REPORTS FROM THE 1999 GLOBAL SUPER PROJECTS CONFERENCE MADRID, SPAIN 2-5 MAY 1999
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Global Airports as a Strategic Development Resource
Madrid, Spain
On a snowy February 28, 1995, the City and County of Denver opened Denver International Airport (DIA), the first new airport constructed in the United States since the completion of Dallas-Fort Worth over twenty years earlier. This airport:
- has a land area of 53 square miles, twice the size of Manhattan Island and larger than the city boundaries of Boston, Miami or San Francisco;
- handled 36.8 million passengers in 1998,and ;
- is the 11th busiest airport in the world in terms of total passengers, busier than any airport in Europe except London Heathrow, Frankfurt and Paris Charles de Gaulle.
This marked the transition of the state of Colorado and Denver, its capitol city from an inward looking region based on natural resources to an emerging world center of technology and international business. Of all the initiatives taken during the 1980s, this was the one that qualifies Denver to be considered an emerging super city.
How did a relatively small city like Denver come to build an airport like DIA, particularly during a time period when large infrastructure projects, particularly airports, simply weren't being built in the United States?
What lessons could this offer for other cities that are striving to become super cities? Denver's previous airport, Stapleton had always had design problems. Its parallel runways were so close together that only one could be used during instrument conditions, essentially cutting its capacity in half. As long as thirty years ago, discussions were held about expanding Stapleton but we
re thwarted by Adams County commissioners who controlled the land to the north.
In 1978, however, the United States Congress and President Carter deregulated the airline industry. This spawned the "hub and spoke" system that led to enormous passenger growth nationwide and particularly at Stapleton. This focused new attention on Stapleton's runway problem, made it a national issue rather than just a local one, and encouraged the United States Department of Transportation to consider supporting new construction.
In 1983, a new mayor, Federico Pena was elected. Within the next two years he negotiated an agreement with Adams County to build a new airport east of Denver on what was relatively low cost farmland.
In 1986, Colorado's economy slid into a severe recession. That September, an economic impact study projected that a new Denver International Airport would create 20,000 jobs and $5.1billion in new annual business. In June, 1987 Mayor Pena was re-elected on a platform that strongly supported building the new airport.
In January, 1988, Denver and Adams County reached agreement on the annexation of a 53 square mile airport site east of Denver. Adams County voters on May 17, 1988 by a margin of 56% to 44% to allow that land to be annexed to Denver.
On May 16, 1989, Denver voters approved plans for the airport by a 2-1 margin.
The ground-breaking ceremony was held on November 22, 1989.
The City proceeded with the sale of airport revenue bonds, federal funding was committed in the amount of $500 million, and negotiations continued with the two major airlines, Continental and United.
Mayor Pena declined to seek re-election in 1991 but his successor, Wellington Webb was a strong supporter and brought what became a difficult project to successful completion.
Problems concerning the baggage handling system begin to surface and the opening had to be delayed several times with the eventual opening occurring on February 28, 1995.
Today twenty-three airlines operate out of Denver with over 1,000 flights and approximately 100,000 passengers per day. There are three terminals, 94 gates, and five runways with future plans for twelve. As part of Denver's fifty-year plan, the eventual goal is to be able to handle 110 million passengers.
This is an extraordinary accomplishment for the City and County of Denver and for a state with a population of only 4 million people. How were we able to accomplish what hadn't been done anywhere in the United States for over twenty years? What are some of the factors that might be of value to other cities?
l. An obvious problem with Stapleton, the former airport facility. There was a strong community consensus that some action had to be taken.
2. An enormous volume of traffic that had to be handled but that also offered new economic opportunities.
3. No available solution short of building a completely new airport. Expansion of the existing facility was impossible because of population pressures and noise concerns.
4. An economic crisis that focused public attention on projects that would create immediate jobs. Colorado was in a deep recession and Coloradans were desperately looking for ways to create jobs. As a result, the prospect of thousands of short-term construction jobs was critical to the passage of the Adams County annexation vote and the Denver bond election.
5. Strong political leadership, particularly Mayors Federico Pena and Wellington Webb and Governor Roy Romer.
6. A technical team that gained public support. The Project Management Team, represented here by Richard L. Haury, Senior Vice President of URS Greiner Woodward Clyde, was unique in that it had both public and private sector representation.
7. Opportunities for the general public to comment on the project. This was a controversial project, first, because it was simply so large, second, because of the debate over a location and third, because of the baggage handling problems. Much of that controversy was defused, however, because it was an open process with opportunity for debate, discussion and to vote.
8. The unified support of the U.S. Department of Transportation, the State of Colorado, the City and County of Denver, and the business community.
9. A period of rapid growth in exports and foreign investment that opened the eyes of Coloradans to the long-term importance of international business and the airport's role in stimulating it. Colorado's economic recovery in the early 1990's was largely fueled by high tech companies in fields like information technology, environmental remediation, telecommunications and medical products, companies that were doing much of their business internationally.
10. A competitive airline environment. During much of the construction process, Denver was a hub for two major airlines, Continental and United, a factor that kept fares low and focused attention on customer service. Even though Continental subsequently reduced its presence in Denver, air service is still highly competitive.
I mention these factors not because they were unique to the Denver experience but because they will be present in some combination in every successful major infrastructure project - a demonstrated need, a lack of alternatives, the right moment in time for a bold move, strong political and technical leadership, support from the business community, an open process that allows for public input, support at all levels of government, and a recognition that the project can open the door to new, long term economic opportunities. These factors obviously are not present in all cities and not all cities can afford to undertake these types of projects. For those cities that can, these super projects offer a unique opportunity for new leadership.
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