Staff Writer
In a deal that could potentially generate up to 200 local jobs, the Jacksonville Aviation Authority board of directors approved an option agreement Monday with Brazilian jet manufacturer Embraer.
For the deal to be completed, Embraer must secure a contract it is seeking with the Department of Defense. A similar deal was struck between the JAA and Embraer in the past, but fell through when the company couldn’t secure a similar contract.
“It didn’t happen the first time, but what this deal shows is they (Embraer) continue to have a very strong interest in Jacksonville,” said Steve Grossman, JAA executive director.
Under the deal, Embraer would hold the option to lease hangar S-11 (the former Piedmont hangar) at Jacksonville International Airport if it were to obtain the Defense air manufacturing contract.
If successful, it would then enter a lease with JAA for a 10-year deal with two consecutive five-year options at Embraer’s discretion, with the option to terminate the lease at the end of the first five years. Rent would amount to $7 a square foot for 39,785 square feet of hangar and office space for an annual rent of more than $278,000.
Embraer would be responsible for insurance and all maintenance and utilities; JAA would be responsible for repairs on the premises to make it “move-in ready.”
Grossman said the deal could potentially bring up to 200 jobs and said one of the goals is growth for the company over time.
“It’s a pretty exciting deal,” said Grossman.
While the deal is geared toward enabling Embraer to set up as soon as possible, the decision from the Department of Defense could take some time, he said.
Founded in 1969, Embraer is based in Brazil with U.S. headquarters in Fort Lauderdale. It is considered one of the largest aircraft manufacturers in the world and has been one of Brazil’s largest exporters in the last decade.
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