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

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24 CHAPTER SEVEN NEW BEDFORD REGIONAL AIRPORT—BRIDGEWATER STATE UNIVERSITY AVIATION TRAINING CENTER AIRPORT SPONSOR AND INTERVIEW PARTICIPANTS Airport Name New Bedford Regional Airport (EWB) City, State New Bedford, Massachusetts Airport Sponsor City of New Bedford Person Interviewed Ed DeWitt, Former Airport Manager THE SITUATION The New Bedford Regional Airport was completed in 1942 as a commercial airport. It was used in World War II by the U.S. Army Air Corps and returned to civilian control after the war, at which time the city of New Bedford resumed its responsibil- ities as the sponsor and operator of the airport. Over the years, EWB has been served by a number of regional airlines, nota- bly Northeast Airlines (acquired in 2008 by Delta Air Lines), Air New England, Providence–Boston Airlines, and currently by Cape Air, which flies to Nantucket and Martha’s Vineyard. EWB handles approximately 24,000 passengers annually, but it also serves as a general aviation and training facility. Development of the Aviation Training Center at EWB has a long and interesting history of incremental reuse (see Fig- ure 19). The building was first constructed on vacant land by the local Plumbers Union as a training facility. The property had airside access. The structure was a cinder block, one- story facility. There were pipefitting, soldering, and weld- ing classrooms; therefore, the facility had a lot of ductwork and an extensive fire suppression system. As local unions merged, training became increasingly regionalized, and use of the New Bedford facility declined. By 2000, the facility was completely abandoned and fell into disrepair. There were legal issues about who owned the building, its access to the airfield, and use as a nonaeronautical facility. The city of New Bedford ultimately was able to resolve these issues with the Plumbers Union and the FAA. In 2001, Bridgewater State University and a Delta Air Lines Inc. subsidiary began operating a flight-training program at the airport, using other existing facilities and some trailers on the airport. With financing from a Redevelopment Authority loan of about $300,000, the Plumbers Union building was converted into classroom space for the flight-training pro- gram. An AIP grant was obtained in 2002 to construct a ramp for aircraft. Delta and Bridgewater State were not, however, a perfect match. Delta saw the program as an “advance or get out” pilot-training program for its regional airlines. Bridgewater State desired a college-level program with diverse options for its students. When Delta emerged from Chapter 11 bank- FIGURE 19 Bridgewater State University Aviation Training Center at New Bedford Regional Airport.

25 The New Bedford Redevelopment Authority subse- quently leased the facility to Delta Air Lines. However, the authority was eager to close the deal, and several issues about responsibility for building and outside maintenance were not specified in the lease. The lack of clarity on main- tenance responsibilities persisted through the duration of the lease. In the end, the airport was left with many unantici- pated maintenance responsibilities for the facility. Before Bridgewater State University became a tenant, ownership of the facility transferred from the Redevelop- ment Authority to EWB (see Figure 20). When the airport received the property, it was in fair condition. There was common wear and tear as well as some neglect of the build- ing’s mechanical systems during Delta’s occupancy. The heating system had had no preventive maintenance during that time. Although none of the systems required replace- ment, there was a lot of tuning and tweaking. This included repairs to heating, air conditioning, fire detection, fire sup- pression, and plumbing systems. TENANT RECRUITMENT It was fortuitous that the airport had in close proximity a long-term, aeronautical prospect. Initial recruitment of Bridgewater State University started with a series of infor- mal meetings between the New Bedford Regional Airport Commission, New Bedford’s mayor, and the university. The mayor and the president of the university built a strong understanding of the importance of the project and its poten- tial contribution to the community. To establish a fair-market value for the property, the city of New Bedford turned to the Massachusetts Department of Cap- ital Asset Management (DCAM). The DCAM Office of Real Estate offers an appraisal valuation service to client agencies, municipalities, and private sector buyers involved in the acqui- sition, transfer, sale, or lease of surplus state-owned property. ruptcy, it decided to end the program and, with virtually no warning, closed the facility. The original lease had almost 1 year remaining. When Delta abandoned the facility, it simul- taneously stopped paying the utility bills, and the building went without heat for an extended period. Luckily, this was discovered just before a severe cold front, and the building was saved from extensive damage. Following Delta’s closure of the facility, the mayor of New Bedford, the president of Bridgewater State University, and the airport worked together to redefine the university’s aviation program. The building was upgraded into a first- rate flight school that met the university’s standards and requirements. This included bringing the building into com- pliance with ADA regulations. Many volunteers worked to remodel the facility. In June 2008, Bridgewater State University signed a 5-year lease and took control of the facility. The Aviation Training Center received FAA certification in December 2008 and opened for students in January 2009. OWNERSHIP AND COMPLIANCE ISSUES The ownership and control of the facility have a blurry his- tory. Initially, the Plumbers Union built and owned the facil- ity and held a ground lease from the city. After the union left the facility in the late 1990s, the building remained vacant for 5 years. Besides the question of ownership, the building’s nonaviation use was not an authorized use of airport prop- erty. During conversion of the building to a flight-training center, EWB needed FAA approval to re-establish access to the airfield and to apply for AIP funds. To expedite the conversion, secure AIP funds, and bring the facility into FAA compliance, the city compensated the Plumbers Union for the building and ownership was trans- ferred to the New Bedford Redevelopment Authority in 2003. FIGURE 20 New Bedford Regional Airport.

26 EWB negotiated a lease with Bridgewater State Univer- sity that allowed the rent to adjust over the first 2 years of the university’s 5-year lease to offset improvements made by university and startup costs. (The 5-year term lease is the maximum allowed for state entities in the Commonwealth of Massachusetts.) JOINT EFFORT TO UPDATE BUILDING The preparations for reuse were a joint effort between the city, the airport, and the university. Together, these stake- holders were mutually invested in a positive outcome. Cosmetic changes such as painting, carpeting, furnish- ing, updating restrooms, and landscaping were necessary to make the property lease-ready. The building was not ADA compliant and required subsequent modification for Bridge- water State University’s occupancy. This work was done through a combination of outside help and in-house sweat equity. It was financed from operating funds from both EWB and the university. Owing to the prevailing wage clause that applied to City of New Bedford employees, the cost of hiring EWB employees for the upgrades was three times greater than hiring outsiders; therefore, independent contractors were hired to help with maintenance, repair, and ADA modifi- cations. A local real estate office was used to oversee the management of the property. LESSONS LEARNED The conversion of the Plumbers Union Training Center into a pilot-training facility offers several key insights that have general applicability to other airports. Sometimes fully developed reuses take a long time to evolve, with several interim uses that help to redefine the use of a facility. The Plumbers Union facility reuse can be evaluated as two phases—the Delta phase and the Bridge- water phase. The Delta phase offered the impetus for the initial transformation of a nonaeronautical facility into an FAA-compliant pilot-training center. It was unfortunate that the maintenance of the facility experienced a decline during Delta’s tenancy and that an abrupt abandonment of the lease caused much turmoil for the city of New Bedford. The reuse phase with Bridgewater could be considered a win-win situation. EWB gained a major operational tenant and the university obtained a professional facility with all of the aviation attributes it desired (i.e., a tower, ILS, a choice of maintenance providers for its aircraft, and fueling facilities). The facility has room for expansion of the pilot-training pro- gram. It can accommodate a full-motion simulator, which would be an ideal technological advancement for the pilot- training program. Overall, the facility was improved with each new tenant. Improvements since Delta vacated came out of collabora- tion and mutual effort from the university and the airport. EWB acquired the building at no cost from the New Bedford Redevelopment Authority. All subsequent revenue from the building and ground lease now goes to airport operations. It is important to get concurrence with the FAA when aeronautical property is to be used for nonaeronautical pur- poses. The initial use of aeronautical property for nonaero- nautical purposes was done without FAA approval and compromised EWB’s ability to reuse the property and obtain AIP funding for airport improvements. On any permanent reuse of aeronautical property, it is good practice to work closely with the FAA and keep it informed about reuse plans. Selection of how an airport property will be valued and who will do the valuation needs to be done in the earliest possible stages of reuse. Although the city of New Bedford was not required to use DCAM’s appraisal services, an obstacle to lease negotiations was the length of time needed to complete the DCAM appraisal. DCAM’s process was very thorough. However, to not delay action on a property, getting the valuation completed early would have provided a more expedited negotiation. Eagerness to lock in a tenant can result in unfavorable lease provisions for an airport. The lease with Delta Air Lines was completed quickly for fear that the New Bedford Rede- velopment Authority and the airport might lose an excellent tenant. The rush to completion resulted in several overlooked provisions in the lease that ultimately added maintenance responsibilities and additional costs for the airport. Community volunteers participated in remodeling the facility and lowered conversion costs. Many stakeholders contributed time and effort to ready the training facility for Bridgewater State University students. The team approach built a lot of goodwill and lowered remodeling costs. ADA compliance added costs to the project. The change of building use triggered additional ADA compliance require- ments that improved safety and access to the buildings, but added to the cost of conversion. Reuse economically benefits the community. Aviation flight schools and programs run by local colleges offer mul- tiple benefits to both the airport and the community. The Bridgewater State University Aviation Training Center added at least 11 direct jobs, including an associate dean, flight instructors, dispatchers, and support staff. Several air- port tenants and suppliers also benefited from new fuel and maintenance contracts and other building incidentals.