New College board approves terms for a major land deal with the SRQ airport
New College of Florida inked a preliminary agreement for a major land purchase from the Sarasota-Bradenton International Airport on Monday, and the college is now preparing its pitch to state legislators for millions of dollars in investment for campus improvements.
The college will purchase 30.94 acres of land leased from the airport at below market rate since 1957. The 99-year lease was grandfathered into place when the Federal Aviation Administration changed laws to require airport land to be leased at market-rate value.
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If a long-term agreement is not reached, and the terms of New College's current lease expire, the college could face a major rent hike and run the risk of losing ownership of all campus buildings located on airport property if the land reverts to airport ownership.
"I've tried for many, many, years to warn the college about what was on the horizon if this issue wasn't addressed," airport CEO Rick Piccolo said. "We think this is a fair deal. One that has appraisals behind it. We think that it's a good win-win for the airport, for the college, and most importantly the community."
New College President Richard Corcoran said the college intends to ask the state for $50 million in funding this year — matching the level of funding the college received last year after Florida Gov. Ron DeSantis appointed new conservative members to the college board of trustees.
Only $10 million were approved as reoccurring funds, putting the onus on New College officials to lobby for additional funding this year.
"New College needs to invest in that campus on the east side," Piccolo said. "If you are the owner, which is the state, are you going to invest millions and millions of dollars in a facility that you won't own 30 years from now? This will take care of the issues for New College, and this will provide a more robust return for the airport."
Selling the land now, about 33 years before the land lease expires, prevents the airport from losing revenue because of the low cost of rent currently paid by the college.
"When I look at rental income that we're getting right now, it's about $108,000 per year," Piccolo said. "If we were charging market value it would be about $1.3 million a year. You extrapolate that over the next 33 years and that's a lost revenue of around $37 million."
Instead, the college will pay $11.5 million to permanently own the land and will grant the airport an easement over portions of New College property that could impact the airport's "runway protection zone" if structures were ever built on that portion of the college property.
About four acres of land currently leased by New College will also revert to airport ownership. The airport has long-term plans to expand its western wing to accommodate six new terminals. If that expansion comes to fruition, it would include necessary airport mobility improvements on those four acres of land.
The deal gives the college the footing it needs as officials prepare to ask state legislators for a total of $50 million in funding this year during the upcoming Florida legislative session.
This article originally appeared on Sarasota Herald-Tribune: New College approves terms for a major land deal with the SRQ airport
