Midland Development Corp. board members expect a deal they believe will save the city millions will also opens the door for economic growth at the Spaceport Business Park.
XCOR agreed on Friday to release back to MDC by January half of the facility it currently rents. XCOR also will pay $6,000 a month to lease its remaining half, or Hangar B.
The reacquired space, Hangar A, provides the MDC a $7.5 million facility for potential clients. Outside parties had expressed interest in coming to Midland, but the city would have had to spend about $4 million to build a lesser facility, according to MDC board chairman Brent Hilliard.
With the hangar, MDC on behalf of the city can lease an existing property valued at $7.5 million, which Hilliard said is equivalent to one year’s tax revenue for the MDC.
“The MDC is now in position to have ready-made space to give to any counter party that may want to come into the city for space purposes or any other purpose that fits with the airport,” Hilliard said. “There is interest. That’s what precipitated us asking XCOR to give us the space back.”