On Wednesday, September 21, the Tallahassee City Commission voted 5-0 to approve an agreement with Burrell Aviation related to the finance, design, construction and management of an aviation-related aeronautical development located at the Tallahassee International Airport.
The project will provide approximately $20,000,000 of private investment in the airport and will result in over $8,000,000 of new revenue during the term of the agreement which will be deposited into Tallahassee’s Aviation Operating Fund.
In addition, the development is projected to result in the creation of approximately 193 direct, 39 indirect and 59 induced jobs, for a total of 291 permanent jobs and over 250 temporary construction jobs during the development with a total economic impact exceeding $60,000,000, as projected by Florida State University’s Center for Economic Forecasting and Analysis.
Under the negotiated terms, Burrell will initially lease approximately nineteen (19) acres of airport property for a proposed aeronautical development that includes private executive-style business hangars with landside parking/access, Maintenance, Repair and Overhaul (“MRO”) Hangars and other approved aeronautical use/developments.
Upon mutual agreement, the City and Burrell may also identify future additional unencumbered space for the development of air cargo, cold storage, off-runway distribution center and other approved aeronautical and non-aeronautical use/developments at the airport.
The proposed figures for development, square footage, acreage, investment dollars, and number of jobs created are based upon preliminary estimates. All development will be subject to required coordination and associated reviews by the Florida Department of Transportation, the Federal Aviation Administration, and the Transportation Security Administration to ensure appropriate safety, security and design standards are in compliance with State and Federal requirements.
The Company’s Business Model
Burrell Diversified Investments is the parent company of Burrell Aviation LLC which was registered with the Florida Division of Corporations on August 18, 2021.
Burrell Aviation has since registered Burrell Aviation Ocala LLC (1/25/2022), Burrell Aviation Sanford LLC (3/9/2022), and Burrell Aviation Brooksville (3/9/2022).
In late 2019, The Burrell Group formed The Burrell Aviation Group (“Burrell Aviation”) which is focused on meeting the growing demand for air cargo, freight and logistics solutions in the continental United States, Mexico, and Canada.
The website notes that the company, through a public-private partnership model involving federal, state, and local government, is in the process of repositioning regional and municipal airports that have been historically underutilized and currently operate outside of North America’s core supply chain.
The goal is to bring such airfield locations into the mainstream commercial network to provide a convenient, flexible, and cost-efficient alternative to major hub locations, where freight carriers are currently experiencing rapidly escalating price structures and congestion, delayed delivery times, as well as other inefficiencies.
The business model calls for Burrell Aviation to enter into long-term leases, typically 30 to 50 years, with municipally owned airports. In coordination with Burrell Aviation, these municipalities are dedicated to improving their airport infrastructure to accommodate a broad range of tenants through a sublease agreement structure.
The company also manages the construction of “build-to-suit” facilities to satisfy each client’s specific needs.
The company in late 2019, The Burrell Group acquired CW Earthworx, a Florida-based general contracting firm that specializes in construction, earth-moving, and utilities development. CW Earthworx has a growing fleet of heavy equipment to support the Company’s construction related needs, as well as a qualified team of professionals capable of executing on the Company’s long-term development objectives.