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Strategies for Reuse of Underutilized or Vacant Airport Facilities (2011)

Chapter: CHAPTER NINE Phoenix Mesa Gateway Airport Passenger Terminal Military Base Reuse of Building 15

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Suggested Citation:"CHAPTER NINE Phoenix Mesa Gateway Airport Passenger Terminal Military Base Reuse of Building 15." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies for Reuse of Underutilized or Vacant Airport Facilities. Washington, DC: The National Academies Press. doi: 10.17226/14592.
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Page 33
Page 34
Suggested Citation:"CHAPTER NINE Phoenix Mesa Gateway Airport Passenger Terminal Military Base Reuse of Building 15." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies for Reuse of Underutilized or Vacant Airport Facilities. Washington, DC: The National Academies Press. doi: 10.17226/14592.
×
Page 34
Page 35
Suggested Citation:"CHAPTER NINE Phoenix Mesa Gateway Airport Passenger Terminal Military Base Reuse of Building 15." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies for Reuse of Underutilized or Vacant Airport Facilities. Washington, DC: The National Academies Press. doi: 10.17226/14592.
×
Page 35
Page 36
Suggested Citation:"CHAPTER NINE Phoenix Mesa Gateway Airport Passenger Terminal Military Base Reuse of Building 15." National Academies of Sciences, Engineering, and Medicine. 2011. Strategies for Reuse of Underutilized or Vacant Airport Facilities. Washington, DC: The National Academies Press. doi: 10.17226/14592.
×
Page 36

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31 CHAPTER NINE PHOENIX–MESA GATEWAY AIRPORT—PASSENGER TERMINAL– MILITARY BASE REUSE OF BUILDING 15 recommended closing the base; however, it remained open for 2 more years. The city of Mesa had previously annexed the AFB to increase its tax base. When the facility closed, the city assumed principal responsibility to coordinate redevelopment of the airport. It took about 5 years to con- vert the base to a functioning public airport. Many build- ings were in disrepair, and the runways needed substantial maintenance and rehabilitation. During the initial years of operation, the airport served as a general aviation reliever for Phoenix Sky Harbor International and then in October 2007, it became a commercial service airport and a focus city for Allegiant Air. With considerable regional cooperation and much dedi- cated effort, AZA has made the transition from an AFB to a commercial airport. This case study examines the history of this transition and focuses on the successful redevelopment of Building 15 as a passenger terminal to support Allegiant Air’s commercial air service. AIRPORT SPONSOR AND INTERVIEW PARTICIPANTS Airport Name Phoenix–Mesa Gateway Airport (AZA) City, State Mesa, Arizona Airport Sponsor Williams Gateway Airport Authority Person Interviewed David Valenzuela, Marketing and Economic Development Manager THE SITUATION The Phoenix–Mesa Gateway Airport is located in the East Valley of the Phoenix Metropolitan Area (see Figure 25). The airport was part of the Williams Air Force Base (AFB). In 1991, the Base Realignment and Closure Commission FIGURE 25 Phoenix–Mesa Gateway Airport West Terminal expansion plan.

32 BACKGROUND In 1993, the Williams AFB was closed and subdivided into three parcels. One went to Arizona State University, another went to Chandler Gilbert Community College, and the larg- est parcel was set aside for redevelopment of the property into a public airport. A Joint Powers Airport Authority Agreement was signed in 1994 between the cities of Mesa, Gilbert, and Queen Creek, providing for the formation of the Airport Authority. This agreement was amended twice, once in December 1995 to include the Gila River Indian Commu- nity and again in 2006 to add the city of Phoenix. Today, two major educational institutions are operating programs on the airport. A 600-acre parcel of the property was deeded to Arizona State University for a new eastern campus. There was a large potential synergy between the university and the airport. Eventually, this campus was renamed the Polytechnic Campus, and several applied sci- ence programs are based at this location, including nursing, agribusiness, a branch of the W.P. Carey School of Business, and an alternative fuels center that is investigating the use of different strains of algae for jet fuel. Following the base closure, Chandler Gilbert Commu- nity College received a large warehouse on the property and moved its aviation curriculum to the airfield. The col- lege offers FAA-certified programs in airframe and power- train maintenance and flight training. Technical specialties include aircraft maintenance, electronics/avionics, and air- craft construction. The school has also partnered with the University of North Dakota and Arizona State University East to provide upper division coursework in pilot training at the Williams Campus. The Airport Authority received 3,020 acres, which included three long runways and many buildings. To begin operations, Runway 12L/30R was completely rebuilt and the other two run- ways were resurfaced. Many small outbuildings were demol- ished. Most of the initial conversion costs were paid for with federal grants. Because of the location of the Arizona State campus, the airport also had to relocate the main entrance to the facility. Activity at the airport is centralized on the western side; however, an ultimate build-out of the eastern side is antici- pated if passenger traffic continues to increase. It took 5 years to ready the airport for public use. In the meantime, the Airport Authority invited Boeing to bring in several test flights for the 777. This created positive publicity for the airport. REUSE OF BUILDING 45 In 2004, the Airport Authority remodeled Building 45 into a general aviation (GA) terminal. Previously, a private FBO provided GA services on the airport. Concerns about quality of service prompted the airport to replace the FBO and to offer GA services and sell fuel directly. Thus began Gateway Aviation Services, the Authority-owned FBO. Gateway Avia- tion Services supports a Department of Defense fuel contract, which keeps fuel volumes high. In addition, the FBO fuels air- craft operated by the Department of Justice, U.S. Citizenship and Immigration Services, and more recently Allegiant Air. Building 45 houses a full-service restaurant, U.S. Customs and Border Protection, and several offices that are rented. Another FBO, Worldwide Flight Services, also operates on the airfield, providing above and below the wing services. REUSE OF BUILDING 15 The long-range plan for AZA anticipated that it would function as an air service satellite to Phoenix Sky Harbor International. In accordance with this objective, the Airport Authority recruited Allegiant Air to develop a focus city at AZA. In July 2007, Allegiant Air announced that it would serve eight cities with two aircraft from AZA. (Today, Alle- giant provides service to 27 cities.) Building 15 had already served as a charter terminal. Site selection ultimately was determined on the basis of two important factors: (1) a prop- erty that could be expanded and (2) a location that was adja- cent to the strongest existing pavement (see Figure 26). Building 15 was originally used by the U.S. Air Force as a classroom. When the Airport Authority selected it for a pas- senger terminal, it considered the facility as an interim termi- nal and that, long term, a permanent passenger facility would be constructed as an airport city from a green field site on the northeastern side of the airport. The terminal opened in 2001, 8 years after the base was closed. Building 15 was usable and in reasonable structural and mechanical condition; however, it did require extensive modification of the interior and exterior. Initial reuse required reconstruction of interior walls, offices, floors, ceiling, electrical systems, heating, ventilation, and air conditioning (HVAC), telecommunications, bathrooms, and a parking lot. These initial improvements were funded by the Airport Authority member governments, an FAA grant, and a state transportation grant. Since the first remodel of Building 15, the facility has already had two expansions. In 2008, Allegiant Air loaned the Airport Authority $3 million (plus $1 million in inter- est) to fund a 10,000-ft2 terminal expansion that doubled the number of gates to four. The loan has already been repaid through a $4.50 passenger facility charge. In 2010, the air- port added a 25,000-ft2 building paid for in part through a $1.3 million FAA grant. A third 30,000-ft2 terminal project expansion is expected to launch in the summer of 2011. In January 2010, 2 years after scheduled service began, AZA had served more than 1 million passengers (Figure 27).

33 FIGURE 27 Phoenix–Mesa Gateway Airport salutes the aircraft carrying the 1 millionth passenger. LESSONS LEARNED The AZA is an excellent example of base reuse. Several important factors contributed to its success. • A strong probusiness and entrepreneurial Airport Authority was willing to both market and invest in the facility. • There was a long-term plan and vision for the airport. • There was an understanding that a facility reuse plan needs a specific and measurable goal. An exist- ing facility can only be remodeled and modified to a certain point and cost where the return on investment makes sense. FIGURE 26 Building 15 reuse as the Phoenix–Mesa Gateway passenger terminal.

34 • The Airport Authority remained flexible and adaptable because conditions in the industry could quickly create or kill opportunities. • There was an understanding about competition from other local airports. • Financial and institutional support came from commu- nities in the region. • There were expanding East Valley population and demand for low-cost service. • There was successful recruitment of Allegiant Air and its reuse of Building 15 for commercial service. All of these factors supported a positive outcome for the airport and literally put AZA on the map in less than 20 years.

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TRB’s Airport Cooperative Research Program (ACRP) Synthesis 25: Strategies for Reuse of Underutilized or Vacant Airport Facilities presents an overview of the issues surrounding the reuse of aeronautical facilities and terminals.

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