Gulfstream Expands in Glynn County

gulfstream groundbreakingThe Glynn County Commission voted unanimously last evening at their monthly meeting to approve the Gulfstream Lease at the Brunswick Golden Isles Airport.

Gulfstream has been a Glynn County corporate citizen since their first operation began in 1967.  With additional expansions over the years, they have increased their employment to reach the 200 mark.  With this latest expansion Gulfstream’s employment will be over 300 employees in the greater Glynn County area.

Mel Baxter, Chair of the Development Authority praised the Airport Commission, the County Commission and staff and the other Authority Board members for their efforts in successfully completing the transaction.  “This was all about Teamwork”, Baxter expresses.  “The County staff, the County Commissioners and especially the Airport Commissioners went to great lengths to make this a success.  From our team, Dave Smith, Assistant Director, led our efforts and deserves our greatest appreciation”.  Baxter then commented, “I don’t know that I have ever worked with another company like Gulfstream, who was as concerned in making sure that everybody wins in the deal”.  “They demonstrated their commitment to our community”.

Commission Chairman Michael Browning said the 20-year lease, which begins August 2015 when a new hangar at the Brunswick Golden Isles Airport is to be completed, is a signal that economic doldrums in Glynn County are over.

“This is a big deal for Glynn County,” Browning said at the commission meeting at the historic county courthouse. “People have wanted jobs, jobs and more jobs. I am so thankful Gulfstream is going to make this investment in Glynn County.”  Commissioner Dale Provenzano, the Commission’s economic development liaison, praised the expansion as well and added that there were more expansions to come.

 Fact Sheet:

  • Gulfstream will build a new 110,000 sq. ft. Maintenance and Retrofit Operations (MRO) Hangar and Offices located at the Brunswick-Golden Isles Airport
  • Cost of new facilities:  Approx. $25,000,000
  • Cost of new Equipment, Furniture & Fixtures:   Approximately $3,000,000 to $5,000,000
  • Gulfstream will create New Jobs:  A minimum of 100 new, skilled jobs
  • Gulfstream Aerospace and the Brunswick & Glynn County Development Authority have entered into a 20 Year Lease.  Lease payments will cover 100% of the cost of construction and financing.  The lease contains options for renewal for up to five additional 5 year periods.
  • The Development Authority and Gulfstream selected Well Fargo Bank to provide financing for the Expansion following competitive proposals from a number of local banks.
  • In addition, Gulfstream will pay the Glynn County Airport Commission approximately $280,000 per year in new “ground lease payments” for the footprint of their expanded facilities.  Combined with their current “ground lease payments”, Gulfstream will be paying almost $700,000 per year to the Glynn County Airport Commission.

Other points:

State of Georgia Incentives:  None to the project.  The only Georgia based incentive was a $500,000 OneGeorgia Grant approved in 2013 to improve the fire suppression system at the Brunswick-Golden Isles Airport.  This project is currently underway with completion by April 24, 2014.

FAA Funding:  No FAA funds were used in connection with this Gulfstream Expansion.  (The FAA granted approximately $15,000,000 to the Glynn County Airport Commission last year in funding to re-surface the runway at the Brunswick-Golden Isles Airport.  That project is nearing completion).

Brunswick and Glynn County Development Authority Funding and incentives:  The BGCDA will cover the necessary expenditures to extend water and sewer lines from their existing location near the airport to the boundary of the expanded Gulfstream site. The cost will likely be less than $100,000.  In addition, since the land on which the Expansion is built is owned by Glynn County and the Hangar will be owned by the Development Authority, the property will be publically owned and not subject to Glynn County ad valorem property taxes.  Therefore no Glynn County Ad Valorem taxes will be paid by the tenant during the term of the lease.

Gulfstream will pay Ad Valorem personal property taxes on its personal property (equipment, furniture and fixtures).

In addition, the Development Authority will secure the services of a professional engineering service to ensure that the construction and cost reimbursements are in line with the contract and the level of completion.