The Jacksonville Aviation Authority board will consider providing a $34.9 million package of facility upgrades and incentives to an aviation company to build a manufacturing and production facility at Cecil Field.
On May 19, the JAA board is scheduled to consider agreements with the company, code-named Project Bluebird, to go forward with a two-step plan to establish operations in an existing hangar at the West Jacksonville airport and then build a manufacturing plant within five years on 80 to 100 acres on undeveloped property on the airport grounds.
According to documents from the city of Jacksonville, which is considering providing up to $20 million in incentives for Project Bluebird, the company is planning to invest at least $430 million for a facility to produce a passenger jet it is developing in another state.
Components of the JAA package include:
• A $22.5 million investment by JAA for site preparation and design/construction to extend taxiway E-1.
• Abatements on rent and common area maintenance fees on Hangar 825, worth $3.73 million.
• Rent credits on Hangar 825, worth $1.5 million.
• Abatements on rent and common area maintenance on the development site for the new plant, worth $7.18 million.
Under the proposed agreements, the company would be obligated to invest a minimum of $5 million in Hangar 825, begin construction of a first phase of its development by June 1, 2027, launch the second phase by June 1, 2029, and complete a minimum of 600,000 square feet of development by January 2032.
A JAA spokesperson said May 14 that the authority had yet to identify a source for the $22.5 million in capital expenditures it would provide for the taxiway extension.
The city’s proposed incentives would comprise a 20-year, 75% Recapture Enhanced Value grant on $140 million of tangible personal property at the facility, such as machinery and office equipment. A REV grant is a refund on tax revenue generated by a new development or property enhancement.
On May 12, the Mayor’s Budget Review Committee voted to allow the city Office of Economic Development to submit legislation containing the REV grant to City Council.
An OED summary of the project said the state of Florida is considering providing incentives through its Corporate Income Tax Credit and High Impact Performance Incentive Grant programs.
The summary said the company will employ a workforce of more than 1,200 in the next 15 years at an average wage of $90,000, excluding benefits. The OED projects a return on investment of $1.24 per $1 of incentives.
Ed Randolph, the city’s executive director of economic development, told MBRC members that officials expected the facility to attract “other suppliers and downstream entities” that would further benefit the city’s economy.
According to a March 27 service availability request to city utility JEA, Project Bluebird is planning 280,000 square feet of improvements northeast of Cecil Airport, including the construction of a manufacturing facility, hangar space and an office building.