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Skydive City agrees to plan removing RV park by 2030 as city weighs corrective action to restore FAA funds
Summary
City staff and airport leaders reported that FAA funding was suspended over an on-site RV park at Skydive City; the operator agreed to a corrective action plan that would remove the RV park by Oct. 2030, and staff said they will submit a plan to FAA to restore funding while council debates balancing recreational tenants and future general‑aviation development.
Zephyrhills city officials and Skydive City representatives updated the council May 11 on an ongoing dispute with the Federal Aviation Administration that has put airport funding on hold.
Airport staff said the FAA suspended certain grant payments after determining an on‑site RV park at Skydive City is an incompatible use under federal grant assurances. The suspended funding includes a roughly $350,000-a-year entitlement figure and potential Airport Improvement Program grants. Airport director Nathan Coleman said the city faces a potential 10‑year recovery exposure in the low‑to‑mid tens of millions if federal auditors retroactively seek reimbursement, though staff emphasized the FAA has so far frozen funding rather than demanded repayment.
In recent staff discussions, Skydive City’s owners and operations manager discussed an agreement to remove the RV park by Oct. 25, 2030, and proposed a corrective action plan to submit to the FAA. Skydive City representative Rich, who introduced himself to council and provided an email contact, said the operator is willing to pay higher non‑aeronautical rent, separate aeronautical and non‑aeronautical leases and assist in finding an off‑airport or alternate location for visitor accommodations. Rich said owners have invested in site cleanup and have removed blighted mobile units.
"We're willing to start paying the higher non‑aeronautical rent," Rich told the council, adding that the 2030 timeline is meant to be realistic and provide a credible plan the FAA would accept.
Council and staff discussed trade-offs: removing the RV park could restore FAA funding but removes a revenue source and a differentiator for the recreation‑oriented business model. City staff recommended negotiating a corrective action plan, seeking immediate FAA relief, and making the long‑term decision about the airport’s role (recreation vs. general aviation) as part of a future master‑plan update.
Next steps: staff said they will submit a corrective action plan to FAA, seek restoration of funding, and continue negotiations with Skydive City; council directed staff to pursue a plan that recovers grant funding while preserving options for future airport use and revenue.
