Airport authority seeks $1.1M amendment to ready Building 310 for UCF research tenant; Acron to contribute toward repairs

Sanford’s airport authority approved a budget amendment that would mobilize about $1.1 million in fiscal-year spending to ready Building 310 — a three-story former barracks/dormitory in the Commerce Park — so the University of Central Florida can occupy office and research space, the airport’s representative told the City Commission on Oct. 13.

Airport staff explained the transaction is complex: Acron Aviation Academy (formerly L3), the current tenant, has a lease that runs another 35 months. The authority negotiated a termination agreement in which Acron will pay roughly $472,000 toward capital needs and a pro rata share of a new chiller; UCF will provide approximately $260,000 in tenant improvements upfront and will reimburse a $150,000 transformer installation and related costs over the first 60 months of its lease at 6% interest. Airport staff described a temporary operating shortfall because UCF will initially occupy only part of the building, but projected that once additional space is leased the building’s revenue could rise from roughly $120,000 per year to as much as $600,000 annually at near-market rents (staff used a market estimate of about $19/sq ft vs. the academy’s current $2.99/sq ft).

Airport staff said some capital repairs are the Flight Academy’s contractual responsibility and some are authority obligations. The authority intends to front some costs and be reimbursed through the Acron termination agreement and UCF reimbursements; the airport’s actual net exposure for the immediate work is substantially less than $1.1 million according to the materials presented. The airport board approved the amendment at its last meeting; the city commission was informed and asked whether airport staff needed to appear at the regular meeting for final city approval — commissioners indicated airport staff could represent the item.

Why it matters: repurposing Building 310 for a research tenant would bring a university presence to the Commerce Park, increase visibility and, if full leasing follows, raise revenue for the airport and city. The transaction requires capital work and careful cash-flow management while a lease termination and phased occupancy occur.

What happens next: airport authority and city staff will process the budget amendment and, if the commission approves the request at a future meeting, the airport will begin the agreed repairs and tenant-improvement work; the authority expects to collect reimbursements from Acron and UCF per the termination and lease arrangements.