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Aerotropolis Case Study Analysis Prepared by The Gateway to Milwaukee for the Milwaukee Gateway Aerotropolis Corporation 2/9/2012.

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Presentation on theme: "Aerotropolis Case Study Analysis Prepared by The Gateway to Milwaukee for the Milwaukee Gateway Aerotropolis Corporation 2/9/2012."— Presentation transcript:

1 Aerotropolis Case Study Analysis Prepared by The Gateway to Milwaukee for the Milwaukee Gateway Aerotropolis Corporation 2/9/2012

2 Aerotropolis Community Defined The designation of a community as an intentional Aerotropolis community is subjective. The criteria for such designation include: 1.Presence of or future planned development of aviation-linked commerce in the airport area, 2.Intentional branding or designation of the airport area as an aerotropolis, airport city, or air logistics hub. Notable omissions from the analysis include LA-Ontario, Los Angeles, OHare, Miami, Washington-Dulles, John F. Kennedy, Hartsfield- Jackson, Newark Liberty, and Ted Stevens Anchorage International Airports and airport business districts. Economic growth appears unrelated to any intentional approach to promoting an aerotropolis in these areas.

3 Aerotropolis Communities Examined Buffalo Chicago Dallas-Ft. Worth Denver Detroit Duluth Huntsville, AL Indianapolis Jacksonville, FL Kansas City Lansing, MI Louisville Memphis Milwaukee Phoenix-Mesa, AZ Piedmont Triad, NC St. Louis Toledo, OH Tulsa, OK

4 Aerotropolis Governance Structures 1.Airport-lead land use planning exercise A.In the case of these Aerotropoli, an airport owns vast tracts of land adjacent to its facility or within the fence of its facility. At some point, the Airport decides that it must create an intelligent development model for its land and facilities to maximize value. i.Dallas-Ft. Worth, Denver, Huntsville, Indianapolis, Jacksonville, and Tulsa.

5 Indianapolis, IN

6 Aerotropolis Governance Structures 2.Chamber of Commerce-lead economic development effort A.In an attempt to enhance the economic competitiveness of the community that they serve, various chambers of commerce have identified their airports as economic engines that would benefit from Aerotropolis coordination. i.Memphis, Jacksonville, Kansas City, Piedmont Triad, Phoenix-Mesa, and St. Louis.

7 Memphis, TN Memphis Aerotropolis Steering Committee Memphis Airport Area Development Corporation

8 Aerotropolis Governance Structures 3.Private carrier hub cities A.Certain communities are fortunate to be major hubs or headquarters of private air cargo carriers. These communities experience many spin-off commercial benefits from the presence of such carriers, though some level of external coordination of the Aerotropolis exists. i.Huntsville (Panalpina), Louisville (UPS), and Memphis (FedEx).

9 Louisville UPS Worldport LIA Passenger terminal

10 Aerotropolis Governance Structures 4.Traditional port communities A.These communities have traditionally been hubs of transportation activity, primarily being developed along railroads or waterways. These communities have maintained a legacy of transportation employment and activity, most recently having attempted to leverage their assets into air cargo development near their airports. i.Chicago, Detroit, Duluth, Jacksonville, Kansas City, Louisville, Memphis, and Toledo.


12 Aerotropolis Governance Structures Other communities examined in this document are not as easily categorized. Buffalo - Chamber/Airport Authority hybrid structure to attract expanded hospitality and international air service providers. Lansing, MI - similarities to other airport-lead efforts, this Aerotropolis appears to have emerged entirely because the State of Michigan made tax credits available for such a purpose.

13 Aerotropolis Governance Structures Of the intentional Aerotropolis communities outlined in the document (excluding Chicago), 14 of the 18 have airports that are operated by single-purpose Authorities. Only Denver (City), Duluth (City), Kansas City (City), and Milwaukee (County) are operated by general purpose governments. Governance of an airport by an independent authority does not necessitate the transfer of ownership of an airport as 5 of the 14 Airports governed by Airport Authorities are owned by a general purpose unit of government (Dallas-Ft. Worth, Detroit, Huntsville, St. Louis, Tulsa).

14 Aerotropolis Funding Sources 1.Airport-lead, Airport-funded – For those communities whose Airport has taken a lead role in the creation of an Aerotropolis, those efforts are also primarily, if not entirely, funded by that Airport. A.These communities include:, Dallas-Ft. Worth – DFW, Denver – Denver International Airport, Duluth - Duluth Seaway Port Authority, Huntsville - Huntsville-Madison County Airport Authority, Indianapolis - Indianapolis Airport Authority, Jacksonville - Jacksonville Airport Authority, JAXPORT, Louisville - Louisville Regional Airport Authority, Toledo - Toledo-Lucas County Port Authority, Tulsa - Tulsa Airport Authority 2.Large scale private developers – Like much of the development in Americas Sunbelt region, these Aerotropolis communities have benefitted from vast tracts of available, developable land and the participation of a few real estate developers. These developers have privately financed large scale communities, business parks, industrial facilities, and logistics parks where there once was desert or farmland. A.Dallas-Ft. Worth – Trammel Crow, AMB are 2Real Estate Investment Trusts (REITs) that partnered with DFW to construct high velocity flow-thru cargo facilities. Hillwood Development Company manages the facility and real estate around Love Field. B.Denver – Newmark Knight Frank, Porteos development

15 Aerotropolis Funding Sources 3.Fundraising from Public and Private sectors – In those communities where private sector involvement is strong but available land is at a premium, companies and units of government have tended to make financial contributions to the Aerotropolis organization operating in their interests in that community. A.Buffalo - Seneca Gaming casino is contributing $1 million to their campaign, other financial contributors include Niagara County, the city of Niagara Falls, the Niagara Tourism and Convention Corp., Niagara Wine Trail, Fashion Outlets, the Niagara Falls Hotel/Motel Association and the Niagara County Industrial Development Agency. B.Detroit - Membership fees by local government signatories (who compose the Corporate Board) and private-sector contributions include Business Leaders for Michigan, Detroit Regional Chamber, Southeast Michigan Council of Governments, NextEnergy, UPS, and Walbridge Aldinger C.Memphis – MAADC operates with private-sector funding from FedEx, Medtronics, and Elvis Presley Enterprises. The Memphis Chamber coordinated $1.6 million from City of Memphis for Plough Blvd. beautification and in-kind work by the City.

16 Aerotropolis Funding Sources 4.State and Federal grants/tax incentives – For a number of Aerotropolis communities, the ability to offer tax incentives or the award of grant money has been given by their State or Federal Government. A.Detroit – Next Michigan Development Act tax incentive B.Lansing – Next Michigan Development Act tax incentive C.Memphis – $1.26 million HUD Community Challenge grant, $45,000 State Forestry grant Other efforts not mentioned in the 4 categories above include those without a substantial budget dedicated to Aerotropolis development (Kansas City, Phoenix-Mesa, St. Louis). In these cases, the effort was put forth by the local Chamber of Commerce, which may have a substantial budget in itself, though these funds have not been devoted to significant projects.

17 Types of Aerotropoli – Export vs. Distribution Communities Community (MSA) Total employment Manufacturing employment Manufacturing LQ Piedmont Triad656,306124,0141.7109 Milwaukee755,162115,9891.3907 Huntsville168,30225,6131.3779 Toledo262,62436,8471.2703 Tulsa388,99253,4651.2445 Detroit1,732,051229,4561.1995 Louisville525,10164,0181.1039 Buffalo458,11053,0651.0488 Lansing MI153,93316,5610.9741 Chicago3,918,027408,0170.9429 Indianapolis762,10577,2020.9172 Dallas Ft Worth2,548,049239,0570.8495 Kansas City893,09380,9780.8210 St. Louis1,205,316105,6060.7933 Duluth109,8908,6560.7132 Memphis519,48338,4460.6701 Phoenix- Mesa1,497,003102,3120.6188 Denver1,062,78058,3250.4969 Jacksonville508,83825,2910.4500 Community (MSA) Total employment Transportation and Warehousing Employment Transportation Warehousing LQ Memphis519,48357,6043.0426 Louisville525,10141,0202.1435 Indianapolis762,10548,1071.7320 Jacksonville508,83828,9951.5635 Dallas Ft Worth2,548,049121,6831.3103 Kansas City893,09340,1561.2337 Chicago3,918,027167,5601.1734 Phoenix- Mesa1,497,00361,9211.1349 Piedmont Triad656,30626,4501.1058 Toledo262,62410,3981.0864 Tulsa388,99215,2961.0789 Lansing MI153,9335,9861.0670 Denver1,062,78041,2301.0645 Milwaukee755,16226,1210.9491 St. Louis1,205,31641,2860.9399 Detroit1,732,05155,4250.8780 Buffalo458,11014,2580.8540 Duluth109,8903,3820.8445 Huntsville168,3023,7790.6161









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