HARLINGEN – Mayor Chris Boswell signed on the dotted line Monday, executing an agreement with aerospace firm United Launch Alliance, which could be worth more than $2.25 million in grants over five years.

“It’s a great day for Harlingen and the Rio Grande Valley,” the mayor said of ULA’s continuing presence in the city.

The establishment of an economic development program and agreement with ULA reflects the city’s commitment to the aerospace firm, supporting its growth and encouraging expansion, while bringing job stability to employees, and the prospect of new jobs.

Boswell said the incentive agreement finalized Monday between ULA, the city, and Harlingen Economic Development Corp., took more than nine months to structure and complete.

“The city of Harlingen is committed to growing United Launch Alliance and the aerospace industry here in Harlingen and in Cameron County,” Boswell said yesterday.

There are several facets to the agreement.

ULA leases property from the Valley International Airport for its operation where it manufactures, assembles, and integrates Atlas V, Delta II, and Delta IV advanced launch rockets.

“Because of the growth in this industry, ULA anticipates a growing need to maintain and expand its operations at the facility here,” the development agreement states.

Access to funds is conditional upon the retention of 125 jobs, creation of new jobs, investment in the facility, and ULA’s agreement to enter into a five-year lease at Valley International Airport.

The new lease with VIA calls for a rate of $450,000 per year, which essentially equals the maximum amount of grant funds ULA would be able to access per year.

If at any time, ULA decides to locate, construct, and operate a rocket engine manufacturing facility in the city, ULA would be provided with an additional incentive of $1 million in infrastructure and job creation grants.

“I am extremely proud and pleased with our relationship with ULA and the support it is receiving from the City Commission, EDC and airport boards,” Boswell said.

The city and boards will be making a formal announcement about the agreement on Thursday morning.

The City Commission in early February approved the agreement with ULA, but it was tweaked in the ensuing months, and also approved by EDC as a new lease agreement also was being finalized by the VIA board.

ULA is a joint venture of Lockheed Martin Corp. and The Boeing Company, and collectively, they have had a presence in the community for more than 25 years.

The incentive package is referred to as a 380 Agreement, which is allowed by Chapter 380 of the Local Government Code. It authorizes cities to offer incentives designed to promote economic development.

The state statute provides for offering loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.

Eperez-trevino@valleystar.com