Otto Aviation, a Texas-based aviation startup that is developing what it describes as a “next-generation” business jet that can travel farther on less fuel than rival aircraft, is considering a manufacturing and production facility at Cecil Airport.
The Fort Worth-based company, code-named Project Bluebird in incentive requests from the city of Jacksonville and the Jacksonville Aviation Authority, would invest at least $430 million in two phases and move its headquarters to the city.
Otto said it would first establish operations in a hangar previously used by Boeing Co. and then build a plant to produce its Phantom 3500 aircraft on 80 to 100 acres of vacant land at the airfield.
The company was unveiled as Project Bluebird during the May 19 meeting of the Jacksonville Aviation Authority board, which approved a $34.9 million package of investments and incentives for the manufacturing facility. The city of Jacksonville and the state of Florida also are proposing incentives for the project, including $20 million from the city.
Adam Slepian, chief strategy officer for Otto, said the company selected Jacksonville as a finalist for its operations after a years-long search involving more than 50 airports across a dozen states. Slepian said Otto worked with Dallas-based Site Selection Group to identify potential locations for its expansion.
He said the company was drawn to Jacksonville for a mix of reasons.
“It was a composite of the right economic development agreements, the right incentives, being in a pro-business state and being in a super-growing region,” he said. “It’s a great team at the airport, and it’s a great place to recruit and retain the right talent.”
Slepian said Otto worked with JAXUSA Partnership, the economic development arm of the JAX Chamber, during its selection process.
He declined to say how many other locations Otto is considering, or whether it had received other incentive offers.
The JAA incentive package
The JAA board voted 7-0 to approve its incentive package, which comprises:
• A $22.5 million investment by JAA for site preparation and design/construction to extend taxiway E-1 to the property where Otto plans to build its facility.
• 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.
The city would provide a 20-year, 75% Recapture Enhanced Value grant of up to $20 million on $140 million in tangible personal property at the facility, such as machinery and office equipment.
A REV grant is a refund on ad valorem tax revenue generated by a new development or property enhancement.
According to the city Office of Economic Development, the project offers a return on investment of $1.24 per $1 of incentives.
The state of Florida is considering providing incentives through its Corporate Income Tax Credit and High Impact Performance Incentive Grant programs.
"Project Bluebird will further enhance our community's positioning as a leader in aerospace and create a lasting and positive economic impact on our community," JAA board chair Michelle Barnett said in a statement. "The JAA is committed to working with our city leaders to create an environment where industry leaders want to be."
City Council member Nick Howland, the Council liaison for the JAA, said he was pleased with the incentives package.
“Creating aerospace and defense manufacturing jobs is critical to Jacksonville’s continued growth,” he said in a statement. “I applaud the City and the Chamber for proposing tax discount incentives rather than cash grants, and appreciate the Airport’s willingness to co-invest alongside the City. This deal will benefit Jacksonville families, local industry, and our community as a whole.”
Phantom 3500 test flights timeline
Slepian said Otto would begin research and development in Cecil Airport’s Hangar 825 as part of plans to begin flight tests of the Phantom 3500 by early 2027.
The private company says it hopes to achieve certification from the Federal Aviation Administration and place the Phantom in service in 2030, meaning the aircraft would go on the market at that time.
Otto plans to eventually employ a workforce of 1,200 employees who would earn an average annual wage of $90,000, not including benefits.
They would build what is described as a “super-midsized,” twin-engined craft with a lightweight, low-drag design that Otto says would burn up to 60% less fuel than rival jets while producing 92% less emissions.
Aircraft in the super-midsized category generally hold eight to 10 passengers.
FlightGlobal said the jet would be nearly half the maximum takeoff weight and have 35% less drag than competing aircraft like the Bombardier Challenger 3500 and Embraer Praetor 500. Jets in the super-midsized class seat eight to 10 passengers.
Ottoaviation.com lists the jet’s range as 3,500 nautical miles with a cruise altitude of 51,000 feet.
Cabin height is 6-feet-5 inches.
The aircraft was designed without traditional porthole-style windows, which cause drag. Instead, the company says, high-definition digital displays on the cabin walls and ceiling will show real-time views of the plane’s surroundings.
The jet’s design evolved partly from testing of Otto’s experimental Celera 500L, a propeller-driven aircraft with seats for six passengers. The plane has a distinctive fuselage that is shaped more like a football than the standard tube-style design, prompting Flying magazine to describe it as “blimp-like.”
The plane’s shape is designed to reduce drag and make it more fuel efficient.
Slepian said the Celera flight test prototype made 50 flights spanning more than 100 flight hours.
About Otto Aviation
Slepian said Otto currently employs about 100 people stationed in different parts of Texas.
The company’s website says Otto was named after its founder, William “Bill” Otto, who established the company in 2008.
The site says Bill Otto traveled extensively as the founder of an accident reconstruction company, a type of business that analyzes evidence at crash sites to determine the cause, and became frustrated over the high costs and significant environmental impact of private air travel.
The company’s board is chaired by former Boeing CEO Dennis Muilenburg and includes such members as Mike Pompeo, former U.S. secretary of state and CIA director, and former FAA administrator Marion Blakey.
Slepian declined to say whether Otto’s chief executive officer and top administrators would relocate to Jacksonville.
He also would not provide details on the company’s ownership and investors, or on financial aspects of the Jacksonville project.
“I can’t comment on who our ownership stakes are,” he said.
If the company does move to Northeast Florida, he said, it will remain here “for decades.”
He said not all of the aircraft’s components will be manufactured in the region, but final assembly would take place in Jacksonville.
“Over time, we would also be looking at potentially having some of our suppliers co-locate with us,” he said.
Legislation for the city of Jacksonville’s incentive offering is expected to be filed by May 21 on a timeline toward a final Council vote in June.
Staff Writer J. Brooks Terry contributed to this report.