The Keystone Heights Airport Authority Board approved contracts to proceed with a new bulk hangar project during its September 9, 2025, meeting, committing to cover a $119,115 funding shortfall using airport resources or loans.
The decision came amid discussions on audits, board vacancies, and economic development opportunities, highlighting the airport’s push for growth despite financial challenges.
Interim City Manager Jamie Booth provided updates, noting delays in audits due to staffing issues at Reddish and White, with additional support expected by September 22.
Booth emphasized compliance with Florida’s Sunshine Law, referencing recent violations at St. Augustine’s airport that led to board resignations.
He also reported progress on the city’s budget, incorporating the airport’s, with tentative approval scheduled for September 18 and final on September 29.
A key agenda item was a temporary construction easement for Clay County to access a neglected retention pond on airport property at the end of Crystal Lake Road. The pond, overgrown and unmaintained for decades, requires cleanup to address drainage issues. Booth assured the board the easement would be reviewed by the city attorney and presented to the city council on September 18 if no objections arise.
AECOM representative Bill Prange detailed a bulk hangar project, designed to match recent specifications and located near existing facilities. Bids ranged from $888,120 to higher, with JH Construction as the low bidder. Funding includes $735,000 from FAA grants and $38,000 from FDOT, but a $119,115 gap emerged after FDOT declined additional support due to a statewide policy shift away from hangar projects. Prange noted value engineering options, like reducing insulation or paint quality, could save up to $30,000 but compromise quality.
The board unanimously voted to proceed, awarding the $888,120 contract to JH Construction and $46,764 for AECOM’s construction phase services.
Members discussed financing the shortfall, estimating a 10-year loan at 5-6% interest would cost about $1,300 monthly, offset by anticipated $2,000 monthly hangar revenue from six to eight tenants.
“This is a lot more value for the money,” said board member David Kirkland, comparing it to alternative projects like additional tie-down spaces.
Attorney Jim Taylor, appearing via phone, updated on the ongoing litigation with the Florida International Motorsports Park, scheduling a mediation for October 9 ahead of an October 17 court hearing. A shade meeting was set for September 18 at 1 p.m. to discuss settlement strategies privately, complying with Sunshine Law. The board will designate a representative for mediation.
Chairman Jim Eifert reported growing interest in airport properties, including from Aerial Information Systems Corporation seeking 50 acres for UAS (unmanned aerial systems) facilities and Arisha Group from India for large-scale development.
These inquiries, facilitated by the Northeast Florida Economic Development Council, focus on aeronautical and non-aeronautical uses, potentially involving grants for infrastructure like water and sewage.
