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Council backs EDC package and bonds for eSpace East Base, citing thousands of jobs and $115M EDC support
Summary
Arlington approved a suite of EDC and city actions to support eSpace’s East Base manufacturing and hangar campus, including an EDC commitment up to $115 million, construction packages and a $1.2 million utility contribution; the developer must meet hiring and capital-raise conditions.
The Arlington City Council approved a series of actions to advance East Base, a manufacturing and headquarters campus for satellite manufacturer eSpace, including an economic-development package, initial construction contracts and a city/EDC funding commitment.
Lindsay Mitchell outlined the package: the Arlington Economic Development Corporation will provide no more than $115 million to defined project costs; East Base must meet funding and hiring milestones (400 jobs within five years, 700 over seven years at an average salary of $95,000). The EDC plans to issue roughly $70 million in revenue bonds and contribute cash on hand for the remainder, staff said.
The initial construction package presented by the construction manager at risk totals approximately $13.4 million for site work, utilities, drainage and related infrastructure; contract modifications for project administration and additional architectural fees were also included. The council also approved a chapter 380 water-utility funding contribution of $1.2 million to support on-site water and sewer improvements.
Staff emphasized protections for the EDC: security deposits, letters of credit and UCC liens on equipment; the performance agreement includes recapture provisions and cross-defaults tied to leases. “Before the EDC executes the manufacturing facility lease, they must provide proof of funding for tenant improvements and certain capital raises,” Mitchell said.
Council members voted to approve the package after brief questions about timing and fiscal structure. Staff said the vertical construction package will return to council later this year; groundbreaking is slated for early September and project completion is projected in 2027.
