Los Angeles harbor commissioners have approved a permit for Space Exploration Technologies to build a facility on 19 acres of port land to manufacture a Mars rocket that will be so big it will require an oceangoing barge for transport to launch sites.
SpaceX founder Elon Musk says the rocket will serve a wide range of missions including going to Mars.
The permit approved Thursday has an initial 10-year term with two 10-year options to extend.
SpaceX will receive credits that offset the approximately $1.38 million in annual rent in exchange for improvements it makes, including construction of a huge hangar-style building. Overall credits are capped at $44 million.
The deal is expected to be reviewed by the City Council.