Farmington — San Juan County commissioners have approved an ordinance that will assist with the construction of a new warehouse at Raytheon's Diné Facility.

The ordinance contains the project participation agreement and the intergovernmental agreement, which was approved during last week's regular commission meeting.

The intergovernmental agreement to oversee and administer a $200,000 grant is between the county and the New Mexico Economic Development Department.

The grant will fund the architectural design for a 30,000-square-foot warehouse at the Raytheon facility.

Raytheon is an international aerospace and defense company. The local manufacturing facility is located at the Navajo Agricultural Products Industry Industrial Park south of Farmington.

In exchange for the funding, Raytheon will create two new jobs at the facility and retain the existing 42 jobs for at least three years.

The project participation agreement is between the county and the Navajo Nation, which owns and leases the facility to Raytheon.

Deputy County Executive Officer Linda Thompson said once the two agreements are signed by all parties involved, it frees the county to more forward with the design phase of the project.

The tribe had received the $200,000 grant from the state Economic Development Department but the department asked the county to serve as the fiscal agent for the grant, according to county documents.

Efforts on Thursday to reach an Economic Development Department official for comment were unsuccessful.

Raytheon spokesman John Patterson said the company is pleased with the county commission's decision and values its relationship with the state, county and tribe.

"The company will use the new warehouse to more efficiently manage operations at our facility near Farmington," Patterson said.

According to county documents, the tribe's Division of Economic Development has secured $3.3 million in funding for construction of the building but the county would not be involved in the actual construction.

The expansion would include general warehouse space as well as space for restrooms, janitorial storage, and rooms for telephone, data and mechanical uses.

Noel Lyn Smith covers the Navajo Nation for The Daily Times. She can be reached at 505-564-4636 and nsmith@daily-times.com. Follow her on Twitter @nsmithdt on Twitter.