Did the city capture enough tourist dollars to make it worth it?
Looking at data from the last two years it appears to be a raw deal.
According to documents from the New Mexico Spaceport Authority, it leased 4,887 square feet of the Lee Belle Johnson Center to Final Frontier Tours in 2017. That was not a full year of use, but in 2018, 488 people left from the Lee Belle Johnson Center to tour Spaceport, generating $24,731 for Final Frontier and $1,577 for the New Mexico Spaceport Authority. The City captured about $2,000 in local gross receipts taxes and an unknown amount of meals, heads on beds and other tourist dollars were spent.
In 2019, 685 people left the Lee Belle Johnson Center to take the Final Frontier tour at the Spaceport, generating $41,800 in revenue for the company and $5,580 for New Mexico Spaceport Authority. The City captured about $3,344 in gross receipts taxes.
Compare this to the 7,178 users who used to attend plays, lectures, candidate debates, vote, play badminton, table tennis, pool, and dance at the Lee Belle Johnson Center, as documented by Ariel Dougherty in 2014, the year before it was given over to the New Mexico Spaceport Authority. Please see her research here at right.
It is likely the locals repeatedly using the Lee Belle Johnson Center spent more money downtown on meals before and after events than tourists. The cultural and civic cohesion lost among community members is incalculable.
There is also the issue of the anti-donation clause. The City only charges the New Mexico Spaceport $300 a month or $3,600 a year for the space, although it was appraised at about $1,666 a month or $20,000 a year.
The City cannot give away public property without violating the anti-donation clause. In-kind services can be accepted in exchange for money between governmental entities. But is the small volume of tourists an equal exchange for $16,400 in rent donated a year? The appraisal also stated it costs about $7,300 a year to operate the building, which the people are paying for in real dollars, for cleaning, maintenance and utility fees.
In addition, the New Mexico Spaceport Authority leases the space to a private company. Final Frontier gets about 90 percent of the tour fees, making it questionable the City is exchanging in-kind services with a governmental entity.
This action makes the City vulnerable to an anti-donation-clause law suit, potentially costing the local citizens more money. Considering the New Mexico Spaceport Authority pays about $11,500 a month rent for its offices in Las Cruces, according to lease documents, it would seem reasonable it pay $1,666 rent, plus $608 for utilities and maintenance a month for the Lee Belle Johnson Center.