SUBJECT/RECOMMENDATION:
Title
Approve Amendment No. 1 to Joint Participation Agreement (JPA) G3F99 between the City of Clearwater and the Florida Department of Transportation (FDOT) for the Construction of Corporate Hangars at Clearwater Executive Airport and authorize the appropriate officials to execute same.
Body
SUMMARY:
On September 4, 2025, the City entered into Joint Participation Agreement (JPA) G3F99 with the Florida Department of Transportation (FDOT) for the construction of new corporate hangars at Clearwater Executive Airport. The original agreement anticipated funding through two separate grant allocations during State Fiscal Years 2026 and 2027.
Amendment No. 1 provides the FY2027 funding allocation by increasing the agreement by $1,200,000, consisting of $600,000 in additional FDOT grant funding and $600,000 in required local match. The amendment increases the total project funding from $1,200,000 to $2,400,000, with FDOT participating at 50% of eligible project costs.
Consistent with the City's lease and operating agreement, FlyUSA will reimburse the City for the required local match, resulting in no net local financial impact to the City for the matching funds.
Construction of the corporate hangars will enhance the airport's ability to accommodate corporate aviation, improve operational efficiency, increase airport revenues, and support the long-term financial sustainability of Clearwater Executive Airport.
Current expectations are that this project, including design and construction services, will reach a total cost of $10,060,050. Present funding for the project includes $2,389,650 from FDOT and $2,389,650 reimbursement from Airport FBO FlyUSA, for a total of $4,779,300. The City will be seeking future FDOT grant amendments to seek additional grant funding to support the project. The required local match of the grant funding or any funds not covered by grant funding will be covered by FlyUSA reimbursement, as required by the lease agreement. Future budget requests and/or amendments will be requested to align funding with FDOT grants and FlyUSA commitments.
APPROPRIATION CODE AND AMOUNT:
Capital improvement project 302-G2401, Airpark hangars - New, was Established to account for this project, funded through a 50% reimbursement agreement from the Florida Department of Transportation, with the remaining 50% or any project cost not covered by the grant reimbursed to the City by FlyUSA in accordance with the lease and operating agreement.
STRATEGIC PRIORITY:
High Performing Government
1.2 Maintain public infrastructure, mobility systems, natural lands, environmental resources, and historic features through systematic management efforts.
Economic & Housing Opportunity
2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports eco-friendly enterprises, and encourages high-quality job growth.
