After the city, county and airport worked to relocate a road south of Raytheon and swapped land to create an aerospace business park nearby, the buffer issue has been "completely resolved," Lawrence said.

Ducey called the Raytheon expansion a big win for the state and the latest example of a rebounding Southern Arizona economy, citing hundreds of new Tucson-area jobs announced by Comcast, Caterpillar, HomeGoods and human-resources systems provider ADP.

"This is great news and just more proof that Southern Arizona's economy is on fire," Ducey said.

Tucson Mayor Jonathan Rothschild said some aspects of the city's deal are still being negotiated with defense contractor. However, a final council vote is scheduled Tuesday night.

"What we are hoping to do on Tuesday is bring to Council an agreement with Raytheon that would enable Raytheon to bring an additional 1,900 jobs, at least, to Tucson," Rothschild said.

As a result of the deal, the company could spend upwards of $400 million in new construction on city-owned land near Tucson International Airport, Rothschild said.

"It is a complicated deal so we will be working over the weekend to finalize the tight language," he said.