Albuquerque's city council on Monday unanimously approved a proposed lease and development agreement with Theia Group, an aerospace company with plans to bring 1,000 jobs to town through the Orion Center.
The lease and development agreement is for a 114-acre plot of land adjacent to the Albuquerque International Sunport where the Orion Center could be built. The lease has an initial term of 30 years, with options to extend to a total of 50 years.
After city council, the lease will go to Theia Group and Albuquerque's Aviation Department for signing, and then on to Mayor Tim Keller's office, according to city spokeswoman Lorena Sanchez.
The agreement is anticipated to begin June 1 with a $1 million payment to cover rent for the first two years of the lease. Another payment for the same amount would come in June 2022 to cover rent for the third and fourth years of the lease. Monthly rent payments totaling $1.24 million per year would begin in 2025. Rent will increase at 2% per year for four years and then be set by appraisal, according to the agreement.
"The Theia Group project is a tremendous opportunity for the city of Albuquerque in our ongoing efforts to be a central hub to the fields of aerospace technology and create jobs in higher paying engineering, chemistry, physics and other science related fields," Albuquerque City Council President Cynthia Borrego (5th District) said in a statement to Business First prior to Monday's vote.
The Orion Center development's first phase is estimated to be about 4.1 million square feet, according to Jonathan Small, a spokesman for the Albuquerque International Sunport. Some phases of construction for the Orion Center could be completed by late 2023, Business First reported, the same year satellite launches were intended to begin.
Theia Group must develop about 95 acres by 2029, according to the lease and development agreement, and all remaining acres by 2031. The city can reclaim any undeveloped parts of the site if it determines the milestones are not met, as well as adjust the cost of rent, according to the agreement.
"Having Group Orion's presence here expands Albuquerque's aerospace industry by a wide margin. We have the resources necessary for their success and Orion's investment will create new good jobs," city councilor Diane Gibson (7th District) said in a statement to Business First prior to Monday's vote. "It's a win-win for everyone."
If it proceeds as outlined, the Orion Center would be massive in both scale and expense. Project plans include at least 1,000 jobs, which would make Theia Group one of the larger employers in the state, according to the New Mexico Partnership. One research report from real estate firm Colliers International says the construction costs for the project are estimated to be between $8 billion and $10 billion throughout the next decade. And at more than 4 million square feet, the Orion Center would be larger than the One World Trade Center in New York.
Theia Group Vice President James Reid Gorman previously said in a statement the development will be "one of the largest construction projects" in the country.
As of March, the company had openings that appeared on job boards, including those for a spacecraft systems engineer and software operations lead. It also recently expanded in Albuquerque with the takeover of facilities formerly occupied by Raytheon Co. — representing a multiyear commitment to establishing a presence here.
"Our number one focus right now is ramping up these facilities because these facilities are going to be driving a lot of the talent that migrates to the Orion Center when it opens," Gorman said during Monday's city council meeting.
— Editor's note: This story has been updated to clarify details about the first phase of the proposed Orion Center provided to Business First from a city of Albuquerque spokesperson.
