A deal that would have Tesla Motors open a vehicle production plant in the City of Downey is "99.9 percent" done, Mayor Mario Guerra said today.

The City Council is expected to call a special meeting as early as tomorrow night to vote on a memorandum of understanding with Industrial Realty Group (IRG), Guerra said.

If the agreement is approved, Tesla Motors will open the production plant on an 80-acre plot of land at Lakewood Boulevard and Columbia Way, where Downey Studios currently sits.

Exactly how much space Tesla would occupy is unknown. The plant is expected to create up to 1,200 jobs.

Guerra said three-way negotiations between the city, IRG and Tesla, which have been ongoing since October, resulted in a deal over the weekend.

"The deal points have all been agreed to," Guerra said. "Now it's the lawyering stuff."

Guerra would not provide details on the memorandum of understanding, but he said a formal announcement is expected to come next week.

Tesla representatives were not immediately available for comment.

Tesla, an emerging leader in the manufacturing and sales of electric cars, received $465 million in low-interest loans from the U.S. Department of Energy in June to accelerate production of the Model S, a $50,000 sports sedan.

The Model S is expected to be introduced by late 2011.