Could 'airport city' lift region?; Regional authority sought to boost big development
BYLINE: Robert Snell and Andy Henion
Business leaders Thursday pushed for the creation of a regional authority to transform 20,000 acres around Detroit Metropolitan and Willow Run airports into an "airport city" populated by companies that could create tens of thousands of jobs focused on moving people and freight.
The "airport city," or aerotropolis, is a major piece of Detroit Renaissance's broader plan to resuscitate the region's economy using about $80 million in public and private money. Funding is not yet secured, but business leaders are targeting state and federal money and cash from private foundations and companies to fix a desperate economic climate.
"If we do it right, it could be a boon for us," Doug Rothwell, president of Detroit Renaissance, said of the aerotropolis proposal.
It's arguably the most ambitious of 11 strategies proposed by the group. Others include providing business help and financing to develop a creative corridor along Woodward that would nurture musicians, designers, artists and innovators.
The "Road to Renaissance," pitched by the organization of civic, business and university titans, will take about three years to implement and is aimed at transforming a foundering regional economy by creating thousands of jobs.
The plan the group outlined is the major economic development initiative of One D -- a conglomeration of six civic groups that banded together to address Metro Detroit business, education, cultural and transit issues.
If realized, the aerotropolis plan would make Detroit one of a few cities nationwide with a global logistics hub that maximizes the capacity of both airports by housing air cargo companies and other firms and manufacturers nearby to move people, products and ideas, Rothwell said.
Detroit Metropolitan Airport could accommodate about 20 percent more flights, said Michael Conway, Wayne County Airport Authority spokesman.
And while there is some available airport-owned land at Willow Run, Conway said most of the land proposed for development is owned by other parties.
Airport officials are helping plan the aerotropolis, but Conway said he doubts the airport's board could run the development. Under state law, he said, the authority cannot spend airport revenue or oversee activities outside the facility's boundaries.
It could take a year to develop a strategy and form an authority to oversee development, and could take 30-40 years to finish developing, officials said.
An authority could speed development by creating a common building code, said John Rakolta Jr., a Renaissance board member and chairman and chief executive officer of development firm Walbridge Aldinger. And state legislation would be needed to issue one set of building permits.
Leaders from the airport, business and government communities must coordinate their planning efforts or the development could end up a mess of buildings and warehouses thrown together, said John D. Kasarda, director of the Kenan Institute of Private Enterprise at the University of North Carolina.
Detroit Renaissance is working with government leaders from Wayne and Washtenaw counties on the airport development plan. Those leaders accompanied Rothwell to Europe last week to see an aerotropolis in Frankfurt and Amsterdam, said Romulus Economic Development Director Tim Keyes. The aerotropolis surrounding Schiphol airport in Amsterdam has created about 60,000 jobs.
Keyes said the government leaders already are studying the infrastructure needs of the proposed development, including electricity, roads and water and sewer. Airports from Hong Kong to Memphis have benefited from attracting hundreds of companies, said Kasarda, who was hired by Wayne County to develop a plan to lure technology firms, logistics companies and light manufacturers to the Metro Airport area.
At Dallas/Fort Worth International Airport, for example, some 2,000 companies have located near the airport, including the Zales jewelry headquarters.
Detroit is primed to follow suit considering it is a hub for Northwest Airlines, Kasarda said.
"Detroit has not taken full advantage of that hub," he said.
Detroit Renaissance officials say it'll cost $30 million to launch some of their initiatives.
A plan to expand four offices that support businesses and create new ones in Macomb and western Wayne County would cost another $50 million. Detroit Renaissance hopes to announce some funding plans in 30-60 days.
The other economic strategies outlined include growing Metro Detroit's creative community along Woodward from the New Center area to Harmonie Park.
There is tremendous potential to strengthen Detroit's "creative economy," which is already happening, said Nancy Sizer, director of the Detroit Artists Market, a gallery on Woodward.
"It does happen organically, and that is where the energy and enthusiasm comes from, and it needs to be supported at all levels," she said.
Renaissance plan
Among the initiatives announced Thursday by Detroit Renaissance:
¥ Create an aerotropolis, a hub of logistics and cargo businesses.
¥ Promote innovation in the auto industry.
¥ Grow a creative corridor along Detroit's Woodward Avenue.
¥ Pool funds to support growth-oriented companies.
¥ Launch a regional internship/apprenticeship program in the business community.
¥ Promote post-secondary education and training.