Otto Aerospace is putting into motion its plan to build a production facility in Jacksonville, as the city issued a permit to the aircraft maker for interior demolition in a hangar at Cecil Airport.
The permit for the hangar at 6105 Flightline Road is for 59,130 square feet of demolition at a project cost of $500,000. Balfour Beatty Construction LLC is the contractor.
Otto, based in Texas, announced in June 2025 it would establish a manufacturing and production facility to build its Phantom 3500 business jet at Cecil Airport. The company was known then as Otto Aviation but changed its name in September 2025.
Otto said it would build more than 600,000 square feet of office and manufacturing space by Jan. 1, 2032, for production of the Phantom 3500. Plans called for creation of at least 400 jobs at an average $90,000 salary at the airport by the end of 2031, with possible expansions that would increase the workforce to 1,200 by 2040.
Otto said it plans to relocate its headquarters to Jacksonville.
The company said its total capital investment in Jacksonville would be $430 million.
In May 2025, the Jacksonville Aviation Authority board approved an incentive package for Otto that 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.
• Rent credits on Hangar 825, worth $1.5 million.
In June 2025, Jacksonville City Council approved a $20 million incentive package for the aircraft company. The 18-0 vote constituted final action on a 20-year, 75% Recapture Enhanced Value Grant for Otto.
A REV grant is a refund on added tax revenue generated by a new development.
Additionally, the state of Florida has approved more than $430 million in Corporate Income Tax Credits and High Impact Performance Incentive grants to facilitate the establishment of the manufacturing plant and long-term operations, which will occupy 80 to 100 acres at Cecil Airport.
The first test flight of the Phantom 3500 is planned in 2027, with certification and deliveries targeted for 2030.
Otto said it designed the carbon-fiber twin-engine jet with fuel efficiency, extended range and reduced emissions in mind. The aircraft features a laminar flow design in which the fuselage is shaped somewhat like a football.
According to the company, the design reduces drag by 35% and fuel usage by more than 60% compared with traditional business jets.
“With a range of 3,500 nautical miles and a cruise altitude of 51,000 feet, the Phantom 3500 is poised to redefine the standards of business aviation,” Otto said in a release.
In September 2025, Cleveland-based Flexjet placed an order for 300 of the Otto jets.