Midland approves AST SpaceMobile incentive deal tied to proposed facility and up to 1,800 jobs

The Midland Development Corporation approved an economic development agreement July 20 with AST & Science, the company behind AST SpaceMobile, for a proposed satellite-manufacturing facility at Midland Spaceport Business Park.

The agreement establishes a framework for potential public support. It does not confirm that the new facility has been built or that the future jobs and investment targets have already been met. Payments depend on documented performance, certifications and other conditions in the agreement.

What AST is expected to build

The agreement calls for a minimum 400,000-square-foot building for satellite manufacturing and production on approximately 23.107 acres of city-owned property at Midland Spaceport Business Park, near Business Interstate 20 and La Force Boulevard.

AST is required to begin construction by March 31, 2027, although the agreement allows a possible extension to June 30, 2027, if the company demonstrates a good-faith need. Substantial completion is due by March 31, 2029, or June 30, 2029, if the construction-start deadline is extended. The agreement also makes its effectiveness dependent on conditions that include an effective ground lease and Federal Aviation Administration approval.

Jobs, compensation and investment targets

Under the initial requirements, AST and its affiliates must create and maintain at least 1,600 full-time-equivalent jobs and reach $128 million in annual compensation costs in the applicable Midland facility area by Dec. 31, 2036.

The agreement also requires at least $100 million in facility and equipment investment by Dec. 31, 2034.

An extension provision could raise the targets. If the applicable conditions are met, AST and its affiliates could reach at least 1,800 full-time-equivalent jobs, $144 million in annual compensation costs and $150 million in total facility and equipment investment by Dec. 31, 2038.

The agreement defines a full-time equivalent using an annual 1,820-hour measure. It also sets an incentive threshold requiring at least 60% of the applicable job and compensation targets for a compliance year before that year’s capital incentive can be paid.

How the public support is structured

The agreement provides for up to $30 million in capital incentive payments and up to $16 million in ground-lease reimbursements. The lease reimbursements are tied to rent actually due and paid under the ground lease and are capped over the agreement’s stated period. These are maximum potential amounts, not an automatic $46 million payment.

A separate extension provision could provide up to another $20 million in earned capital incentive payments if the extension requirements are satisfied, including the higher job, compensation and investment targets.

The agreement also identifies an accelerated investment incentive of up to $9,999,999.99. That incentive is not guaranteed: AST would first have to meet separate eligibility conditions, then obtain approval from both the MDC board and the Midland City Council.

When the agreement’s potential capital, lease-reimbursement and extension amounts are combined, the document describes a maximum of $66 million for those provisions. That figure does not include the separately approved accelerated incentive, and it should not be read as money immediately paid or unconditionally committed.

What could affect future payments

AST must submit quarterly and annual compliance certifications covering jobs, investment and compensation requirements. MDC is authorized to delay or withhold payments when applicable requirements have not been satisfied.

The agreement provides for different consequences depending on the failure. Payments can be reduced proportionally if job or compensation requirements are missed, while failure to meet the stated incentive threshold can eliminate the payment for that compliance year. In specified circumstances, amounts already paid may be subject to repayment, and the agreement includes separate remedies for investment shortfalls, lease reimbursements and defaults.

For example, the agreement allows MDC to withhold capital incentive payments if the required $100 million investment has not been certified by Dec. 31, 2034. It also allows repayment of previously paid incentives under specified formulas if the investment requirement is not ultimately met.

The Midland Reporter-Telegram and First Alert 7 reported the board action and described the proposed facility, employment targets and performance-based incentive structure. The local coverage also reported public discussion about transparency; that discussion is not, by itself, a finding of wrongdoing.

What happens next

The agreement identifies July 22, 2026, as its execution date. Future steps include satisfying the agreement’s conditions precedent, completing design and construction work, submitting compliance certifications and obtaining any additional approvals required for particular incentive payments.

For Midland residents and taxpayers, the practical distinction is between money described in an agreement, money paid after certification and money that may be withheld, reduced or recovered if specific requirements are not met. The approved document creates a potential incentive framework for a major industrial project; it does not guarantee completion of the facility or the final number of jobs.

Sources

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