Council to vote on $66M MDC deal for AST satellite plant
What to watch: The Midland City Council will meet on Tuesday, July 21, to consider the Midland Development Corporation’s (MDC) $66 million economic development deal with AST SpaceMobile to build a 400,000-square-foot satellite manufacturing plant, targeting 1,600 jobs and $128 million in annual payroll. Council will also take up the deal’s companion ground lease and the MDC’s $23.9 million budget.
Key points
- $66M MDC AST deal: The MDC’s proposed performance-based economic development agreement with AST SpaceMobile could commit up to $66 million over 30 years toward a new satellite manufacturing and production facility of at least 400,000 square feet. You can read The Permian Press’ complete coverage of the terms of the deal here.
The city’s agenda packet projects nearly 4,000 total supported regional jobs if the deal passes, and an estimated $1 billion in annual regional GDP impact.
Council will also consider leasing AST 23 acres of city-owned land at the Spaceport Business Park for the new plant. Over the 30-year term of the deal, the rent totals roughly $14.3 million, which the $16 million lease reimbursement in the MDC package covers. AST pays the city rent, and the MDC reimburses AST when it hits the milestones established in the deal.
- MDC $23.9M budget: Council will vote on the MDC’s proposed $23.9 million 2026-27 budget, about $7.7 million larger than the previous year’s. The increase reflects increases in incentive payments that the MDC previously committed to businesses and is now scheduled to pay, as well as additional funding for future economic development incentives. The budget uses about $7.5 million from reserves to balance the budget.
- $3.5M Briarwood widening: Council will vote to accept a $3.5 million MDC economic development agreement funding traffic signal, drainage, and roadway construction to widen a 1.5-mile section of Briarwood Avenue between Avalon Drive and Trobaugh Boulevard. The MDC said it is part of its commitment to allocate 30% of its funds to infrastructure. The city receives the money when the project is complete.
- $8.1M Scharbauer sports fields: Council will consider four contracts to construct, turf, and light two new auxiliary fields at the Scharbauer Sports Complex, as well as a modular concession, storage, and restroom building, for roughly $8.1 million. The city said it will fund the projects from the Hotel Motel Fund, which is fed by hotel-visitor fees rather than property taxes.
- Art required before annexation: Council will consider requiring a private land developer to install and maintain an art installation on a 4-acre tract near Costco before the council considers the developer’s voluntary annexation and zoning request of the property. Council deferred this annexation in March and told staff to work with the developer on site enhancements first.
- $1M in road repaving: Council will vote to appropriate $750,000 to reconstruct Veterans Airpark Lane and $250,000 to repave Garfield Street south of Loop 250. Midland-Petro D.C. Partners, under a 2022 surface-use agreement, is paying for the Veterans Airpark project. A pending agreement will require a separate oil and gas operator to pay for the Garfield project before using the street to reach its oil and gas lease.
- Bustin’ for Badges donation: Council will vote to accept a $180,000 donation for the Midland Police Department from the Bustin’ for Badges sporting clays tournament. The annual event has supported the Midland County Sheriff’s Office, Ector County Sheriff’s Office, and the Midland and Odessa police departments since 2014 and will present matching checks to each agency.
- City budget updates: Staff will present a “Cost of Providing Services” update and a parks maintenance update.