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City awards bid to build two box hangars and taxiway at Zephyrhills Airport; terminal shelved

5496517 · July 29, 2025

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Summary

Council awarded a contractor to build two revenue-producing box hangars and Taxiway Foxtrot using FDOT appropriation; the new FBO terminal design is complete but set aside because of a funding shortfall.

The Zephyrhills City Council unanimously approved July 28 an award to Stellar Development Inc. for construction work at Zephyrhills Municipal Airport that includes two box hangars and Taxiway Foxtrot; the council retained a planned fixed-base operator (FBO) terminal design but removed it from the current contract because of a funding shortfall.

Nathan Coleman, airport director, explained the city received a state appropriation of $6.6 million for two box hangars, Taxiway Foxtrot and a new 6,400-square-foot FBO terminal. The terminal design is complete and biddable but the estimated terminal cost of about $5.5 million exceeded available funding, so staff removed the terminal from the current construction contract and recommended proceeding with the revenue-producing hangars and taxiway.

Coleman told council the project bid for the two hangars and taxiway produced a $1.7 million shortfall to cover the second hangar. City staff recommended using $1.7 million of airport cash reserves to build both hangars and Taxiway Foxtrot; staff estimates a projected airport fund balance of about $438,325 on Sept. 30, 2026 after completing the work. Council approved the award and directed staff to bring contracts back for formal execution at a future meeting.

Council members noted the hangars are revenue-producing assets. Coleman said hangar leases and increased fuel sales are expected to offset costs over time. Council did not authorize construction of the FBO terminal at this meeting; staff said the terminal could be added later if additional funding or grants are secured.

The council’s vote authorizes award of the construction bid to Stellar Development Inc. and instructs staff to finalize contracts and schedule construction under airport fund financing.