Why Midland Wants XCOR
- Midland, a city built upon the oil and natural gas riches of the Permian Basin, wants to diversify its economic base to cushion against economic swings in these volatile industries
- Midland is hoping XCOR’s move will help it attract similar businesses.
Why XCOR Likes Midland
- Flat, open area around the airport
- Sunny desert weather that excellent for flying
- Well-run airport capable of supporting XCOR’s operations
- Friendly business climate with low tax rates, liability protections and modest regulations.
- Midland’s $10 million package breaks down as follows: $2 million for XCOR to create its headquarters; $3 million toward lease payments and capital improvements at the existing AMI Hangar; $5 million in performance guarantees; $250,000 for job-training activities
- Midland Development Corporation will lease the AMI Hangar from the City of Midland for $6,000 per month for 10 years and lease it back to XCOR for $1 annually for 10 years
- Midland International Airport will apply for a spaceport license from the Federal Aviation Administration, a process that could take 18 months
- XCOR agrees to establish its headquarters and research and development operations in Midland
- The company will create a $200,000 payroll in Midland during the 18 month period after the contract is signed
- XCOR will have a $1 million payroll in Midland 12 months after the airport receives its spaceport designation
- Sixty months after the spaceport designation, XCOR will have a $12 million payroll in Midland
- The company is required to make $4 million in capital investments in Midland by Dec. 31, 2017
- XCOR will lease an existing bunker area for testing at a rate of $1,800 per year over 10 years
- Clawbacks are written into the contract that would require XCOR to pay back incentives based on the amount if it falls short based upon how much it misses the targets.
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