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Strategic Recommendations and Development Plan for Southern Illinois Airport Property

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STRATEGIC RECOMMENDATIONS AND DEVELOPMENT PLAN FOR SOUTHERN ILLINOIS AIRPORT PROPERTY Report To From GRUEN GRUEN + ASSOCIATES Urban Economists, Market Strategists, and Land Use/Public Policy Analysts In Association With HANSON PROFESSIONAL SERVICES INC. August 2013 C1352 STRATEGIC RECOMMENDATIONS AND DEVELOPMENT PLAN FOR SOUTHERN ILLINOIS AIRPORT PROPERTY A Report to THE SOUTHERN ILLINOIS AIRPORT AUTHORITY AND JACKSON GROWTH ALLIANCE From GRUEN GRUEN + ASSOCIATES Urban Economists, Market Strategists, and Land Use/Public Policy Analysts In Association With HANSON PROFESSIONAL SERVICES INC. August 2013 APPLYING KNOWLEDGE CREATING RESULTS ADDING VALUE C1352 ©2013 Gruen Gruen + Associates. Do not reproduce without written permission from Gruen Gruen + Associates. INTRODUCTION The Southern Illinois Airport has been a significant economic entity in Jackson County for many years. The potential for further economic growth was realized in the 1990’s when the cities of Carbondale and Murphysboro joined with the Southern Illinois Airport Authority and the Jackson County Board to form the Jackson County Business Development Corporation, now known as Jackson Growth Alliance, to promote economic development at the Southern Illinois Airport. A major initiative of the Jackson County Business Development Corporation was to promote the development of an educational facility at the airport that would provide a permanent home for Southern Illinois University Carbondale’s Aviation Technology, Aviation Flight and Management and Automotive Technology programs. These efforts supported the work of SIU, the State of Illinois and the Southern Illinois Airport Authority that culminated in the opening of the $60 million SIU Transportation Education Center in 2012. The Transportation Education Center presents tremendous economic development opportunities at the Southern Illinois Airport. In recognition of this potential, Sam Goldman initiated a project in 2011with a working title “Developing a High Tech Zone at Southern Illinois Airport with Special Focus on Manufacturing Innovation.” In August 2011, Sam Goldman led meeting of a small group of selected leaders to discuss the implementation of the project. A start-up grant for this project was awarded in March 2012, by the Illinois Department of Commerce and Economic Opportunity. Jeff Doherty, Executive Director, Jackson Growth Alliance and Gary Shafer, Manager, Southern Illinois Airport, joined Sam Goldman to form the core group for developing the project. Assistance was provided by the staff of the Entrepreneurship and Business Development Center at SIUC. Between April 19 and May 10, 2012, four luncheon meetings were held to share information and discuss activities with selected representatives of four groups: entrepreneurs, economic development leaders, educators and elected officials. Over 80 people attended the luncheons. The Southern Illinois Airport has the assets to implement the nationally emerging concept for development around airports, namely “the airport city”, consisting of an airport-centered commercial core surrounded by aviation-linked businesses. Known as “Aerotropolis”, this concept is being implemented in cities across the country, bringing together airlines, aviation related businesses, universities, communication companies and myriad others important to a city’s future development. The Southern Illinois Airport already includes assets that will enable development including: the SIU Transportation Education Center with its aviation and automotive programs, broadband access to accommodate future technology needs, the Armed Services Readiness Center, the SIH/EMS Disaster Regional Preparedness Response Program, and other emergency related organizations. The next milestone for developing a High Tech Zone at the Southern Illinois Airport came in September 2012 when the U.S. Economic Development Administration provided a Local Technical Assistance Grant to the Southern Illinois Airport and Jackson Growth Alliance in the amount of $62,000 for the Southern Illinois Airport High Tech Zone Feasibility Study. The federal grant was matched by funds from the Southern Illinois Airport Authority ($25,000), Jackson County Board ($25,000) and Jackson Growth Alliance ($12,000). The core working group for the project, Sam Goldman, Gary Shafer and Jeff Doherty prepared a Request for Proposals for consulting firms to prepare the study. Eight high profile consulting firms from throughout the United States submitted proposals. After a thorough selection process, the firm of Gruen + Gruen and Associates, in conjunction with Hanson Engineers, was selected to perform the work and a professional consulting agreement was executed in January 2013. The present report is a major step forward in achieving the goals discussed at the original organizational meeting in August 2011. It provides a plan for success in achieving the goal of making the Southern Illinois Airport an economic center in the southern Illinois region. Gary Shafer Jeff Doherty Sam Goldman Manager Executive Director Chair Southern Illinois Airport Jackson Growth Alliance Jackson–Union Counties Regional Port District TABLE OF CONTENTS Chapter Page I EXECUTIVE SUMMARY AND DEVELOPMENT PLAN............ …………1 INTRODUCTION .............................................................................................1 WORK COMPLETED ......................................................................................1 DEVELOPMENT PLAN RECOMMENDATIONS .........................................3 Objectives .....................................................................................................3 RECOMMENDATIONS ...................................................................................3 1. Emphasize Competitive Advantages for Development ............................3 2. Mitigate Constraints to Extent Within the Control of the Southern Illinois Airport Authority, Surrounding Municipalities, County, and Southern Illinois University to Influence ........3 3. Build off the Existing “Anchor” Occupant to Encourage Spillover Demands Which Benefit Both the Southern Illinois Airport Authority and Southern Illinois University ....7 4. Position Airport to be Able to Compete for Smaller MRO/Aviation Service Activities ..............................................7 5a. Establish an Aviation and/or Automotive “On the Field” Applied Research and Developmental Center to Encourage Start-up Business Activity at the Airport and More Intense Use of Research Facilities Available at the Transportation Education Center ....9 5b. Encourage Partnerships to Pursue the Siting of Unmanned Aerial Systems Research and Testing at the Airport ..................9 6. Complete the Planning and Implementation of an Emergency and Critical Response Center ................................................9 i TABLE OF CONTENTS, CONTINUED Chapter Page 7. Integrate and Coordinate Marketing and Recruitment with Municipal and County Economic Development Efforts.....................11 8. Concentrate on Developing and Enhancing Southern Illinois Airport Land and Real Property Assets While Encouraging Adjoining Private Owners to Cooperate and Participate in the Economic Development and Real Estate Development Efforts .................12 LAND USE PLAN ..........................................................................................13 PRINCIPAL FINDINGS AND CONCLUSIONS ..........................................21 Economic Base............................................................................................21 The Geographic Market Area for Industrial and Employment Land Uses .......................................................................21 Competitive Advantages for Development .................................................22 Competitive Disadvantages for Development ............................................22 Industrial Market Overview and Supply Competition ................................23 Facilities ......................................................................................................23 Nature of Demand Opportunities and Potential Sequence of Development ...........................................................23 Test Cell Applied Research and Development ...........................................24 Dynameters Applied Research and Development ......................................24 Flight Training and Related Training .........................................................24 Direct Spillover Demand Opportunity Related to Students, Staff and Faculty of Transportation Education Center ...............................25 Maintenance, Repair and Overhaul and Other Aviation Firms ..................25 Aviation Research and Testing ...................................................................26 Applied Research and Developmental Center-Technology Transfer .........26 ii TABLE OF CONTENTS, CONTINUED Chapter Page Results of Survey of Advisory Committee Members of Department of Automotive Technology, Department of Aviation Management & Flight, and Department of Aviation Technologies ................................27 Case Studies’ Review of Other Education- and Aviation- Related and Automotive-Related Developments .....................................................28 Real Estate Economic Analysis of Prototypical Development Alternative .......................................................30 Target Uses/Markets ...................................................................................30 Cost Estimate ..............................................................................................30
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