Alaska Legislature Funding Kodiak Launch Complex is a Waste of Money

Dear Legislator:

      This message is written on behalf of the Kodiak Rocket Launch Information Group to explain why it is time to stop pouring money into the black hole that is the Kodiak Launch Complex.  KRLIG was formed in 1995 as an ad hoc group of Kodiak residents who were frustrated with Alaska Aerospace's lack of information and refusal to answer questions about the, at that time, proposed KLC.   As we corresponded with scientists, business people, and others around the country connected to the aerospace industry, our extensive research made it apparent that a rocket launching facility in Kodiak would NEVER pay for itself - a fact that has proven to be true.  It was at this point (1996 or 97) that more and more Kodiak residents opposed what came to be known locally as  "Space Pork Kodiak". A few years ago, an AAC official admitted to the Kodiak Island Borough Assembly that launch revenues had never covered the costs of keeping the facility open. 

     Some legislators have used the term "federally funded asset" in relation to the KLC; this phrase is somewhat misleading.  A more accurate term would be, "Ted Stevens funded asset".  When AAC went to AIDEA for a construction loan in the '90s, they were told not to come back until they could prove they would have the business to pay it back.  This never happened because they could not show they would have sufficient launches to pay back a loan and, more importantly, Senator Ted Stevens (at that time on the Senate Appropriations Committee) pushed through unwanted funding to USAF/DoD for initial construction - 40 million dollars, as I recall.  
      Here is a link to a story that explains what happened:  http://kodiaklaunchcomplex.blogspot.com/2008/12/klc-wasnt-wanted-by-military.html      This story appeared in  the Kodiak Daily Mirror in 2008. 
      Here is an article from the NY Times from about the same time documenting the USAF opposition to funding the KLC:  http://kodiaklaunchcomplex.blogspot.com/2008/10/incontrovertible-proof-that-klc-is.html

     Since 1998, AAC has been entirely dependent on state and federal funds just to keep the KLC open.  I am sure that you will hear from them this year that "several companies are interested in launches and contracts are imminent".  They have repeated that mantra for at least fifteen years with few results.  They will tout their "partnerships" as proof they are major players in the launch industry.  Well, without actual launch contracts they are not what they pretend to be.
       As long as Ted Stevens was in the Senate, the federal funds flowed; once he was out, it wasn't long until the Missile Defense Agency canceled the contract that essentially paid the costs of the KLC just to keep it open in case they wanted to launch a target missile.

    You may also hear claims along the "build it and they will come" line......another ploy AAC has used for years to continue to build more infrastructure requiring more money for maintenance, yet not really acquiring launch contracts. Keep in mind that every launch from the KLC has been paid for by federal government agencies - most have been military-funded launches.  Not one private entity has ever paid to launch a rocket in Kodiak.

    The last launch was September 26, 2011, and as of February 9, 2014,  there are no launches listed for 2014 on their website.  We don't know many businesses that can or should survive when, in almost three years,  they don't perform the service for which they were created.  Funding of the KLC is simply corporate welfare.

    The KLC was built on false premises, a non-existent (or fantasy) business plan, and now just sucks state funding for high salaries for its corporate officers (who do not reside in Kodiak) and maintenance for an ocean side facility that is quickly rusting away.  AAC will claim that they are bringing income and jobs to Kodiak.  This simply not true except when there is construction going on which provides short-term benefits although often the workers are from off-island or even out of state.

     Finally, it is my understanding that AAC has been paying a monthly stipend of $15,000 to the owner of the Narrow Cape Lodge which is used for lodging launch-related personnel;  it has been empty for the nearly three years since the last launch at the KLC.  We have learned that a legislator is trying to get state funds for AAC to purchase the "Space Hotel", which would mean even higher costs for them to maintain the KLC.  This purchase would be a waste of our dwindling state funds.

    Alaska Legislators, thank you for your attention to this issue.  It really is time to stop wasting money on this state boondoggle and close it down.   We have better and more productive uses for state money than the "Launch Pad to Nowhere". 

 We urge you to take action to stop this unrecoverable loss from our dwindling state coffers.  We look forward to your reply and thank you for your service to our state.

KLC: ONE YEAR LAUNCH-FREE!

Congratulations to Alaska Aerospace Corporation for completing one year launch-free!  The last launch at the KLC was December 5, 2008.
On December 31, 2009, AAC  can proudly state that not one launch occurred in the calendar year 2009!
This "for profit" corporation and its facility have been bailed out by the federal and state governments since 1995.  
AAC officials have admitted that launch revenues do not cover the cost of operating the facility.

Meanwhile, a 30 million dollar "rocket storage facility" is being constructed at the KLC, using federal and state money.  At least they can store them even if they aren't launching them!
To those who claim that the KLC is vital to National Missile Defense, it should be noted that the target missiles fired from Kodiak can be launched from portable launch pads using mobile mission control modules.  Little, if any, of the infrastructure currently in place is required for MDA launches.
And local residents have reported that that Faulty Tower (the unused launch tower sitting on an earthquake fault) is continuing to rust and corrode in the harsh marine climate of Narrow Cape, despite a million dollar paint job just two years ago.

Spaceport America is launched: Officials mark beginning of construction

Note that while this spaceport is being financed by the state, Virgin Galactic is investing some 250 million in spacecraft to use the facility. We're still waiting for that private business investment in the KLC - state and federal funding and still not able to cover operation costs with launch revenues (no launches = no revenues).
Note the comments near the end of the article made by Roberto Valdez - think of commercial fishing in Alaska and you'll see the parallels.
KLC continues to beg for more and more federal taxpayer funding because it is unable to attract any private, commercial interest or investment. The facility should never have been built until it could be proved that commercial launches would actually occur.

By Diana M. Alba / Las Cruces Sun-News
Posted: 06/20/2009 12:00:00 AM MDT

Conquistadores face a new frontier. Modern-day adventures broke ground Friday at Upham, N.M., for Spaceport America, the first commercial spaceport to take people into outer space. Roberto Valdez, of Espanola, leads a group dressed as conquistadores who came with Don Juan de Onate to the new frontier of New Mexico in 1598. (Norm Dettlaff / Sun-News)
Space ride
If you could afford it, would you take a ride into space? Read story
Yes, in a heartbeat.
Absolutely, to infinity and beyond.
No, I like to keep my feet on the ground.
No, because it will never be affordable for me.

UPHAM, N.M. -- Against the slate-blue backdrop of the San Andres Mountains, officials on Friday symbolically marked the start of construction on Spaceport America and launched a new era of adventure for mankind: commercial space travel.

Spaceport officials have said they expect the $200 million project to wrap up in 18 to 24 months, and an official with the space flight company Virgin Galactic said it could send the first tourists into space in two years, depending on how quickly technology develops.

Gov. Bill Richardson said the spaceport is possible because of investments on the part of the state and Virgin Galactic, which is putting about $250 million into creating the spacecraft that will be used.

"We took a risk, we gambled and we won," he said.

Some people expressed disappointment that a planned flyover by WhiteKnightTwo -- the carrier vehicle for Virgin Galactic's spaceship -- didn't take place. It was en route to New Mexico from its California base when pilots decided to land it in Phoenix because of a technical concern.

But spaceport officials announced that the plane would fly over the Las Cruces International Airport at 9:30 a.m. today. The public can attend.

Speakers said the project would be not only a platform to launch tourists into space, but also an avenue for developing new technologies and science that will benefit humanity.

Spaceport Authority Executive Director Steve Landeene said the possibilities include space-based telecommunications
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and solar power.

"This is reality, and it will happen," he said. "The people who say it can't happen -- that's the wrong type of attitude."

The spaceport, situated southeast of Truth or Consequences, will feature a runway, terminal, hangars and supporting infrastructure.

The groundbreaking began with 10 members of the group Sociedad de la Entrada, which re-enacts events from New Mexican history, marching through the desert in Spanish conquistador costumes. After speeches by officials, a road-grader ceremonially cleared the first patch of dirt. Then Richardson scooped a miniature shovel of dirt and placed it in a model rocket, which was launched into the sky.

The people attending were enthusiastic and snapped photographs.

Jerry Johnson of Alamogordo said those photographs would be important someday, after the spaceport is established.

"If you got tape of what things looked like today, 10 years from now, people won't believe it looked like that," he said.

But support wasn't entirely unanimous.

Roberto Valdez of Española, a member of Sociedad de la Entrada, said he has doubts about the project, mostly because he believes other industries that have been established in New Mexico -- he cited the movie industry, the nuclear industry and the national laboratories -- have exploited the state's resources and brought little benefit to native residents.

"I remain skeptical about the spaceport," he said. "As the saying goes: 'Behind every spearhead, there's a shaft.' Behind every endeavor, somebody gets the short end of the stick."

Spaceport officials estimated about 460 people attended the groundbreaking. They were shuttled in from Truth or Consequences and Las Cruces in tour buses.

Diana M. Alba can be reached at dalba@lcsun-news.com; 575- 541-5443



By the numbers
# $200 million -- cost of building Spaceport America.
# 18 to 24 months -- expected length of time to construct the project.
# 10,000 feet -- length of the runway to be built at the spaceport.
Source: New Mexico Spaceport Authority