The airport city has come of age, providing an opportunity to re-evaluate land uses on- and off-airport and the airport’s role in regional economic development.

The Emergence of the Airport Cityin the United States

October 2013focus

The “airport city” concept is not new. Its visionaries include commercial artist Nicholas DeSantis in the 1930s; renowned aeronautical engineer H. McKinley Conway in the 1970s; and University of North Carolina Professor John Kasarda since the 1990s. Meanwhile, various elements of the concept have appeared at airports, reflected in retail shopping venues with “market pricing,” restaurants featuring regional cuisine, and in-terminal hotels.

The airport city has come of age in recent years because of changes in the global economy. In developing countries, the airport city concept is being used as an urban planning tool to accommodate strong economic and population growth. In the United States, the airport city

concept is viewed as a means of increasing nonairline revenues amid the uncertainty of federal funding, as well as promoting economic development and job creation. This focus piece examines U.S. applications of the airport city concept. For a discussion of the airport city in the developing world, please see our November 2012 compendium “Adapting to a Changing Global Economy” available on our website.

All Roads No Longer Lead to RomeGlobal cities are greater in number and more geographically dispersed today than 20 years ago.

The idea that global trade relies on one hub such as Rome or a handful of megacities

In recent years, uncertainty and vigilance

have been central to airport planning.

Although the need for caution remains,

continuing changes in the global economy

provide an opportunity to step back from

daily operational challenges and consider

alternative models for air transport

management emerging throughout the

world. The timing of an economic recovery

remains uncertain but the need to adapt to a

changing global economy is on the horizon,

as discussed in this fourth focus piece in a

series.

ADAPTING TO A CHANGING GLOBAL ECONOMY

such as New York, London, and Tokyo is outmoded. Today, more than 500 global cities with populations of 1 million or more have an active role in the global economy. Megacities are often the focus of business investment, but midsize global cities with populations of 2 million to 5 million, such as Brasilia, Denver, Guayaquil, Hanoi, Manchester, Nairobi, Seattle, and Vancouver, are experiencing the fastest economic growth. Midsize cities are emerging as key drivers of global growth, with the Gross Domestic Product (GDP) of these cities collectively forecast to increase an average of 9% per year through 2017, according to a 2012 Economist Intelligence Unit study, Benchmarking Global City Competitiveness.

Denver’s Proposed Aviation Station at 61st and Pena Boulevard

Airport City Denver, South Terminal Redevelopment including the airport hotel, public transit center, and public plaza

focus – The Emergence of the Airport City in the United States http://www.leighfisher.com/discover-whats-new/publications2

C is for ConnectivityConnectivity is key to the continued growth of global cities and emergence of airport cities.

Although there is no industry-standard metric of connectivity, recent research by the MIT International Center for Air Transportation defines airport connectivity as a function of the frequency of scheduled flights and the quantity and quality of destinations served nonstop and with connecting service. In the MIT study, the overall connectivity of an airport is higher if there is airline service to large hubs and international gateways where there are more opportunities for connecting service to a large number of destinations. For example, a small-hub airport’s overall connectivity rating would increase more with airline service to a large hub than it would with service to another small hub.

Deconstructing the Airport CityElements of an airport city are present at many U.S. airports.

In the United States, elements of an airport city have been developed incrementally with the addition of restaurants and specialty retail, hotels, business office complexes, free trade zones, leisure and fitness facilities, and cultural attractions such as museums and art displays. In-terminal hotels with conference centers and meetings rooms are located at 11 U.S. airports; a 12th is under construction

An illustration of a London aerodrome consisting of four runways in the form of a giant wheel supported by the city’s buildings, proposed by London architect

Charles Clever, and published in Modern Mechanics and Inventions in 1931.

An illustration of the “Airport-Docks for New York” proposed by New York architect Harry B. Brainerd, and published in Everyday Science and Mechanics in 1931.

5000 1,000 1,500

Large-hub

Medium-hub

Small-hub

Non-hub

Sources: Ranking of most connected airports—MIT International Center for Air Transportation, “Modeling Changes in Connectivity at U.S. Airports: A Small Community Perspective,” June 2013. Scheduled departures—OAG Aviation Worldwide Ltd., online database, accessed June 2013.

Average daily scheduled departures in August 2013

International

RANKING OF THE TOP 15 MOST CONNECTED AIRPORTS IN THE UNITED STATES

1. Chicago O'Hare

2. Atlanta

3. Dallas/Fort Worth

4. Los Angeles

5. Denver

6. Charlotte

7. Houston Intercontinental

8. Newark

9. New York LaGuardia

10 New York Kennedy

11 Phoenix

12 Philadelphia

13 San Francisco

14 Boston

15 Miami

The “Skyscraper Airport for City of Tomorrow” proposed by Nicholas DeSantis, published in Popular Science in 1939.

Already global business is beginning to plan strategy from a city, rather than a country, perspective.

The Economist Intelligence Unit Benchmarking Global City Competitiveness, 2012

Airport City Concepts From The Past

��������������

�������������� ��������

� �������������������������

�����������������������

����

���

��

��

����

��

�������� ����

 �����

�������

���

�

����������������������������������������

��������� ���

���­

focus – The Emergence of the Airport City in the United Stateshttp://www.leighfisher.com/discover-whats-new/publications http://www.leighfisher.com/discover-whats-new/publications 3

����������������������������

at Denver International Airport. U.S. airports feature displays of aviation memorabilia and regional art such as the Aviation Museum and terminal exhibits at Las Vegas’ McCarran International Airport. In 2012, San Francisco International Airport opened a post-security yoga room that is available to all ticketed passengers.

One Size Does Not Fit AllApplications of the airport city concept will be affected by physical, competitive, political, and financial considerations.

In recent years, airport city projects have been launched at a number of U.S. airports, including the airports located in Atlanta, Dallas/Fort Worth, Dayton, Denver, Detroit, Greensboro, Indianapolis, Memphis, and Pittsburgh. The scale varies, depending on the amounts of available land, private capital, existing infrastructure, and regional airport competition. Applications of the airport city concept range from large-scale development of a greenfield site (primarily outside the United States), to development of large tracts of available land at an existing airport, to incremental development of business parks on airport property.

Airport City Denver—In 2012, Denver International Airport (DIA) and the City and County of Denver announced their vision for “Airport City Denver” at the Global Airport Cities Conference and Exhibition hosted in Denver by DIA. A key feature of

the Airport City Denver vision is to target specific economic clusters of complementary businesses including aviation, aerospace, logistics, renewable energy, bioscience and agrotech, and their supporting technologies and industries. The first phase of Airport City Denver is under way. A 519-room airport hotel is scheduled for completion in 2015, to be followed by the 2016 completion of a 22.8-mile commuter rail line connecting DIA to Denver’s Union Station. Future phases are focused on an economic development strategy that would leverage DIA’s property assets to increase global connectivity and competitiveness while generating, nonairline revenues and further stimulating the regional economy.

VantagePort—In July 2013, the Detroit Region Aerotropolis was rebranded as “VantagePort” as part of a 25-year strategy to market, plan, and support development within a 60,000-acre region in and around Wayne County’s Detroit Metropolitan and Willow Run airports. Plans for an aerotropolis began in 2006; since then, nearly 2,500 new jobs have been created and more than $350 million in investment by small and large businesses. VantagePort—a public-private economic development agency consisting of four cities, three townships, two counties, the Business Leaders for Michigan, DTE Energy, and the Wayne County Airport Authority—is expected to create 64,000 jobs and $10 billion in annual economic impact by the time it is built over 20 years. Since 2011, VantagePort has attracted Inergy Automotive Systems, Lee Steel, Brose North America, Watson Engineering, and GE Aviation Group. In September 2013, VantagePort announced the redevelopment of the former Willow Run Powertrain plant for a technologically advanced connected vehicle research center.

Aerotropolis Atlanta—Planning for “Aerotropolis Atlanta” began in 2008 with the purchase and remediation of a brownfield site adjacent to Hartsfield-Jackson Atlanta International Airport, where the Ford Atlanta Assembly Plant was previously located. The redevelopment of the 120-acre site is privately funded and will be zoned for 6.5 million square feet of Class A office space. It will include a hotel, conference center, data center, business park, retail shopping, and a 4,000-space airport parking facility. In May 2011, Porsche Cars North America announced plans to build a new North American headquarters at the site, including a 150,000-square-foot office tower, Porsche Technical Training Center, and Porsche Customer and Driving Experience Center

Airport City Applications

Airport City Elements

SAN FRANCISCO OFFICE: LeighFisher 555 Airport Boulevard, Suite 300 Burlingame, California 94010 U.S.A. Tel: +1 650.579.7722inquiry@leighfisher.com www.leighfisher.com

CHICAGO

CINCINNATI

DALLAS

TORONTO

AMSTERDAM

BERN

BOLOGNA

GLASGOW

LONDON

MANCHESTER

READING

network are likely to be part of the future landscape. If airport operators are to take advantage of these opportunities for global connectivity, their challenge will be to:

� Define an application of the airport city concept that is appropriate for the region, increases nonairline revenues, and mitigates the risk of uncertain federal funding.

� Collaborate with regional economic development agencies to pool resources and knowledge and develop a coordinated economic development plan.

� Identify the potential benefits of global connections for regional companies, and the airline service that would support those connections.

� Support airport links to regional rail and road networks to assist the movement of people and goods and create additional economic impact.

� Promote the airport as a driver of regional, national, and international economic growth.

Copyright © 2013 LeighFisher—All Rights Reserved.

Prepared by Linda Perry.

For further information, please contact:Linda Perry—linda.perry@leighfisher.com

Printed on 100% recycled paper.

MKTG674

VantagePort—Detroit Region Aerotropolis

featuring a 1.6-mile test track and handling circuit. Porsche broke ground in November 2012; operations are to begin in the first quarter of 2014. Although Aerotropolis Atlanta is not on airport property, the management for Hartsfield-Jackson Atlanta International Airport has participated in the planning discussions. Redevelopment of the site is being guided by the private developer and regional economic development officials, including the Atlanta Regional Commission.

Colorado Springs Airport Business Park— The first tenant building in the Colorado Springs Airport “Cresterra” Business Park opened in the fall of 2007 after several years of planning and infrastructure investments. Managed by a public-private partnership through a Master Developer arrangement, the approximately 1,000-acre park adjacent to the airport’s passenger terminal complex features a master-planned community that at full build-out will include a golf course, trail system, and opportunities for development of office, flex, distribution and/or retail business space. Three tenants have located at the Airport Business Park. The first, Aerospace Corporation, arrived in 2007 with the completion of a 78,000-square-foot Class A office building. In 2008, Northrop Grumman occupied a 125,000-square-foot Class A office building, and the Army Corps of Engineers completed a military Arrival and Departure Air Control Group (A/DACG) complex comprising of approximately 70,000 square feet of building space and 40 acres of aircraft ramp.

Access is KeyEconomic development strategies are needed to promote the development of all transportation modes.

While there is often little direct synergy between airports and seaports (i.e., goods moving between the two), economic development strategies that involve both are likely to generate the greatest economic

impact and number of jobs. For example, a major manufacturing business that uses seaport infrastructure will also contribute to the demand for airline service at the airport. Similarly, airport city rail links that transport passengers to the airport will also provide transportation for the employees of the seaport and other businesses. In recent years, the construction of airport rail links has facilitated airport city development.

The Era of CitiesIn the 21st century, global business will be planned from a city perspective.

Global economic activity usually is defined at the country level, but cities are increasingly likely to be the focus of global business in the future. One driver of this trend is the rapid and sustained rate of global urbanization, with well over half the world’s population now living in cities and generating more than 80% of global GDP. A second driver is the increasingly global network of corporations in cities throughout the world. As a result, airport cities providing connections to the global air transportation

U.S. airport HotelNumber of rooms

Year open

IN-TERMINAL HOTELS AT U.S. AIRPORTS

Chicago O’Hare InternationalBoston Logan InternationalGeorge Bush Intercontinental/HoustonDenver InternationalOrlando InternationalPhiladelphia InternationalDetroit MetropolitanPittsburgh InternationalDallas/Fort Worth InternationalTampa InternationalMiami InternationalBradley International

HiltonHiltonMarriottWestinHyatt RegencyMarriottWestinHyatt RegencyGrand HyattMarriottH. I. DevelopmentSheraton

860599559519445419404336298296252237

1973199919822015199219952002200020051982

Late 1980s1987The Hilton at Chicago O’Hare International Airport

has been operating since 1973.

94

275

275

24

12

ECORSEECORSE

WICK

GODDARD

NORTHLINE

EUREKA

PENNSYLVANIA

SIBLEY

KING

TYLERTYLER

AIRPORT

TEXTILE

BEMIS

to Toledo

WILLIS

VAN BORN

HU

RON

RIV

ER

VIN

ING

MID

DLE

BELT

SAVA

GE

HA

NN

AN

HAG

GER

T Y

MO

RTO

N T

AYLO

R

BELL

EVIL

LE

BECK

RID

GE

Willow RunAirport (YIP)

DetroitMetropolitan

Airport (DTW)

FUTURE AEROTROPOLIS

to Flint

to Detroit

94

17

GEDDES

to Ann Arbor

275

275

94

94

0 1 2Miles

0 1 2Kilometers

12

17

12

24

Follow us on: