The Jacksonville Aviation Authority board unanimously approved a five-year lease agreement July 29 for hypersonic aircraft manufacturer Hermeus Corp. to occupy four facilities at Cecil Airport in West Jacksonville.
The deal follows a $2 million Jacksonville City Council-approved incentives package for the Atlanta-based company.
The Council approved the incentives for “Project Heat” on July 23.
First-year rent is projected at $73,422, rising 2.5% annually. Hermeus must invest at least $1 million within 24 months of the lease start. The agreement includes three five-year extensions. In year six, Hermeus must invest another $1 million.
The company expects to create 100 jobs by 2028, according to a city filing.
The facilities include two engine test cells, an office building and a “hush house” for controlled aircraft systems testing. Hermeus plans to develop aerospace propulsion systems for reusable hypersonic vehicles for the U.S. Department of Defense.
According to a staff report, “In conjunction with a growing spaceport industry and in an effort to lease these facilities for their intended purpose and highest use, JAA issued Request for Interest in Oct. 2023.” Hermeus was the sole bidder.
Glenn Case, Hermeus co-founder and chief technology officer, said initial investments will refurbish existing facilities in “multi-phased” work. A groundbreaking is expected by September, he said.
City incentives include a 10-year, 75% Recapture Enhanced Value Grant up to $2 million. Florida offers a $3 million High-Impact Performance Incentive Award and a Capital Investment Tax Credit up to 100% of corporate tax liability.
Founded in 2018, Hermeus operates an engine test facility at DeKalb-Peachtree Airport.