Palmdale has promised SR Technics America Ltd. $5.4 million in redevelopment funds and fee waivers in exchange for SR Technics' promise to keep its new aircraft maintenance and refurbishment facility open in Palmdale for at least the next 10 years. SR Technics opened shop at an old Boeing Co. plant in the desert community earlier this year based on that pledge, plus another package of incentives from the state worth $79 million and $12.5 million in help from the City of LA's Airport Department.
Now, Palmdale may have trouble keeping its end of the bargain. It turns out that SR Technics' plant actually sits outside of the city's limits, on land owned by Los Angeles World Airports. LA World Airports won't let Palmdale annex the land unless it first has a development agreement of its own.
LA World Airports is insisting that the 155 acres Palmdale wants to annex to keep its pledge be returned if SR Technics decides to leave after its 10 years are up. But Laurie Lile, Palmdale's director of planning, says Palmdale doesn't have the authority to cut such an agreement.
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