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The Sarasota-Manatee airport authority CEO said he rescinded the offer after it became clear the FAA was not likely to approve it.
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The sale of airport land has to be approved by the Federal Aviation Administration, which blocked the deal in April, citing numerous problems.
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Tampa airport officials say that bad weather was to blame for the surge in delays and cancellations.
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The airport is growing fast, tripling traffic in the last several years. And New College of Florida is also trying to expand. The deal aimed to satisfy both, but was nixed by federal aviation authorities.