A new lease agreement between Mesa and MD Helicopters will ensure that the helicopter manufacturer and its nearly 300 employees will remain at Falcon Field Airport until 2013.

The agreement, reached after prolonged negotiations and some tense moments, will be officially considered Monday by the City Council.

Economic development officials announced the deal Tuesday morning. Retaining MD Helicopters was seen by some in the city as an important test to determine whether Mesa could retain high-quality jobs.

Lois Yates, executive director of the Falcon Field Area Alliance, a nonprofit economic development corporation, said retaining MD is a good step forward for Mesa, “especially because we get to keep all those high-paying jobs in the city.”

Plus, said Yates, if MD is able to stick with its plans “to go vertical” and manufacture helicopter parts on its own, that could translate into even more Mesa jobs.

No specific dollar amounts for the new, five-year lease were released, although MD Helicopters and its employees contribute more than $40 million annually to Mesa’s economy, according to Charlie Deaton, Mesa Chamber of Commerce president.

“There were a lot of fits and starts before we reached the agreement, and it’s a great example of never say die,” said Deaton during a news conference.

Company executives did not attend the announcement and could not be reached for comment.

MD Helicopters, which makes light, single-engine and twin-engine helicopters at its $16 million, 46-acre site at Falcon Field, will continue a search for 100 acres for expansion, including at Falcon Field.

If MD Helicopters can reach an agreement at Falcon for the added space, the company would lease there until 2033, according to officials.

Last year, MD Helicopters executives were critical of their Falcon Field lease because it included escalation clauses that sharply increased the company’s rent.

After being unable to reach an agreement, the company said it would look for another location, thus creating the challenge to Mesa to persuade MD Helicopters to renew its lease.

The expansion would require about 650 employees within a few years.

The company produced 35 helicopters last year, and it plans to build about 60 this year.

Eventually, it hopes to reach 100 to 150 helicopters a year, Randy Walti, general counsel for MD Helicopters, has said in a previous interview.

Falcon Field, between Mc-Kellips, McDowell, Greenfield and Higley roads, remains a possible future location for MD Helicopters’ new sites, said Corrine Nystrom, airport director. “This (lease agreement) positions Falcon Field to be a player with MD Helicopters and its future and long-term development,” Nystrom said.

The helicopter company is currently negotiating for possible sites with Phoenix-Mesa Gateway Airport as well as North Texas Regional Airport in Denison, Texas, Will Rogers World Airport in Oklahoma City and Shreveport Regional Airport in Louisiana. The new sites are expected to provide space for light jet manufacturing plants and other facilities, including a new 300,000-square-foot sales, manufacturing and training complex.

Mesa’s mayoral candidates, Rex Griswold and Scott Smith, both commended the city’s efforts in retaining MD Helicopters.

In a recent mayoral debate, Smith attacked Griswold for not having done enough to hold on to MD when he was councilman for District 5, where Falcon Field is located.

Griswold had earlier said that he had urged the mayor and the city manager to negotiate with top company officials, but had also pointed out that federal regulations require all airport tenants to pay the same lease rates.

After Tuesday’s announcement, Griswold said every company is important, whether small, large or in-between.

“In this case, it all seems to have worked out well,” Griswold said. “I’m pleased and this is great news for Mesa.”

Reacting to the announcement, Smith said “anytime you can retain a business like that, it’s something to celebrate.”

Smith added that negotiating with MD could not be termed giving the company preferential treatment.

“At Falcon Field, we would need to look at MD and compare it with a similar company, but you don’t have any such company there,” Smith said. “We don’t have helicopter manufacturers on every other corner and I think that needs be taken into perspective.”

The average annual salary of MD Helicopters employees at Falcon Field is $63,000, according to the Mesa Economic Development agency.

“Our efforts to retain MD Helicopters in Mesa involved several important players,” said Bill Jabjiniak, Economic Development director. He praised the Mesa Chamber of Commerce, Falcon Field Area Alliance, Greater Phoenix Economic Council, the governor’s office and Arizona Department of Commerce for their efforts toward reaching the updated lease agreement.