Palmdale has promised SR Technics America Ltd. $5.4 million inredevelopment funds and fee waivers in exchange for SR Technics'promise to keep its new aircraft maintenance and refurbishmentfacility open in Palmdale for at least the next 10 years. SRTechnics opened shop at an old Boeing Co. plant in the desertcommunity earlier this year based on that pledge, plus anotherpackage of incentives from the state worth $79 million and $12.5million 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 thecity's limits, on land owned by Los Angeles World Airports. LAWorld Airports won't let Palmdale annex the land unless it firsthas a development agreement of its own.

LA World Airports is insisting that the 155 acres Palmdale wantsto annex to keep its pledge be returned if SR Technics decides toleave after its 10 years are up. But Laurie Lile, Palmdale'sdirector of planning, says Palmdale doesn't have the authority tocut such an agreement.