What once seemed like an outstanding opportunity for the city of Albuquerque has turned into a frustrating ordeal, as plans for the proposed Orion Center have fallen apart now that the company is being sued by investors and never signed into an agreement with the city.
According to the Albuquerque Journal, city officials began discussing the proposal last year after the Environmental Planning Commission approved the project proposed by Theia Group Inc. The project, which could have brought as much as 2,500 permanent jobs to the city, was reportedly never signed into agreement by Theia Group. It was to develop 48 acres by 2025 and finish the site within 10 years. This would have automatically included a $1 million payment.
While the proposal was publicly lauded by Mayor Tim Keller, he recently said that there were doubts from the beginning.
Albuquerque Mayor Tim Keller
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“From day one, we were cautiously optimistic,” Keller said. “The proposal seemed a little ‘too good to be true,’ but we wanted to at least give it a shot at no risk to the city.”
The project involved the creation of a 116-acre complex with two massive buildings on the site, with intentions of manufacturing more than 100 satellites and sending them into space for Earth mapping.
According to bizjournals.com, FCS Advisors LLC sued the Theia Group in August, saying the company owed $289 million from not paying back promissory notes. The city added in its release that the company was not forthcoming with information.
A court-appointed receiver is now in charge of liquidating all of the group’s assets and can sell the FCC license that allows the creation of a satellite network to a different entity. The license allows Theia Group to operate 112 satellites and requires half to be in the air by May 9, 2025.
“We believe the only path for anybody getting their money back is to sell this license, and sale of this license will inevitably require some type of bankruptcy proceeding,” Theia Group’s counsel stated.
City Councilor Pat Davis told the Albuquerque Journal that taxpayers are not out of money as the city received a $125,000 security deposit.
