PINAL COUNTY, Arizona (Oct. 16, 2026) — A proposed defense manufacturing and testing development encompassing approximately 4,753 acres east of San Tan Valley is moving toward a December auction, potentially adding another major industrial employer to Arizona’s aerospace and defense corridor.
Known as “Project Paperclip,” the state-owned property carries a starting bid of $46.5 million and is scheduled for auction December 22, according to Arizona State Land Department records.
The proposal also brings attention to the region’s existing defense connections, including Raytheon’s Tucson missile operations and its documented use of testing resources in Pinal County. The county’s Joint Land Use Study identifies Raytheon among the organizations that have used the Florence Military Reservation. No involvement by Raytheon in Project Paperclip has been announced.
The development site is substantially larger than the approximately 1,100 acres considered last year for “Project Ranger,” a missile manufacturing and testing proposal associated with California-based Castelion.
Founded by former SpaceX employees, Castelion ultimately selected New Mexico for its Project Ranger complex. Whether the company remains involved in the expanded Arizona proposal is unresolved.
According to the Business Journal, an April 9 State Land Department letter identifies Rose Law Group as the applicant and describes the proposed use as large-scale manufacturing and testing of hypersonic missiles. Attorney Jordan Rose represented the earlier proposal and the expanded site.
Pinal County supervisors approved industrial zoning for the expanded property October 1. The approval prohibits standalone data centers and utility-scale solar plants, directing the property toward other industrial employment uses.
For Southern Arizona, the proposal would place additional defense manufacturing capacity between the East Valley’s aerospace operations and Raytheon’s established Tucson facilities.
Raytheon is already investing in faster weapons development and production at its existing Tucson missile development and manufacturing campus near Tucson International Airport, along East Hermans Road.
In an April announcement, parent company RTX described new factories, laboratories and testing equipment within that campus, including a dedicated 20,000-square-foot guidance section factory and a large-scale automated facility for testing missile components. These investments are part of the existing Raytheon complex.
The facilities support a modular approach to weapons development, allowing common components, software and testing systems to be adapted for multiple programs. RTX says the automated testing operation is designed to increase testing output by 30%.
Those activities provide context for the proposed Pinal County development, but they do not identify its prospective operator or establish a business relationship with the project.
The December auction is the next major milestone. A completed Pinal County land sale would clarify ownership of the property, while the eventual development’s investment, employment and construction schedule remain to be disclosed.
Sources: Phoenix Business Journal, Pinal County Joint Land Use Study, Arizona State Land Department and RTX’s Tucson manufacturing announcement.