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Council hears options for Skydive City lease after FAA denies corrective action plans; city may lose $350,000/year in airport grants
Summary
Airport staff told council the FAA has denied corrective action plans related to an on‑field RV park; while Skydive City seeks buyouts, the city risks losing about $350,000 a year in FAA funding if operations continue under current lease terms. Staff recommended council discussion of long‑term airport strategy including possible RFP, litigation or negotiations.
The fate of Skydive City and its lease at Zephyrhills Municipal Airport dominated a lengthy discussion April 13 after airport staff said the Federal Aviation Administration denied corrective action plans tied to an on‑field trailer/RV park.
Nathan Coleman, the airport director, told council that Skydive City’s operator still prefers keeping an RV park on airport land and has sought lease extensions; FAA staff have responded that the on‑field RV use may jeopardize certain federal airport entitlements. Coleman said losing eligibility for some FAA programs could reduce annual entitlement and AIP funding by roughly $350,000.
Council members and staff discussed options: negotiate a buyout of the tenant (cited figures in discussion included a previously referenced $7 million buyout request), let the lease run and issue an RFP at the end of the term, test litigation to force compliance, or pursue a new business‑focused strategy for the airport to attract general aviation and corporate tenants. Coleman advised that corrective action plans submitted to the FAA were denied and that further progress with the FAA appears unlikely without the tenant’s cooperation.
Council requested staff return with legal analysis and options, noting the lease runs to 2030 with a potential five‑year extension to 2035, and that decisions will affect grant eligibility, airport master plan considerations and potential economic development. Staff also noted the economic activity Skydive City brings to the community (events, visitors and local spending) but emphasized the tradeoff with federal funding and grant assurances.
The airport director said current steps include briefing the city attorney about potential litigation paths, discussing the long‑term business model for the airport and engaging outside experts to assess commercial feasibility and the tradeoffs between retained tenant revenue and lost FAA funding.
