John Schussler examines New College’s long-term lease on SRQ airport land. Why did the FAA block a proposed sale? Could a lease buyout benefit both parties? David Kotok explores a possible solution.
Image assembled by Norm Dempsey
I recently discussed this issue in person with John. I recommended that he post a column on his Substack, and I promised to share the link and add a comment of my own about the airport’s finances. During my career, I personally advised municipal bond issuers about municipal bonding options. I believe there are options in this Sarasota Bradenton International Airport –New College case study where an independent professional advisor, free of political distortion or distraction, could help to structure a solution. My proposal follows further along in this commentary.
John’s thorough reporting examines land near SRQ’s passenger terminal that New College occupies under long-term leases. The arrangements can be traced back to a 99-year lease signed in 1957 and a further lease in 1966; the property remains airport-owned, and the leases run to 2056. What was once a relatively remote parcel has become land of potential strategic importance to a growing airport. [1, 2]
John has published detailed research about the history and future of the property. His Substack has a trove of information for those who think about the airport and its future. Readers should start with his work on resolving the airport land impasse and his examination of the 2024 FAA decision. [1, 2]
A Fresh Start for SRQ Airport and New College
By John Schussler, Oct 22, 2026
A Fresh Start for SRQ Airport and New College
A Fresh Start for SRQ Airport and New College…
Kotok additions and a Proposed Solution
Whether we like it or not, the New College takeover of the USF Sarasota-Manatee campus is a done deal. I join many others in believing that the region will feel the effects from the loss of an accredited university’s campus for many years. How the “new” version of New College evolves remains to be seen.
Today, let’s focus on the $47.5 million financing proposal for New College and on the deteriorating leased airport property that John has described in his Substack postings. Note the $47.5 million number was reported in the Bradenton Journal. New College trustees approved the proposal on November 3; it still requires approval from Florida’s Board of Governors. (Source: The Bradenton Journal [November 4, 2026])
As John points out, the Sarasota Manatee Airport Authority owns the land. It has a long-term (99-year) lease with New College that has about 30 years remaining. John reports that New College has failed in its obligations under that lease. There are deteriorating buildings not being maintained, as John describes in his postings.
If New College has defaulted on the terms and provisions of that lease, the airport can assert claims; but politics seem to have been in the way. New College now has a debt obligation because of the Florida Legislature and the DeSantis midnight-deal real estate raid that took place between New College and the Sarasota-Manatee campus of USF. Under Florida law, New College is required to pay USF $166,617 per month toward the outstanding debt service on the transferred facilities until it assumes that debt. Under the proposed financing plan, annual debt payments reportedly would rise from approximately $1.78 million in fiscal 2026 to $3.78 million in 2028. New College could use that money for scholarships or for teachers or for some of its programs.
Now think about this situation from the airport’s view. They would like to get rid of that lease, according to the description of usage that John has outlined in his Substack series. By doing so, the airport could then use this piece of land that it already owns for expansion and development of the airport. This outcome would serve its purposes of growth in air services and benefit the entire Sarasota-Manatee region. Any of us who have used and do use the local airport understand the growth that is taking place in Sarasota and Manatee counties. You can quickly see how vital the land around the airport is to support a continuation of that growth.
A Proposed Lease Buyout
So, our proposal (as a citizen who is not for hire as a professional advisor) is that the airport buy out the lease from New College. Pay them money and terminate it. Immediately take over full possession of the property.
The airport will be able to do that anyway if it wants to wait out the terms of the lease instead. But why wait another 30 years?
By buying out the lease today, the airport can proceed and structurally advance its growth trajectory. New College can benefit by getting the money, which it can use either for reducing or paying off the debt it owes or for other purposes. Whatever New College decides to do with that money is up to New College.
But a transaction could allow New College to exchange potential liability for disputed lease obligations, with deteriorated buildings, into cash. New College needs to agree to a deal with the airport to terminate the lease early and receive payment for the value of the leasehold interest.
The Role of the Airport Authority and Florida’s Governor
What about the airport board? John has pointed out the mechanism of political appointment to this board. The governor of Florida appoints three board members for one term and three for another, and there are no conditions that require local Sarasota-Manatee officials or residents to have some input into the decision. Unlike other airport authorities throughout the United States, the Sarasota Manatee Airport Authority is a pure political construction, and the governor makes the appointments.
There are two ways to handle those appointments. The first is to appoint your cronies or financially interested parties or otherwise follow the typical traditional Florida-type political appointment mechanism.
I will leave it to readers to judge how well or poorly that works.
Financing and FAA Approval
The alternative is for the governor, the outgoing governor, or the incoming governor to determine that this is a region that needs restructuring and assistance. The financial capability of the airport is substantial. The airport may have borrowing ability to fund $20 million or $47 million or whatever the number happens to be and buy out the New College lease, subject to financial and regulatory review. It may not require taxpayer money from the State of Florida.
The transaction does require certain approvals. Depending on the structure of the deal, it will require a review by the FAA to be sure everything meets the airport’s requirements.
My expectation and John’s analysis is that the airport approval required from the FAA could be obtainable. First, the airport already owns the land. It was the FAA that stopped the original deal that would have had New College purchase the land. The New College-attempted raid on this land failed because the FAA denied the proposed sale. The FAA is thinking about the best alternative for air traffic, for the growth of the airport, for its optimal operation and safety, and for the passengers in terminals and all the other requirements of a growing airport. The FAA’s rejection of that sale does not guarantee approval of a lease buyout.
A Potential Win for Both Institutions
In the end, how this matter is handled is up to politicians, and I have a very dim view of many Florida politicians, as readers of this newsletter know. But the bottom line is this: There is a way for the governor, new or old, to do the right thing. All the people in Sarasota-Manatee counties who use the airport and will use the airport can benefit. And New College, in its new iteration, can have funding and debt relief from the debt structure that the legislature created.
In other words, everybody can win, a rare thing in a political outcome but possible today as John has substantiated and documented in detail in his Substack series. He is a citizen with profound experience in this very specialized area. I thank him for giving me the opportunity to publicize his work and support it. I hope this information is helpful to people in the region who are interested in the future of our airport.
Thank you. – David
Final note: During the preparation of this commentary, our colleague Norm Dempsey recalled that, as part of his MBA coursework at USF twenty years ago, his cohort conducted a study of hotel and airport terminal capacity. At the time, they recommended to the Sarasota Manatee Airport Authority that “the airport needed additional lift capacity” to serve the region’s growing economy and population. Those demands have only increased since then.
Reading list and supporting sources:
1. John Schussler, “A Path to Resolving the SRQ–New College Land Impasse,” June 3, 2026
2. John Schussler, “Land the SRQ Airport Should Not Sell,” May/June 2026
3. Readers who want more details regarding supporting lease history and commentary may find that information here: “The New College–SRQ Airport Land History Project,”
https://www.newcollegesrqairport.org/ .
4. John Schussler, “A Fresh Start for SRQ Airport and New College” (October 2026):
A Fresh Start for SRQ Airport and New College
5. John Schussler, “Resolving the SRQ Airport Land Issue” (June 2026); Schussler’s analysis and allegations about maintenance and lease obligations: https://johnschussler.substack.com/p/resolving-the-srq-airport-land-issue
6. Marc R. Massferrer, “New College trustees approve $47.5 million financing plan for USF Sarasota-Manatee takeover,” The Bradenton Journal (November 4, 2026); status and repayment schedule: https://thebradentonjournal.substack.com/p/new-college-trustees-approve-475
7. New College of Florida, 2024 board materials: proposed purchase-and-sale agreement identifying the 1957 and 1966 leases: https://www.ncf.edu/wp-content/uploads/2024/04/Board-of-Trustees-Meeting-Materials-v1_Feb-22-2024v2.pdf
8. “FAA blocks Sarasota airport–New College land sale,” WUSF (April 12, 2024): https://www.wusf.org/education/2024-04-12/sarasota-airport-new-college-land-deal-blocked-faa
9. “Sarasota airport may try again to sell land to New College,” WUSF (December 2025); airport authority composition and negotiations: https://www.wusf.org/education/2025-12-11/sarasota-airport-may-try-again-to-sell-land-to-new-college
David values thoughtful, reasoned, constructive responses from readers. To contact him, please send an email. The subject line should read “Response to [title of commentary].”
The complete Kotok Report archive can be found at www.kotokreport.com.
Disclosure:
The information posted on this website (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of David R. Kotok. David R. Kotok is an independent contractor. He may independently receive payments from various entities for consulting, advisory and board functions, speaking fees, book royalties, advertisements in affiliated podcasts, blogs, and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship, or recommendation thereof, or any affiliation therewith, by the Content Creator or by David R. Kotok.
Nothing on this website constitutes investment advice. It should not be construed as an offer soliciting the purchase or sale of any security mentioned. Nor should it be construed as an offer to provide investment advisory services by David R. Kotok. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information.
This content, which may contain security-related opinions and/or information, is provided for informational purposes only. Do not rely upon it in any manner as investment advice. It is not an endorsement of any practices, products or services. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.
Any charts provided here are for informational purposes only and should not be relied upon when making any investment decision. As always please remember investing involves risk and possible loss. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed are subject to change without notice and may differ or be contrary to opinions expressed by others. Information in charts has been obtained from third-party sources believed to be reliable; however, David R. Kotok makes no representations about the accuracy of the information.
More by David R. Kotok
Watch here: youtu.be/Ad7Q5WswpFY?si=MEGxHoheub_XQNEK
