On the Radar

RIO RANCHO — Sandoval County is in the running for a major investment in a project that could potentially bring hundreds of jobs to the county.

Citing New Mexico’s role in national security, Sandoval County finds itself as a finalist for a proposed project from Castelion Corporation, dubbed "Project Ranger," that would create a 1,000-acre rocket motor production facility for the manufacturing and testing of next-generation hypersonic systems, according to a press release from the New Mexico Economic Development Department.

“This isn’t the announcement. We’re still in the running, but we have to be ready to move very quickly,” Sandoval County Manager Wayne Johnson said.

He also said the county has been working to secure the land needed for the project, purchasing 467 acres of land between King Boulevard and 29th Avenue near the planned Paseo Del Volcan extension while working the the State Land Office to lease and additional 550 acres of what is knowns as “Section 36” in the same area.

The project is still under consideration, according to the EDD release, and other out-of-state sites remain in play. However, “initial county and state projections estimate Phase One could generate more than $659 million in economic output over the next decade in New Mexico” if it is selected, the release states.

“New Mexico has long been a cornerstone of American innovation and defense; winning this project would continue that tradition,” said Rob Black, EDD cabinet secretary. “If our state is ultimately selected, this would mean high-tech jobs, significant investment and the kind of advanced manufacturing that keeps New Mexico on the map for national security and economic opportunity alike.”

The release notes that Phase One could see more than $101 million of investment as well as employment of up to 300 engineers, technicians and executives with an average annual salary of more than $100,000, the EDD said in its release. Additionally, if selected, employment could grow to more than 1,000 people by 2025 with the potential of additional capital investments exceeding $150 million, it adds.

According to the release, Castelion, out of Torrance, California, aims to produce hypersonic systems with the goal of helping the United States and its allies “deter global threats and prevent conflict.” It was founded with a mission of restoring the U.S. industrial base for defense.

“This kind of project reflects the type of industrial development that strengthens our local economy while contributing to national priorities,” Johnson said. “It’s the result of months of focused work and cooperation across agencies.”

Those agencies, in addition to EDD and Sandoval County, include the Albuquerque Regional Economic Alliance, Sandoval Economic Alliance and state and federal officials, according to the release.

“Coordinated efforts like this are a powerful example of how our region and state can win when the public and private sectors work together with focus and determination,” said Chad Matheson, AREA interim president and CEO.

The EDD also stressed that the “project has undergone extensive reviews by Sandia and Los Alamos National Laboratories, both of which concluded the site and safety plans meet the highest federal and scientific standards,” according to the release. The facility would also include “stringent environment monitoring” and 24/7 security “to ensure the safety of the surrounding community.”

“This investment could deliver high-quality jobs, significant capital investment, and strengthen our position as a premier destination for defense technology and research and development investment,” Matheson said.

To help move the project forward, Sandoval County Commission will be voting to issue $125 million in industrial revenue bonds to Castelion Wednesday.

“What’s important to note here is that doing this, if for some reason we don’t get it, isn’t going to cost the county any money,” Johnson said. “No public dollars would be expended whether we get it or not.

“When we do industrial revenue bonds, we’re conduit financing,” he added. “The bonds are usually purchased by the project for the purpose of tax abatement, and the money flows through the county, but it doesn’t involve public money.”

Johnson also said the move would include no risk, saying if Sandoval County doesn’t get the project, the county simply doesn’t close on the bonds with no expenditure of public dollars.

“This is just a preparatory step, essentially,” he said. “We have to do it, and to meet the timeline, we need to do it now.”

Johnson remains “cautiously optimistic” that the Sandoval County site will be selected.

“So far, we’ve been able to meet all the requirements of the project and hit all the deadlines that they need, so we have a demonstrated track record of them with achievement,” he said. “I think that’s a good thing for the community.”