News Summary
Jacksonville is poised for economic growth with the potential establishment of Project Bluebird, a new passenger jet manufacturing facility. The city’s Office of Economic Development is seeking financial incentives for the project, which promises a $430 million investment and over 1,200 new jobs with an average salary of $90,000. As the project competes for location, city officials have proposed a 20-year tax grant to encourage the move, aiming for significant local economic impact.
Jacksonville Welcomes Potential New Aircraft Manufacturing Facility
A new passenger jet manufacturing company, code-named Project Bluebird, is making plans to establish a production facility in Jacksonville, offering the potential for substantial economic growth in the region. The city’s Office of Economic Development (OED) is seeking approval for financial incentives to support this project.
On May 12, the OED will request permission from the Mayor’s Budget Review Committee to proceed with a development agreement with Project Bluebird. This marks a significant step in the company’s efforts to finalize its plans for manufacturing operations after initially conducting research and development in another state.
Investment and Job Creation
Project Bluebird is set to invest over $430 million at the Cecil Airport for its manufacturing facility. Initially, the company will begin operations from an existing hangar while constructing a brand new facility on 80 to 100 acres within five years. This facility will encompass 270,000 square feet of development, which includes manufacturing space, hangar capabilities, and an office building.
With the establishment of this facility, Project Bluebird is expected to create more than 1,200 jobs over the next 15 years, with an average salary of $90,000—excluding benefits. The total annual payroll for the facility is projected to exceed $36 million. This significant investment not only provides numerous job opportunities but also aims to enhance the local economy.
Economic Incentives and Tax Benefits
To facilitate this project, city officials have proposed a 20-year, 75% Recapture Enhanced Value Grant of up to $20 million. This grant would apply to the $140 million in equipment and finishings necessary for the manufacturing facility, thereby reducing the financial burden on the company. The Recapture Enhanced Value Grant would be a refund related to ad valorem tax revenue generated by the new development, providing a substantial incentive for Project Bluebird.
The project is anticipated to yield a return on investment of $1.24 for each dollar of incentive provided. In addition to city incentives, the state of Florida may offer further financial support through programs such as the Corporate Income Tax Credit and High Impact Performance Incentive Grant.
Competitive Landscape
Project Bluebird is competing with several other states for this manufacturing facility, highlighting the importance of site selection based on incentives and operational requirements. The decision about the facility’s location could significantly impact the economic landscape of whichever region is selected.
In the broader context of the aviation industry, the description of Project Bluebird aligns closely with projects undertaken by Natilus, a San Diego startup known for creating hyper-efficient blended wing body aircraft. Natilus is currently seeking a site for its first U.S. manufacturing facility, aiming to produce the regional freighter Kona and eventually the passenger aircraft Horizon, projecting thousands of new jobs in the coming years.
Current Status and Next Steps
The initial application for service availability for the Project Bluebird facility was disapproved on March 28 due to the need for additional information, and there have been no updates since. As the OED prepares to present its plan to city officials, the fate of the Jacksonville facility remains in flux, pending further evaluation and discussions regarding the proposed incentives.
As Project Bluebird moves forward in its plans, Jacksonville stands at a pivotal moment, with the potential for significant job creation and economic development on the horizon.
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Additional Resources
- Jax Daily Record: Aircraft Manufacturer Seeks City Incentives
- Wikipedia: Aircraft Manufacturing
- First Coast News: Plane Crash Near Reagan National Airport
- Google Search: Aircraft Manufacturing Incentives
- Jacksonville.com: Boeing Planes Facing Backlash
- Encyclopedia Britannica: Aviation
- Spectrum Local News: Officials Aim to Build Supersonic Jets
- Google News: Aircraft Manufacturing Jobs
