St. Johns River Water Management District reviewing Boeing permit

The aircraft manufacturer is planning a component repair, maintenance and warehouse facility at Cecil Airport.

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The St. Johns River Water Management District is reviewing an environmental resource permit application for The Boeing Co.’s proposed component repair, maintenance and warehouse facility at Cecil Airport.

The Jacksonville Aviation Authority board voted 7-0 on Sept. 26 to lease property to Scannell Properties to build the $26 million project.

The district application provides the address as 13365 Simpson Way.

JAA’s board approved a ground lease for 18.3 acres to Scannell, which intends to build a 146,645-square-foot facility with parking, roads, access drives and stormwater control facilities at the West Jacksonville airport.

JAA CEO Mark VanLoh and Chief Development Officer Jay Cunio submitted the lease to the board for approval.

VanLoh and Cunio signed the submission Sept. 16. It says management recommends that the JAA board approve the ground lease between JAA and Scannell and authorizes VanLoh to execute the necessary documents.

Indianapolis-based Scannell will lease the land from JAA and sublease the improved property to Boeing, according to the JAA staff recommendation to the board.

The initial lease term is 27 years with an option to extend for 13 years and an additional option for 10 years, not to exceed 50 years.

The ground rent for the initial lease is 25 cents per square foot per year, or about $199,287 in annual rent based on 18.3 acres.

The ground rent is subject to an annual 3% increase for the second through fifth years, and then 2.25% a year for years six through 27. 

Starting with the first extension option, the ground rent is reset based on an appraisal of fair market value and then increased annually at 2.25%.

Scannell will spend at least $26 million on the project design and construction. It will have the right to assign the lease agreement to Boeing “or any other qualified Assignee with JAA approval.”

Boeing uses multiple facilities at Cecil Airport.

The JAA management submission explains that in 2020, the authority responded to a Boeing request for proposal under the code name “Project Shockwave” for a new maintenance, repair and overhaul facility with offices and support space.

The board approved the lease with Boeing in December 2020. The 400,600-square-foot project is under construction.

Boeing is considered a legacy tenant whose presence at Cecil Airport predates JAA’s acquisition of the property.

The JAA submission says Boeing leases six facilities totaling 394,335 square feet on the west side of the airfield.

The facilities provide mission support, aircraft maintenance, engineering and training for the U.S. Navy and other military and civilian aviation interests.

The city has been reviewing civil engineering plans for the Scannell project. Pond is the civil engineer.

Those plans show the facility on the east side of Approach Road, south of 103rd Street. 

The Project Shockwave facility is on the west side of Approach Road.

Scannell is a privately owned commercial real estate development company that specializes in build-to-suit and speculative commercial projects.