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Old May 22nd, 2011, 11:26 AM   #1
hkskyline
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MISC | Aerotropolises - Mixed-Use Airports

Cities build toward airport 'aerotropolises' for growth
Developers try to land mix of office, retail, residential
20 April 2011
USA Today

For decades, Ford produced its popular Taurus sedans at a plant next to the busiest airport in the world, Atlanta's Hartsfield. But the 130-acre lot has sat vacant since 2008 when the plant was shut.

A local commercial real estate developer bought the land and now envisions something completely different: a mixed-use project, with office parks for firms that need quick access to Hartsfield, plus hotels and shops.

"We saw the development opportunity because it was a large contiguous tract next to the busiest airport in the world," says Scott Condra of Jacoby Development, the project developer.

Development projects next door to airports are back in vogue throughout the U.S., as financially struggling cities look to attract export-oriented and high-tech businesses amid an uncertain economic recovery.

Atlanta is just one of several cities latching onto the trend of trying to build all the aspects of a city around an airport -- an "aerotropolis" as it's called by planners. The push is for aviation authorities to partner with private companies to cohesively and systematically develop bountiful land near airports to attract office space, warehouses, logistics centers, retail stores, recreational facilities and apartments.

By attracting businesses that need frequent and easy access to airports -- delivery-fulfillment centers, exporters, Web commerce companies, biomedical manufacturers and other time-sensitive enterprises -- other clusters of businesses that cater to existing companies will be formed, aerotropolis advocates say. Projects such as entertainment and residential complexes will soon follow, forming a city whose core and economic engine is the airport.

Denver, Indianapolis, Milwaukee, Detroit and the Winston-Salem/ Greensboro region in North Carolina have plans to pursue aerotropolises. Even cities that have had expansive development near the airport, such as Dallas/Fort Worth and Memphis, want to push the concept further.

"You're seeing a lot of airports jumping on the bandwagon," says Mark Perryman, president of Landrum & Brown, an airport planning firm that's working with Indianapolis for an aerotropolis project there. "Some airports are competing for the same type of industries."

Metro rails create right atmosphere

Fostering airport development to expand the local economy isn't a new concept. Airports such as those in Denver, Memphis and Dallas/ Fort Worth have studied, proposed or implemented it to varying degrees of success in the last decade. And warehouses, budget motels and other businesses looking for inexpensive land have always been drawn to airports.

But the concept is re-emerging as more cities -- including Denver, Dallas, Washington, D.C., Miami and Los Angeles -- extend local metro rail to airports and debate how to spur rider traffic and create lively destinations near airports.

Aviation officials also see aerotropolises as a way to boost non- aviation revenue. Real estate projects promise a steady stream of rent and parking fees that can offset declining income from tight- fisted airline tenants.

What also separates the latest round of proposals is the economic urgency palpable in cities that have miles of vacant land and a sense that not using it reflects an inability to compete in a globally connected economy. U.S. city officials hear stories from Asia and the Middle East, where airports such as Seoul-Incheon, Shanghai, Hong Kong and Dubai have been aggressive in converting the aerotropolis idea into reality, often unimpeded by the bureaucratic and financial hurdles that many U.S. airports face.

Despite an economic downturn in South Korea and sluggish demand from prospective tenants, Seoul-Incheon is building a multi-use complex adjacent to the airport that will house a mall, marina, an amusement park, a convention center and a fashion complex for designer studios. A medical center to capitalize on the rise in Asian medical tourism is also planned.

"We need to treat airports and airlines as key infrastructure to compete in a global economy," says John Kasarda, a University of North Carolina professor who is largely credited with coining the term "aerotropolis" and is pushing for the idea once again with a new book released in March, Aerotropolis: The Way We'll Live Next. "It might take 50 years. But we must do that, or we're going to fall behind in competition to India, China and Brazil."

Among the airport-city projects in development in the USA:

Detroit. In desperate need of economic reinvigoration, Wayne and Washtenaw counties along with seven other cities and towns in Michigan have agreed to target 60,000 acres near Detroit Metro for development. An office park headed by GE is already there, and about 40 companies have relocated there, but the area "still needs more tenants," says Robert Ficano, Wayne County executive. "We have flight patterns that are tied into international traffic. You can reach 60% of the U.S. overnight." Tax incentives and abatements will be considered for companies that agree to move in and use "multimodal" -- or rail, air, waterways and highways -- to develop and transport goods.

Winston-Salem/Greensboro, N.C. The 12 counties that surround Winston-Salem and Greensboro are looking to an aerotropolis model to make up for the 90,000 jobs lost in the last 10 years from textile, furniture-making and tobacco industries, says David Hauser of the Piedmont Triad Partnership, a public-private partnership that's spearheading the effort. Energized by FedEx's opening of a new Mid- Atlantic hub at Piedmont Triad International Airport, local officials vow to proceed with the plans despite sluggish economic conditions that have forced FedEx to scale back its operation. "We're going to build an aerotropolis whether we like it or not," Hauser says. To try to accelerate it, the partnering counties are trying to standardize zoning processes to expedite paperwork for companies interested in the region. "You tell a company that it takes nine months to get zoning, it's going to move to Mississippi," Hauser says.

Denver. When Denver International opened in 1995, its planners envisioned business and neighborhood clusters eventually filling the 53 square miles surrounding the airport. The vision has fallen short. Single-family homes were quickly built near the airport to meet feverish demand a decade ago, but waves of foreclosures have hit the area. The fast-casual restaurants, low-rise office buildings and limited-service hotels that dot the main roadway into the airport don't evoke the aerotropolis that local officials touted in 2003.

Denver is giving it another try, hoping to pack in more options at a metro rail station that will open on airport property in 2016. "I wouldn't say we've had a true aerotropolis-type of development," says John Ackerman, the airports' chief commercial officer. "But we're very interested in it now."

The density-focused plan calls for a walkable environment at the station, with retail shops and restaurants. A second rail station, to be built further out from the terminal, will have office space and apartments within a quarter mile, and possibly entertainment complexes and a golf course.

Joshua Schank, CEO of Eno Transportation Foundation, says airport- city developments with a focus on walkability and public transportation have a better chance of succeeding. "It's hard to have an aerotropolis that's auto-centric," Schank says. "What makes cities interesting and dynamic is that they're not just about cars."

Dallas/Fort Worth. Airport officials see a new aerotropolis around three new rail stations that will connect the airport to Dallas and Fort Worth when they open in the next three years. Owning a land mass larger than Manhattan, the airport has zoned about 6,000 acres for industrial parks, retail and restaurants, hotels and an entertainment venue that will be developed gradually in the next 20 years, says John Terrell, the airport's vice president of commercial development. About 1,000 acres already have been developed, consisting of a hotel, golf course, cargo and commerce park. Aviall, an aircraft parts distributor, has moved in, as have the Dallas Cowboys' merchandising headquarters and aircraft engine maker Pratt & Whitney.

With American and Southwest airlines headquartered in the region, aviation has always been a key economic driver in Dallas and Fort Worth, and the region has had some previous success in aerotropolis development. Nearby suburbs, such as Southlake and Grapevine, have flourished as large employers located their headquarters near the airport. Las Colinas, a planned, upscale area nearby, has owed much of its development to the airport, Terrell says.

Indianapolis. In February, Indianapolis aviation officials approved a long-term development plan for 59 million square feet of leasable land at Indianapolis International. The usual aviation- intense businesses -- logistics and cargo firms -- will be targeted as tenants, but the plan also calls for a solar-energy farm in one corner. The aviation authority could possibly generate up to $63 million a year in rental income by 2040, estimates Landrum and Brown.

Memphis. Not content to sit on its reputation as an advanced U.S. aerotropolis, the cargo-heavy airport is "tweaking and refining" its development model, says Arnold Perl, board chairman of the Memphis- Shelby County Airport Authority. While the city has the world's No.2 air cargo traffic (FedEx is headquartered there) and one of the busiest trucking and rail corridors in the U.S., Memphis wants to improve roads between the various transportation modes and is spending a $1.5 million federal grant to figure out how to better merge leisure centers and housing into its aerotropolis model, Perl says.

Not all airports are candidates

Simply devising lease plans to fill empty buildings with corporate tenants doesn't an aerotropolis make, some planners and economists say.

As economies wane and businesses move out, urban planning theories that promise reinvigoration are apt to resurface, says David Prosperi, an urban planning professor at Florida Atlantic University. But with only so many logistics and delivery companies to go around, many aerotropolis proposals are bound to fall short, he says.

Some cities lack other characteristics that are needed for a sustained economic revival, such as good universities, a good quality of life and an educated workforce. "It has become very much a fad," he says. "Virtually every city wants to do an aerotropolis. The problem is, everyone is doing that."

More focused development of concentrated businesses that exploit the region's competitive strengths is more likely to succeed, he says. "I'd think more about jobs. To think that you're going to have a cute seaside village at the airport is nonsense."

There are other possible obstacles in the way of the concept, too, including the simple idea of location.

"People don't want to live next to an airport, because it's not a pleasant place. It looks industrial. It looks sprawled out. And they don't want to work in a place like that," Eno's Schank says. "(Developers) think humans are automatons and will just go where it's most convenient.

"But will people pay a premium to live next door to an airport? I doubt it."
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Old May 23rd, 2011, 01:00 AM   #2
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So what will happen to those developments as the price of kerosene continues to soar skywards?
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Old May 23rd, 2011, 07:50 AM   #3
sidney_jec
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Cross Posting from the Indian thread

Bengal Aerotrpolis to come up near Calcutta in India. News excerpts

Quote:
Originally Posted by Bombay2Calcutta View Post
Source
Bangalore: Bangalore based In4velocity Systems, a provider of Real Estate and Infrastructure solutions, has announced that it has partnered with GENPACT, a Business Process Management company, for a 5-year contract to provide its product In4Suite as the product platform of choice, for the Development of the Durgapur Airport, currently underway.

Bengal Aerotropolis Projects (BAPL), a specialist company engaged in the development of Aerotropolis projects in India, had selected GENPACT as the service partner giving it a 5-year contract which in turn has partnered with In4velocity Systems to provide the product platform for managing the construction, sales and leasing of the Aerotropolis.

"We are excited to work with BAPL to realize the plans of executing an exciting and challenging development project that is coming up in Durgapur," said Rahul Chawla, CEO, In4velocity Systems.

Bengal Aerotropolis Projects is developing India's first set of Airport Cities Aerotropolis in Durgapur by utilizing the best elements of international urban design and operational efficiencies through strategic alliances and partnerships. BAPL's Aerotropolis project, in Durgapur, is expected to be operational by 2011-12. The Aerotropolis project, which is expected to be completed in a span of 5 to 7 years, will involve a total investment of approximately Rs.10,000 crores through various strategic development partners. Changi Airports International of Singapore has taken a 26 percent stake in BAPL and CAI CEO Wong Woon Liong and Deputy CEO Eugene Gan have joined the BAPL board.

"We are pleased to have In4velocity System to partner with Genpact in providing us with innovative solution for a specialized set of requirements for this unique project," said Subrata Paul, Director & CEO, BAPL.
Quote:
Originally Posted by Bombay2Calcutta View Post
HT
The country’s first greenfield airport in the private sector has chosen Simplex Infrastructures for construction of the airport. The airport is supposed to be functional by April 2012. Following a board meeting of Bengal Aerotropolis Projects (BAPL), a Kolkata-based company building the project, construction work of R200 crore airport would begin immediately at Andal, 185 km to the north of Kolkata. For the first two years Changi Airports International, Singapore will be responsible for operations and management of the airport.

The airport (4C category) would be a regional airport, designed to handle aircraft such as Airbus 320/319 and Boeing 737. It would have an initial runway length of 2,800 metre that can be extended to 3,300 metre to handle larger aircraft.

The project is located in the heart of the Asansol-Durgapur industrial belt. It has a catchment area that is inhabited by 4.5 million people and is one of the two such areas without a scheduled air service, the other being Nashik in Maharastra.

The project consists of an airport, an industrial park, a logistics hub, and an IT park. It will be spread over 2,100 acre (1,200 acres in the first phase), out of which 1,350 to 1,500 acre will be used for the airport.

The project was initiated in 2007-2008 when opposition to land acquisition was at its heights in West Bengal, but it successfully went ahead by acquiring only arid and monocrop land. The project also unveiled a land-for-land compensation policy whereby those who gave land for the project were given a plot of land in addition to monetary compensation and vocational training.
Quote:
Originally Posted by Bombay2Calcutta View Post
KOLKATA: The construction of the proposed aerotropolis project at Andal near Durgapur is expected to start from October. The contract for the construction of the aerotropolis project was awarded to Simplex Infrastructure on Thursday.

Bengal Aerotropolis Projects Limited (BAPL) is constructing the Andal airport in which Changi Airports International (CAI) has 26% stake.

Wong Woon Liong, CEO, Changai Airport International discussed with chief minister Buddhadeb Bhattacharjee about the development of the project. Liong later said that he was happy with the land acquisition process and hoped that the construction would start soon.

Ardhendu Sen, chief secretary with whom Liong also discussed the project, said the construction was expected to start next week. Earlier, due to objection from Coal India over some coal blocks getting affected, the site map of aerotropolis had to be realigned.

Rajiv Mundhra, director, Simplex, said, "We are proud to have bagged the prestigious project for India's first green field aerotropolis project. This would strengthen our foothold in the international aviation market."

Simplex has been involved in the construction of new passenger terminal buildings in Udaipur and Jaipur airports for the Airports Authority of India.

The airport of 4C category will be a regional one, designed to handle aircraft such as Airbus 320/319 and Boeing 737. It will have an initial runway length of 2,800 m, extendible to 3,300 m to handle larger aircraft in future.

Officials said that the aerotropolis coming up in Burdwan district would draw an estimated investment of $4 billion. The project will involve setting up an industrial park, logistics hub and IT park, along with supporting infrastructure like housing, tourism, healthcare and social interchange facilities.

The airport will be developed over 300 hectare, while the supporting industrial and social infrastructure will be developed over 600 hectare.


The Times of India
Quote:
Originally Posted by Bombay2Calcutta View Post
TELEGRAPH
Aerotropolis gets a boost

Calcutta/Ranchi, April 14: The coal ministry has agreed to the position taken by the Bengal government that both coal mining and the proposed airport city could co-exist at Andal, Burdwan.

In an affidavit relating to a case in Calcutta High Court yesterday, the coal ministry said it had “recommended measures, under which both coal mining and the aerotropolis project will be carried out simultaneously without affecting each other”.

The affidavit has been filed by Inder Pal Nagpal, under-secretary to the government of India, ministry of coal. The ministry said it had taken note of the problem and that both the projects had equal public interest. “There is no rationale to dispute the co-existence of the projects,” the affidavit said.

The legal submission also took note of a meeting of the ministry of civil aviation on February 9, 2011 regarding the development of the airport city project and the Moira Madhujore coal block.

In the meeting, the ministry of coal had said it felt it was possible to produce 2 million tonnes of coal per annum for more than 30 years according to the findings of Tata Consulting Engineers (TCE).

However the final method of development or extraction needs to be discussed with the Directorate General of Mines Safety, it said.

Bengal Aerotropolis Projects Limited (BAPL) is developing the airport city. Singapore’s Changi Airport is holding a strategic 26 per cent stake in BAPL, and the West Bengal Industrial Development Corporation a small share.

BAPL has been dragged to court by a consortium of six coal companies who were allocated the Moira-Madhujore block by the coal ministry. The six members of the coal consortium are Calcutta-based Adhunik Metaliks, Ramsarup Industries, Howrah Gases, Vikas Metal & Ispat, ACC and Uttam Galva.

The Moira-Madhujore block is spread over 15.5 square kilometres. Some experts feel that not more than 1-2 per cent surface area is required to raise coal in case of the underground mine.

However, Union coal minister Sriprakash Jaiswal said in Ranchi today that the government was not keen to allow any construction on coal property.

“The coal ministry has written to all the states to desist from constructing anything on coal-bearing land,” Jaiswal said, while commenting on the fate of NTPC’s 1,000MW plant at Tandwa in Jharkhand on a coal bearing land.

“If we allow this (NTPC), we shall also have to accommodate the Bengal government’s wish to construct an airport on coal bearing land,” he said.
Quote:
Originally Posted by Bombay2Calcutta View Post
Aerotropolis to be ready by July 2012

Promoter Expects State Govt To Hand Over The Last Portion Of 525 Acre In 2 Months

TIMES NEWS NETWORK

Kolkata: The Durgapur airport city promoter Bengal Aerotropolis Projects Ltd (BAPL) expects the state government to hand over the last portion of 525 acre by July, concluding a 30-month ambitious process to acquire 2,345 acre. The last tranche of land includes those in Andal, Badur and Dubchuria moujas.
“The land and land reforms department handed over 1,820 acre out of the acquired 2,181 acre to the West Bengal Industrial Development Corporation (WBIDC) that, in turn, gave the plot to the Bengal Aerotropolis. Compensation cheques approved under Section 12 of the Land Acquisition Act, 1894, for 361 acre will be given to the affected after the electoral process is over. Meanwile, the hearing is on under the Act’s Section 9 for the remaining 264 acre,” reveals BAPL chief executive officer and director Subrata Pal.
The farmers have been demanding a higher pay than the average compensation of Rs 7.5 lakh per acre.
While the firm has paid Rs 170 crore to the WBIDC for 1,820 acre, it will shell out another Rs 60-70 crore to 300-350 affected land owners. “We should have possession of the entire land in a couple of months,” says Pal, adding that the 650-acre project will be completed by July 2012.
Work on the 2,800mt runway foundation bed is underway. BAPL vice-president (projects) Suvankar Ganguly says the sub-base grading work will be completed by June 15 and the rest by December. Work on the service cluster block will begin in June and be ready by next February. “Of the Rs 160-crore airport project, over Rs 100 crore worth job has been awarded,” Pal adds.
Anticipating a commissioning date in July 2012, BAPL officials held talks with SpiceJet and IndiGo on April 27 and presented passenger potential statistics through trend analysis, travel agents’ feedback and a market research survey. “Route planning data prepared by Changi Airports after analyzing traffic studies showed the potential to operate twice daily flights to Delhi with Airbus 319/320 or Boeing 737-800/900 aircraft and one flight each on Bagdogra-Durgapur-Mumbai and Guwahati-Durgapur-Chennai/Bangalore sectors daily with similar aircraft. This is apart from a daily ATR services to Kolkata,” Pal states, adding that a low-cost carrier was likely to touch down before a legacy carrier did.
SpiceJet and IndoGo apart, the carrier has held preliminary talks with Air India, Jet Airways and Kingfisher to operate regional flights. “The response has been encouraging. A clearer picture will emerge when we will be closer to the commissioning stage,” Pal adds.

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Old May 23rd, 2011, 07:56 AM   #4
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Renderings of the project.
Image courtesy BAPL website





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