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Assessing the Feasibility of an Aerotropolis Around Cleveland Hopkins International Airport

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Assessing the Feasibility of an Aerotropolis Around Cleveland Hopkins International Airport Prepared for: Assessing the Berea Community Development Corporation Feasibility of Prepared by: an The Center for Public Management Aerotropolis Maxine Goodman Levin College of Urban Affairs Cleveland State University Around Cleveland August 2010 Hopkins International Airport: Executive Report Feasibility of an Aerotropolis ACKNOWLEDGEMENTS The Center for Public Management would like to acknowledge the contribution of the advisory group who provided valuable input during all phases of the project. Michelle Boczek Economic Development Commissioner, City of Brook Park Rebecca Corrigan Executive Director, Berea Community Development Corporation Shelley Cullins Economic Development Officer, Grant Writer, City of Parma John Hoose Manager, Policy and Research/Acting Development Manager, City of Cleveland, Department of Port Control Roseann Jones Economic Development Director, City of Olmsted Falls Tom Lehman Manager, Real Estate and Noise Abatement, Cleveland Airport System Tracey Nichols Economic Development Director, City of Cleveland We also thank Robert Peterson and Jeremy Levine with the IX Center for hosting the stakeholder discussion sessions, and the many participants of these sessions for sharing their time, input, and ideas toward this project. The Center for Public Management 2 Feasibility of an Aerotropolis TABLE OF CONTENTS Assessing the Feasibility of an Aerotropolis ..............................................................5 The Aerotropolis Concept .............................................................................................6 Research Methodology.................................................................................................7 Physical Property Overview..........................................................................................8 CLE and America’s Aerotropolises ...............................................................................9 CLE and Comparable Airports....................................................................................14 CLE’s Aerotropolis Opportunities and Challenges......................................................16 Moving Forward ..........................................................................................................17 This report was researched and prepared by the staff of the Center for Public Management and the Northern Ohio Data and Information Service (NODIS), Maxine Goodman Levin College of Urban Affairs, Cleveland State University, in partnership with Team NEO. Project management was provided by Claudette Robey, Assistant Director, Center for Public Management. Principal authors were Claudette Robey, Daila Shimek, Project Manager, and Caitlin Johnson, Ryan Foster, and Andrew Batson, Graduate Research Assistants, Center for Public Management; and Jim Robey, Ph.D., Vice President and Director of Research, Team NEO. Contributing author was Meredith Karger, Research Manager, Team NEO. Fran Stewart, professional editor and consultant, provided editorial guidance. Advising on analysis, and theoretical and methodological components were Kevin O’Brien, Director, Center for Public Management; and Brian Mikelbank, Ph.D., Professor, Levin College of Urban Affairs. Mapping and geographical analysis provided by Jim Wyles, Research Associate, Senior GIS Specialist, GISP, NODIS. For questions or information regarding this report, contact the Center for Public Management at 216.687.2188. ABSTRACT: This report provides an assessment of the feasibility of developing an aerotropolis around Cleveland Hopkins International Airport, Cleveland, Ohio. The report describes the methodology used to assess the feasibility, notes the needs and expectations of community stakeholders, profiles the challenges and successes of six emerging and potential U.S. aerotropolises, and discusses the operating experiences and challenges of 12 additional U.S. airports. Further, this report describes the demographic and economic aspects of the study cities, and discusses potential target industry opportunities. The findings suggest that it is feasible to develop CLE as an aerotropolis, and that CLE may not be suited for an aerotropolis as practiced at other domestic and international airports. Rather, the concept itself may be the platform for moving forward with a defined, staged strategy for development surrounding CLE and should be viewed as an opportunity to develop the concept to specifically fit the region and its economic circumstance. Key Words: Aerotropolis, airport development, airport city, airport economic development, Cleveland Hopkins International Airport, economic development The Center for Public Management 3 Feasibility of an Aerotropolis The Center for Public Management 4 Feasibility of an Aerotropolis ASSESSING THE FEASIBILITY OF AN AEROTROPOLIS Cleveland Hopkins International Airport (CLE) has been long regarded as a regional asset. Each week, more than 2,200 flights leave the airport, moving passengers and freight around the country. Beyond its convenience for recreational travelers, CLE is critical to potentially thousands of companies that rely on air access to conduct their business. Although known as a hub for Continental Airlines, CLE offers service from eight other branded passenger airlines and eight airlines offering cargo operations. The 11 million passengers served by the airport in 2009 contributed to the FAA ranking CLE as the 34th busiest airport in the U.S. Only about 400 workers are directly employed by the municipal airport system, but some 9,000 people work at CLE shops, food vendors, and various support activities. Those numbers are likely to rise given that the city of Cleveland awarded a 10-year contract last year to create an “air mall,” which is projected to feature 76,000 square feet of retail space. The economic impact of CLE to surrounding communities and all of Northeast Ohio is significant. Not only are regional businesses dependent upon air access, local businesses and their services are also tied to airport customers, including hotels, eating and drinking establishments, retail, and auto related services (such as rentals and gasoline). Despite this significant impact, community stakeholders have begun to question whether CLE could be leveraged through targeted development to be an even greater economic engine for both the market around CLE and the region. In May 2008, representatives of communities and entities surrounding the airport came together to begin to explore creating a greater role for the facility in the overall regional economy. The cities of Berea, Brook Park, Cleveland, Olmsted Falls, and Parma, along with CLE and Cuyahoga County, commissioned the Center for Public Management of the Levin College of Urban Affairs at Cleveland State University in the fall of 2009 to conduct a study to examine the feasibility of developing an “aerotropolis” around CLE. The study finds that the development of CLE as an aerotropolis is feasible and that the airport and the surrounding area has potential as an aerotropolis, but its particular challenges require the development of a strategy that fits the Cleveland area’s unique strengths and needs. The determination of feasibility was based on legal viability (can this be achieved within existing statutes), the capacity for development at CLE and within the geographic context of the study area, and the ability of CLE and the surrounding jurisdictions to continue to build upon their collaborative efforts and implement a strategy to move this forward. Through our analysis we learned that: • There is no legal prohibition to moving forward with the development of CLE in the context of an aerotropolis The Center for Public Management 5 Feasibility of an Aerotropolis • The stakeholder communities and businesses want to move forward with this initiative • There is an opportunity to build upon the collaboration that already exists among the study area jurisdictions • There is available property within a reasonable distance from CLE that can serve as a foundation for new development opportunities Based on research conducted for this study, the project team recommends as a next (or first) step developing a formal agreement for establishing a collaborative group that could begin to frame a strategy for moving forward with the development of an aerotropolis, with CLE as its nucleus. The study area jurisdictions would be a starting point for the collaborative group. It is feasible that the second step would be to devise a strategy for planning this initiative, one that includes defining a geographic area in which to pilot the aerotropolis. A small geography around CLE could initially be identified and then expanded as needed over time. THE AEROTROPOLIS CONCEPT The term “aerotropolis” debuted with urban planner Dr. John Kasarda, a professor at the University of North Carolina Chapel Hill (UNC). Derived from his years of researching airports throughout the world, Kasarda maintains that airports are economic assets and catalysts for development. Kasarda defines the aerotropolis as “an aviation linked urban form consisting of an airport surrounded by tens of thousands of acres of light industrial space, office space, upscale retail mix, business-class hotel accommodations, restaurants, entertainment, recreation, golf courses, and single and multi family housing.” He views airports as being similar to metropolitan central business districts, with airport cities serving as the central business district of the aerotropolis (Figure 1). Kasarda maintains that there are
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