News Summary
Jacksonville is set to transform into a key player in the aerospace sector as Otto Aviation plans to invest $430 million in a new manufacturing facility at Cecil Airport. The project, dubbed ‘Project Bluebird,’ involves moving the company’s headquarters and is expected to create around 1,200 jobs, significantly boosting the local economy. With substantial support from the Jacksonville Aviation Authority and the city, this initiative promises to enhance the region’s manufacturing capabilities in aviation.
Jacksonville is poised to become a significant player in the aerospace industry, as Otto Aviation, a Texas-based startup, plans to build a $430 million manufacturing facility at Cecil Airport. The project, known as “Project Bluebird,” will encompass both the construction of a new facility and the relocation of the company’s headquarters to Jacksonville.
The Jacksonville Aviation Authority (JAA) board has already approved an impressive $34.9 million investment and incentive package for the project. The city of Jacksonville is also proposing additional support, which includes a $20 million investment in incentives. The enhancements are expected to attract Otto Aviation’s manufacturing operations to the region.
Otto Aviation aims to establish operations in a hangar that was previously utilized by Boeing Co. Initially, the company plans to develop its manufacturing plant for the Phantom 3500 aircraft on 80 to 100 acres of unused land at the airport. This project follows a comprehensive two-year search where over 50 airports in various states were considered before Jacksonville was selected. The city’s appeal lies in its favorable economic development agreements, pro-business environment, and promising growth trajectory.
The JAA’s incentive package is structured to cover several key financial components, including:
- A $22.5 million investment for site preparation and construction to extend taxiway E-1.
- Rent and common area maintenance fee abatements valued at approximately $3.73 million on Hangar 825.
- Rent credits worth $1.5 million for Hangar 825.
- Additional rent and common area maintenance fee abatements totaling $7.18 million for the new manufacturing plant’s development site.
Additionally, the city proposes a 20-year Recapture Enhanced Value (REV) grant of up to $20 million based on $140 million in tangible personal property. This incentive plan estimates a return of $1.24 for every dollar invested, making it a potentially lucrative venture for Jacksonville. The state of Florida is also exploring further incentives through its Corporate Income Tax Credit and High Impact Performance Incentive Grant programs to bolster the project’s viability.
Otto Aviation plans to commence flight tests of the Phantom 3500 by early 2027, with aspirations for Federal Aviation Administration (FAA) certification and market availability by 2030. The company anticipates creating approximately 1,200 jobs with an average annual wage of $90,000, excluding benefits, once the facility is operational.
The Phantom 3500 is classified as a “super-midsized” twin-engine jet, designed for fuel efficiency. Utilizing laminar flow technology, it aims to reduce drag and emissions significantly. Capable of accommodating 8 to 10 passengers, the aircraft boasts a range of 3,500 nautical miles and a cruise altitude of 51,000 feet. This innovative design builds on previous testing conducted with Otto’s experimental Celera 500L aircraft.
If the project moves forward, it will mark the first passenger plane manufacturing plant in Jacksonville, further cementing the city’s role in the expanding aerospace sector. The Jacksonville City Council is expected to vote on the city’s incentives in June, following a formal proposal that must be submitted by May 21. As progress continues on this significant project, the Jacksonville community prepares for potential economic growth and job creation in the aerospace industry.
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Additional Resources
- Jacksonville Daily Record: Otto Aviation and Project Bluebird
- Jacksonville.com: Plane Maker for Project Bluebird
- News4Jax: Investment at Cecil Airport
- Jacksonville Daily Record: Economic Impact of Otto Aviation Plant
- Florida Trend: Afternoon Update
- Wikipedia: Jacksonville, Florida
- Google Search: Otto Aviation
- Google Scholar: Project Bluebird Otto Aviation
- Encyclopedia Britannica: Aerospace
- Google News: Otto Aviation Jacksonville
