Storm-damaged St. Pete airport still lacks hangars

Empty concrete slabs where revenue-generating hangars once stood at Albert Whitted Airport serve as a stark reminder of the destruction left in Hurricane Milton’s wake.

St. Petersburg, much to the chagrin of stakeholders and city council members, remains without a plan to rebuild the municipal facility over a year later. A wait list to rent space at the airport has nearly 200 names.

City council members heard an update on the rebuilding process and redevelopment scenarios Thursday. While the discussion will now move to a committee, several spoke in favor of outsourcing a project that could surpass $18 million to a private company.

“It has been a year – nothing has been done, we’ve been missing these hangars,” said Councilmember Gina Driscoll. “Meanwhile, we have a group that’s ready to go.”

That group is the Friends of Albert Whitted Airport. The nonprofit’s executive director, Walt Driggers, said he has identified a company that will build “hurricane-proof” pre-stressed concrete hangars at no cost to the city in exchange for the land.

Driggers presented those plans to city administrators in August. Skanska, a multinational development company that worked with the city on several projects, is behind the proposal.

Several businesses have moved “multi-million dollar airplanes” to St. Pete-Clearwater International Airport as “they don’t want them sitting in the sun,” Driggers said. “This would take care of that.”

Councilmember Brandi Gabbard is also “leaning towards more of a private or public-private option.” She and others are “increasingly concerned” about the city’s staffing and financial capacity to complete a long list of major projects internally.

Redevelopment costs to replace destroyed hangars start at $6 million. The waterfront airport would maintain the same layout with smaller, environmentally vulnerable buildings under that scenario.

A “corporate layout” that accommodates the largest fleet mix and expands storage capacity would set the city back $18.2 million. “I know it’s a lot more money, but look at what we get for that,” Driscoll said.

Airport manager Rich Lesniak said Milton destroyed three hangars that serve dozens of tenants. The city demolished those structures before the Firestone Grand Prix of St. Petersburg in February.

An aerial view of storm damage at Albert Whitted Airport in early February, before the Firestone Grand Prix of St. Petersburg. Photo by Mark Parker.

Lesniak said there has always been a strong demand for hangar space at Albert Whitted, due to its location along the downtown waterfront. Tampa Bay continues attracting new residents, and a “certain segment of that population are aircraft owners.”

Lesniak noted that hangar rents are the “single biggest source of airport revenues.” Albert Whitted’s operator, Sheltair Aviation, receives 30% of the proceeds. The city retains 70%.

Hangar space generated $960,000, about 60% of the airport’s annual operating budget, before the 2024 storm season. Administrators identified expansion opportunities in a 2023 master plan.

Albert Whitted lost 32 storage units to Milton’s 100 mph gusts. Total rent revenue missed to date is approximately $275,000; $192,000 would have gone to the city.

Lesniak said the administration could issue debt to pay for upfront costs and self-fund the project. That would ensure the “highest revenue generation potential.”

Entering into a long-term lease with a private company would have the lowest upfront costs, but typically has the “lowest revenue generation potential.” A public-private partnership would allow flexible contributions from both entities.

Lesniak said construction costs and competition for grants continue increasing. That state does not prioritize hangar reconstruction and will cut $30 million from its aviation program in 2026, $50 million in 2027 and another $50 million in 2028.

“It’s kind of a bleak outlook right now,” Lesniak added.

City Development Administrator James Corbett said he first met with Driggers in August. He, too, remains concerned about redevelopment costs and found the proposal intriguing.

However, Corbett said he wanted to hear from Sheltair before advancing any plans. The company recently responded after three months.

“The message that sends to me – it means that they’re (Sheltair) not motivated,” Driscoll said. “They’re complacent. They want to build back the same thing, because that’s the easiest thing to do.

“Meanwhile, you have a group that has passion, energy, ambition and funding. I know who I’d want to talk to.”

A graphic highlighting three potential rebuilding scenarios. Image: City documents.

Corbett reiterated that the city would lose valuable rental revenue by leasing the land. “The longer that goes on, the bigger the gap,” he said.

Corbett also noted that St. Petersburg would lose potential Federal Emergency Management Agency reimbursements for not leading rebuilding efforts. The city could receive half the amount in a public-private partnership.

“We do have the opportunity to build back better, and we could double the amount,” Corbett continued.

While there are no guarantees, FEMA could repay 87.5% of the cost to restore Albert Whitted to its pre-storm condition. Increasing resiliency could garner hazard mitigation funding and nearly double that amount.

“I agree – Friends of Albert Whitted is a proven entity,” Corbett said. “The capacity, all of the things that council has brought up, are things we’re considering as well.”

However, the mayoral administration also wants to compare other options to the nonprofit’s proposal before “proceeding into a long-term decision.” Multiple council members want to see movement.

They will discuss rebuilding options further at an upcoming Public Services and Infrastructure Committee meeting. “This is an opportunity to not only hit the reset button with these hangars, but hit the refresh button on how Albert Whitted is handled,” Driscoll said.