TRUTH OR CONSEQUENCES, N.M.—Spaceport America was supposed to provide an economic boost for this poor state, drawing tourists willing to spend large sums for private, personalized flights high above the Earth.
But the tortoise-shaped, $218.5 million facility in the New Mexico desert—financed with assistance from taxpayers—still sits largely vacant, with little benefit to surrounding communities. And after a recent crash involving its anchor tenant, Virgin Galactic LLC, some local residents and officials are starting to fret about the spaceport’s near-term future.
The October crash of a rocket-powered aircraft operated by Virgin Galactic during a test flight in California was a serious setback for Spaceport America. The aircraft was designed for space tourism, and if the test had succeeded, Virgin hoped to launch commercial flights in the first half of next year at the spaceport. That time frame has now been pushed back indefinitely following the crash, which killed one of the aircraft’s pilots and severely wounded the other.
New Mexico officials say they will need to find other uses for the spaceport if they hope to compensate for the projected $1.7 million in revenue Virgin was set to provide through June 2016. Spaceport officials had anticipated that money, to be used for operational expenditures, was largely going to come from fees Virgin would have paid for costs associated with its flights at the facility.
“It was extremely disappointing,” said Christine Anderson, executive director of the New Mexico Spaceport Authority, a state agency that oversees the facility. “We were getting very close. Virgin was starting to move their operational people here.”
Virgin said it remains committed to using the spaceport. “While we have internal milestones, such as schedule estimates and goals, Virgin Galactic’s timetable has always been driven by safety and the completion of the flight test program before moving into commercial service,” the company said in a statement.
The spaceport, which sprawls across 18,000 acres, was built with money drawn mostly from state oil and gas taxes. Funding also was provided from bonds—backed by a quarter-cent gross-receipts tax—floated by the two New Mexico counties closest to the project.
Mission control at Spaceport America in New Mexico. ENLARGE
Mission control at Spaceport America in New Mexico. RICK SCIBELLI, JR. FOR THE WALL STREET JOURNAL
Ms. Anderson, who was a longtime space-technology research official in the Air Force, said the spaceport had been courting other tenants and uses for the facility. Such efforts were ramping up given the uncertainty surrounding Virgin, she said.
Another private space company, SpaceX, has nearly completed a $2 million test facility at the spaceport. And spaceport officials noted that companies like Kawasaki, Nike and Aston Martin had paid to use the facility to film commercials.
Nonetheless, Ms. Anderson said she planned on requesting $1.7 million from state lawmakers next month in case the shortfall can’t be made up.
Some state lawmakers have voiced concern that the spaceport isn’t prepared to deal with setbacks. “It seems like the goals are always a moving target,” said New Mexico State Rep. Patricia A. Lundstrom, vice chairwoman of the state’s Finance Authority Oversight Committee. “We’ve set launch dates with Virgin, and that changes. We talk about infrastructure that will be built out from the spaceport, and there are more delays on that.”
Some New Mexicans are also growing frustrated with the spaceport, especially those living nearby. Residents in Doña Ana and Sierra counties voted to raise their taxes to support the project. Under the tax measures, 25% of the extra money raised goes to public-school math and science programs, with the rest going to the spaceport.
“Overall, I think the general public feels let down from the promises made,” said Jia Apple, one of the owners of Passion Pie Cafe in Truth or Consequences. She said that although she likes that some of the tax increase has gone to education, “I think probably there was a lot of false promises made. I don’t know if we know the overall outcome yet. But the general feeling is letdown.”
Since the taxes went into effect in 2009, Sierra County has collected more than $2.5 million. During roughly the same period, Doña Ana, which has a larger population, has garnered some $13.7 million.
Walter Armijo, chairman of the Sierra County Commission, supported the tax when it was initially put to a vote. These days, Mr. Armijo said he’d oppose it.
“Community members have in a way given up. I also have given up to a point,” Mr. Armijo said, adding, “It sounded like a great concept. But all we get is promises and promises and nothing has developed.”
On Tuesday, as wind whipped across the spaceport’s empty runway, which stretches over the desert brush, Ms. Anderson said she remained confident that commercial space flights would launch here soon.
“I think it’s going to happen,” she said. “I don’t think it’s a matter of if it will, but a matter of when.”
Write to Dan Frosch at dan.frosch@wsj.com