Economic-development officials from Orlando to Tallahassee are quietly crafting a major public-incentive package to lure NetJets Inc., an aviation company controlled by billionaire investor Warren Buffett that sells stakes in private jets around the world.
More than a half-dozen local and state officials confirmed this week that talks -- dubbed "Project Horizon" -- are under way to bring a large company to Orlando, though none would discuss them publicly, citing confidentiality agreements.
But four sources familiar with the discussions said the company Orlando is targeting is NetJets, which is based in Woodbridge, N.J., but has much of its operations and 1,500 full-time employees in Columbus, Ohio, according to city of Columbus documents.
Several people with knowledge of Project Horizon suggested hundreds of jobs are involved. Multiple cities, including Raleigh, N.C., and Fort Worth, Texas, are also thought to be wooing the company.
A NetJets spokeswoman said Tuesday she was unaware of plans to relocate or expand operations. "I have not heard anything of that nature," said Maryann Aarseth, the spokeswoman.
But e-mails obtained by the Orlando Sentinel show that a delegation of Orlando leaders is preparing a trip to Columbus, perhaps as early as next week.
One e-mail said local officials are expecting an Orlando visit from "Chairman RTS." Those are the initials of NetJets Chairman and Chief Executive Officer Richard T. Santulli. The same e-mail closes by saying follow-up information would be provided "once I hear from David P." NetJets' vice president of government relations is David Powell.
The e-mail was sent by Declan Reiley, vice president of business development at the Metro Orlando Economic Development Commission. Among the recipients were top officials in Orange County, the city of Orlando, the Greater Orlando Aviation Authority, Workforce Central Florida, and Enterprise Florida.
The e-mail states that local officials plan to present the company with a "comprehensive combined state and local offer" early next week, though it does not detail dollar amounts. It says a final decision from the company is expected by Dec. 10.
Lawmaker gets heads up
In Tallahassee, state Rep. Ray Sansom, chief budget writer in the Florida House of Representatives, said he has been told to expect a formal request in either December or January for economic-development money on behalf of a company considering a move to Orlando. Among the funds officials might tap into are an "innovation incentive fund," in which lawmakers this spring set aside $250 million, and a "quick action closing fund," in which they put $45 million.
Sansom, a Republican from Destin, co-chairs the Legislative Budget Commission, which typically must authorize spending money from those accounts. He said he hadn't yet been briefed on the details but has been told a "substantial company" was involved.
Company growing fast
NetJets is one of a host of companies under the corporate umbrella of Berkshire Hathaway Inc., the holding company led by Buffett. It operates a fleet of more than 700 aircraft, according to the company's Web site, and has operations in the U.S., Europe and the Middle East.
The fast-growing business reported $109 million pre-tax profit through the first six months of this year -- after $143 million in 2006 -- and it has earned lavish praise from Buffett in letters to investors.
"They're the big player in the fractional jet-ownership industry," said Amy Gunderson, an analyst with the Helium Report, which tracks the industry. "They're the big guns."
Gunderson and another industry watcher said it's not clear that NetJets is in a position to expand or relocate. But the other analyst, Richard Aboulafia of the Teal Group, which consults on military and commercial aircraft issues, said the company could certainly be drawn to a hefty incentive package offered by a state or local government.
A host of Central Florida agencies appears to be crafting such a package. Among those working on Project Horizon are the offices of Orange County Mayor Rich Crotty and Orlando Mayor Buddy Dyer.
Among the local advantages Orlando officials are touting: FlightSafety International Inc., another Berkshire Hathaway subsidiary, has a training facility at Orlando International Airport. Also, Cessna Aircraft Co. has a major maintenance center at the airport for its Citation model jets, and NetJets is Cessna's No. 1 Citation customer. Cessna recently announced an order from NetJets worth more than $1 billion.
Project hush-hush
No one at the half-dozen public agencies involved in the project was willing to discuss it publicly. "It's completely confidential," said Stuart Doyle, a spokesman for Enterprise Florida, the state's lead economic-development agency.
Privately, several people involved with the talks said they fear that publicity surrounding Project Horizon could spark job-loss fears elsewhere, presumably in Columbus. Additionally, it's not at all clear that Orlando is a front-runner, and some officials said they worry that publicity now could sour the deal.
Moreover, state and local governments are in lean budget times, amid a prolonged housing slump and property-tax cuts.
"We've only got so much money to give away," Orange County Commissioner Linda Stewart said.
Still, four weeks ago, Dyer told the Sentinel that he had recently met with representatives of a company he hoped would bring 2,000 jobs to the city. But he wouldn't reveal details about the company or the industry.
Dyer would not elaborate this week.
"We're always looking to bring . . . good jobs to Orlando," he said.
Jason Garcia can be reached at [email protected] or 407-420-5414. David Damron can be reached at [email protected] or 407-420-5311. Mark Schlueb can be reached at [email protected] or 407-420-5417.
NetJets is one of a host of companies under the corporate umbrella of Berkshire Hathaway Inc., the holding company led by Warren Buffett (right).
It operates a fleet of more than 700 aircraft and has operations in the U.S., Europe and the Middle East.
