News Summary
Jacksonville is considering a $20 million incentive package to attract Otto Aviation to establish a manufacturing plant for its Phantom 3500 corporate jet at Cecil Airport. The proposal, supported by the Jacksonville City Council, features tax breaks and investment incentives totaling $34.9 million. If selected, Otto Aviation could bring in a $430 million investment and create approximately 1,200 jobs, fueling economic growth in the region.
Jacksonville is currently considering a proposal for $20 million in incentives to attract Texas-based Otto Aviation to establish a manufacturing plant for its Phantom 3500 corporate jet at Cecil Airport. The Jacksonville City Council introduced the request, which aims to provide Otto Aviation with tax breaks to support the construction of its production facility.
The proposed incentives coincide with the Jacksonville Aviation Authority’s approval of a comprehensive investment package worth $34.9 million, which includes various investments and incentives designed to encourage Otto Aviation to select Jacksonville among its potential production sites. While Otto has also shortlisted other undisclosed locations, the city remains hopeful that it will become the chosen site for the manufacturing plant.
If selected, Otto Aviation is expected to invest a minimum of $430 million in the Jacksonville area and relocate its headquarters to the city. This investment is projected to create approximately 1,200 jobs with an average annual compensation of $90,000. The company plans to start its operations in a vacant hangar at Cecil Airport before moving ahead with the construction of the new manufacturing and production facility, which is intended to occupy between 80 to 90 acres of land on the airport grounds.
The city plans to offer a 20-year, 75% Recapture Enhanced Value grant of up to $20 million on $140 million in tangible personal property associated with the manufacturing facility. Additional state incentives may also be pursued through Florida’s Corporate Income Tax Credit and High Impact Performance Incentive Grant programs. The ordinance for the city incentives is currently seeking expedited passage, with a final vote expected in June after a two-reading process.
As part of the Jacksonville Aviation Authority’s incentive package, several key components were approved. This includes a $22.5 million investment to prepare the site and extend the taxiway to the property. Additionally, the package includes rent and maintenance fee abatements on Hangar 825 valued at $3.73 million and a total of $7.18 million in rent and maintenance fee abatements for the new plant development site. There are also plans for rent credits on Hangar 825, worth $1.5 million.
The Phantom 3500 aircraft, which Otto Aviation is developing, is designed for fuel efficiency and is expected to operate on 60% less fuel than competing aircraft while achieving a superior range. Categorized as a “super-midsized” aircraft, the Phantom typically seats between 8 and 10 passengers. The development of this aircraft is rooted in Otto’s innovative approach to design, which builds upon its previous model, the Celera 500L, known for its unique fuselage designed to minimize drag.
Otto Aviation has indicated intentions to introduce the Phantom to the market by 2030, with plans to commence flight tests at Cecil Airport starting in early 2027. Currently, the company employs around 100 individuals across various locations in Texas, benefiting from a leadership team with significant experience in the aviation industry.
Jacksonville’s competitive advantages, including a pro-business environment, a readily available workforce, and ample land for development, position it as an attractive destination for Otto Aviation. The proposed aircraft manufacturing plant is viewed as a potential driver of economic growth, underlining the city’s commitment to fostering industrial development and job creation.
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Additional Resources
- Jax Daily Record: Otto Aviation’s Project Bluebird
- Wikipedia: Jacksonville, Florida
- Jacksonville.com: Otto Aviation as Plane Maker
- Google Search: Otto Aviation
- News4Jax: Inside the Futuristic Aircraft
- Google Scholar: Aviation Industry
- Jax Daily Record: Resolution for Incentives
- Encyclopedia Britannica: Aerospace
- Jax Daily Record: Economic Impact of Otto Aviation
- Google News: Jacksonville Aviation
