Indianapolis Airport Authority approves 30-year strategic development plan

INDIANAPOLIS—The Indianapolis Airport Authority (IAA) Board today approved a 30-year land use and development strategic plan for its airport system. The plan focuses on leveraging land assets for increased revenue as well as integration with multi-jurisdictional economic development efforts around Indianapolis International Airport (IND) and its reliever airport properties, including the former Speedway Airport.

The approval comes nearly one year after the authority entered into a contract with aviation planning consultants, Landrum & Brown, on March 19, 2009. The plan developed by Landrum & Brown (L&B) includes IAA’s property in and near IND as well as its five general aviation facilities in the greater Indianapolis area.

The plan identifies seven development zones at Indianapolis International, with 50 distinct development sites. By 2040, when the development is expected to be complete, revenue projections range from $30 to $63 million annually.

PLEASE NOTE:

The 50-page plan will be posted in its entirety, along maps and graphics of potential development, online at indianapolisairport.com and landinsight.org. Please visit one of these Web sites for complete details.

Having a long-range plan for smart growth and planned aviation development has been a top priority for John D. Clark, IAA’s executive director & CEO. Clark arrived in Indianapolis to lead central Indiana’s largest airport system in 2009.

“I’m very pleased with the outcome. Throughout the process, we had the opportunity to engage key business executives, community leaders, and municipal officials representing communities adjacent to our properties. We had interaction with homeowners and members of the general public,” Clark reported.

The plan is a dynamic set of guidelines that Clark said will direct the authority’s efforts as future development and opportunities for public/private partnerships are explored.

Highlights & key findings

• Whenever and wherever practicable, IAA will return designated property developed for non-aviation uses to the local tax rolls of the jurisdiction in which the land is located.
• Private sector development expertise and third-party financing will be sought.
• Long-term leasing of designated non-aviation property is preferred although certain property may be sold.
• IAA will establish a minimum return on investment for related capital expenditures, including land leased for non-aviation development.
• Incentives for development, including those offered in cooperation with other interested municipal and governmental entities will be considered.
• Airport funds used for infrastructure improvements will be consistent with Federal Aviation Administration (FAA) policies for revenue diversion. Funds used will apply comply with other applicable legal and regulatory requirements.
• Multi-jurisdictional collaboration and cooperation will be pursued so that all IAA projects help foster, encourage, promote, and facilitate regional development consistent with key economic drivers and initiatives throughout central Indiana.
• Development standards that include design, construction, environmental, and other key considerations will be established and followed.
• The plan will continue to be refined and improved over time for maximum benefit and efficiency for both IAA and communities adjacent to its properties.

Aviation demand and capacity at IND

The forecast produced by L&B indicates commercial passenger and cargo operations at IND over the next 30 years will nearly double. Key findings include:

• By 2040, total enplanements will average 7.2 million or a total of more than 14 million passengers served annually. Projected growth for passengers enplanements is 1.5 to 2.6 percent annually.
• By 2040, a projected 1.7 million metric tons of cargo will be handled at IND, up from about 900,000 metric tons in 2009. The bulk of this growth will be led by FedEx for an annual growth rate of 1.7 to 2.7 percent.

Development at IND

A major focus of the plan is managed development of an Indianapolis “aerotropolis” that would be created through innovative public/private partnerships. In its simplest sense, an aerotropolis is a strategically planned, fully integrated urban development that drives economic development throughout a defined geographical area.

A central airport “city” comprised of landside and airside passenger, cargo, and aviation service facilities in addition to hotels, conference centers, offices, and similar enterprises would be positioned at the heart of an Indianapolis aerotropolis. It would be encircled by a roadway that “rings” the airport proper.

Outside the ring, defined clusters of development such as office parks, industrial parks, light manufacturing companies, warehousing and distribution facilities, entertainment complexes, educational and medical centers, and other enterprises would be developed. These clusters would radiate outward along major interstate and rail corridors for up to 20 miles in all directions.

Primary considerations include:

• Preserving the integrity of IND infrastructure, facilities, and operating environment.
• Developing an airport roadway system that separates heavy trucks from regular vehicular traffic, with dedicated access and egress for trucking and rail.
• Separation of passenger and office/business activities from airfield cargo and logistics operations.
• Ensuring noise and emission-sensitive commercial and residential developments are sited appropriately.
• Preference for cluster rather than strip development along airport transportation corridors with sufficient green space between clusters.

Based on L&B's findings, four primary areas for development near IND were identified:

• Logistics - Based in large part on success of FedEx operations at IND, the airport is suited for development that would leverage existing synergies for logistics and logistics-related activities.
• Retail and commercial support - Land adjacent to IND's passenger terminal is suitable for restaurants, shops, entertainment venues, and consumer services. Demand for such services will increase as passenger and cargo volumes grow. Employees working at and near IND would also utilize these services.
• Technology and education - IND is suited for a campus-like environment supporting academic centers of excellence offering education and research programs in logistics, aviation technology, and related areas.
• Conservation and sustainability - Land set aside for conservation purposes offers opportunities for recreation, wildlife preservation, and unique environmental concepts like solar farms.

Defined zones for development IND

Airport facilities, functions, geography, planning constraints, environmental issues, engineering considerations, and existing and prospective infrastructure led L&B to create seven distinct zones for development.

• Zone 1 - IND gateway surrounding new airport complex along access roads
• Zone 2 - On-airport land offering access to airside facilities
• Zone 3 - Future aviation reserves located between I-70 and SR 67
• Zone 4 - Old airport complex east of airfield located along High School Road
• Zone 5 - Area north of the airfield bordered by Perimeter Rd and Washington St.
• Zone 6 - Land west of airport between West Perimeter and Ronald Reagan Pkwy.
• Zone 7 - Largely conservation parcels southwest of I-70

According to Clark, development within each zone will be prioritized according to IAA’s 2010-15 strategic plan.

Types of development suited for each zone

“Right now, one of our top priorities is Zone 2 and development of air cargo facilities such as a multi-tenant, climate-controlled building where planes would taxi inside to offload time- and temperature-sensitive products. Refrigerated trucks could be loaded from a dock area and then hit the interstate for distribution,” Clark said.

Other priority zones for development at IND, are Zones 1, 4, and 6, he added.

These types of development have been identified as most suitable for each zone:

• Zone 1 - Retail, hospitality, and office
• Zone 2 - Air cargo, aviation logistics, general aviation support
• Zone 3 - Development for future third runway and aviation logistics operations
• Zone 4 - Aviation logistics, industrial/office mixed use
• Zone 5 - Technology and education, aviation and air cargo support
• Zone 6 - Transportation links, retail, hospitality, office
• Zone 7 - Conservation, retail, light industrial, build-to-suit office

Aviation demand and capacity at general aviation facilities

Activity at IAA’s five general aviation facilities—Eagle Creek Airpark, Downtown Heliport, Hendricks County Airport, Metropolitan Airport, and Mt. Comfort Airport—will continue to be mainly utilized by recreational users and air-taxi operations and serve as a fixed base for medium to large corporate aircraft.

• The growth rate for based aircraft at these facilities is estimated at 1.3 percent annually and growth in aircraft operations increase about 1.7 percent annually.
• There is limited opportunity for aviation growth at Metropolitan Airport, which will continue to serve recreational and small corporate users.
• There is good potential for development at Mt. Comfort Airport, with space for expansion of the existing runway and taxiway system for larger corporate users.
• Hendricks County Airport has space and opportunity to expand, but is likely to retain its largely recreational focus for the next 30 years.
• Eagle Creek Airpark is limited in its ability to expand but will continue to serve recreational and small corporate users.
• The Downtown Heliport will continue to serve its unique users, which include medical, law enforcement, government, and news media operators.