FAA Gives Conditional Clearance for New Pennsylvania Airport
The Bond Buyer: 05-03-2007
By Jonna Stark

The Federal Aviation Administration this week issued a "Conditional No Objection" determination on the feasibility study conducted for Gladstone Partners LP's proposed $1.6 billion cargo airport. Gladstone acquired the rights to about 5,000 acres of former mining land in Pennsylvania about 80 miles west of New York City, and now plans to develop the site.

Provided that certain traffic and navigational conditions and procedures are met and followed, the FAA found that the proposed airport would "not adversely affect the safe and efficient use of navigable airspace."

"We will continue to do additional analysis as the plans of the airport move forward, but it's still early in the process now," said FAA spokesman Jim Peters. The FAA looked at the layout of the proposed airport, the possibility of safe landings and take-offs, and navigational aids nearby when it made its determinations on the feasibility study for the proposal to establish the airport, Peters said.

The site sits at the intersection of Luzerne, Schuylkill, and Carbon counties, though the land being used for the airport portion of the site sits mostly on Luzerne County and a little on Schuylkill.

"Gladstone's next steps included environmental impact and due diligence studies on the land, and working with the Pennsylvania Department of Transportation," said Gregory R. Zappala, one of three partners at Gladstone. The firm also includes attorney Robert Powell and former Hazleton, Pa., mayor and commercial airline pilot, Michael Marsicano.

Zappala said that Gladstone is working simultaneously on both the financing aspect of the project as well as the development of the master plan. "They're hand in glove; before the master plan is completed, the financing will be put in place." Zappala believes that bonding may still form a role in the financing, though he acknowledged that a number of private investors have also expressed interest.

Ultimately, to "get the best of both worlds," Zappala believes that a public-private partnership of some sort would be most ideal.

Zappala said that PennDOT was involved and showed support from day one of Gladstone's proposal. PennDOT helped facilitate getting the proper paperwork into the FAA for the feasibility study, according to PennDOT's deputy secretary for aviation, Sharon Daboin.

"This proposal has been around for about eight years or so, but it just kind of got some momentum just recently when [Gladstone Partners] decided to take a look at it," Daboin said.

The prospect of creating 5,000 jobs in Pennsylvania as a result of the airport is appealing to the commonwealth. "Of course, we were really interested in something like that," Daboin said.

PennDOT will continue to help facilitate any interaction between Gladstone and the U.S. Department of Transportation as things continue to move forward, Daboin said.

Gladstone must still obtain permits from Pennsylvania's Department of Environmental Protection. In reviewing Gladstone's proposal, the DEP would consider factors such as water quality control, storage tanks for petroleum products, potential impact on wetlands, and the presence of and potential problems with abandoned mines, said DEP spokesman Mark Carmon. Gladstone has yet to schedule a pre-application meeting, one of the first steps in the permitting process, he said.

Meanwhile, Luzerne County conducted a March 14 public hearing, where "we got a pretty big variety of input," said Luzerne public information officer Kathy Bozinski. The proposition formed an "either you love it or you hate it" reaction, she said. While the public hearing carried "a lot of support" for the airport, Bozinski said there was also "a lot of concern," especially for those who live nearby the site, over possible airplane noise and traffic increases.

As a result, Luzerne County approved in late April a motion creating a cargo airport feasibility commission, in which 21 members - consisting of seven individuals from each of the three counties affected - would study, identify, and offer recommendations on the socioeconomic impact on the construction of the cargo airport. While the committee is still being determined, Bozinski expects the members to be finalized within a few weeks. Those selected would have until Sept. 15, 2007, to present its findings; the Luzerne County Commissioners would subsequently make determinations regarding the airport.

Still, a poll recently commissioned by local TV station, WYLN, found an overwhelming approval rating for the projects from residents of Luzerne County, according to Gladstone.

In Schuylkill County, officials plan to meet with Gladstone Partners next week to further discuss the proposal and to get an update on its status, according to director of economic development Mark J. Scarbinsky. "The project is still in the early stages with the development, but we're in contact with the developer, Gladstone Partners," he said.

"From an economic standpoint, it would be the biggest thing to hit us here," Scarbinsky said. In terms of the airport "creating job opportunities for our residence, it would be a tremendous impact," he said.

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