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Committee hears details on $38 million JAA garage repair; insurance to cover most costs
Summary
The Transportation, Energy and Utilities Committee heard cost and timing details for a $38 million repair of a Jacksonville Aviation Authority (JAA) garage. Committee members were told insurance will cover about 80% of costs; reconstruction is likely a two-year project and the authority expects to pursue subrogation.
The Transportation, Energy and Utilities Committee was told Sept. 16 that repair of a damaged Jacksonville Aviation Authority garage is estimated at $38,000,000, with insurance expected to cover roughly 80% and JAA responsible for the remaining roughly 20%.
The estimate and funding breakdown came from Ross Jones of JAA, who told the committee, “The total cost of the projects is estimated at 38,000,000. Essentially, 80% of that is gonna be covered by insurance and 20% by, JAA.” Jones said the authority has received some insurance proceeds and that the amounts shown moving in the budget reflect that. He added the authority expects to pursue subrogation and that any recovered funds would be handled under financial reporting rules.
Committee members pressed for clarity on out-of-pocket costs and timing. The committee chair observed the insurance movements in the financial documents and asked whether JAA’s net exposure after insurance would be about $8,000,000. Jones confirmed that figure was an approximate out-of-pocket amount and said the authority “anticipate[s] that we'll recover some of that as well” through subrogation.
Councilman Matt Carlucci asked whether current insurance receipts are from the city’s self-insurance fund and how long a subrogation process might take. Jones said there are no active lawsuits at this time and that subrogation proceedings typically occur after claims are settled, a process he said “could take 2 years.”
Jones described the timeline for restoring full use of the garage: the authority currently has access but has closed areas for safety and expects full reconstruction to take about two years. “We have full control and ownership, but we won't have it up to full use until the reconstruction project is complete. And most likely, that's at least a 2 year process,” he said.
The committee voted to pass the ordinance associated with this agenda item. The committee record shows a unanimous vote in favor of the item (6–0).
The committee did not direct additional actions at the meeting beyond taking the formal vote. Jones and other staff indicated follow-up will include standard financial reporting and claims-handling steps; committee members asked about timing and subrogation but did not make separate motions.
Details recorded in the meeting: the project estimate ($38,000,000), insurance covering an estimated 80%, JAA's approximate share of 20% (~$8,000,000 before potential recoveries), and an anticipated two-year reconstruction timeline. Council members noted that any recovered subrogation proceeds would be processed according to financial reporting rules.
