A PreReal Investments executive got a cold reception from the Sierra County Commission after proposing a partnership between the private and public sectors to solicit more tax money for infrastructure to handle a coming economic boom.
“We’ve not been receiving our fair share of state and federal dollars,” Patrick Pharris told the commissioners on February 17.
PreReal’s executive vice president for external affairs and strategic development is proposing a nonprofit called Sierra Gateway Alliance to link county and municipal governments with industries like Spaceport America and its contractor Virgin Galactic, the Copper Flats mine that is looking to reopen and PreReal which has invested $60 million in area property in recent years.
Pharris said that when Virgin Galactic begins conducting regular flights into space, the area will need 41,500 hotel room nights per year to accommodate technicians, other launch workers, private astronauts, their families and guests. He said more hotel rooms plus houses will be needed to reopen the Copper Flats strip mine near Hillsboro, expansions at PreReal’s Turtleback Mountain Golf & Resort in Elephant Butte and other new industries in southern New Mexico.
Sierra County should be getting millions of dollars from federal and state grants for new infrastructure and tourism promotion to accommodate this influx, Pharris said.
At that point, Commissioner Sandy Jones, the only Democrat on the three-man panel, having been appointed by the governor late last year, interrupted to begin asking pointed questions.
“Who is the alliance?” he asked. Pharris said he is only beginning to work on creating the alliance and to get a joint powers agreement from municipal and county governments.
Asked which local leaders support it, Pharris said he has spoken to officials of Copper Flats, Spaceport America (PreReal CEO James Prendamano recently was appointed to the New Mexico Spaceport Authority), the marina at Elephant Butte Reservoir and municipal and county officials who have encouraged him to move forward. .Commission Chairman Jim Paxon said he spoke to Pharris about the proposed alliance at the Turtleback Mountain resort, but made no commitments.
Then Jones’ questioning became more hostile. “I saw the first lease agreement for Virgin Galactic,” he said. “But they haven’t hit a target since the day they came to the Spaceport. It’s always going to be in the next quarter.”
Jones said many of PreReal’s properties appear to be largely vacant. Pharris responded that the Elephant Butte Inn is closed because PreReal couldn’t find people to staff it, but the company’s two other motels, the Ace Lodge in Truth or Consequences and the Rio Grande Motel in Williamsburg, are operating. The Ace Lodge rents only by the month, but the Rio Grande Motel has rooms for single nights. Pharris said PreReal is also negotiating with an international hotel chain and a “PGA-level entity” interested in the Turtleback Mountain Golf & Resort, but he could not yet reveal more.
Jones told Pharris he is overestimating the potential for state funding by suggesting Sierra County ask the legislature for millions of dollars. “I said we should get millions; I didn’t say we can,” Pharris said. “If you go downtown (in Truth or Consequences), the place doesn’t look like it deserves it. If a visitor or a private company came in and wanted to put in a new warehouse or a facility at the airport, they’d walk around and say, `Wow. Really. Put some paint on the wall, will you? Make me feel you want it.’”
Jones wound up his questioning by telling Pharris he should concentrate on looking to improve business for local industries like agriculture, Bullock’s grocery, Smith construction and fuel jobber Randy Ashburgh. “Whenever the CEO moves their family to New Mexico and puts his kids in our schools, then I support him 100 percent with state money,” Jones said. “But we’ve seen time and time again and over and over where these guys’ schemes come along from a remote group, but nothing happens. They’re invested but they’re not invested with their families. I for one don’t think we have a bad community.”
Commissioner Hank Hopkins said the idea for the alliance “sounds great, but I guess I’m a little skeptical. I’ll believe it when I see it. But I still have my reservations.”
“We’re not at a decision point, but the discussion will continue,” added Paxon.
Pharris said in a telephone interview late last week that he did not consider Jones hostile, but thought his questions were appropriate. Pharris is scheduled to give another presentation to the Truth or Consequences City Commission at 4 p.m. February 25 (Wednesday).
Kudos to the commissioners for casting a skeptical eye on this scheme. I’ve lived in Sierra County for “only” nine years, but people I know who have been here since the late 90’s tell me that, over the years, there has been a steady stream of people who show up here with more money than sense, who believe that they’re going to turn this into the next Santa Fe or Taos, who then slink out of town with their tail between their legs and considerably less lucre. With their rose-colored glasses they evidently cannot see that any future gentrification of T or C would first require the expenditure of millions and millions of dollars on such unsexy things as paving and water/wastewater systems, the financing of which, one supposes, would come from a local populace that will never agree to tax themselves and are largely content with things just the way they are.
From the Jan 31, 2026, ABQ Journal, you wouldn’t know that our County Commision (or anyone) had grownup concerns.
But, of course, there’s Rolf getting excited about being a Big (traiterous) Player! As per usual!
“As an alliance, we have more strength and we have one voice,” Truth or Consequences Mayor ROLF HECHLER said. “If we get on the same trajectory and we all have one voice, there is nothing we can’t accomplish.”
I’m glad Mr Sharpe is around to hold this corporation accountable. I’ve seen their presentation, and the estimates of the need for additional facilities (in particular lodging which is Prereal’s specialty), in response to the opening of the copper mine (noone knows when that will occur, if at all), Virgin Galactic flights (which we know, from the decades they have been in the Spaceport, are wildly unpredictable) and business development at the border (over a hundred miles away) are speculative at best.
This is an out state corporation with investors they have a responsibility to. There’s no guarantee any return they make on their investments here will not go out of state. Meant to be frank, the only reason they would like to set up this “Joint Powers” agreement, or whatever they want to call it, is to get as much public money as possible to finance the investments of their shareholders.
I forgot to add that most of the Virgin Galactic people, staff and clients, stay in Las Cruces, where there are higher quality lodging and dining opportunities, and commute to the Spaceport when necessary. And I wonder if the Elephant Butte Inn is really closed because they simply couldn’t find staff, or because they couldn’t find staff willing to work for the amount they were willing to pay (most likely minimum wage or close to it).
Thank you Tom. It is good to see a county commissioner questioning things in public.
I wonder just how accurate it is to say that “we are not receiving our fair share”. It would be interesting to see how much of the county’s expenses are covered by the state because we are considered “poor”.
Thank you for this informative article. I will be at the commission meeting to hear the presentation in person but am grateful for the insight into the county leadership perspective.
Thank you Sandy Jones for asking real questions.
They have announced the new company running the golf course property now. I know they’re building homes out there again, but wonder how many they’ve sold. They’re not affordable for most who live here now.
Thank you, Sandy Jones. Thank you Tom and SCC staff. I read the proposal brochure. In the days since –this is pure intuition– it kept coming to me that this scheme has the flavor of “15-minute cities” and other attempts to replace genuine American communities with corporate-run installations, designed to erase rural character. No, not here, please.