Title
Eclipse Aviation Financing (B)
Explanation
Gainesville Alachua County Regional Airport Authority (GACRAA) staff has been working over the past year to convince Eclipse Aviation, Inc. to locate certain parts of its facilities at the Gainesville Regional Airport. Eclipse Aviation is a start-up company based in Albuquerque, New Mexico that produces small lightweight jet aircraft. Eclipse has recently been reviewing potential sites to locate regional jet aircraft factory service centers.
Eclipse has announced that GACRAA, with considerable assistance from the City of Gainesville Department of Economic Development, has been successful in securing the Gainesville Regional Airport as the southeast regional service center for its maintenance operations. It is expected that the Eclipse operation could bring as many as sixteen permanent jobs to the Gainesville area.
In order to successfully recruit Eclipse to the area, GACRAA committed to certain facility improvements at the Airport. These improvements include construction of a 45,000 square foot hangar, 16,000 square feet of office space, and a 140,000 square foot aircraft-parking ramp. The approximate cost of these improvements is $8,000,000. GACRAA does not have sufficient resources to cash fund these improvements, and therefore will need to finance these costs.
As indicated in the attached letter from Airport Chief Executive Officer Rick Crider, GACRAA is requesting that City staff provide professional support services in assisting the Airport in arranging and implementing long term financing for this project. This support would in no way commit the City as an obligor for the debt, and any consulting expenses incurred would be paid by the Airport.
Fiscal Note
As indicated above, there will be no net costs incurred by the City related to this project. Any professional services costs will be funded by the Gainesville Regional Airport.
Recommendation
The City Commission authorize t...
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