XCOR's Multi-Million Dollar Deal Raising Concerns 07/06/12
CBS 7 News
July 6, 2012
Midland, TX - A space travel company wants to come to the Tall City but residents are concerned about the cost involved with bringing them here. Though leaders feel this company will help to diversify our economy, residents are wondering if the $10 million incentive that could be provided will payoff.
"In case we have a downside in the oil business, we'll have something else to fall back on and other opportunities," said Michael Trost, Midland City Councilman and Midland Development Corporation Board Member.
Economic diversification and long-term sustainability is a goal for Tall City leaders. The Midland Development Corporation and City Council will be voting on a deal that involves offering a $10 million incentive to XCOR Aerospace for the company to move to the Tall City.
"We want that industry here and here's what we're willing to work with and that's what they wanted and in any business you discuss it, work out a deal and say okay," said Councilman Trost.
The deal offers $2 million for XCOR to create their headquarters in Midland, $3 million to go toward improvements for a hanger near the airport and $5 million for performance incentives that would be awarded as the company meets certain performance benchmarks.
"Taxes, employment and other kinds of things," said Councilman Trost.
But how do we know the industry will be successful? Midland City Councilman and MDC Board Member Michael Trost says he's confident the company has a promising future.
"Think about it, get on a rocket ship and fly into the edge of space, yeah definitely a future," said Councilman Trost.
Bringing new jobs and a new industry to west Texas.
"I think they would add a lot of interest and folks will look at midland differently and hopefully bring other ancillary businesses to that business," said Councilman Trost.
The MDC and City Council will be voting on the incentive deal this coming Monday.
CBS 7 has confirmed that Governor Rick Perry will be in midland on Monday to attend a press conference for a special announcement regarding XCOR Aerospace. Griffin communications, the public relations company handling the event, tells us the Governor will be in attendance along with XCOR Aerospace and community leaders. The press conference is scheduled for this upcoming Monday at Midland International Airport's "Old AMI" hangar at 11am.