A request for $20 million in incentives to land an aircraft manufacturing plant in Jacksonville has been introduced to the Jacksonville City Council.
Resolution 2025-0392 would provide the incentives in the form of a tax break for Texas-based Otto Aviation to build its Phantom 3500 corporate jet at Cecil Airport. Otto has short-listed Jacksonville as its production site among an undisclosed number of other locations.
On May 19, the Jacksonville Aviation Authority board approved a $34.9 million package of investment and incentives for Otto. The company would begin operations in a vacant hangar at Cecil before building its manufacturing and production facility on 80 to 90 acres on the grounds of the airfield.
If it selects Jacksonville, Otto would invest at least $430 million and move its headquarters to the city. The company says it would employ a workforce of 1,200 at an average annual compensation of $90,000.
The city and JAA had code-named the company Project Bluebird while working on the incentives agreements.
If approved by Council, the city will offer a 20-year, 75% Recapture Enhanced Value grant of up to $20 million on $140 million in tangible personal property at the manufacturing facility, such as machinery and office equipment.
According to the city Office of Economic Development, the state of Florida also is considering incentivizing the project through its Corporate Income Tax Credit and High Impact Performance Incentive Grant programs.
The city ordinance was filed with a request for a fast-tracked two-reading passage, which shortens the normal six-week process and puts it on a path for a final vote in June.
JAA’s package for Otto comprised:
• 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.
• Abatements on rent and common area maintenance on the development site for the new plant, worth $7.18 million.
• Rent credits on Hangar 825, worth $1.5 million.
Otto says its two-engine Phantom aircraft is designed to minimize drag and maximize fuel efficiency, allowing it to operate on 60% less fuel than competing aircraft while outperforming them in range.
The aircraft is in development. Otto says it plans to bring it to market in 2030.
It evolves from the company’s experimental Celera 500L, a propeller-driven aircraft with a fuselage shaped more like a football than the standard tube-design. The shape is designed to reduce drag.
The Phantom is in the super-midsized category, in which planes typically carry eight to 10 passengers.