The Lehigh-Northampton Airport Authority
today authorized staff to conclude contract negotiations with a new
developer for marketing unwanted land near the Hanover Township, Lehigh
County, facility.
After meeting behind closed doors, the authority's board of governors unanimously voted to begin finalizing talks with Rockefeller Group, a New York City-based developer. The authority is looking to unload the excess real estate to pay off mounting debt.
Lehigh Valley International Airport
will owe $16 million in settlement dues by 2015 after losing a
decade-long court battle with investors in the now-defunct Willow Brook
Farms housing development. With only about $5 million in the bank,
according to figures read by Treasurer J. Michael Dowd during the
meeting, the governors are considering selling land north of the airport
to fund the settlement.
The airport had previously reached this stage of negotiations with local developer J.G. Petrucci for advice on marketing the land, but talks broke down, said authority Executive Director Charles Everett Jr.
Airport
administrators went back and reviewed other companies that showed
interest in the project, and Rockefeller Group stood out because it did
not demand millions of dollars upfront to make the property more
profitable, he said.
"They were willing to partner with us," Everett said.
Revenues at the airport are down on the year, but it remains profitable -- operating $830,000 under budget, Dowd said.
Authority board Chairman Tony Iannelli said most of the revenue loss came from the departure of AirTran and American Eagle from the airport.
However, through internal cuts, the airport is projected to finish $1
million under its $21.1 million budget, he said. Though he commended the
airport’s staff for finding ways to trim costs, he warned this was not a
healthy long-term solution.
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