$145 Million in Private Investment Could Create Over 1,500 Permanent Jobs, Generate Millions in Revenue
On Wednesday, June 22nd, the Tallahassee City Commission heard a brief presentation from Tallahassee Airport Executive Director David Pollard related to two private investment projects seeking to conduct business at the Tallahassee airport.
According to estimates, the proposed projects could generate $145 million in private investment and create over 1,500 jobs.
Mayor John Daily said that he is “extremely excited about both of these projects…This is what we have been dreaming of for 3 ½ years.”
City Commissioner Matlow was more reserved in his comments. Matlow said, “I will save my compliments for when the item comes back to the commission for approval.”
The City Commission voted unanimously to allow city officials to begin negotiations with the interested parties. Any agreement would come back to the city commission for review and approval.
The largest project – labeled Project Alpha – is subject to a non-disclosure agreement which was signed by the City of Tallahassee on June 30, 2021.
Mr. Pollard revealed at the meeting that the project is related to the commercial aircraft disassembly, dismantling, and recycling market.
The Aircraft Fleet Recycling Association estimates that over the next 20 years approximately 12,000 commercial aircraft will be retired and decommissioned. The process involves disciplines related to the environmental, safety, legal, operational and economic aspects of the aircraft. According to reports, this industry sector size was $4.57 billion in 2019 & is projected to reach $5.40 billion by 2027.
Project Alpha officials propose to lease approximately 57 acres of Tallahassee Airport property for the development of approximately 583,250 square feet of aircraft facilities. The development will provide approximately $110,000,000 of private investment and will result in over $30,000,000 of additional revenue to the airport during the term of the agreement.
In addition, the project would result in the creation of approximately 524 direct, 235 indirect and 226 induced jobs, for a total of 985 permanent jobs and over 1,000 temporary construction jobs during the development with a total economic impact exceeding $450 million, as projected by Florida State University’s Center for Economic Forecasting and Analysis.
The company behind Project Alpha is working closely with the Office of Economic Vitality and Space Florida to take advantage of financing and tax incentive opportunities.
The second project is related to Burrell Aviation, LLC.
Tallahassee Reports first reported about Burrell Aviation’s interest in the Tallahassee airport back in March. The business model of the Apsen, Colorado based company calls for entering into long-term leases, typically 30 to 50 years, with municipally owned airports.
Burrell Aviation Tallahassee, LLC is proposing to lease approximately 32 acres of airport property and to construct approximately 388,000 square feet of facilities. The project consists of a proposed mixed-use development that includes general aviation, maintenance repair and overhaul, and air cargo / freight distribution facilities.
The development is expected to provide approximately $35,000,000 of private investment and result in over $14,000,000 of new revenue to the Tallahassee Airport during the term of the agreement.
In addition, the proposed development would result in the creation of approximately 489 direct, 100 indirect and 149 induced jobs, for a total of 738 permanent jobs and over 400 temporary construction jobs during the development with a total economic impact exceeding $140 million, as projected by Florida State University’s Center for Economic Forecasting and Analysis.