A coalition of five New Mexico organizations is among a pool of national applicants seeking to spark the local economy through the millions of dollars made available under the Build Back Better Regional Challenge.
An application submitted by the New Mexico Space Valley Coalition — comprised of Central New Mexico Community College, CNM Ingenuity, NewSpace New Mexico, Spaceport America and the New Mexico Trade Alliance — has been selected for the first phase of the challenge. Together, the organizations hope to spur workforce development, create a venture capital fund and build new facilities including a proposed Space Valley Center.
The Space Valley Center is described in the regional challenge proposal as a multi-use facility with conference space for as many as 750 people, lab space and an incubator for space startups. It will act as an expansion to NewSpace New Mexico's space collaboration center slated for Albuquerque's Max Q multi-use development, according to NewSpace founder Casey DeRaad.
A vertical launch payload and rocket operation facility are also being proposed for Spaceport America and would include a "multipurpose building with rooms, labs, and bays," according to the proposal. Office, lab, storage and meeting space would be available. Additionally, Albuquerque's Q Station, which hosts tech startup programs and is supported by the Air Force Research Laboratory, would be expanded into the proposed Space Valley Center, increasing its footprint, according to the proposal.
A proposed "follow-on fund" would act as part of CNM's existing Ingenuity Venture Fund and invest in pre-seed, seed and Series A-stage companies in the space industry. Meanwhile, a "Venture Studio" would support startups with legal, marketing and other types of services.
The new fund would aim to bring together $5 to $25 million in private capital and establish a portfolio of 20 companies based in New Mexico in five years. These efforts are estimated to have a half-billion-dollar impact on the state economy, the proposal shows, citing an economic forecast of $540 million worth of "economic growth" for the state throughout the next decade with the proposed projects.
Altogether, these projects might add a significant amount of momentum to New Mexico's aerospace industry, which is one of nine sectors identified by the state government as "target industries" alongside film and TV, sustainable energy and other industries.
Money awarded through the Build Back Better Regional Challenge comes from the American Rescue Plan, which was signed into law by President Joe Biden in March. As part of the plan, $3 billion was earmarked for the Economic Development Administration to invest in communities trying to kickstart economic development in response to the Covid-19 pandemic and its ripple effect on the economy.
Out of 529 applicants received by the U.S. Economic Development Administration, just 60 were selected as finalists for the first phase of the selection process for the Build Back Better Regional Challenge.
With its selection for the first phase of the program, the New Mexico Space Valley Coalition will receive $500,000 to develop and support the proposed projects. In phase two, which has yet to be announced, 20 to 30 applicant groups will receive as much as $100 million to put project plans into action.
If selected for that phase of the Build Back Better Regional Challenge, the coalition would begin assessments for construction, leasing and locations, which are expected to take as long as nine months, according to the application.
