Aerospace Parkway groundbreaking

Arizona Sen. John McCain joined Raytheon President Taylor Lawrence last year during a groundbreaking ceremony for the Aerospace Parkway.

The Tucson City Council and Raytheon Missile Systems are close to reaching an agreement on incentives related to the companyโ€™s planned expansion here next year.

However, the details of the agreement wonโ€™t be released until next week โ€” giving the two parties time to hammer out details of the complicated agreement that would create 2,000 new high-paying jobs here in Tucson over five years.

Mayor Jonathan Rothschild said he expects the final language will be available ahead of the Dec.โ€‰6 council meeting, giving the public ample time to weigh in on the agreement before a formal vote.

He said it is important for public review before agreeing to tax incentives.

โ€œIโ€™ve been an advocate for business incentives โ€” but incentives with performance requirements and safeguards in place so that the taxpayers come out ahead,โ€ Rothschild said. โ€œThe Arizona Constitution mandates this kind of restraint, but itโ€™s also an approach I welcome and support โ€” for example using incentives to fund public infrastructure for a proposed development.โ€

Councilman Steve Kozachik said announcements by other agencies about the Raytheon expansion were somewhat premature and hampered the cityโ€™s discussions with the company.

But he said he is confident the city will agree to terms with the cityโ€™s largest private employer.

โ€œWeโ€™ll get the deal done; itโ€™s that important. But itโ€™s not helpful when the state and county jump the gun with announcements while weโ€™re still at the table,โ€ he said. โ€œThis is a regional deal, not a situation where partners are out taking individual credit.โ€

The amended agreement is expected to extend the time frame of the current city annexation agreement and tie tax incentives to Raytheonโ€™s completion of the expansion project and creation of the new jobs.

Supervisors approve plan

Earlier Tuesday, the Pima County Board of Supervisors voted 4-0 on Tuesday to approve an incentives plan for Raytheon.

In addition to support for the companyโ€™s application for a foreign trade zone application, which comes with substantial property tax savings, the county committed itself to continued improvements to nearby road infrastructure and development restrictions on nearby county-owned land.

Over the 10 years of Federal Trade Zone status, the county would forgo around $16 million in property tax, a shortfall County Administrator Chuck Huckelberry would be more than offset by the expansionโ€™s economic impact.

Supervisor Ally Miller did not cast a vote, citing a conflict of interest due to her husband working for Raytheon. Asked after the meeting if she was nevertheless supportive of the approved plan, Miller said she was legally barred from responding.


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Joe Ferguson can be reached at 573-4197 or jferguson@tucson.com