A Madeira Beach company's quest to establish a commercial fish farm in the Gulf of Mexico has drawn some investor nibbles but no permit yet.

The principals of Florida Offshore Aquaculture Inc. must answer 20 questions about the project posed by the Tampa-based Gulf of Mexico Fishery Management Council. The questions come after the council recommended that federal officials deny the company's application for a permit from the National Marine Fisheries Service.

Most of the questions deal with possible environmental effects of a fish farm, the expertise of people involved and distribution of fish harvested, said Jody Symons, the company's lead partner.

The farming operation is planned for a site 33 miles west-southwest of Johns Pass. The company wants to raise cobia, mahi mahi, greater amberjack, Florida pompano and red snapper in as many as eight huge, anchored cages.

If a permit for the two-year project is approved, it would be one of the few offshore fish-farming businesses in the country.

Symons, a retired Motorola Corp. manager, said Florida Offshore Aquaculture will submit its answers to the council and the National Marine Fisheries Service as part of the permit approval process.

"The environmental assessment has most of the answers to the questions, but we will answer everything," he said. "Anything can happen, but I don't think the permit will be stopped."

The company has consultants, including DNA testing experts and biologists, poised to begin work and provide the necessary oversight for the project, Symons said.

"The agency supports mariculture, but it needs to be done properly," said Peter Eldridge, fishery management specialist at National Marine Fisheries Service in St. Petersburg. "It is an important and controversial issue."

The farm will serve as the platform for creating regulations and laws governing marine fish farming in the United States.

Wayne Swingle, executive director of the Gulf of Mexico council, said the panel's review and recommendation were sought because fish farming likely will have an impact on fishing in the management area.

"We raised some issues, but basically we were asked to comment on habitat protection," he said. "We will develop an amendment to our management plans to allow and regulate commercial aquaculture."

Because the council is an advisory panel, its approval is not required for Florida Offshore Aquaculture to get the necessary federal permit, Swingle said.

The company expects to have the permit early next year, Symons said. Once the permit is in place, the company will need seed capital of at least $3.5 million.

Fish cages cost $120,000 each. Eight cages will produce a strong return on investments over two years, Symons said.

The potential of the company is performance-based and because it has not been done before, expenses are hard to determine, he said. Even so, the company projects the profit margin of the venture will run in the double digits.

Two investors from Treasure Island, several from Scandinavia and an investment group of area restaurateurs have contacted the company. Symons won't identify them.

"We're talking with investors," he said, "but we need the permit to get serious."

To reach Jane Meinhardt, call (813) 342-2476 or send your e-mail to jmeinhardt@bizjournals.com.