Council amends Aerospace Incentive Program to add phased funding and lease option

The Palmdale City Council unanimously approved amendments to the Palmdale Aerospace Incentive Program on Jan. 6 that split incentive payouts into two phases tied to development milestones and add a lease incentive option designed to attract tenants for vacant industrial space.

Megan Taggart, the city's director of economic and community development, told the council the revisions respond to feedback that the original program adopted in November 2023 was not competitive with incentives offered by other jurisdictions or countries. Under the amendment, phase 1 payments will address site plans, building plans and commencement of construction; phase 2 payments will hinge on proof of private bidding that demonstrates efforts to source locally, issuance of a certificate of occupancy and evidence of job creation within a year of occupancy.

Taggart said the lease option requires a minimum five-year lease and a minimum of 50 jobs for projects qualifying under the lease pathway. The council was told the program has had one applicant and one award since adoption; that award broke ground in November 2025. Council members said they supported revisions intended to make the program more competitive and to help fill vacant industrial space in the city.

Council action: motion moved and seconded; amendment approved unanimously.