January 28February 4, 1999
cover story
Tired of losing money on the Northeast regional airport, the city plans to develop its surrounding grounds. One of the city's most popular soccer fields might disappear as a result.
by Mark Naymik
click here to go to "Sight Control"
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The Northeast Philadelphia Airport, which has a significant impact on the commercial operations of the Philadelphia International Airport, and on the city's economy, is trying to raise cash.
The money is needed to stem the approximately $1.2 million annual operating loss the regional airport is suffering.
This week, the city's Department of Commerce made available to developers 16 parcels of landranging in size from two to 75 acresthat lie within the boundaries of the regional airport. The city hopes to generate income by leasing or selling these properties.
But one of those parcels, near runway 6-24, is no ordinary slice of open space.
The parcel, officially known as "Site 5," has been home to the Philadelphia Soccer Club's five ball fields for more than 10 years. Last year, children from 500 families who live near the airport played there. The club's 1998 Labor Day soccer tournament attracted 250 teams, making it one of the largest club-organized tournaments on the East Coast.
Faced with growing pressure from the Federal Aviation Administration (FAA) and the commercial airlines who help underwrite the operating losses of the airport, the city presented Site 5 and the other sites to developers this week at a show-and-tell conference at the Airport Marriott hotel. More than 50 interested parties attended to examine the sites' potential retail, recreation and light industry uses.
The conference was one recommendation of a larger land-use feasibility study completed for the city last year by PB Aviation, Inc. of Cincinnati, OH.
While most Philadelphians will never use the regional airportlocated 10 miles northeast of Center Cityit affects anyone who has ever flown in or out of the Philadelphia International Airport.
The regional airportwhose control tower last year managed 200,000 aircraft coming in and out of its airspaceacts as a reliever airport for small private planes and corporate jets that are diverted from the international airport. By keeping these planes away from Philly International, commercial airlines can fly more planes in and out. In fact, Philadelphia's commercial airlinesnot the city taxpayersare contractually obligated to make up any of the regional airport's operating revenue shortfalls.
But the FAA requires that the regional airports at least cover their operating costs. Thus far, the Northeast airport has not come close. Its fiscal 1999 operating budget is approximately $1.1 million, but the airport has a projected deficit of about $1 million. Acting Director of Aviation Charles J. Isdell says reducing the airport's shortfall is a priority but it is too early to tell how much income can be made from the development plans.
Although the Northeast Philadelphia Airport is regional, it is Pennsylvania's fourth busiest airport. Its two runways are used by private pilots as well as corporations such as Crown Cork & Seal Co. Inc. and United Refrigeration Inc., and by the U.S. Customs Service and the Immigration and Naturalization Service.
On average, there are about 228 aircraft housed at the airport, most of them small propeller planes, but there are also jets, turboprops and helicopters. There are more than 250 takeoffs and landings at the Northeast airport every day.
The airport is an important economic community asset; it is responsible for generating 450 jobs in and around the airport. In addition to providing rent-free property in exchange for in-kind services to the Philadelphia Soccer Club, the 8th District Police Department and the Department of Recreation also use the facility.
"Northeast airport is an extremely valuable airport," says Al Taubenberger, president of the Northeast Chamber of Commerce. "Traffic has grown substantially for a private airport and has contributed to business. Crown Cork & Seal Co. stayed here because of the airport."
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The land may need to be developed in order to bring in revenue for the struggling airport. photo: Sandor Welsh
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From Rocks to Golf Balls
In the summer of 1989 it wasn't unusual to see children and their parents gathering near runway 6-24. These families, who lived near the airport, were not there to watch planes take off and land. They had come to pick up rocks.
Spilling out of mini-vans and station wagons with rakes and buckets, they fanned out over a 23-acre plot on the northeastern corner of the 1,250-acre airport. Their mission was to help turn this hard, uneven ground into safe turf suitable for playing soccer.
The rock collecting, says Philadelphia Soccer Club President Bill Haney, who helped organize the families, went on for months leading up to the field's inaugural Labor Day soccer tournament held that year.
The tournament was the culmination of more than three years of planning. In 1986, Haney and other members of the Philadelphia Soccer Club had approached Councilman Brian O'Neill, whose district includes the Northeast airport, about turning the vacant land into five soccer fields that the club could use year-round.
O'Neill supported the idea and the city agreed to lease the land for a dollar a year, although the soccer club would have to raise the money to grade and seed the fields, and organize volunteers to maintain them. The airport, required by federal law to charge a market rate for any use of airport property, would count the ongoing maintenance as in-kind fees equal to the market rate of the property.
With a large chunk of money from the Italy-based, soccer-friendly Agusta Aerospace, which manufactures helicopters and has offices near the Northeast airport, the soccer club contracted to have the field graded and seeded. The grooming and painting of the lines was all done by the volunteers.
Haney, who was not aware of any specific plans for redevelopment of the soccer fields as of last week, says such a move would be "devastating to the community and the league of three or four thousand kids. Other leagues rely on us. It would be devastating emotionally because of all the work we have done."
Isdell says that the city would try to find an alternative site for the soccer fields if developers select the land.
"We have certain federal mandates to make airport property break even. We would be remiss if we did not include Site 5," Isdell says.
Haney, a state-certified soccer referee whose son plays soccer for Temple University, says any replacement location would have to be at least equal in size.
"To continue, we would need the same space," he says. "The fact is that we want two more fields just north of the current site. We have people calling from various places asking to use our fields."
Haney also worries that if he were given an alternative site his club would have to bear the costs of preparing the fields. To do this right, it would take thousands of dollars and two years of time.
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"I like the idea of soccer being there [Site 5]," says Councilman O'Neill. "The airport has very few positives for a neighborhood. Anything that can been done is helpful."
Isdell says it is too early to gauge interest in specific sites or predict the income potential of the airport redevelopment. He says, however, that he would like to see development begin on some sites within the year.
While Site 5 will likely be the most controversial if redevelopment means the elimination of the fields, it is not the city's priority. Also, because it is the site closest to an airport runway, it could be less desirable than others.
According to the feasibility study, the city is hoping to find a single industrial user for Site 1, the largest single plot at 75 acres. The land sits on the airport's western fringe, near the intersection of Roosevelt Boulevard and Red Lion Road. Currently the site is vacant, and it would require environmental remediation that will figure substantially into any discussions with a developer.
"The crown jewel is Site 1, but it is a registered landfill," says O'Neill. "The water department put raw sewage there years ago. The material would have been considered hazardous today. That has to be removed. My position is that the Water Department should clean it up. The feds should not be paying for sludge placed there by the Water Department."
Before the developers conference this week, the city had received interest from developers for a few specific sites, including a six-acre site at the corner of Grant Avenue and Academy Road, known as Site 7.
Giant convenience-store chain Wawa is interested in the site as the location of its prototype super-grocery, says O'Neill. But the councilman says he has opposed this proposition because the store would attract too much traffic to an already busy intersection.
Isdell says there are no commitments yet for this corner, but discussions with Pennsylvania Department of Transportation (PennDOT) are underway to redevelop the traffic patterns at this corner to accommodate redevelopment and zoning plans. He says, "We want to see who is interested in developing what on that space. I live in the area and that is a very busy intersection. I know the councilman has concerns and he has expressed those."
The city also received interest from a golf-course developer, according to Jim Tyrrell, the city's airport properties manager. The feasibility study identifies a space for a driving range adjacent to Site 5, and identifies several other sites as a possible location for an executive golf course. (The city would not identify the golf developer.)
John MacDonald, executive director of the Greater Philadelphia Scholastic Golf Association, says he had met with former aviation director Dennis P. Bouey last summer to discuss developing a kids' golf course at the Northeast airport. But he says no specific site was discussed and that he is not the developer referred to in the feasibility study.
Contacted before the developers conference, MacDonald says he had been notified by the city about the event and that he planned to attend.
"When we talked to Bouey, it was more a conceptual idea. We knew it would cost about $4 million. I don't think funding is a problem," MacDonald says. "You would be jumping the gun to be super-critical at this time. I am happy that there actually is a study. I look forward to the bid conference."
MacDonald says he believes he could raise money with the help of the United States Golf Association, which has grants available for youth golf projects.
The feasibility study concludes that there are several favorable market forces in play that will benefit the development of the airport. These include the large size of two parcels that top 40 acres; there are few 30-acre parcels anywhere in the city. There is a limited supply of office space in the Northeast, and "there is significant interest in developing recreation golf facilities in the vicinity of the Airport."
Isdell says the city has a strong preference to lease the property rather than sell it.
O'Neill agrees. "What I want is to make sure that the aviation department doesn't sell off the land and treat it as another industrial park," he says. "We must be thinking about the aviation potential of the airport."
"We have to be careful in controlling and deciding what types of projects take place. But there will be no negative impact on the future growth of the city," Isdell says emphatically.
The city's airport master plan does not call for enlarging the runways. The city does intend to improve the taxiways, which would actually decrease the time planes are idling on the ground.
Isdell emphasizes that the surrounding communities will have substantial input on development plans when specific proposals are made.
O'Neill says the Airport Advisory Council, which consists of residents and businesses, will also have a say on redevelopment plans. (Last week, O'Neill added Bill Haney to the advisory committee to allow him access to the ongoing plans.)
All Haney can do now is wait for the bids to come in. But he plans to operate the club as usual, and continue to keep the fields in shape. "We have had the same workers for 12 years, all of them volunteers," he says. "Everything the club makes goes right back into the fields and the kids."

