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TRUTH OR CONSEQUENCES, N.M. – New Mexico Tourism Secretary Monique Jacobson says it will be New Mexico's Sydney Opera House. Virgin Galactic Chairman Richard Branson has hinted it will host the first of his new brand of lifestyle hotels. And the eclectic hot springs town of Truth or Consequences has been anxiously awaiting all the economic development the nearly quarter-of-a-billion-dollar project is supposed to bring to this largely rural part of southern New Mexico.

But as phase one of Spaceport America, the world's first commercial port built specifically for sending tourists and payloads into space, is nearing completion...