluster (not all ✔ Capability in place ! proposed; X exist. Note that spaceports are equal in number and density of aerospace companies) characteristic is mitigation strategies • Proximity to Aerospace Educational Institutions – relative proximity to aerospace schools and relatively weak may exist training centers • Proximity to Military Installation – relative proximity to a military base, particularly an air base • Proximity to Technical Workforce – Based on aerospace location quotient from Dept. of Labor 43 • Geographic Accessibility – Relative proximity to a large urban area (population of 100,000 or more); road, rail, air, and seaport • Tourism Potential – Presence of hotels/resorts, dining and other attractions; infrastructure often desired by the kinds of affluent tourists Potential Areas of Differentiation for CASP Subarea Plan Challenges of CASP that Serve as Potential Areas of Differentiation from Peer Spaceports

Relative Spaceport Existing or Agreements/ State-Level Uncongested Availability of Magnitude of Peer Spaceport Master Plan or Planned Partnerships with Space Airspace Tax Deductions State/Local Equivalent Enterprise Park Vehicle Developers Authority Funding* Colorado Air and Space Port, Colorado ! ! ! X X X $ Houston Spaceport, Texas ✔ ✔ X X X X $$

Midland International Air and Space Port, Texas X ✔ X ! X X $$ Mojave Air and Space Port, California X ! ✔ ✔ X X $$ Oklahoma Air and Space Port, Oklahoma X ! X ✔ ✔ X $ Cecil Spaceport, Florida ✔ ✔ ✔ ! ✔ X $$$** Spaceport America, New Mexico X ! ✔ ✔ ✔ ✔ $$

• Master Plan – strategic document(s) in place (adequacy of documents and/or plans may serve as a differentiator) Capability is under Capability or • Enterprise Park – area designated as a business park development or characteristic doesn’t • Agreements/Partnerships with Vehicle Developers – lease in place with vehicle designers and ✔ Capability in place ! proposed; X exist. Note that manufacturers, or builders of rocket engines and components characteristic is mitigation strategies • Uncongested Airspace – Airspace is relatively sparse of traffic (i.e., not near a large airport) • State-Level Space Authority – has a state-level spaceport authority been established? relatively weak may exist • Availability of Tax Deductions – Are tax deductions available for spaceport and/or space-related activities? * $$$ - billion+ per year, $$ - millions per year, $ - hundreds of thousands or less per year • Relative Magnitude of State/Local Funding* (see legend at right) 44 ** Note that the magnitude represented is for the State of Florida, not the amount dedicated to Cecil Spaceport only 45