The Tucson City Council and Raytheon Missile Systems are close to reaching an agreement on incentives related to the company’s planned expansion here next year.
However, the details of the agreement won’t be released until next week — 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. 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.
“I’ve been an advocate for business incentives — but incentives with performance requirements and safeguards in place so that the taxpayers come out ahead,” Rothschild said. “The Arizona Constitution mandates this kind of restraint, but it’s also an approach I welcome and support — for example using incentives to fund public infrastructure for a proposed development.”
Councilman Steve Kozachik said announcements by other agencies about the Raytheon expansion were somewhat premature and hampered the city’s discussions with the company.
But he said he is confident the city will agree to terms with the city’s largest private employer.
“We’ll get the deal done; it’s that important. But it’s not helpful when the state and county jump the gun with announcements while we’re still at the table,” he said. “This is a regional deal, not a situation where partners are out taking individual credit.”
The amended agreement is expected to extend the time frame of the current city annexation agreement and tie tax incentives to Raytheon’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 company’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 expansion’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.
