Council approves AST SpaceMobile development agreement, citing job targets and clawbacks

After a lengthy public hearing and staff presentation, the City Council approved two linked items with AST SpaceMobile: a 30‑year economic-development agreement that could deliver up to $66 million in incentives over time if performance benchmarks are met, and a ground lease for a 23.107‑acre tract in the Spaceport Business Park.

MDC staff (speaker 37) described the structure: $16 million of the total is a ground-lease abatement returning to the city/airport and up to $50 million is a capital incentive paid annually if AST meets milestones; initial caps start at $3 million per year rising later to $3.3 million. Staff emphasized that the incentives are earned, not given, and that there are multiple certification layers and clawback provisions including a 60% performance floor. "If AST does not meet that 60% floor, there is no proportionate incentive provided," staff said, adding that cessation of operations triggers full or prorated clawbacks depending on timing.

The agreement projects large returns at full buildout—staff cited up to 1,800 direct jobs, $144M in annual payroll and $150M in taxable capital investment—but council debate focused on risk mitigation and taxpayer protections. Supporters said the deal diversifies Midland’s economy and leaves the city with a valuable facility if AST leaves; critics urged caution given long time horizons. After discussion and additional council amendments and clarifying language, the council approved the MDC-recommended package and the related ground lease (vote recorded 6–0 in minutes for the EDA and 6–0 for the ground lease), and asked for continued transparency and community engagement from AST.