Aircraft manufacturer seeks city incentives for $430 million production facility

[thelakelander]

A company that is developing a new passenger jet is interested in building a manufacturing and production facility for the aircraft in Jacksonville and is seeking city incentives for the project, according to the city Office of Economic Development.

On May 12, the OED is scheduled to request permission from the Mayor's Budget Review Committee to submit legislation to execute a development agreement with the company, code-named Project Bluebird.

A staff summary of the project says the company is conducting research and development on its jet in another state and is "at the stage of finalizing it for manufacturing operations."

The summary says the company plans to invest more than $430 million "within the fence" at Cecil Airport to build its aircraft there. After initially working out of an existing hangar, the company will build a manufacturing facility within five years on 80 to 100 acres.

The company says it will employ a workforce of more than 1,200 in the next 15 years at an average wage, not including benefits, of $90,000. Total annual payroll will be more than $36 million.

Resembles Natilus

Bluebird's project description resembles one being developed by San Diego aircraft manufacturer startup Natilus.

Natilus "designs, builds, tests and sells hyper-efficient blended wing body aircraft for both cargo and passenger applications."

Full article: https://www.jaxdailyrecord.com/news/2025/may/09/aircraft-manufacturer-seeks-city-incentives-for-430-million-production-facility-in-jacksonville/

[copperfiend]

This seems like a pretty big (potential) win for Cecil, right?

[acme54321]

If that is in fact Natilus aircraft this is probably going to amount to a bunch of nothing.  That is an extremely difficult market for a newcomer with new technology to break into.

[jaxlongtimer]

If that is in fact Natilus aircraft this is probably going to amount to a bunch of nothing.  That is an extremely difficult market for a newcomer with new technology to break into.

Kind of like the autonomous vehicle company we are getting... the big "auto plant" Jax has been forever wishing for?   Now the big "airplane factory"?  Questionable or unproven technology fighting an uphill battle.

Just like when Jax fell all over itself to get Offshore Power Systems (OPS) to build floating nuclear power plants here... another unproven product that went nowhere following a promise of 12,000 direct jobs here.

I am not against recruiting these companies but let's manage our excitement until they truly deliver... if ever.  And, we should be careful not to frontload incentives until they do deliver.  Too many times the taxpayers have been left holding an empty bag.  OPS cost the city Blount Island... sold for, as I recall, $1 to private interests.... for no return.

[marcuscnelson]

At least Offshore Power Systems was theoretically possible. Westinghouse knows how to build nuclear reactors and Newport News knows how to make them float. PSE&G in New Jersey and Southern Company had ordered reactors too. The market conditions not panning out after years of regulatory delays is one thing.

Holon being arms-length from Benteler and propped up by the Saudis while Natilus appears to be a black box beyond the notion of venture capital funding and vague advanced purchase plans seems like a different beast.

Also seems worth noting that according to news from the era, OPS paid $2,000 an acre, not $1 for Blount Island. And at the end of the day the dredging done for OPS is what the Marines use today on Blount Island. I'm not sure I buy the odds of a return on the $20 million in incentives for this Natilus project, but let's be honest about what all these projects are.

[jaxlongtimer]

At least Offshore Power Systems was theoretically possible. Westinghouse knows how to build nuclear reactors and Newport News knows how to make them float. PSE&G in New Jersey and Southern Company had ordered reactors too. The market conditions not panning out after years of regulatory delays is one thing...

....Also seems worth noting that according to news from the era, OPS paid $2,000 an acre, not $1 for Blount Island. And at the end of the day the dredging done for OPS is what the Marines use today on Blount Island. I'm not sure I buy the odds of a return on the $20 million in incentives for this Natilus project, but let's be honest about what all these projects are.

To expand, the "orders" OPS received were never executed, they were just nonbinding MOU's, and were ultimately cancelled due to opposition, drop offs in power demand, a moratorium on nuclear plants by President Carter, and, ultimately, the bad publicity from 3 Mile Island.

I couldn't find links to the countless T-U articles at the time, but a Rolling Stone article on the project said the below.  Not sure what they mean by "given" but, even if it was $2,200/acre, that was peanuts compared to the project's required investment which OPS claimed to be over $125 million before they killed the project.  In the end, Gate bought the land for $17 million and after selling the gantry crane to the Chinese for $3 million and leasing just 262 acres to the Navy/Marines for up to $11 million a year between 1986 and 2004, sold 1,100 acres to the Marines, ultimately, after a jury trial, for $162 million (see https://en.wikipedia.org/wiki/Blount_Island).

* The Jacksonville Port Authority (JPA), for all practical purposes, had given OPS 850 acres of choice land on Blount Island in the middle of St. Johns River. The floating nuclear plants would be built there and towed out to sea.
* The JPA also gave OPS a money-back guarantee. If the project failed, the Authority would pay the company all expenses incurred in building the factory.
* Going still further, the JPA agreed to float a $180-million bond issue to provide OPS with cash.
* The Jacksonville Transportation Authority decided to build the Dame Point Bridge — the bridge to nowhere — to provide easier access to Blount Island.
* And the Jacksonville Electric Authority would buy the two floating nuclear plants for $2.2 billion.

https://www.rollingstone.com/politics/politics-news/hair-raising-political-tales-of-jacksonville-75855/4/

[Jax_Developer]

Yeah this isn't surprising to me. I think it's great to have incentives for target industries, but you also have to have the right pieces in place to actually scrub these opportunities. Simply put, there are a few 'semiconductor' companies now looking to set up shop in Jacksonville with a boat load of incentives. The only problem is... those companies have almost zero revenue & their business plan is they are magically going to grow their sales by several hundred percentage points in one or two years in on the most competitive global markets.

I appreciate what JaxUSA does, but they don't have the specialized talent to know how much BS these 'plans' are. It really wastes a lot of time & effort especially if these packages make it all the way to council. This one being a good LOL for sure.

[Charles Hunter]

Yeah this isn't surprising to me. I think it's great to have incentives for target industries, but you also have to have the right pieces in place to actually scrub these opportunities. Simply put, there are a few 'semiconductor' companies now looking to set up shop in Jacksonville with a boat load of incentives. The only problem is... those companies have almost zero revenue & their business plan is they are magically going to grow their sales by several hundred percentage points in one or two years in on the most competitive global markets.

I appreciate what JaxUSA does, but they don't have the specialized talent to know how much BS these 'plans' are. It really wastes a lot of time & effort especially if these packages make it all the way to council. This one being a good LOL for sure.

Maybe JaxUSA need to bring in the crew from Shark Tank to vet incentive proposals?

[acme54321]

Yeah this isn't surprising to me. I think it's great to have incentives for target industries, but you also have to have the right pieces in place to actually scrub these opportunities. Simply put, there are a few 'semiconductor' companies now looking to set up shop in Jacksonville with a boat load of incentives. The only problem is... those companies have almost zero revenue & their business plan is they are magically going to grow their sales by several hundred percentage points in one or two years in on the most competitive global markets.

I appreciate what JaxUSA does, but they don't have the specialized talent to know how much BS these 'plans' are. It really wastes a lot of time & effort especially if these packages make it all the way to council. This one being a good LOL for sure.

You would think that most people that are reasonably competent could easily identify the BS.  My idea of reasonable competence may be higher than I think though LOL.

[Jax_Developer]

@Charles, I mean... something?? It's pretty common knowledge that Airbus & Boeing run the global market. The entire government of China created a competitor, Comac, & it took them 15 years to enter the commercial aviation market. The Government of China... 15 years... lol. But Jacksonville should give incentives to a for-profit company looking to do the same in a fraction of time. I mean... I thought it was common sense as Acme says. I genuinely can't believe this has gotten this far. Stuff like this makes the city look unprofessional.

[marcuscnelson]

Well now apparently they're talking about over $50 million in incentives between the city itself and the airport authority.

https://www.jaxdailyrecord.com/news/2025/may/14/jaa-to-consider-349-million-in-investments-and-incentives-to-land-aircraft-manufacturing-plant/

[Jax_Developer]

Does JAA have 'too' much money? Otto is the manufacturer. (https://ottoaviation.com/).

They are going to take the very not competitive mid-sized jet market by storm. Not even a prototype right now but they are going to be selling these out by 2030. Perfectly timed with Holon & the U2C to make us the most futuristic city in America.

Pretty please don't tell anyone we don't have sewer services in a good percentage of the city.

(For my aviation geeks, check out the Board of Directors.)

[jaxoNOLE]

Does JAA have 'too' much money? Otto is the manufacturer. (https://ottoaviation.com/).

They are going to take the very not competitive mid-sized regional jet market by storm. Not even a prototype right now but they are going to be selling these out by 2030. Perfectly timed with Holon & the U2C to make us the most futuristic city in America.

Pretty please don't tell anyone we don't have sewer services in a good percentage of the city.

(For my aviation geeks, check out the Board of Directors.)

Thems be some mighty impressive promises on that there website, I reckon.

Touw is confident that over the coming decades cash flow from the business "will be more than enough to tackle a regional jet".

In the meantime, however, Otto is in the middle of a Series B funding round that is seeking "hundreds of millions of dollars," he says, an activity that "should be complete by the end of this year".

Touw describes the Phantom as a "one-billion-dollar programme" – although only around one-half of the total is directly for aircraft development. The remainder – to be sourced through debt or leasing – would be focussed on setting up a final assembly line.

He forsees little difficulty accessing funding required, citing the appeal of the jet's environmental credentials, calling it a "sustainability afterburner".

https://www.flightglobal.com/business-aviation/otto-outlines-plans-for-ultra-low-drag-phantom-3500/162995.article

It sounds like the funding for R&D hasn't been secured (still in progress) nor has funding for the assembly plant. At the barest of minimums, shouldn't JAA wait until Otto can demonstrate an ability to fulfill their end of the bargain before spending tens of millions on speculative infrastructure expansions?

The environmental credentials aspect is a smokescreen argument. Either the plane will save operators money or it won't. If private fliers prioritized environmental sustainability, they'd fly commercial. Any plane burning SAF will achieve massive emissions reductions--unfortunately, it's a scarce and expensive resource. So it will all come down to achieving the promised fuel burn reductions, which has been the name of the game in aircraft design for decades. There's enough competition (and skepticism) in environmental sustainability now that green-washing a financially shaky project is much, much harder to do.

The City's contribution via REV grant doesn't much bother me.

[Jax_Developer]

I just hope they were planning on building that new runway for them either way.

[jaxlongtimer]

I just hope they were planning on building that new runway for them either way.

New runway?  Cecil already has 4 that are hardly used.  I don't see them adding anymore.

I note on the current aerial on Google Maps, they actually parked a bunch of planes on one of the runways.