Otto Aviation secures $20M incentive package for Cecil Airport manufacturing facility

Otto Aviation secures $20M incentive package for Cecil Airport manufacturing facility (Courtesy of the Jacksonville Business Journal) — Jacksonville cleared the runway Tuesday evening for Otto Aviation, approving a multimillion-dollar incentives package to land the California aircraft manufacturer at Cecil Airport.

The Jacksonville City Council approved a Revenue Enhancement Value grant for up to $20 million to support the Texas-based company’s planned manufacturing and production facility at Cecil Airport.

City records show the REV Grant to support the project is valued at 75% of the incremental property taxes over 20 years, with a cap of $20 million.

The company was initially under the codename Project Bluebird when the proposal was first under review by the Mayor’s Budget Review Committee.

As one of Jacksonville’s main tools for incentivizing capital investment, the REV grant is performance-based, meaning the company must meet job creation and investment thresholds to receive payment over time.

Otto Aviation plans to relocate its headquarters to Jacksonville and invest up to $430 million in two phases at Cecil Airport to build the Phantom 3500, a next-generation transonic, fuel-efficient jet at the proposed facility.

“The City Council’s approval of this investment demonstrates our community’s commitment to fostering innovative aviation businesses that create jobs and economic opportunities for our residents,” said Jacksonville Aviation Authority CEO Mark VanLoh in a statement Tuesday evening. “We’re excited to welcome Otto Aviation to Cecil Airport and look forward to the positive impact this partnership will have on our region.”

Last month, JAA’s Board of Directors unanimously approved a nearly $35 million incentive package for the manufacturing facility.

On Tuesday, JAA and Otto Aviation finalized an agreement for Otto to temporarily lease the former hangar of Boeing at Cecil Airport.

Construction of the company’s new Phantom 3500 aircraft manufacturing plant is slated to begin in 2027.

The manufacturer anticipates creating 1,200 new jobs in Jacksonville as part of the expansion. These positions are projected to pay an average wage of $90,000, significantly higher than the city’s average annual salary.

Otto Aviation’s project represents the largest investment and potential job creator for any new development, or tenant, in JAA history. The Otto Aviation contract is expected to generate significant economic benefits for the Jacksonville area, including job creation, increased tax revenue, and enhanced aviation capabilities at Cecil Airport.

“Otto Aviation’s decision to establish their manufacturing and production facilities here in Jacksonville reinforces the region’s standing as a leader in the aerospace industry,” said JAXUSA Partnership President Aundra Wallace. “We look forward to supporting their growth and long-term success in Northeast Florida.”

Image courtesy of Otto Aviation