Committee Hearing, December 2, 2010

COUNCIL OF THE CITY OF PHILADELPHIA2 JOINT COMMITTEES ON LEGISLATIVE3 OVERSIGHT AND TRANSPORTATION4 AND PUBLIC UTILITIES5 6 Room 400, City Hall7 Philadelphia, Pennsylvania Thursday, December 2, 20108 1:20 p.m. 9 10 PRESENT: COUNCILMAN JAMES KENNEY, CO-CHAIR11 COUNCILMAN CURTIS JONES, JR., CO-CHAIR COUNCILMAN W. WILSON GOODE, JR.12 COUNCILMAN WILLIAM K. GREENLEE COUNCILWOMAN BLONDELL REYNOLDS BROWN13 14 RESOLUTION 100638 - Resolution authorizing15 City Council's Joint Committees on Legislative Oversight and Transportation and Public16 Utilities to hold public hearings on the status and current findings of the17 Philadelphia Airport's Master Plan and Environmental Study.18 19 - - -20 21 22 23 24 25 2 1

Good2 afternoon. We do not have a requirement3 for a quorum since we are dealing with a4 resolution. This is basically an5 investigatory process, an effort relative6 to the Airport expansion, potential7 Airport expansion, our Airport, capital8 improvements and just the overall what is9 going on at the Airport or what is10 planned and how we got to where we are in11 the planning process.12 As everyone in the room knows,13 it's kind of a different situation where14 it's a Philadelphia-owned airport,15 located primarily in Delaware County,16 with Council not having kind of direct17 operation responsibilities, but doing18 certain things legislative over the19 course of the years that we require to do20 to help the Airport get where they want21 to be.22 The purpose of this hearing,23 from my perspective, is to get up to24 speed as to where we are on the plan, how25 3 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 the plan was developed, what the benefits2 of the plan are proposed and what the3 impacts on our Pennsylvania neighbors.4 We're all Pennsylvanians, even though we5 live in Philadelphia and live in Delaware6 County. We're all in the same state, and7 they are most impacted by the operation8 of the Airport and have been for years.9 So we want to just kind of10 explore all that. We appreciate all the11 elected officials and newly elected12 officials that have come here today, and13 I want to ask Mark Gale to come up and14 get started so we can kind of flesh this15 out a little bit.16 Councilwoman Brown would like17 to say something quickly.18

Good19 afternoon. I want to add to20 Mr. Chairman's comments as we flush out21 where the expansion is going, as is22 customary at these proceedings. There23 remains consistent interest in making24 sure that opportunities equal the25 4 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 constituents that live in the area and2 can benefit from it from an economic3 workforce standpoint. So we want to hear4 throughout the testimony where you are5 around equal opportunities.6 Thank you very much.7

Good8 afternoon and please identify yourself9 for the record and proceed with your10 testimony.11

Good afternoon,12 Councilman Kenney and members of the13 Joint Committee on Legislative Oversight14 and Transportation and Public Utilities.15 My name is Mark Gale. I'm the Chief16 Executive Officer at Philadelphia17 International Airport. Good afternoon.18

Good19 afternoon.20

Councilman, would21 you like me to proceed with my testimony22 straight through?23

Please.24

I'm appearing before25 5 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. "9 The Airport is already our10 region's premier economic engine. 16 There are more than 200 companies at the17 Airport, and those companies directly18 create more than 42,000 jobs. These jobs19 are at every skill level and are creating20 real economic opportunity for our21 residents. Despite the greatest economic22 crisis in a century, the Airport has23 continued to be a bright spot for the24 City and the region and continues to25 6 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 4 The prosperity the Philadelphia5 International Airport provides the City6 and the region is at stake. We should7 not assume that economic growth is a8 given for our region. 17 Global companies will only locate in18 regions where their employees have access19 to other offices around the world. The20 high-value logistic companies that ship21 premium goods by air and pay highly22 competitive wages will not locate at23 unreliable airports. The Airport needs24 to provide an environment that allows25 7 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 3 The Airport's Master Plan4 evaluated the Airport's future facility5 needs relative to forecasted passenger6 demand and operational demand and the7 corresponding capacity of the facility to8 accommodate this projected activity9 efficiently and safely. Forecasts are10 based on an analysis of historical11 activity, recent trends affecting the12 aviation industry and an assessment of13 how these factors work together to affect14 future activity. 2 million passengers. 7 million24 passengers. It has been determined that25 8 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 14 Every minute of delay costs15 airlines, which ultimately means it costs16 customers and passengers. Affordable air17 travel is critical to the success of this18 region. As the Airport's CEO, I19 regularly meet with airline executives,20 new airline executives, to try to21 convince them to bring flights and jobs22 and economic activity to our city and to23 our region. The number one concern I24 hear from them regarding new service at25 9 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 4 Competition among airlines is a5 good thing. It typically results in6 lower air fare and new air services,7 destinations and products. According to8 the FAA, the delays at Philadelphia9 International Airport affect the national10 airspace system. 15 The Airport and the FAA have16 recently completed a ten-year planning17 process and a seven-year environmental18 review process that will ensure the19 Airport has the facilities to meet and20 support a vibrant regional economy. This21 process included 20 public meetings and22 four public hearings between August 200323 and October of 2008. A total of 2924 different potential Airport25 10 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 configurations were reviewed and analyzed2 during this process. The ultimate3 configuration that's been selected in4 this Airport expansion will include a new5 runway, two runway extensions, major6 terminal modifications and the7 development of an automated people-mover8 system. This plan is the only serious9 solution to address the problem of10 chronic delays that have impacted the11 Airport for years and threaten our future12 prosperity. 16 For any leader who supports job17 growth and creation, Airport expansion is18 a "must do" for this region. 21 That's nearly 4,000 jobs a year, plus22 2,888 permanent on-Airport jobs. 324 billion and be funded with non-tax25 11 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 revenues. 4 The regional impacts of construction5 alone will be significant. 8 I understand that there are a9 number of witnesses to testify from10 Tinicum Township and Delaware County and11 elected officials, and presumably this12 will be in opposition to the Airport's13 Capacity Enhancement Program.

You are14 likely to hear from a number of elected15 officials and others who will testify16 that Philadelphia does not need a17 Capacity Enhancement Program. You will18 likely hear testimony that the Airport19 expansion will reduce average flight20 delay by only 15 minutes. This statistic21 is being manipulated by expansion22 opponents. 25 12 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 If you've ever been on an2 aircraft and pushed back from the gate at3 Philadelphia International Airport and4 told that you are 25th in line and then5 waited for an hour to take off to get in6 the air, you understand the severe7 impacts these delays cause. 15 You will likely hear testimony16 that the Airport expansion will increase17 noise over Tinicum Township and Delaware18 County. 24 You are likely to hear25 13 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 testimony that reflects quotes from2 recent newspaper articles suggesting that3 the Airport should expand in other4 directions. These suggestions are simply5 infeasible. The John Heinz National6 Wildlife Refuge is on the north side of7 the Airport and already causes some8 safety concerns regarding potential bird9 strikes. 15 Recently, the Airport has16 purchased three properties adjacent to17 the east side of the Airport and expects18 to purchase several additional19 properties, as needed, for this program20 and further expansion of the Airport on21 the Philadelphia County side. While22 these parcels will assist in facilitating23 the CEP program, these properties alone24 will not, by themselves, provide the need25 14 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5 You will likely hear testimony6 that Airport expansion will force people7 out of their homes and damage a8 neighborhood. In the past six years, the9 Airport has invested over $24 million in10 soundproofing in the homes in Tinicum11 Township. We acknowledge that for some12 time there had been conflicts with our13 neighbors regarding land use at the14 western end of the Airport. However, to15 set the record straight, the Airport does16 not have eminent domain power, so no one17 will be evicted from their homes, and18 construction is not imminent. The19 Airport, as a willing buyer, seeks to20 work with willing sellers. Tinicum21 Township and Delaware County argued in22 federal court that pursuant to the state23 statute, the City -- pursuant to a state24 statute, that the City needed permission25 15 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 to purchase properties from willing2 sellers. 8 You will hear testimony that9 Delaware County, the Interboro School10 District and Tinicum Township will lose11 tax revenues as a result of the12 expansion. 19 In 1998, the Airport entered20 into a settlement agreement with Tinicum21 Township, Delaware County and the22 Interboro School District under which the23 Airport paid more than $9 million for its24 operations in the county, in addition to25 16 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5 million in permit and2 engineering fees for Airport construction3 projects. 6 From the beginning, the City was clear7 that it would not accept limitations on8 the ability to purchase properties in9 Tinicum. The City increased its offer to10 reflect this concession by the other11 parties. Following numerous negotiating12 sessions, the City thought it had reached13 an agreement. 16 The City recognized from the17 beginning of the expansion process that18 we have the responsibility to be a good19 neighbor. 24 Councilman, if you would, I'd25 17 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 6 We went back and we took a look at7 Philadelphia's history over the last 408 years, long term, surviving ups and downs9 in economic recessions and whatnot. 12 That's over economic recessions, airline13 deregulation, 9/11, mergers and14 bankruptcies of airlines. 21 In fact, in 20-year increments,22 we've doubled our passengers. 25 18 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 23 million passengers.

5 More airline changes are on the6 way. Northwest Airlines is now a name7 that is gone. Continental and presumably8 AirTran will be gone soon due to merger9 activity. 14

Thank you15 very much for your testimony.16 Sir, do you have testimony?17

I'm sorry. Let me18 introduce Mr. Calvin Davenger. He's my19 Deputy Director for Planning and20 Environmental Stewardship, and he is21 actually with me today because in case22 there were questions, because he23 spearheaded the Master Plan effort for24 the Airport.25 19 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

Thank you.2 The whole planning process3 which you have concluded, which you have4 said has gone on for ten years, have5 there been meetings with or briefings6 either the Chairman of the Transportation7 and Public Utilities Committee or the8 Chairman of the Commerce Committee here9 in City Council? I mean, what10 interaction with the legislative body has11 the Airport had relative to selections of12 the different plans that were out there13 to be discussed, the one that was finally14 chosen?15 It seems as if it was done16 outside of -- the Administration, I17 assume, had input, but I was wondering18 what legislative input there was19 regarding this planning process.20

To answer your first21 question, Councilman, no, there had been22 no direct briefings that I am aware of to23 either the Committee on Legislative24 Oversight, the Committee for25 20 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Transportation and Utilities -- good2 afternoon, Councilman Jones -- or even3 the Committee of the Whole. I do stand4 prepared to do that for you and give you5 a full briefing, and I apologize that it6 had not been done to this point.7

Well,8 apology is not necessary, but I'm9 concerned about what the mindset was when10 we're making plans to spend upwards of $611 billion, and although you claim that it12 is not taxpayer-funded money, it kind of13 is, because it's coming out of the14 pockets of folks who fly from15 Philadelphia who are Philadelphians and16 regional folks who fly out of17 Philadelphia or fly in and pay those18 facility charges.19 So while I recognize we're not20 asking our own individual taxpayers to21 pony up money to pay for the Airport,22 indirectly the public does pay for the23 Airport. And I just -- I get concerned24 when there's this long term -- we're25 21 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 talking out to 2030, and there's been no2 real input or at least information shared3 with us, and that winds up getting us to4 a point where we have to do this, because5 it's just something that I'm very6 concerned about. I know the other7 members of this Committee are concerned8 and the entire Council. I mean, that's9 our airport. It's a Philadelphia entity.10 We just don't know what's going on.11 So I do have a few questions12 that I just want to run by you for the13 record.14 What is the estimated cost of15 the overall improvements?16

The FAA, after their17 analysis -- I would come back and say18 that the FAA began an environmental19 review process on this starting in July20 of 2003. So for the last seven and a21 half years, they've been looking at22 the -- it boiled down to two23 alternatives, and the FAA selected a24 preferred alternative in April of this25 22 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 year and issued their final environmental2 document in August of this year, and the3 associated cost with that has been4 identified at $5.35 billion.5

Is that6 estimate inclusive of business relocation7 costs, wetlands mitigation and utility8 and rail relocation?9 Please identify yourself for10 the record.11

Yes. Good12 afternoon. My name again is Calvin13 Davenger. I'm Deputy Director for14 Planning and Environmental Service.15 The costs that are not included16 in that number are some of the mitigation17 costs associated with the enabling18 projects to get the new runway in. The19 cost is included in there as relates to20 the UPS relocation.21

But not22 rail and utility or wetland mitigation?23

Not all of those24 costs, no.25 23 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

How much is2 the runway cost?3

For the new runway?4

Yes.5

I believe the6 estimated cost right now in order to move7 UPS, to do the enabling projects that are8 associated with that, I believe the new9 runway is sitting somewhere approximately10 around 1.6 billion.11

Does UPS12 support the relocation?13

We have been in14 discussions with UPS, Councilman, for15 approximately five years, and obviously16 the Airport very much so wants UPS to17 remain at Philadelphia International18 Airport. They are a great corporate19 citizen. They are a large employer, many20 of which of their employees come from21 Delaware County and Tinicum Township. As22 far as the Airport is concerned, they do23 provide landing fees to the Airport, but24 probably more importantly, they provide25 24 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 great cargo lift out of this area to the2 rest of the nation and to the globe.3 They have been willing to sit4 with us and discuss opportunities about5 relocating their facility to the other6 side of the field. I think, as you may7 know, UPS sits on their own property on8 the south side. They are very careful as9 they approach this, knowing the position10 that they sit in, that if they're going11 to relocate to another piece of land on12 the other side of the Airport, that13 they're not downsizing themselves too14 much or putting themselves in the15 position where they won't be able to grow16 in the future, and our discussions to17 date have been primarily about how to18 provide that opportunity for them.19

Does their20 current location afford them the21 opportunity to expand?22

Their current23 location, they're able to expand their24 facility to a certain degree, and part of25 25 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 our discussion with UPS would be to2 provide them an in-kind replacement to be3 able to give them the ability to expand4 to the same level that they would on a5 new site.6

But the7 site -- does the site proposed for UPS's8 relocation, does that afford them the9 opportunity for expansion?10

We believe that the11 site as identified in the final12 environmental document, which does call13 out for the acquisition of 72 private14 residences and 12 businesses essentially15 in Tinicum Township up to 4th Avenue, if16 properly configured, could meet UPS's17 needs, and it comes down to how the18 building is situated and how the aircraft19 ramp is laid out and access to the20 facility is done, both air side as well21 as land side.22

What do you23 believe the real cause of flight delays24 are?25 26 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

In Philadelphia?2

Because3 I've heard different viewpoints on why4 Philadelphia winds up being a5 delayed-prone city, our airport, and6 what's told to me is, primarily it's got7 to do with our location between New York8 and Washington, that when there are9 issues relative to weather -- normally10 weather, I would guess -- or congestion,11 that our flight paths, our airspace, gets12 pulled or yanked in deference to New13 York, because they don't want to make14 them more congested than they are, or15 potentially for Washington, because they16 don't want a U.S. Senator sitting on a17 runway or a tarmac waiting for 25th in18 line. So that our airspace, which is19 obviously a finite amount of space, winds20 up getting pulled and that's the reason21 for the delays, not necessarily the lack22 of another runway.23

There are two24 primary answers to that, Councilman, and25 27 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 I tell this to most that I discuss this2 issue with. The Airport delays at3 Philadelphia primarily come about for two4 general causes. One is the Airport's5 configuration. Its runways are spaced6 too closely together in order to provide7 independent streams to land simultaneous8 operations. If you take the nation's top9 30 airports, 20 out of the top 3010 airports have that ability to do so.11

We have12 two, right? Because I see two coming --13 just anecdotally, from South Philly I can14 see at times two planes coming in at the15 same time.16

I'm sorry,17 Councilman. I'll clarify. During18 inclement weather conditions. So, for19 example, during good visibility20 conditions, the Airport can land 60 to 6521 airplanes, but on a day like yesterday,22 we started out the day at 8 o'clock in23 the morning with that number cut in half,24 and that continued all throughout the25 28 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 day. And as long as bad weather2 continues, we will continue to experience3 those delays without that capability.4 As I said, 20 out of the top 305 large airports in the U.S. have that6 capability now. Some of them, including7 Charlotte, have the ability to run triple8 streams into their facility. We're9 fighting to just get dual streams right10 now.11 The other half of the equation12 is the airspace, Councilman. You13 mentioned it. We are situated between14 New York and Washington centers. It's a15 very heavy and congested segment of16 airspace above us. The FAA,17 Administrator Babbitt, has vowed that he18 is going to push hard for what is known19 as Next Gen, which is using new20 technology, new equipment to better space21 airplanes, that they don't have to fly22 straight lines according to land-based23 navigational aids. They'll be able to24 fly curved routes in and more efficient25 29 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 routes into the Airport.2 However, almost everybody3 agrees that the airspace fixes alone will4 not work and take care of all the5 Philadelphia International Airport's6 problems, and the fixes that we'll do on7 the ground will not take care of all the8 problems. They have to work hand in hand9 in order for us to gain any ground here.10 So while we're moving ahead11 with things on the ground to try to put12 the proper infrastructure in place, we13 are working with the FAA to make sure14 that airspace issues are addressed15 properly at the same time.16

You17 testified that there's an estimated 3.418 percent growth that's predicted for the19 Airport, and you said actually in reality20 over the years it's grown at 4 percent.21

Forty-year average,22 4.1 percent.23

What are24 the estimates, the increased passenger25 30 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 estimates, in airports surrounding2 Philadelphia? For example, like Dulles,3 which I understand is one of the more4 faster growing airports in the country?5 What's their projections; do you know?6

I don't have them7 broken down by individual airport,8 Councilman, but I just returned from --9

Are they as10 high as 3.4?11

Some are actually12 quite higher than 3.4 percent, and a lot13 of times the market is broken down by14 major segments on a global forecast. On15 an international aviation forecast,16 traffic worldwide is forecasted to grow17 at some 4.7 percent. In the U.S.,18 depending upon who you listen to,19 aircraft manufacturers who are building20 new airplanes in response to requests21 from airlines, over the next 20 to 3022 years they're expected to put almost23 30,000 new airplanes in the sky. Maybe24 10,000 of those are replacement; the25 31 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 other 25,000 are new aircraft.2 So we're looking at anywhere3 from about 2.8 percent growth nationally,4 but depending upon where the location is,5 that number could be 4, 5, 6 percent.6

Does the7 FAA do estimates per airport?8

Yes, they do,9 Councilman.10

What do11 they estimate our growth to be?12

Our growth in the13 terminal area forecasts are the numbers14 that I think that we've reported out. We15 can give those numbers to you, but the --16

How do they17 relate to the 3.4 that your folks are18 estimating?19

There is a slight20 difference. It's listed in the front of21 the environmental document.22

What's23 their number?24

Do you have that,25 32 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Calvin?2 You want per aircraft3 operations or passengers, Councilman?4

Well, I5 guess plane movements would make -- if6 we're talking about takeoffs and7 landings.8

Okay. The EIS9 forecast in the year 2025 calls for10 686,000 aircraft operations on the EIS11 side. The terminal area forecast, which12 is the FFA's forecast, calls for 699,000,13 a difference of 13,000 operations. So14 it's pretty close.15

Do the16 airlines support the CEP?17

I think that any18 time that we start talking very large19 capital projects with significant20 expenditures, I don't know of any21 airports across the country, Councilman,22 that they fully embrace it. We are in a23 process right now with their airlines24 talking through those issues about how25 33 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 much exactly it's going to cost, how to2 phase the projects in so that their costs3 don't get so out of control that they'll4 not want to fly to Philadelphia.5

I guess the6 question, not the CEP, do the airlines7 support the runway?8

I believe that they9 do. The benefits that come from the10 runway in terms of the independent11 separation, as I said, I think will yield12 aircraft operating savings to the13 airlines. In the year 2030, if these14 improvements are in place, the estimates15 that are in the final EIS document says16 that the airlines will save some $40017 million a year in aircraft operating18 costs.19

My20 understanding was, there was a recent21 vote. Apparently there's a process that22 you guys go through with the airlines and23 the Airport operations people where they24 have to have some type of vote, either25 34 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 unanimous vote or -- I don't know how2 it's weighted, but was there a recent3 vote by the airlines relative to the CEP?4

When we propose5 capital projects, according to our Use6 and Lease Agreement, the airlines, it has7 to go to what is called a8 majority-in-interest vote for the9 airlines to vote on, and there were10 several land acquisition projects that11 were identified. In the most recent12 issue, the airlines approved the13 acquisition of International Plaza, which14 is right next to the Airport facility,15 but did not approve all of the16 acquisitions. We are back on the table17 with them right now as we speak regarding18 the approval for that process.19

Land20 acquisitions aside, because I know it's21 all related, so the work that needs to be22 done there or proposed to be done there,23 but are they on board with you guys24 relative to the need for this runway?25 35 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Because it's my understanding that2 there's many other projects that could be3 funded or will be funded as a result of4 the CEP's approval. The runway is a5 major portion of that, but there are6 other portions of expenditures that7 apparently the airlines really have no8 problem with and agree to, but it seems9 that the runway is the major bone of10 contention. And if I'm not describing11 that accurately, then please correct the12 record.13

No. I think that14 the issue is obviously, again, there are15 significant costs associated with this,16 and I think that the airlines would like17 to have the benefit of what those18 improvements are going to yield, but want19 to be able to talk through what those20 costs are going to be and how they affect21 their rates and charges at the Airport.22 Ultimately, for example, when23 we actually do the calculations on what24 our costs per implaned passenger is for25 36 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 the operation of the Airport, which2 includes debt service, that cost is3 somewhere around $10 per implaned4 passenger. Today's figures, if you go to5 JFK or one of the New York airports, that6 cost for in-plane passenger is upwards of7 $22, $25. At Miami, for example, which8 just completed or is recently completing9 a major capital expansion of over $610 billion, their cost per in-plane11 passenger is up over $30.12 So while we anticipate that our13 cost per in-plane passenger due to debt14 service coming online is going to drive15 the cost upwards, we don't believe that16 it's out of line with other major airport17 expansion projects across the country18 that have benefited from being able to19 grow their airports, acknowledging the20 economic engines that they are.21

I guess you22 could understand the concern relative to23 a letter back in July where Southwest24 Airlines contends that the CEP will25 37 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 likely jeopardize service levels and the2 cost levels projected by the CEP, many of3 the air carrier routes in and out of4 Philadelphia may be unsustainable.5 Doesn't that give you at this6 point reason to pause? Getting Southwest7 here was such a tremendous accomplishment8 for the flying public in this region.9 That quote from a letter does leave me to10 be concerned.11

I think that a12 letter from Southwest that says if you go13 forward with this, it may cause us14 problems or the costs may become15 unsustainable, I would put forth -- I've16 worked very closely with Southwest17 Airlines and U.S. Airways on both. I18 value the presence of the U.S. Airways19 hub and the international gateway. I20 value what Southwest brings to the21 Airport in terms of low fare competition22 and keeping other carriers in check.23 The other side of that24 equation, Councilman, is how long does25 38 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 the Greater Philadelphia region forego2 the economic benefit that would come from3 an airport that's able to handle4 additional aircraft operations and5 passengers efficiently, particularly when6 those aircraft operations and passengers7 are forecasted to come and our history8 has shown that they will come. And we're9 just trying to be good custodians of the10 Airport and set the place up the right11 way.12

Over the13 past number of decades, there's been on14 and off discussion about an airport15 authority, which currently does not exist16 obviously. Who could determine whether17 or not the Airport becomes an authority18 similar to the DRPA or to any other19 state-sanctioned authority? What would20 that process be? It wouldn't be a local21 process, right?22

It would be more23 than a local process, Councilman, and24 there's often -- it's a very complex25 39 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 situation. Oftentimes when you talk2 about either an airport authority or3 privatization issues, you have to take a4 look at monies that the FAA has invested5 in the facility and grant assurances,6 governance structures of how the place7 will operate going forth in the future.8

Can the FAA9 veto an authority effort?10

I'd have to ask my11 counsel on that. I don't --12

And could13 the state initiate an authority movement?14

I think that the15 state has already at times put forth16 bills in-house to talk about whether or17 not authority should be looked at, not18 just for Philadelphia but for Allentown,19 Harrisburg and other airports, and I20 think the Administration has responded21 that that is not in their interest and22 the way that they choose to go.23 I would say that regardless of24 the governance of the Airport,25 40 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Councilman -- and I do believe that the2 City of Philadelphia takes good care of3 its airport -- that regardless of the4 governance, whoever is operating it, they5 will have the same problems facing them6 in terms of congestion and delay. They7 won't go away.8

I9 understand. Obviously we live -- you10 live in the airport world, which is11 terrific, because you're doing a great12 job.13

Sometimes the14 Airport, Councilman.15

And you're16 doing a great job there. We live in the17 political world and we recognize the18 political realities of life and how19 things change quickly.20

Understood,21 Councilman.22

As I look23 west to the center of the state and even24 further west to the western part of the25 41 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 state, I do have some concerns as to what2 actions could or could not be taken3 relative to the governance of our4 Airport. So I just throw that out there5 as a concern.6

Thank you,7 Councilman.8

Councilman9 Jones.10

Point of11 information.12

Point of13 information. Councilwoman Brown.14

You're up15 next. Go ahead.16

Seniority.17 Go ahead.18

On the19 follow-up question of authorities, are20 there any other airports in the country21 that operate under an authority22 governance?23

There are multiple,24 Councilwoman. We can provide you with a25 42 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 list of those that do. Many of the major2 airports in the country, Chicago and3 others, operate just as we do, under the4 auspices of city government, but there5 are other airport authorities that are6 governing major airports across the7 country. And, again, I think that8 depending upon what the local situation9 is, how they got to become an authority10 versus an asset that's owned and operated11 by the city government, there are pros12 and con sheets on that, but nevertheless,13 the challenges that present itself to an14 airport will remain the same, how do you15 grow it, how do you effectively manage16 it, how do you keep your costs in check,17 how do you make sure that that economic18 engine is the strongest engine it can19 possibly be for the area that it's20 servicing, whether it be a city or an21 entire region. In our case, it actually22 is multiple counties on the Pennsylvania23 side, multiple counties on the Jersey24 side and reaching down into Delaware and25 43 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Maryland.2

Okay.3 And, lastly, is there any end date? You4 indicated that you've been in5 negotiations with United Parcel Service6 for five years. So is there an end date7 that you're squeezed in or is it an end8 date that's flexible and allows you to9 fully and thoughtfully negotiate through10 all the particulars of an ultimate11 agreement?12

I think that the13 negotiations that we've been in, not only14 with UPS, as well as with our airlines15 regarding the cost and the phasing of the16 program, trying to negotiate a deal with17 UPS, we'd like to see those wrapped up18 within the next year. I apologize if I19 didn't say it right out clear in my20 testimony, but sometime within this month21 we anticipate that the FAA will issue its22 final record of decision, which23 essentially says to the Airport sponsor,24 we've evaluated this, we've addressed all25 44 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 of the issues and concerns, and we will2 give you authority to proceed with your3 plan, provided you meet all the4 mitigation measures that we've outlined5 here, whether it be wetlands or other6 issues that have to be identified. And7 once we have that -- this has already8 been a ten-year process. It will take us9 ten years just about to get the new10 runway into place. That's a 20-year11 period from the planning timeframe till12 when the runway will actually be13 commissioned.14 So we're going to want to move15 quickly, as soon as we have that record16 of decision.17

Thank you.18

Chairman19 Jones.20

Thank you.21 And thank you, Mr. Chairman, for driving22 the hearings today.23 This is a very important asset,24 not just to our municipality but to the25 45 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 region. So I share disturbing fact that2 we have not spent more quality time3 together other than during the budget4 process. And during the budget process,5 that is not a good time to evaluate an6 operations plan. It is more designed to7 impact your bottom line, your financial8 needs and not your vision. And in that9 vision, it needs to be a shared vision10 with this body, because we're in this11 together. We will sink, swim or fly with12 you.13 A couple of questions. As you14 talk about the expansion at 4.1 percent15 annual growth that is exceeding even your16 own projections, what does that equate to17 in real numbers by way of -- and what are18 the main ways that that growth will19 access the Airport?20

The 4.1 percent,21 Councilman, was our historical look back22 over 40 years. Looking forward, when we23 were looking at how aggressive do we24 think we need to be with the forecast,25 46 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 what will we actually come in knowing2 what we know about the past history, we3 were in between somewhere between two and4 a half percent on the low end and about5 four percent or so on the high end, and6 the 3.4 percent represents kind of the7 middle ground in that. So 3.4 percent8 average annual growth for passengers and9 about 2 percent a year average growth for10 aircraft operations.11

And that's12 in spite of post 9/11 security measures,13 we've continued to grow?14

Yes, sir. Yes, sir.15 And right now the forecast in the year16 2009, it looks like 2010 will be very17 close, if not a little bit better. We18 did about 15 million, maybe a little bit19 better than 15 million, implanements,20 people getting on airplanes at21 Philadelphia International Airport. By22 the year 2020, that number is expected to23 grow to 20 million.24

Can I just25 47 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 ask a question on top of that? You said2 3.4 percent growth in passengers, 23 percent gross in plane operations.4

In aircraft5 operations, yeah.6

So as we7 talk about the runway, it's the 2 percent8 number that is important?9

That's the projected10 growth.11

My point12 is, the improvements in terminal and13 baggage handling and whatever other14 things that move people, that's one part15 of it, but when it comes to this16 expensive runway development, it has to17 do with the 2 percent number, not the18 3.4, correct?19

It has to do with20 both, Councilman, because you have to21 balance your airfield and your land side22 in an FAA plan.23

But I'm24 saying when we talk the 2 percent, we're25 48 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 talking about the number of the planes2 that take off and land?3

The 2 percent is the4 projected growth for aircraft operations.5

That's a6 runway issue.7

That's for runway,8 correct.9

Okay. I'm10 sorry. Go ahead.11

That's all12 right. That's value added.13 I'd like to know in that growth14 how much of that is commercial, how much15 of that is freight and how much of that16 breaks down to military hub.17

I can get you the18 specific numbers, Councilman. In terms19 of the Airport, there is very little20 general aviation activity or corporate21 type activity, although we do have some22 corporate hangars at the Airport. The23 Philadelphia Northeast Airport located in24 Councilman O'Neill's district handles the25 49 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 bulk of the general aviation traffic2 servicing the Philadelphia area right3 here. If that airport were not in4 existence to handle that traffic, that5 general aviation, the small aircraft,6 private aircraft would be attempting to7 get into Philadelphia International8 making matters worse.9

So the point10 is that most of this is commercial11 flights, people going to and from?12

It's commercial and,13 frankly --14

And the15 military part?16

Military part we17 don't handle. Occasionally you'll get a18 military flight, maybe a handful a year.19 Years and years ago -- and I date back20 quite a bit at the Airport, Councilman --21 we had a Military Airlift Command Post at22 the Airport, where soldiers coming back23 and forth through the facility on a daily24 basis, but the Military Airlift Command25 50 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 moved that out some 10, 15 years ago.2

And in spite3 of that, we continue to grow?4

In spite of that,5 again, if you take a look at our history,6 we are continuing that long-term growth7 trend.8

The second9 part of my question was, how are people10 accessing the Airport and how has this11 growth affected the way people are12 arriving and departing from the Airport?13

Well, one thing that14 we can obviously tout for Philadelphia15 that some airports can't tout is that we16 not only have great surface access into17 the Airport right off of I-95, but we18 also have rail access in the Airport line19 that just celebrated its 25th20 anniversary, which provides direct access21 downtown.22 Our traffic that comes into the23 Airport is split. Again, we can provide24 you with actual specific numbers25 51 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 according to our last surveys on how many2 come by train, how many are coming by3 just getting dropped off or how many are4 actually parking their cars at the5 Airport in the garages and the long-term6 lots.7 The Airport traffic in itself,8 we are about 57 percent, according to the9 last count, of origin destination traffic10 and about 43 percent connecting traffic,11 just transfers through the facility.12

My issue is,13 if we're on a growth trend that seems to14 be continuing, how does that affect the15 other modes of transportation by way of16 highway access, by way of commuter17 access? And in particular, there are18 expansion plans of the high speed rail19 line from Jersey, and I never understood20 why. I want to pose the question here21 now, why they would not continue on to22 the Airport from the high speed line from23 Jersey. It's about a mile difference as24 to where they want to stop, and I didn't25 52 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 understand why that would not be2 something that you guys would advocate3 for, which I think would increase our4 rail traffic from the State of New Jersey5 to our airport.6

We believe,7 Councilman, that long term at the8 Airport, rail connections, particularly9 with, I should say, with the advent of10 high speed rail, but, I mean, if high11 speed rail materializes as projected and12 the investments are made to the northeast13 corridor with Amtrak where there's true14 high speed, it is envisioned that at some15 point along the way, service to some of16 the smaller airports in the country that17 currently connect into Philadelphia,18 whether it's Harrisburg, whether it's19 Wilkes-Barre, Scranton, other locations,20 that rail access may become the mode of21 choice to be able to take a high speed22 train down to Philadelphia, let's say,23 and connect abroad to catch a flight out24 to go to Europe or some location. But25 53 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 we're not there yet and --2

But it is a3 part of your plan and thoughts?4

Absolutely. I think5 that long-term multi-modalism is key to6 any airport's survival in today's day and7 age, and the fact that we not only have8 potential for good rail access and we9 have surface access, we sit right along10 the Delaware River, and I would not say11 that it's not conceivable in the future12 that coming in across the river from New13 Jersey might not be the way that people14 get to the Airport.15

Well, I'm16 glad to hear that that is a part of the17 strategic plan, and in so doing, there is18 a corresponding marketing plan to grow --19 if you were to describe who and where20 your patronage comes from, how do you see21 that? Is it an expanding ring that will22 become your marketplace, and can you give23 us some description of that?24

And let me beg again25 54 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 some forgiveness, Councilman. In the2 presentation that I would be happy to3 provide you later, I'll certainly4 identify for you what we refer to as our5 catchment area, those that use6 Philadelphia International Airport, and7 it goes out in rings as you've described,8 with those that within an hour's driving9 time, an hour and a half driving time, to10 the point where you start to get close to11 Newark or you start to get close to12 Baltimore, and then we start to lose13 traffic to those two areas.14 So we're always looking at15 leakage studies, things that we can do16 better so that folks stop going into17 Newark or to BWY and use our facility18 moving forward.19 In terms of air service20 development, again, I'd have to say I21 think our relationship with the airlines,22 with U.S. Airways and the presence of a23 hub and providing all those non-stop24 services to cities all across the U.S.25 55 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and around the globe and the gateway and2 the strength that that brings to3 Philadelphia is good. It needs to grow.4 It needs to get stronger to rival what5 happens in Newark with the Continental6 operation out of Newark as well as United7 in Washington Dulles.8 The presence of Southwest, the9 presence of other low-fare carriers, such10 as AirTran, are things that help keep11 those fares in check and provide choice,12 product, for folks what they want to fly13 on.14

Well, on15 that note, as you plan to expand, how do16 you expand your carrier base? Is there a17 marketing strategy for that?18

We have internally,19 which includes myself, an air service20 team that looks at not only with our21 consultants but we couple with22 representatives from the Convention and23 Visitors Bureau, with Select Greater24 Philadelphia, the Chamber of Commerce to25 56 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 identify strategies that if there are2 carriers that may express an interest3 flying in and out of Philadelphia,4 whether they be domestic carriers or5 foreign carriers, to pursue them with6 some type of an incentive program in7 order to entice them to come into8 Philadelphia.9

Can you10 describe what your incentive programs are11 currently, without any trade secrets12 being divulged, but also what your13 success rate has been?14

Well, I think15 Southwest was our last major coo to get16 into Philadelphia, and I would prefer not17 to divulge those who I'm talking to right18 now. But incentive programs airports use19 across the country are somewhat guided by20 the FAA, what they will permit us to do21 and not do. So it may be entering into a22 joint marketing or advertising program23 for them. So if the carrier comes in,24 they don't have to pay for their25 57 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 advertising, but they get their name out2 in order to generate support for them; to3 possibly join with them to do some4 capital improvements where their offices5 are going to go and their ticket counters6 and such. Many airports couple with the7 airlines in order to get those going, but8 they tend to be under a definitive9 timeframe. The FAA doesn't like to see10 them go on for more than a year or two11 years. If it's for new entrance service,12 a new carrier, or if it's to a new city,13 they are more likely to let it go for a14 while. They're the things that we kind15 of tend to focus in on in order to entice16 somebody to come here.17

I want to18 move and then let some of my colleagues19 have some questions answered, but you20 are -- and this is a term that may stick21 with me for some time. There were22 winners and losers by way of the stimulus23 package funding. I would dub the Airport24 as a major winner. Can you give us a25 58 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 quick synopsis of how much you received2 quickly, what it was spent for and how3 much of that money has actually been4 expended?5

We received from two6 different sources stimulus funds back in7 April and June of '09, respectively. The8 first stimulus money that we received,9 Secretary of Transportation Ray LaHood10 came to town and gave us a check for $511 million to be used for a runway12 rehabilitation at the Airport, actually13 the rehabilitation of our longest and14 widest primary runway.15

Is that16 maintenance generally?17

It was actually a18 complete rehab of the runway, stripping19 off the old asphalt, repaving it, putting20 in lights and things along those lines to21 make sure that it is quite usable and22 ready to take traffic for the next 2023 years.24 We've expended all those25 59 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 stimulus funds.2 The second piece was what we3 got from the Department of Homeland4 Security. There were two actual awards5 that we got. Both of them were for6 in-line security screening systems at the7 Airport. One was for 19.9 million and8 the other one was for approximately 79 million. So the grand total was in the10 neighborhood of about $26.9 million,11 Councilman, and we are -- those projects12 are underway as we speak for the in-line13 baggage screening at Terminal A East in14 the international side of the house.15

Finally, you16 said in your testimony that we are the17 ninth busiest airport in the U.S., tenth18 in the world, and that we now experience19 15- to 20-minute delays, which makes us20 fourth most delayed airport. And, again,21 is the reason that is is because of the22 single --23

I would clarify. I24 think I have a typo in the testimony,25 60 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Councilman. We're the ninth busiest2 airport in the U.S. in terms of aircraft3 takeoff and landings, 11th busiest4 airport in the world in terms of takeoff5 and landings as of 2009. The two6 airports -- you say how did you slip back7 two in the world. There's two airports8 that are ahead of us. That's Paris and9 Beijing. They're the only other two10 airports that run more aircraft11 operations than Philadelphia in the12 world. That's why we slipped back.13 When you change the metric and14 you take a look at it in terms of how15 many passengers are you handling, we're16 18th busiest in the U.S. and 37th in the17 world. And you see the big shift, a big18 drop in the rankings is because we fly a19 lot of little airplanes in and out of20 Philadelphia International Airport, a lot21 of regional jets and smaller aircraft,22 which tend to lead to congestion.23 Now, the airlines are looking24 at potentially upsizing those aircraft in25 61 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 the future, but as the fifth largest2 metropolitan area in the country, you can3 see the disparity as to what's happening4 with our traffic, why are we not getting5 to where we need to get to. And you just6 touched upon one of the single primary7 sources of that fall-short there, is the8 inability for our airport to operate9 efficiently given how closely spaced our10 primary runways are, our two primary11 runways. They need to be approximately12 3,000 feet apart. They're only 1,40013 feet apart, and, therefore, we can't run14 the number of operations that we should15 be able to run as a major facility.16

Thank you,17 Mr. Chairman.18

But19 additionally, so the record is clear,20 there's airspace issues that you did21 allude to relative to New York and22 Washington.23

And the airspace --24 our EIS process was postponed or25 62 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 suspended for a period of time while the2 FAA actually proceeded with their New3 York, New Jersey and Philadelphia metro4 Airspace Redesign effort, and then our5 EIS kicked back in afterwards. It is the6 airspace -- the FAA's responsibility to7 fix the airspace, Councilman, but we want8 to make sure that everything that we're9 doing on the ground isn't going to be for10 naught if airspace can't handle the11 aircraft that need to come our way.12

I'm going to13 keep this moving, because there are other14 people to testify, but -- and you need to15 be careful at how you answer this,16 because the last time someone answered17 this, I didn't see them anymore. They18 were no longer in their job, but I'm19 going to ask it anyway.20 Is it true that other airports21 pretty much run and operate their own22 parking concessions and we're kind of an23 anomaly here in Philadelphia having the24 Parking Authority?25 63 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

I wouldn't say that2 we're the only one, Councilman, because I3 don't have all the research. From what I4 know in looking at airports, major5 airports around the country, most that I6 know have direct control of their parking7 operations.8

Some of your9 colleagues back there remember that10 question being answered at a budget11 hearing. I was sitting on that side of12 the aisle, and I actually moved away from13 him when he answered.14 Thank you, Mr. Chairman.15

Thank you16 very much.17 And there are no other18 questions for you right now. I was19 wondering if you could just hang a little20 bit to respond, if needed.21 We're honored to have a number22 of current elected officials and newly23 elected officials from federal, state and24 county government in Delaware County, and25 64 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 what I would ask them to do is if you can2 all come forward and take the seats3 inside the rail and determine amongst4 yourself who would like to go first. I5 don't want to make that decision.6 (Witnesses approached witness7 table.)8

Let me say9 for the outset that I really do10 appreciate you coming, all of you coming11 here today, and the current elected12 officials, I want to thank you for your13 hospitality towards us when we've made14 trips to Harrisburg for assistance in15 raising our sales tax, and I remember the16 hospitable way we were treated when we17 were lobbying for regional tourism money18 back in the last budget process. So I19 think this is an appropriate place for20 you guys to be to express your issues and21 your concerns that relate to your22 constituents as we come west to do the23 same thing for our constituents.24 So welcome to the Chamber25 65 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 again, and whoever would like to start,2 please just identify yourself for the3 record and proceed.4 SENATOR ERICKSON: Councilman,5 thank you. I am Edwin B. Erickson and I6 would defer to a newly elected official7 at the federal level, Patrick Meehan, if8 he would have any comments, and then I'll9 proceed from there.10 COUNCILMAN KENNEY:11 Congressman-Elect, please identify12 yourself.13 CONGRESSMAN-ELECT MEEHAN:14 Thank you, Senator, and thank you,15 Councilman, for the courtesy of the16 opportunity to speak with you here today17 and particularly for the courtesy of18 taking the time to reach out to the broad19 spectrum of the community to talk about20 this issue.21 Let me be careful at the22 opening of my comments, which will be23 very brief, simply to express that24 certainly I recognize that I am coming25 66 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 here as a Congressman-elect, in all2 deference to the sitting Congressman3 right now, but for the record, identify4 that Congressman Joe Sestak has expressed5 strong criticism in the past of the FAA6 design and some of the work that has been7 done with respect to this project.8 I come here expressing my9 support and certainly great concern of10 the impacts this will have in Tinicum and11 the impact that it may have on that12 neighborhood.13 I point for the record some of14 the work that was done at Congressman15 Sestak's insistence, a GAO study that16 looked at some of this that was some of17 the conclusions from the FAA and found18 that the FAA did not do a cost-benefit19 analysis before implementing the20 redesign, and the project benefit would21 have a savings of only 18 seconds delay22 for takeoff and 45 seconds for landings,23 kind of a fact right from the beginning24 that gives me some concern about what the25 67 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 long-term implications of this project2 would be.3 Certainly there's a number of4 other implications as well. I'm simply5 doing due diligence at this point in6 time, but, Councilman Kenney, I did in7 the process of reaching out sit and talk8 with folks from UPS. I was down there in9 the aftermath of the issue concerning the10 safety of packages that are coming11 through our transport system, but used it12 as a window to discuss this relocation.13 And while I don't want to speak for UPS,14 one of the issues that concerned me was15 the concept of relocation and what it16 would do to the redesign of the traffic17 patterns. I mean, there are literally18 hundreds of trucks that move through the19 neighborhoods on a daily basis. Today,20 they are largely accommodated by an21 access road that's away from the general22 traffic patterns, and to put that kind of23 traffic into the neighborhoods is going24 to be an example of the kind of thing25 68 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 that could have dramatic implications.2 I thank you for the courtesy.3 My intention right now is to continue to4 do the due diligence until such time as I5 have an official capacity, but then I do6 intend to participate directly with you7 and others in looking to be sure that we8 accommodate this in the best possible way9 and assuring the genuine attention to the10 concerns, particularly of the folks from11 Tinicum.12 Thank you, Councilman.13

Thank you14 for your testimony and congratulations on15 your election. Good luck.16 CONGRESSMAN-ELECT MEEHAN:17 Thank you.18

19 SENATOR ERICKSON: Yes. Good20 afternoon. My name is Edwin B. 21 I am the Pennsylvania State Senator from22 the 26th Senatorial District, which23 includes Tinicum Township as well as a24 large portion of Delaware County and two25 69 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 municipalities in Chester County. I2 appreciate the opportunity to present3 comments during this hearing today. 10 As you are aware, the majority11 of the land mass occupied by the12 Philadelphia International Airport is13 located in Tinicum Township, Delaware14 County. Because of their proximity to15 the Airport, the residents of Tinicum16 suffer from severe and substantial17 negative impacts generated by the18 operations at the Airport. We are told19 that the redesign plan will add capacity20 and significantly reduce delays at the21 Airport. 22 However, the end results of this redesign23 designated "Alternative A" will24 exacerbate the negative impact that the25 70 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 4 After reviewing the plan, I5 believe that the Capacity Enhancement6 Program proposed by the Federal Aviation7 Administration, the FAA, and endorsed by8 the City of Philadelphia is shortsighted,9 ill conceived and detrimental to the10 physical well-being and quality of life11 of the residents of Tinicum. The FAA has12 recognized that there will be significant13 noise impacts and goes on to say that14 there are no disproportionate adverse15 effects on minority, low income or16 Hispanic populations. From this17 statement, are we to assume that the18 people other than minority, low income or19 Hispanics don't matter to the federal20 government? 24 A number of years ago the25 71 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 federal government agreed to soundproof2 approximately 550 homes in Tinicum. This3 work, I'm pleased to say, is finally4 progressing, and that is only after years5 of delay. 10 The FAA plan contemplates11 acquiring 72 housing units and displacing12 80 businesses. " This is16 a preposterous statement if you view it17 from the context of the homeowner or the18 proprietor of the business. 21 The properties that are proposed to be22 acquired are part of a viable and vibrant23 community. Taking these homes and24 businesses will have a negative impact on25 72 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 Furthermore, there are3 substantial negative financial impacts to4 Tinicum Township, Interboro School5 District and the County of Delaware due6 to loss of tax dollars on the properties7 that will be taken. 9 million per year. 11 Tinicum will lose $442,000 per year, and12 the county $283,000 per year. 15 It is not my intent to block16 progress. However, I suggest that there17 may be other solutions to enhancing18 Airport capacity in our region. I19 note -- and it was mentioned earlier --20 that there is an airport in Northeast21 Philadelphia that could be considered as22 an expansion site, as well as airports in23 the Lehigh Valley and in the vicinity of24 Atlantic City, New Jersey that could be25 73 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 I also note that land bordering the3 Philadelphia International Airport was4 used for non-Airport functions. The5 hotels and other facilities on these6 sites enhance the tax base in the City of7 Philadelphia. If that land had been used8 to expand the Airport, we would not be in9 a position to destroy people's homes and10 businesses. 14 Mayor Nutter and the Chairs of15 the Southeastern Pennsylvania County16 Governments -- and Jack Whelan is here17 with us today -- reestablished meetings18 to cooperate on issues at the regional19 level. 23 My final comments relate to the24 FAA. In the past I have written to the25 74 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 FAA expressing unhappiness with their2 process and with their conclusions. I3 reiterate these concerns and further4 observe that our federal government is5 not protecting the people of Tinicum6 Township.

In fact, the Capacity7 Enhancement Program proposed by the FAA8 will destroy the very fabric of Tinicum9 Township. 25 75 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

Thank you,2 Senator. I appreciate your comments.3 State Representative.4 REPRESENTATIVE MICCARELLI:5 Thank you very much, Councilman. I'd6 first like to begin by saying thank you7 very much for having us here today.8

If you9 could identify yourself.10 REPRESENTATIVE MICCARELLI: I'm11 sorry. I'm State Representative Nick12 Miccarelli from the 162nd District.13

Thank you.14 REPRESENTATIVE MICCARELLI:15 Listening to the earlier committee,16 Councilman Goode had asked the gentleman17 who was sitting here before Mr. Gale from18 the Airport about how the living wage19 impacted Philadelphia compared to other20 cities, Chicago, New York, and it really21 struck me, because Philadelphia is quite22 an anomaly in having one airport. We23 really have to do a better job of taking24 a look around the country of what we're25 76 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 doing and how it's really going to affect2 everyone around.3 So I would begin my comments by4 saying that the City Council ordinance5 that was put in place many years ago6 preventing Northeast Philadelphia Airport7 from utilizing commuter flights or8 commercial flights of any kind has a9 direct impact on this entire process. So10 your comment earlier about City Council's11 oversight and influence is very real.12 It's very real, and it's very important.13 I will be submitting comments14 for the record. I would just like to15 make a few more points, if we have time.16

Please.17 REPRESENTATIVE MICCARELLI: We18 do understand very much that this will19 create jobs, but what does this plan mean20 for Tinicum Township, for Delaware County21 and for the Greater Philadelphia region?22 It's going to mean 3,500 jobs displaced23 from Tinicum Township right off the bat.24 It's going to mean filling in 20 acres of25 77 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 the Delaware River. It's going to mean2 millions and millions in lost tax revenue3 over the years to come. And you don't4 need really an x-ray scanner to see that5 this plan is flawed.6 We live in a time now where we7 talk more and more about fair trade,8 increased social awareness, but right9 here in Philadelphia, we are not being10 good neighbors to our surrounding11 counties.12 I must also say that we want13 PHL to be profitable. We want it to be a14 strong entity and a good economic15 generator for the region. We're merely16 asking that those who are burdened17 already by this airport not be further18 exploited by bureaucrats whose goal is19 short-term Band-aids as opposed to20 long-term real solutions.21 I would also like to say in22 closing that we understand how much and23 how important this airport is, but24 dragging folks from their homes, filling25 78 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 in 20 acres of a river and doing it all2 to mask lackluster management and using3 the federal supremacy clause as a means4 to do it is simply unfair.5 I would also like to say that6 in Philadelphia and in Delaware County,7 we can all reap the benefits of this8 airport, of this important economic9 generator, without hurting people further10 than we already have.11 One last comment I'd like to12 make, Councilman. In response to one of13 Mr. Gale's statements regarding a14 regional airport authority, which has15 been discussed. There's been bills16 proposed in the State Legislature by17 democratic members, by republican members18 and by Senator Erickson here that we're19 looking at.20 I don't believe you proposed a21 bill, but it's something that's in talks.22 But the state government23 certainly believes that we would have the24 authority to in-place a regional airport25 79 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 authority if we cannot come to some type2 of consensus with City Council, with the3 FAA to ensure that our residents are4 protected.5

And that's6 why I raised the issue, because I have a7 concern that that issue may be raised8 again, but I want you to understand also9 this is our first foray as the10 legislative body into this process.11 Perhaps we should have been here earlier,12 but we're here now, and certainly the13 Administration, we attempt to cooperate14 with them on all the things that they do,15 but there are times when each of us or16 many of us have some disputes and we need17 to hash it out.18 So we too want to see our19 airport be profitable and effective and20 expand in rational ways so we can21 accommodate the increased tourism and22 commercial traffic, but recognize that23 there's not an enemy -- there's no24 enemies on this side of the table here.25 80 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 REPRESENTATIVE MICCARELLI: And2 we understand that.3

And4 understand from my personal perspective,5 and I'm 52 years old. I guess when I was6 back in the -- I was born in '58. So7 sometime in the '60s in my neighborhood8 in South Philadelphia, another federal9 agency made a decision that -- it wasn't10 the FAA; it was the U.S. Department of11 Transportation -- to build an interstate12 highway through a neighborhood in South13 Philadelphia from Queen Village, which14 wasn't Queen Village then, it was 2nd and15 South, all the way down through Delaware16 County and took literally hundreds of17 homes and changed and destroyed the18 fabric of that neighborhood, because19 where that superstructure sits now, which20 carries all those people back and forth,21 there used to be living there, which was22 a vibrant neighborhood also.23 So I have a historical24 perspective on federal government25 81 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 decisions on people's lives, so...2 REPRESENTATIVE MICCARELLI:3 Certainly, Councilman. And as Senator4 Erickson said earlier, we certainly look5 forward and we certainly share your --6 many of your frustrations in the process7 that has gone on so far and the way that8 this has been dictated to many, not only9 our residents but our elected officials10 at a county level and a state level.11 I would also say that the I-9512 example is a good one. There are many13 other ways. There are many other ways14 that we can go about implementing this15 Capacity Enhancement that do not include16 removing people from their homes. So as17 I understand it, it is one option. There18 are certainly ways that we can go about19 doing it and accomplishing the same goal20 of generating revenue for the region21 without displacing citizens.22

25 82 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 COMMISSIONER WHELAN:2 Councilman, my name is Jack Whelan and3 I'm the Chairman of Delaware County4 Council. 9 I want to start by simply10 saying that on Delaware County Council,11 we recognize the importance of the12 Philadelphia International Airport. We13 recognize it as a very viable economic14 engine, and we appreciate it. I can tell15 you from Council's position, outside of16 the issue of public safety, we spend a17 tremendous amount of time on economic18 development, and part of that is19 certainly the Philadelphia International20 Airport. It was very helpful to bring21 Harrah's Casino as one of the first22 casinos in this region before23 Philadelphia had their casinos in the24 City of Chester, which has been a25 83 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 tremendous asset to us. The Airport2 helps with that. Of course, bringing3 Major League Soccer into the City of4 Chester and into Delaware County, it's5 very important that we have a viable6 airport. 12 However, the Airport cannot13 simply engage in activity that is going14 to be detrimental to the residents of15 Delaware County, and there has to be some16 limitations, there has to be some17 controls, and we've come up with18 solutions. 21 Personally, I have spent about22 five years at this point in time working23 on issues with the Philadelphia24 International Airport and how they affect25 84 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Delaware County. It started, as alluded2 to by Mr. Gale, with the Flight Redesign3 Project that the FAA had instituted, and4 I can tell you from the constituency in5 Delaware County that when the FAA came in6 and gave the ability of the pilots to7 turn over Delaware County, we had8 thousands of people coming out in9 protest. There was a hearing set up. I10 believe it was at the Holiday Inn on11 Route 291. 15 That continues today. However,16 we're somewhat lucky in that when the FAA17 first came into Delaware County, they had18 proposed three aerial gates to turn over19 Delaware County, three aerial gates to20 turn over New Jersey. After repeated21 lawsuits, which were unsuccessful and22 very financially prohibitive, but after a23 period of time and years of litigation,24 which ultimately went to the District25 85 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Court of Appeals in Washington where I2 was present, ultimately what resulted3 from all of that litigation, all of the4 negotiations and all of our positions is5 one aerial gate. Instead of the planes6 going strictly at a heading of 250 over7 the Delaware River, now they're able to8 go at a heading of 268, which is over9 some land in Delaware County. 14 We today still get complaints15 in Delaware County over that. We have16 people calling. There's a noise hotline17 that's operated by the Airport. It's18 constantly busy. 22 I can tell you that the people23 in Tinicum have suffered with the24 Philadelphia International Airport for25 86 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 11 I can tell you that my12 negotiations through Tinicum Township13 officials, Tinicum has been more than14 reasonable, the officials in the City of15 Tinicum. They've approached16 representatives from the Airport and the17 City of Philadelphia, and they have said18 that we are willing to negotiate with19 you, but we don't want to have the runway20 into the residents. 25 87 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 But the problem is that the2 Airport wants to create additional3 runways, expand current runways, and4 that's going to have a devastating effect5 not only, though, on Tinicum Township,6 because we've heard a lot about Tinicum7 here today so far, but it's going to have8 a substantial impact on Prospect Park,9 Ridley Township. It's going to have a10 substantial impact on the City of11 Chester. It's going to have an impact on12 Sharon Hill, Folcroft, Glenolden.

All of13 these smaller municipalities that are14 affected by the Airport would certainly15 be affected by the Capacity Enhancement16 Project. 23 Mr. Gale said you're going to24 hear a lot about noise. Well, noise has25 88 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 been a problem. 5 It's going to be a greater problem once6 the Capacity Enhancement Project is7 completed. And it's not fair to the8 residents of Tinicum Township. 16 So it's been a constant problem17 in Delaware County, especially in these18 communities, but we've got complaints19 from Rose Valley, Swarthmore, Nether20 Providence, Upper Providence over air21 traffic. And it becomes even more of a22 problem when the weather is affected,23 like yesterday as Mr. 24 It's even more of a problem then. Our25 89 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2

12 One of the things -- when we13 had hired experts when we were in our14 litigation, we were at the height of the15 litigation, we had experts, and those16 experts came in and they consulted with17 Delaware County Council, and what they18 said to the County Council -- and I think19 you've alluded to it earlier when you20 made your statements, and, that is, that21 80 percent of the flight delays in22 Philadelphia International Airport are23 weather related. 25 90 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Now, I understand that there's2 new technology, and Mr. Gale referred a3 little bit to that. 8 Steve Kelly from the FAA had briefed us a9 little bit on that in the past. 12 But when you look at who uses13 the Philadelphia International Airport --14 there was a question by the Councilman as15 to who makes up the -- who is the patrons16 of the Philadelphia International17 Airport. The predecessor of Mr. Gale,18 Mr. Isdell, had told me personally -- and19 this statistic may have changed -- that20 almost 50 percent of the users of the21 Philadelphia International Airport come22 from the State of New Jersey. So it only23 makes sense, Councilman Kenney, that if24 we are going to expand operations, that25 91 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 4 They have the room to expand, and they5 have the willingness to expand. I was6 personally contacted when we were dealing7 with the Flight Redesign Plan and the8 opposition to the Flight Redesign Plan by9 the representatives from Lehigh Valley10 International Airport. 20 And New Castle County is another21 underutilized airport. Those three22 airports that actually form a triangle23 right around the area of Philadelphia24 could be used to expand. And I'm not25 92 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 suggesting that commercial flights go2 over to these. 17 This has never been explored. It's never18 been utilized, and I believe that the19 reason is because the airlines are20 probably against it. 24 So we need to give the airlines25 93 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 8 And I understand Mr. Gale wants9 to get all these people into Philadelphia10 International Airport. I understand11 that. I understand the business12 associated with it, but it comes at a13 price and it comes to a point, so we need14 to look at other options, and that's what15 Delaware County Council has been16 suggesting. 22 And this is only a couple of miles from23 the Airport. Right in the immediate24 vicinity of the Airport in the Delaware25 94 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 County area, you have 8,000 kids that go2 to school, multiple hospitals in that3 particular region. So God forbid there4 was an incident with a bird strike or a5 plane that had to land. 9 Delaware County has always been10 supportive of the Airport. We've always11 been supportive of the City of12 Philadelphia. Delaware County Council13 works closely with Mayor Nutter. Mayor14 Nutter had formed the Metropolitan15 Caucus, which is the five counties to16 come together to talk about regional17 issues. Now, we haven't talked about the18 Airport, I think for obvious reasons,19 because of Delaware County's position and20 Delaware County's concern, but we have21 talked about other issues such as22 regional development, emergency23 preparedness, and we understand as what24 you said earlier, terrorism, natural25 95 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 3 Delaware County is here to4 support the City of Philadelphia and the5 need, and we know that Philadelphia is6 here to support Delaware County. 12

Thank you13 very much for your testimony. And it14 seems you spent so much time on airport15 issues, you could fly a plane.16 COMMISSIONER WHELAN: I feel17 that way, but I wouldn't get in the plane18 with me.19

About20 turning radiuses and 260 degrees and21 3,000 feet. S. 23 I'm sorry. 25 96 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 COMMISSIONER GIANCRISTOFORO:2 My name is Tom Giancristoforo. 13 While called the Philadelphia14 International Airport, in reality both15 Tinicum Township and Delaware County have16 a larger stake in the operations of the17 Airport than does the City of18 Philadelphia. Approximately two-thirds19 of the Philadelphia International20 Airport, including its runways, lie21 within borders of Delaware County; more22 specifically, Tinicum Township. The23 question one might ask under these24 circumstances is why Tinicum Township and25 97 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5 The Airport's Master Plan and6 Alternative A under the Capacity7 Enhancement Program will result in8 irreparable harm, create the most9 disruption and require the biggest10 sacrifice of existing homeowners and11 businesses within Tinicum Township. The12 Airport expansion will serve as a giant13 economic boon to the City of14 Philadelphia, while creating enormous15 social and environmental harm to the16 surrounding community. Neither the17 City's Master Plan nor the Environmental18 Study serve as either a reasonable or19 feasible plan as required under the20 provisions of the National Environmental21 Policy Act. Reasonable alternatives to22 solve the congestion and delay problems23 in the Philadelphia Airport have not been24 fully or sufficiently considered. The25 98 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Board of Commissioners of Tinicum2 Township feel that there continues to be3 an urgent need for this Joint Committee4 to propose further studies on a number of5 issues before casting its vote. 25 99 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 The social and environmental2 issues impacting Tinicum Township and3 Delaware County under the Master Plan and4 Environmental Study which is presently5 before you cannot be understated. The6 residents of Tinicum Township, one of the7 oldest communities in Pennsylvania, have8 been under a constant and growing barrage9 of harmful effects arising from the10 Airport's operations, none of which11 immediately impact any resident of the12 City of Philadelphia. Tinicum Township13 residents have seen a dramatic increase14 in noise, air and water pollution15 affecting all of its residents and16 businesses. 19 Expansion of the Philadelphia20 International Airport will have an21 immediate and severe environmental impact22 to the John Heinz National Wildlife23 Refuge with adverse effects on the24 migration of wildlife and the ecosystems25 100 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 23 The loss of tax revenue to24 Delaware County and of our school25 101 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 district and Tinicum Township will strike2 a serious blow to the community's needs3 to provide public service to its4 residents. Would the City's5 non-challenged approval be so quick and6 easy if we stood before you as residents7 and taxpayers of the City of8 Philadelphia? 16 For a number of years, Tinicum17 Township has made every effort to reach18 out to the City's leadership in an effort19 to find a common solution to mutual20 issues of interest to Philadelphia and21 its surrounding neighbors, only to find22 the City unwilling to compromise. While23 we consider legal options as a last24 resort, we have found that the City's25 102 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 lack of interest in a resolution leaves2 us no recourse. 23 And in closing, I would just24 like to ask that the record remain open25 103 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 for additional rebuttal to Mr. 3

Thank you4 very much for your testimony. I5 appreciate it.6 Who is up? Good afternoon.7

Good afternoon,8 Councilman.9

Please10 identify yourself.11

My name is Brian12 Razzi. I'm a School Board Director of13 the affected school district, Interboro,14 and I appreciate Council's time and15 willingness to listen to our problems16 here.17

Thank you.18

I'd like to read a19 short statement.20

Yes. Thank21 you.22

Our school district23 will lose over $2 million a year in tax24 revenue if this plan currently is25 104 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 implemented. That is almost five percent2 of our school budget. Unlike the City of3 Philadelphia schools that receive 724 percent of their funding from the state,5 we at Interboro receive less than 106 percent.7 Our budget is mostly funded by8 tax dollars of the local residents and9 businesses. The Tinicum school that will10 be affected has just been awarded a11 National Blue Ribbon by the federal12 Department of Education, one of only 1313 schools in the entire State of14 Pennsylvania and one of only 300 schools15 in the entire country.16 If the expansion is approved,17 this plan will displace over 25 percent18 of this Blue Ribbon school's students.19 Please think of how this will affect20 these students, who worked so hard to be21 one of the best schools in not only the22 state but the country.23 In closing, I'd just like to24 ask you to please imagine if this school25 105 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 was in a Philadelphia neighborhood like2 Fishtown, Rittenhouse or Queen Village.3 Please ask yourself if you would still4 support this project.5 Thank you for your time.6

Thank you7 very much for your testimony.8 Senator.9 SENATOR ERICKSON: Councilman,10 may I just mention one other thing,11 please?12

Yes, sir.13 SENATOR ERICKSON: We also have14 with us today Joe Hackett, who is a State15 Representative-Elect. Joe is sitting16 back here.17

Thank you.18 Are there any other elected19 officials that would like to be on the20 record?21 (No response.)22

Seeing23 none, I don't think there's any24 questions. We hear you loud and clear,25 106 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and we appreciate you taking the time to2 come in.3 I would suggest that -- I mean,4 this is the first time I can remember in5 my 20 years here of having this kind of6 dialogue with a county government from7 outside of Philadelphia or from state8 legislators from outside of Philadelphia,9 but I would leave that door open for10 further discussions on other issues,11 whether they are public safety related or12 Airport related or anything else,13 economic development. I think we would14 do ourselves well to continue to work15 with each other, not only with the16 Administration but the legislative body.17 Councilwoman Brown has a18 question.19

Good20 afternoon, gentlemen. I want to be sure21 I heard what I think I heard. Are you22 suggesting that there have not been23 consistent, regular, deliberative24 discussions around this plan with the25 107 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 immediate community that's going to be2 impacted? Is that what I'm hearing here?3 COMMISSIONER GIANCRISTOFORO:4 We have had communications --5

Just6 identify yourself.7 COMMISSIONER GIANCRISTOFORO:8 Tom Giancristoforo, President of the9 Board of Commissioners in Tinicum10 Township.11 Yes, we've had numerous12 meetings with Ms. Cutler and people from13 the Philadelphia International Airport,14 but honestly, we've gotten nowhere.15 We've tried to sit and bargain, and our16 main sticking point here is stay away17 from the residential homes. We have to18 consider this is the hardest times that19 people are going through right now. And20 we have senior citizens, we have retired21 people living in this area that they want22 to take their homes. They want to buy23 the homes. I say take. No; they want to24 buy the homes.25 108 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

Sure.2 COMMISSIONER GIANCRISTOFORO:3 And imagine yourself being retired, your4 wife being retired and you're enjoying5 life a little bit and have to move now6 and start over again. And the price of7 homes in Tinicum Township, where are they8 going to move to when they get what the9 value of their home is in Tinicum10 Township? Our home values is quite11 different than Springfield or12 Concordville, if you're familiar with13 that kind of area. You're talking about14 $300,000 homes, and Tinicum averages15 maybe $150,000 to $200,000 homes.16 So this is what hurts me the17 most as President of the Board, is that18 we have people that are going to be19 drastically affected. Their lives are20 going to be drastically affected.21

Change22 forever in many ways.23 COMMISSIONER GIANCRISTOFORO:24 Yes. Yes. Can you imagine being retired25 109 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and you're just settled down and you're2 trying to enjoy life and, hey, you got to3 go out and buy a new home because they're4 coming in to take your home. For what5 reason?6

Allow me7 to take this a step further. So the8 yield of those meetings have been written9 correspondence which stipulates that the10 ask and the proposals of the residents is11 not acceptable or not doable, or what?12 Because we live in a world where if it's13 not in writing, it doesn't exist.14 COMMISSIONER GIANCRISTOFORO:15 The residents do not want -- they don't16 want this expansion into the residential17 area. We have commercial property that18 the Airport has been looking at, and I19 think earlier Mr. Gale's testimony, the20 Scott Plaza, that has not -- we have not21 even been approached about the Scott22 Plaza property. I know it's been a23 desire of the City -- of the Airport for24 many years to acquire that property, and25 110 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 I don't have a problem opening up a2 dialogue for them to acquire that3 property.4 Another property was the5 Henderson track. There's a lot of open6 space there. There's, I believe, I'm7 going to guess, 110 acres. We don't have8 a problem opening up a dialogue in9 talking about the Henderson track.10

As an11 alternative location proposal?12 COMMISSIONER GIANCRISTOFORO:13 Well, yes, as an alternative. Open14 space, you know, we can sit down and15 talk. We can negotiate. But when you16 tell me you're coming in and taking17 70-some homes, we can't even talk about18 allowing expansion of the Airport one19 inch into Tinicum Township if that's the20 attitude.21 It's very frustrating to us.22 We've worked with the Airport for many,23 many years and we want to be a good24 neighbor to the City of Philadelphia.25 111 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

Thank you.2 Representative.3 REPRESENTATIVE MICCARELLI: If4 I may, Councilwoman, just to kind of5 piggyback on Commissioner6 Giancristoforo's statements. From a GAO7 report -- and these are not our words;8 this is from a GAO report in May of 20109 regarding meetings and an attempt at10 dialogue. "Airport officials in11 Philadelphia have told us they do not12 want to support federal efforts,13 including regional airport planning, that14 could lead to losing or diverting flights15 from their airport to other airports in16 the region."17 So to say the tenor of the18 meetings was unproductive may be an19 understatement.20

Okay,21 then. Thank you very much. I needed to22 know that that is what I thought I heard.23 Thank you very much.24

And, again,25 112 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 thank you very much for coming in. We2 appreciate your point of view.3 (Thank you.)4

Mr. McCann,5 Ms. Waldrek and Mr. Kalesnick, please.6 (Witnesses approached witness7 table.)8

Good9 afternoon. Thank you for your10 attendance. Whoever wants to go first,11 please identify yourself for the record.12 MR. McCANN: Good afternoon.13 My name is David McCann and I am14 President of the citizens group called15 RAAED, which stands for Residents Against16 Airport Expansion into Delaware County.17 I have some prepared statements18 that I wanted to read to make sure that19 we got some things on the record, but I20 also wanted to mention that some of the21 things that are contained within my22 prepared comments have been addressed.23 Actually, a perfect example was State24 Representative Miccarelli's remarks about25 113 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 that Government Accountability Office2 report, which we would be happy to3 furnish to this Committee, showing the4 City Airport officials' lack of tolerance5 or concern with working with airports in6 the region.7

Your formal8 testimony will be entirely recorded for9 the record. So anything you want to add10 relative to your feelings about the issue11 is fine, but whatever you hand in will be12 done as part of the permanent record.13 MR. McCANN: Very good. Thank14 you.15 I'll go through my prepared16 statements rather quickly, again, because17 some of the issues contained in them have18 already been mentioned, but I also have19 some comments. So I certainly -- I'm20 going to make sure that I address it21 again, but I really want to take an22 opportunity to thank you for doing this.23 I really mean that.24

You're25 114 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 welcome.2 MR. McCANN: It's very3 refreshing to see that you're taking this4 thing seriously, and to hear your remarks5 when you prefaced this discussion here6 today about recognizing that we're all7 Pennsylvanians, recognizing that this8 Airport is important to all of us and9 that we're all supposed to be on the same10 team, to hear that come from you really11 gives me some optimism that we'll be able12 to make some progress, and I appreciate13 that.14

17 MR. 22 Immediately following the hearing you23 will meet to consider the action to be24 taken on the plan and the study. We are25 115 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 a citizens group whose members live2 primarily in and around Tinicum Township,3 Delaware County. We see our community4 facing gradual extinction as PHL5 continues to expand further and further6 into Delaware County. 11 The PHL Master Plan you will12 consider involves the Capacity13 Enhancement Program that will cost14 billions of dollars to implement, but15 will fail to eliminate or even come close16 to alleviating aircraft congestion and17 delays at PHL. 24 Viewed in modal isolation, the FAA25 116 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 In reality, they are not. 7 Official FAA documents reports8 by the Office of the Inspector General of9 the Department of Transportation, the10 Government Accountability Office and the11 Transportation Research Board12 convincingly demonstrate that an13 additional runway at PHL will not reduce14 delays. 22 And so you can add runways and it's not23 going to make a difference, because we're24 still going to play second fiddle to the25 117 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 3 The Federal Aviation4 Administration's Projected Future Demand5 and Capacity Report, which is the6 capacity needs in the national airspace7 system 2007 to 2025 analysis of airports8 and metropolitan area demand and9 operational capacity in the future, finds10 that even with planned expansions and11 improvements, the New York, New Jersey12 and Philadelphia airports will all13 experience severe congestion in 2025 with14 lengthy flight delays, requiring yet more15 capacity expansions. 18 31, it also says that innovative19 approaches to addressing aviation20 capacity issues in costal mega regions21 makes it clear that the major of airports22 on the east and west coast, including23 Philadelphia International Airport, are24 already operating beyond capacity and are25 118 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 4 This report finds solutions to5 the demand capacity gap problem must6 include airline acceptance of market7 measures, including flight caps and slot8 pricing, reliance on underutilized9 existing nearby airports and shifts of10 some air traffic to surface modes. 24 A recent report by the Office25 119 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 of the Inspector General of the United2 States Department of Transportation3 concludes that in the New York region,4 the three principal causes are a small5 and densely occupied airspace, limited6 capacity among the region's three main7 airports, and continued growth in air8 traffic. 22 The airspace congestion and23 airport delays in the New York area spill24 over to PHL, which shares much of the25 120 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 same airspace, as I had mentioned earlier2 with the internal FAA memo. 7 Adding more runways at Philadelphia8 International cannot overcome this9 problem. Further, even if somehow this10 weren't the case and the Next Gen and11 Airspace Redesign could eliminate New12 York and New Jersey delay impacts on13 Philadelphia International, adding one14 more runway at an enormous cost of over15 $6 billion cannot dramatically increase16 landing capacity. Only one plane can17 land on a runway at a time. The chosen18 Capacity Enhancement Program Alternative19 A also constrains potential capacity20 because of the need to hold planes that21 need to cross an active runway until22 inbound and outbound plane traffic clears23 and the need to coordinate traffic on two24 active intersecting runways, which is25 121 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 What all this means is that the3 Capacity Enhancement Program is a hugely4 expensive and fatally flawed effort to5 increase PHL's capacity and reduce flight6 delay. 19 There are better ways of20 addressing current and future21 transportation needs than spending22 taxpayer and investor funds.

These start23 with establishing a new integrated24 intermodal national transportation plan25 122 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5 If you would like additional6 information, we would be happy to provide7 you with third-party documents which8 prove to be helpful. 21 The FAA's typical "trust us, we22 are the experts" approach is not23 acceptable. Billions of taxpayer and24 investor dollars are at stake, as is the25 123 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5 As stated above, there is a6 critical need for regional transportation7 infrastructure that will support economic8 prosperity, and regional planning must9 occur and action must be taken. " It is19 important to point out even the Capacity20 Enhancement Program and the Airport CEO's21 testimony earlier today, this is a22 national problem. The delays that occur23 at Philadelphia International Airport are24 having a negative impact on our entire25 124 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 national economy, because it's causing2 delays at other airports. 5 This is an attempt to provide the6 impression that these officials are7 acting in the region's and nation's best8 interest and that full consideration to9 those needs was undertaken, and that is10 not true. And I think the greatest11 example of that rather to be redundant is12 just to go back and cite the report that13 State Representative Miccarelli had just14 put in there. That Government15 Accountability Office report was designed16 to investigate these problems with17 airport delays and congestion, and the18 reality of the situation is, even with19 federal support, meaning that there'll be20 federal funding to try and work into a21 regional airport planning, Airport22 officials in Philadelphia are on the23 record in that report as not willing to24 support that if it means losing or25 125 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 3 There's also been some4 inconsistencies when you've tried to5 speak. 12 First of all, I want to13 compliment Councilman Kenney here. When14 you made reference to the CEO up here15 when you said, well, it's not taxpayer16 dollars, it's not really a factual17 statement, because in reality, we all are18 paying that, those that service -- that19 use the Airport, and that is the kind of20 gamesmanship, if you will, or shell games21 that you see these organizations play22 when I'm talking about officials from the23 Airport and the FAA with some of these24 meetings. And I'll give you some25 126 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 4 There was the Airspace Redesign Project,5 and then there was the Capacity6 Enhancement Program. When they would7 hold these meetings in public, people8 would attend and they would have a9 question. Now, the one thing that all10 three of those programs have as a common11 denominator is addressing congestion and12 capacity problems at Philadelphia13 International Airport. But when you14 would attend a public meeting on that,15 officials from the FAA would not respond16 if it wasn't about that particular17 program. In other words, to try and18 effectively fight this as a citizen, you19 would have to find time to make sure that20 you could attend all these different21 meetings on all these different programs22 to try and do this, and you're going up23 against people who are there being paid24 to be there, you're going up against25 127 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 20 There was a Rutgers University21 study that was done that showed if you22 were to divert merely 10 percent of the23 air traffic at Philadelphia International24 Airport, the average flight delay would25 128 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 go from 23 minutes to 9 minutes, just2 with 10 percent.

And when the federal3 government does an investigation and4 looks at the fact that perhaps we'll be5 able to spend federal dollars to do a6 true regional airport planning, and7 Philadelphia officials at the Airport8 say, absolutely not, we're not interested9 in any kind of regional planning. So it10 really infuriates me to sit there and11 listen, to see press releases come from12 Mayor Nutter's office, to see the Airport13 CEO or other people from the Airport go14 on record as saying it's so important to15 the region, this is so important for the16 region, but they don't act in the17 region's best interests, and that's18 proven. We have those Government19 Accountability reports. 21 It's time to put all the cards22 on the table and acknowledge that it is a23 shortsighted political priority to try to24 stuff every single plane into that one25 129 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 airport because it produces direct2 revenue into their coffers. That's a3 fact. 4 But I'm very encouraged by the5 reaction that I'm seeing today from City6 Council to see this dialogue, to see this7 willingness. And I have to say, normally8 I would be surprised by it, but9 considering my dealings with these people10 at these meetings, I'm not surprised to11 hear that you've been left out of the12 loop, that this program has been going on13 for ten years and there's never really14 been a serious discussion with the15 legislative body of City Council. 21 And I also want to make sure22 that we drive home a very strong point23 with us, too. Sometimes people can be24 confused and they think that we're25 130 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 against the Airport. That's not true at all. Tinicum is the first permanent settlement7 in Pennsylvania, 1643. This is where8 Pennsylvania started. We like having the9 Airport there. It employs a lot of10 people in our community. 15 However, you have to look and16 see, you're not going to work with these17 other airports. You're not going to use18 Northeast Airport. We're reasonable19 people. 25 131 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 There was testimony at a2 township hearing that I have the3 transcripts from where the City's4 Aviation Solicitor admitted the runways5 at Northeast Airport are long enough to6 handle commercial air traffic. 22 So our point is, if you don't23 want to work with other airports in the24 region, then use the other airports you25 132 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 own. I'm sure that the improvements or2 expansions that can be done there would3 be a lot cheaper than the $6 billion4 price tag, which ironically the questions5 that Councilman Kenney produced earlier6 started to develop ideas now that it's7 going to be more than 6 billion. 13 Part of what's quoted in that resolution14 is expanding the Airport's environmental15 commitment. Now, you've got to stop and16 think. They want to fill in 24 and a17 half acres of the Delaware River. S. Army Corps of Engineers. They want21 to relocate a Sunoco fueling pier. They22 want to shut down Hog Island Road, which23 Congressman Meehan referenced would cause24 all kinds of truck traffic into our town25 133 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 3 You've got to think about this. Billions4 of dollars, filling in 25 acres of the5 Delaware River. 9 And I certainly would want to10 pledge again our support to work with11 your group. And I only have a couple12 more points, because I know that our13 founding member --14

I just want15 to give you a timing issue. We're16 running up against a License and17 Inspection hearing, which is scheduled18 for 3:00. We'll go a little bit over,19 but I don't want to --20 MR. McCANN: Well, in the21 interest then, Councilman, I will just22 leave you with one other point. I had23 had other information, but, again, it24 seems like --25 134 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

Well, you2 can provide us with other additional3 information.4 MR. McCANN: And I've actually5 spoken with your staff. They were very6 helpful, so it looks like we'll be able7 to have a meeting in the future. But I8 will direct everybody's attention to one9 final thing for me, and that was on10 October 11th. There was a press11 conference held by President Obama at the12 White House and it was dealing with13 transportation infrastructure, and it was14 a bipartisan press conference. He had15 secretaries of transportation from both16 republican and democratic administrations17 and he had governors and mayors,18 including Mayor Nutter, and part of what19 he was talking about with transportation20 infrastructure included all modes of21 transportation, including airports and22 runways. And the President was quoted as23 saying that we need to focus less on our24 shortsighted political priorities and25 135 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 more on our national economic priorities.2 And I would submit respectfully to this3 legislative Board here that trying to4 stuff every single airplane coming into5 Philadelphia into that one airport to6 maximize your own revenue rather than7 opening up to a regional dialogue and8 regional planning is nothing more than a9 shortsighted political priority that is10 not focusing on our national economic11 priority.12

Thank you13 for your testimony.14 Please identify yourself.15

Dolores Waldrek.16

Dolores,17 please pull that microphone closer to18 you. Thanks.19

23 Good afternoon, ladies and24 gentlemen of Council. My name is Dolores25 136 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Waldrek and I am one of the 72 residents2 you want to displace at fair market3 value, which doesn't seem fair to me4 since I'm not the one to initiate the5 sale. I have a very comfortable home,6 except for the Airport traffic, but I7 chose to move there 24 years ago. 12 I wish they would look13 internally to the operations of the14 Airport, which creates its own delay15 problems, instead of disrupting a16 community, displacing a neighborhood,17 filling in almost 25 acres of the18 Delaware River, taking out over 80 acres19 of wetlands, destroying ecosystems,20 relocating a Sunoco pier, rerouting a21 railroad, closing Hog Road making a22 dangerous safety issue for the residents,23 just to name a few aspects of the Master24 Plan, while all along ignoring studies25 137 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 4 They're willing to move the UPS5 corporation to a new state-of-the-art6 facility at no expense to them, but are7 going to put my family into financial8 debt, all for the sake of an expansion9 project that may not even work. 18 Then there's the burden to19 Delaware County taxpayers, the Interboro20 School District, and as Mr. Razzi said21 earlier, Tinicum Elementary was awarded22 the Blue Ribbon of Excellence. 24 I'd like to ask Mayor Nutter,25 138 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 is that putting children first? 8 This huge loss can be made right if9 billions of dollars generated annually10 were distributed fairly beyond your11 borders, at least to match the extent the12 Airport extends into our borders. 17 Additional noise and pollutants18 seem to be the only things you're willing19 to offer. The time, resources and20 millions spent on the sound insulation21 program will be wasted when condemned and22 sent to landfills. Yet another slap in23 the face of citizens trying to live24 within their means and manage their25 139 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 They have not been a good3 neighbor. In fact, it sounds much like4 merry old England's attitude towards the5 colonists. As Mr. McCann said, we are6 the first permanent European settlement7 in the Keystone State. 11 What is fair? If Alternative A12 is to become reality, then fair market13 value for my home would be anything but14 fair. Residents fixed on income, senior15 citizens, single parents, young families,16 new homeowners with no equity, people17 already hit with the present economical18 woes would be hard-pressed to recoup such19 losses. 22 What is fair? To make every23 effort to keep my family whole and not24 put me in a hole, not to be burdened with25 140 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 a new mortgage that I did not initiate,2 not to be punished for maintaining my3 property and paying my share to live in4 Tinicum, a close-knit community built on5 family values, and not to be bullied by6 the City of Brotherly Love and forced out7 through condemnation. 18

Thank you19 very much for your testimony.20

There's just one21 other thing I wanted to add as I rushed22 through. I'm sorry. I wanted to draw23 your attention to Council that Mayor24 Nutter in this past October created a25 141 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 19-member Advisory Board for the Airport,2 and I look at the list and I see that --3 I believe somebody from that Commission4 is going to be testifying. I wanted to5 make you aware that our town, it's no6 secret, we're the most impacted by the7 Airport. How many of those 19 members8 are from Tinicum Township on that Airport9 Advisory Committee?10

I would11 venture none.12

Zero. That's13 correct. So when you heard President14 Giancristoforo express frustration about15 when we deal with Airport officials, how16 you justify having 19 people on a board17 and you don't have one from the town18 that's most impacted gives you an idea of19 what we've been experiencing, just like I20 found out you've been experiencing being21 in the dark for ten years.22

Thank you.23

Thank you.24

Please25 142 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 identify yourself for the record.2

Frank3 Kalesnick.4 I'd like to thank the Council5 for having us here today. I'd like to6 apologize for not having a written7 statement, because I wasn't aware that I8 was going to testify today.9

That's10 fine.11

But I'm one of12 the 72 homes. My parents bought that13 house in the '40s. They've raised eight14 children in it. I've been in it for over15 50 years. I've raised six children in16 it. And it hits me on a personal note.17 If somebody -- if I want to leave my18 house, I want to be able to leave my19 house because I want to, not because20 someone is telling me that I have to21 leave.22 I have brothers that live23 within the 72 homes. Three of them will24 be displaced. I have cousins. I have25 143 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 nieces that live in the same2 neighborhood. And it's a personal note3 and it's a family.4

I hear you.5

That's all I6 have to say.7

I8 appreciate you taking the time to come9 in, put a human face on it. Thank you.10

Thank you.11

Thank you12 very much for your testimony.13

Thank you.14

I'm sorry.15 Councilwoman Brown.16

Just 3017 seconds. Activism is exceedingly18 important, and I need to commend you on19 your leadership. It's strong and it's20 clear and for your members of the 7021 homes really representing and, as22 Chairman Kenney said, putting a face on23 those families who potentially will be24 impacted, we really do appreciate your25 144 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 testimony.2 (Thank you.)3

Thank you.4 John Saler and Jack Ferguson,5 please, and Mr. Morr and Ethan Ross. You6 can come forth as a panel, please.7 (Witnesses approached witness8 table.)9

Mr. Saler,10 I assume you're going to lead us off.11 Please identify yourself.12

Chairman Kenney,13 Chairman Jones and members of the Joint14 Committee, my name is John Saler. I was15 recently named Chairman of the16 Philadelphia International Airport17 Advisory Board by Mayor Michael Nutter.18 I also serve as Chairman of the19 Government and Public Affairs practice20 group at the law firm of Stradley Ronon21 Stevens and Young, and I appreciate the22 opportunity of testifying to the Joint23 Committee.24 Back in 1987, Mayor W. Wilson25 145 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Goode asked me to serve as a Board member2 on the Airport Advisory Board. I served3 in that capacity for 12 years under both4 Mayors Goode and Rendell.5 Back then, the Airport had6 basically three terminals and a very7 large architecturally hideous Quonset hut8 known as the International Terminal.9 There were only a few flights to Europe10 and only maybe two were direct.11 Basically, PHL was a commuter airfield12 with a baggage delivery system that13 rivaled the Pony Express.14 Fast forward to present day and15 I'm proud to say Philadelphia16 International is a vital, thriving,17 pardon the pun, top flight airport. It18 is the economic gateway to the Delaware19 Valley and the 11 surrounding counties,20 pure and simple. It affords this region21 jobs, jobs and more jobs, some 141,00022 jobs to be exact that our Airport23 generates.24 As Mark Gale explained earlier,25 146 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 the Capacity Enhancement Program will2 generate another 45,000 construction jobs3 for approximately 12 years. However,4 there are costs to expansion, the real5 dollar tangible costs as well as the6 human cost, which we just listened to.7 We know all about that, and I think we8 all agree that the human cost is probably9 more important than any. And I think10 that we would like to alleviate a lot of11 those costs as much as possible, because12 if we don't come to terms with this great13 economic gateway to the Delaware Valley,14 it could close for business in the eyes15 of the foreign and domestic corporate16 traveler, and I would hate to see our17 first-class international status end up18 in the proverbial baggage compartment19 forever.20 Thank you.21

Thank you22 very much.23 Please identify yourself and24 proceed.25 147 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

Thank you,2 Councilman Kenney and Councilman Jones3 and members of City Council Joint4 Committee, for having me here today to5 support the Resolution 100638,6 Philadelphia International Airport's7 expansions defined as the Capacity8 Enhancement Program. 9 I am the incoming President and CEO of10 the Philadelphia Convention and Visitors11 Bureau, the official tours and promotion12 agency for the City of Philadelphia. We13 are responsible for the marketing and14 selling of Philadelphia as a convention15 group tour and international tourism16 destination. We compete with our17 counterparts around the globe to18 generally generate more than $1 billion19 in economic impact annually in the City20 and the region for its businesses and21 residents. 24 In a recent survey of national25 148 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 meeting planners called Metropoll, 6422 respondents said the ease of getting to a3 destination is among the top three4 reasons cities are selected for5 conventions. Convenient airline service6 is extremely important when site7 selections are made. 11 Our customers want to know that12 as we expand the Pennsylvania Convention13 Center, we must expand our hotel package14 and our air service that we offer. 21 The number one priority to us22 is getting -- to us getting there is to23 have a most efficient and effective24 airport. Continued growth and efficiency25 149 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 The airlines and the FAA are3 managing and running their operations in4 the airspace with more success, but5 considering the dense air traffic in the6 northeast, Philadelphia must expand the7 runways or the Airport will remain status8 quo when it comes to efficiency and9 travel. 219 million visitors per year. 24 An emphasis on the Airport expansion will25 150 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 7 Under the leadership of Charles Isdell8 and now Mark Gale's leadership, we lured9 new flights here. As a result of the new10 flights, new people and new money started11 to come here, generating a greater12 economic impact. 18 In order to grow as a19 destination and compete for leisure and20 business visitors from overseas, we must21 also add direct service from faster22 growing markets of China, Brazil, South23 Korea, Japan and India. We are now the24 only major city in the United States25 151 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 without connections to those fast-growing2 markets. 7 According to research done by a8 major credit card company, rapid growth9 is already occurring in visitations to10 Philadelphia from China and Brazil, where11 expenditures from travels have doubled in12 the past year. S. associations and16 societies offer the leading annual17 meetings of their kind in the world. For18 example, the American Society of19 Nephrology has 55 percent international20 travelers. The American College of21 Rheumatology has 65 percent22 international, and like the international23 trade show arriving in Philadelphia just24 after the Center expands is the largest25 152 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5 The Infectious Disease Society6 of America in 2009 had 25 percent7 international attendees. 9 Of the 50 large conventions that we10 annually book into the Convention Center,11 nearly 30 percent are international12 attendees. As the American Association13 societies and trade shows grow and14 Philadelphia is selected as the15 destination, more and more of these16 conventions and trade shows are growing17 in the numbers of international attendees18 from Western Europe, Asia and the19 emerging brick countries, especially the20 life sciences. In fact, 50 percent of21 all the business that goes into the22 Pennsylvania Convention Center is now23 life science related. These same groups24 demand efficient, hassle-free service in25 153 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 traveling to and throughout the United2 States.

Our primary example is BIO,3 which is returning in 2015, ten years4 after they last were here. A life5 science convention like BIO brings great6 business potential to the City,7 domestically and internationally. It's8 during these conventions that business9 takes a look at -- excuse me. 16 As everyone considers this17 today, please keep in mind the big18 picture. How do we grow as a destination19 and continue to generate new jobs and20 economic impact. The potential impact of21 these decisions is immense. How often22 have you been on a flight into23 Philadelphia and you've heard the airline24 crew saying there are delays in25 154 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 Delays and congestion will only3 grow if we don't make changes for the4 long term for the entire region. 12

Thank you.13 Before you start, it's14 interesting because your comments15 regarding Southwest reminded me of the16 first time I suggested that Southwest be17 given a few gates at the Airport, and the18 Administration at the time vowed to never19 let it happen and actually had an open20 meeting, a very public meeting, with the21 head of U.S. Air locally, telling --22 Mayor Street telling him, Don't worry,23 we're not going to let that happen.24 So I guess Administrations from25 155 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 time to time can be wrong in their2 approach to the Airport.3 The only other thing I would4 raise -- and this is something that5 Mr. McCann raised -- and this is not6 obviously -- Mr. Saler, this is not your7 call, but as Chairman of the Advisory8 Board, I too am kind of surprised that if9 the bulk of the land is in Delaware10 County, we have no members of the11 Advisory Board that are from Delaware12 County.13

We do. We have14 two. We don't have any from Tinicum.15

Oh, okay.16 Who are the --17

Andy Reilly, who is18 on the Delaware County Council, and Dave19 Woods, who is Chief of Staff to Senator20 Pileggi.21

I was not22 aware of that. I apologize.23 Mr. Morr.24

Chairman Kenney,25 156 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Chairman Jones, thank you very much for2 the opportunity to speak with you today.3 In the interest of time, I have prepared4 a written statement and I'll ask that it5 be submitted for the record. Let me just6 introduce myself and make a few comments.7 I am President and CEO of8 Select Greater Philadelphia, which9 markets an 11-county tri-state area,10 Greater Philadelphia, including11 Philadelphia County. That is -- and12 Delaware County, for that matter. That13 is intended to attract companies to14 locate or expand in our region.15 The organization is an16 affiliate of the Greater Philadelphia17 Chamber of Commerce and is the operating18 program of an organization called the CEO19 Council for Growth.20 Simply put, commerce has always21 occurred where trade routes cross.22 Today, trade routes cross at major23 international airports. This is really24 about the future competitiveness of the25 157 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Greater Philadelphia region. That's why2 the CEO Council believes that the3 Capacity Enhancement Program and the4 improvements at Greater Philadelphia5 International Airport are the number one6 infrastructure investment that's required7 to make us competitive as a region going8 forward.9 For the region to prosper, it10 needs to continue to compete effectively11 on a global scale, and to do that we have12 to be well connected to the national and13 global aviation network.14 Currently, as you've heard,15 Philadelphia International is sometimes a16 bottleneck, with delays that impact17 passengers here, the carriers and18 businesses all across the air19 transportation system. The reason FAA20 has spent time in an environmental impact21 process is to address the impact of this22 airport on the national system of air23 transportation, and improving that impact24 is a key element of this capital program.25 158 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Select frequently talks2 directly with companies who among their3 decision criteria are their ability to4 reach various parts of the country or the5 world through air transportation, and6 what we hear from those companies and7 frequently from site selection8 consultants is that there are times when9 Philadelphia International, the way it's10 configured today, is an impediment to our11 future economic growth rather than an12 enabler as it should be.13 We made a lot of progress over14 the last decade or so. Terminal A-West,15 the new Southwest gates, the security16 improvements that have been made and the17 people operating the Airport and leading18 this city have done a great job, but we19 can't stop there, that in order to20 continue the progress for us to compete21 in the 21st century, Philadelphia must22 expand and improve the service for all23 travelers who come in to the Greater24 Philadelphia region. Frankly, we believe25 159 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 that will not be possible without the2 Capacity Enhancement Program.3 We have heard a lot today about4 the desire to utilize other airports5 across the region in lieu of expansion at6 Philadelphia International.7 Unfortunately, we live in a world8 where -- a deregulated airline world, and9 that decision was made in the late '70s.10 Today, the carriers can operate wherever11 they want to. They don't have to operate12 where they're required to. If they13 wanted to operate at one of those other14 airports today, they could do that, but15 they choose not to because it's in their16 economic interest to operate at a major17 connecting point.18

Is that19 even with the terrible delays?20

I'm sorry?21

Is that22 even taking into consideration the23 terrible delays that are experienced at24 the Airport? I assume the time is money25 160 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 also. Distance is money and time is2 money.3

Remember that the4 airlines are responding to ultimately to5 the customer. So they go where the6 customer wants to be, and so --7

I'm not8 suggesting that they go to Atlantic City9 or Lehigh Valley. All I'm saying is if10 the delay issue at Philadelphia11 International is so paramount an12 impediment, would they not be making13 noise to maybe land somewhere else?14

They're here because15 the customers are here. Just so you16 know, prior in my career, I actually17 began in economic development running a18 non-profit that did air service19 development for Washington Dulles20 International Airport and helped take the21 traffic there from 47 flights a day to22 over 600. I also worked on securing an23 authority for the airport, a very24 different circumstance in Washington in25 161 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 those days than what you have here. The2 reason we sought an authority in3 Washington was to create a financing tool4 to be able to finance the improvements5 that have happened at both Dulles6 International Airports. Here you have an7 enterprise organization that is already8 capable of issuing debt to finance9 projects. So you really don't need a10 separate authority to do that. You can11 do it within the existing governance12 structure.13 What I'd like to do is just14 close by saying that expansion of the15 Airport is one of the most important16 regional economic development projects17 that we will see in the next decade, and18 a sincere effort has been made in this19 process. There have been some 20 public20 meetings and four public hearings as part21 of the FAA's environmental process to get22 to the point where we are today. This is23 not something that has not been out in24 the world at large. People have been25 162 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 invited to participate in that process2 going forward.3 Capital development --4

People5 other than those who are sitting in this6 room.7

Well, I hear what8 you say. Obviously --9

For those10 folks who have to vote on Airport bonds,11 it would seem kind of sensible to have12 some involvement directly with this body.13 And that's not your call. You mentioned14 it and I'm raising the issue that we're15 sitting here today partly because of that16 problem.17

I suspect that that18 problem will be solved in a matter of19 moments. But the capital programs are20 difficult to plan and to mobilize. It21 takes years to do so. The challenge here22 is, we have to operate the development of23 this Airport so that it doesn't get out24 too far ahead of the carriers and their25 163 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 economic capacity, but that it's not too2 far behind them, because I guarantee you,3 if the economy takes off and air traffic4 increases by 10 or 15 percent, they will5 be the people most concerned about the6 cost of delay at the Airport.7 So we have to be responsible8 stewards of the community. We've got to9 anticipate the future and to assure that10 Philadelphia International and the entire11 region are prepared and able to compete12 in the global economy. It's for that13 reason that we wholeheartedly support the14 CEP and recommend that it move forward as15 expeditiously as economically feasible.16 Thank you.17

Thank you18 for your testimony. Before we get to our19 last witness, I don't think any of us20 disagree with you, and I don't think that21 even the folks who came in to complain22 about the CEP necessarily disagree with23 you, but the realities of the Airport is24 that it's constrained and that it is25 164 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 located primarily in a county other than2 Philadelphia. So if you're concerned3 about the potential of an authority, if4 you're concerned about when Jack and we5 go to Harrisburg to talk to folks about6 tourism support and they're angry,7 there's a possibility we're going to have8 a problem there. When people come to9 testify that they believe that their10 school district is going to be majorly11 impacted by this plan and we go to12 Harrisburg this year and next year in a13 difficult situation with our schools, I14 don't want those folks mad.15 So the Airport does not, as you16 know, does not exist in a vacuum.17 Obviously there are other interests and18 other cause and effects that come as a19 result of what the Airport decides to do.20 One cause and effect was where we've been21 in this process. Number two, one cause22 and effect is the fact, honestly, that23 both houses of the Legislature and the24 Governor is now the republican party.25 165 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 That's a reality.2 Now, do I think the Governor or3 any leadership in the Legislature want to4 hurt the Airport? Absolutely not. I5 think they recognize the Airport is the6 economic generator and job creator that7 you all describe it as and its potential,8 but when folks are angry about impacts,9 they do things that sometimes have a10 cause and effect that I don't want to11 see.12 And when we first put this13 hearing out and people were like a little14 jumping up and down about our witness15 list, I think it's appropriate to have16 folks who are impacted by our plans or17 what we're going to do have a say, and18 that's the reality of the politics of19 what we're dealing with.20

I absolutely21 understand what you're saying, and in22 fact, in Washington the way we got to23 where we were was due to exactly this24 kind of concern over noise impacts at25 166 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Washington National. So I have a long2 history of understanding. I'm very3 sympathetic to the people who are most4 directly impacted, some of whom bought5 their homes after the Airport was there6 and knew it was there, but chose to live7 there in any case.8 But what has to happen -- we9 all have multiple interests in this10 process. I may be impacted by aircraft11 noise because I live near the Airport,12 but on any given day, I may have a13 daughter that's coming in to the City and14 I care about her being able to arrive and15 depart on time and safely, or I may also16 be a businessowner that cares about my17 employees being able to reach out to18 customers so that it's not -- we don't19 have one single interest as we sit in20 these meetings, and I'm very sympathetic21 to the folks in Tinicum Township. I22 think the Airport is trying to find a way23 to be the best neighbor it can be and24 still accomplish its objective as a key25 167 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 component of the economy of a much2 broader region.3

Just let me4 finish up with Mr. Ross and then whatever5 comments Councilman has. That's all I6 have on the list. I don't think there's7 anyone else. That's fine. Okay. Thank8 you.9 Please identify yourself.10

Good11 afternoon, Councilmembers. I just have a12 brief statement.13

Thank you.14

My name is15 Ethan Connor-Ross. I'm the Research16 Director at the Greater Philadelphia17 Tourism Marketing Corporation. S. 23 GPTMC's mission is to make the24 five-county Philadelphia region a premier25 168 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 destination through marketing and image2 building that increases business and3 promotes the region's vitality. 8 Visitors who arrive by plane9 stay longer, spend more and are more10 likely to stay in a hotel than those who11 arrive by other methods. 14 The Airport is also important15 in building the impression of a16 destination. For many visitors, the17 Airport is the first introduction to a18 city, and in some cases, it will be the19 only impression if they're passing20 through. 24 A world-class airport can be a tool in25 169 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. The Capacity Enhancement4 Program has the potential to bring in an5 additional million passengers a year by6 2025. These passengers will conduct7 business in the region and, as leisure8 tourists, will eat in our restaurants,9 shop in our stores and sleep in our10 hotels. 16 The forecasted increases in17 Airport traffic are consistent with the18 increased visitation we have seen over19 the past decade. 22 In 2009, despite a down economy, we23 welcomed 36 million, a 35 percent24 increase, and that figure is expected to25 170 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 Philadelphia has also seen3 major increases in international4 visitation over the past decade. Our5 hotels have benefited greatly, with6 leisure room nights in Center City7 tripling during that time. 10 The addition of airline11 capacity has been a major part of this12 growth. 17 Increased visitation is good18 for each of our counties, because19 visitors see nearby activities, not20 county lines. 24 Tourism is a critical component25 171 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 3213 billion for Montgomery County. 22 Airport expansion is a critical part of23 this growth. If we can't accommodate24 additional visitors, they will not be25 172 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5

Thank you6 very much.7 Councilman Jones.8

Thank you,9 Mr. Chairman.10 I'm conflicted by two11 experiences, one as a resident and one as12 a traveler. The first one as a traveler13 is, I've been stranded. I have the14 distinction of spending the night in15 Denver Airport, and it was a scary16 proposition. As the roll-down gates from17 the retail stores started closing, it18 became like a scene out of one of my19 nightmares. I wound up going home,20 getting on a flight maybe 12 hours later.21 As a result of a delay, then a22 cancellation, that happened to me.23 I did the same thing overseas24 in Aman, Jordan, which was even more25 173 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 frightening. The thing I drew from both2 of those is that I will, God willing,3 never travel to either one of those4 destinations again, and that's an5 important note to make.6 The second part is as a7 resident, meaning I was moved by the8 conversation about a barbecue and you're9 trying to talk to your relative and a10 plane goes over you. That happens to me11 at least several times a day in my living12 room in Wynnefield, which is probably as13 far away from the Airport as you can get14 and still be in the -- well, no, that's15 not true. Roxborough. But very far16 away. And a helicopter path that goes to17 one of the major hospitals goes right18 over our head, and literally next to my19 favorite chair, favorite chair where I20 watch television when I can, particularly21 the Eagles, the window vibrates so22 violently that I almost move away23 thinking it's going to break.24 So those are two conflicting25 174 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 personal experiences as we deal with this2 hearing, but let me ask a couple of3 questions.4 One, when we talk about5 regional marketing and the importance of6 that centerpiece of the Airport to that7 end, how much economic benefit -- and I8 think you touched on it -- does happen as9 a result of a major convention? What10 comes to mind is the Regatta. How many11 hotels in Delaware County benefited from12 Philadelphia's Regatta; do you know?13

From the Regatta14 itself?15

Or the Penn16 Relays or Army/Navy. How does that work?17

That's not an18 area that the Convention Bureau is19 involved with. If you're talking about a20 convention like the -- I'll use the21 American College of Rheumatology, which I22 referenced here, that was here in 2009.23 It was their second largest convention24 ever in their history of 75 years. Their25 175 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 largest was in San Francisco. They2 consumed 38,000 rooms, 6,000 additional3 rooms outside of the block, which4 means -- you know how they block hotel5 rooms? They were outside of the -- what6 does that do? When compression happens7 downtown, it spills into the Airport8 hotels. It spills into City Line Avenue9 hotels. It spills out to Conshohocken10 and all the way out to Valley Forge and11 across the pond, across the river to12 Southern Jersey and sometimes down into13 Wilmington, Delaware.14

But from any15 of you, how many of you keep stats16 specifically on Delaware County and its17 benefit from those kinds of events, and18 is it something that if we're talking19 about marketing regionally --20

Well, it's a21 great question, Councilman Jones, and the22 interesting thing is, when the23 Pennsylvania Convention Center runs full,24 which is the hospitality economic engine,25 176 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and the hotels downtown create2 compression, it pushes out. That doesn't3 necessarily -- it pushes other business4 out, and they look for accommodations in5 the counties. If the CVBs of the6 counties were here, they would say every7 time Philadelphia is filled, it's a good8 day for us. It's a good week for us.9 So in answer to your question,10 what that does, it creates revenue for11 the County of Philadelphia, which is what12 the convention is doing, but it also13 generates opportunities for more revenue14 to go into the hotels at the Airport and15 Delaware County or to the hotels in16 Chester County, and it also, because17 there's demand, can raise the price to18 the traveler.19

My point is,20 I specifically remember three events.21 The Regatta had that impact. You22 couldn't find a hotel in the region. The23 one that's near and dear to my heart,24 which is the Penn Relays, and having been25 177 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 a former track coach, I know that same2 impact happens for hotels in the region3 and restaurants in the region. Trying to4 book a hotel then is ludicrous. And5 then, finally, the Republican National6 Convention, I happen to know, that -- I7 was at the Commerce Department back8 then -- that it had a similar impact.9 So what I would suggest also,10 as we start to talk about -- and they're11 absolutely right to say if we have a12 regional approach, if it ain't measured,13 it ain't managed. And I know that's14 broken English, but it is true. If we're15 going to talk about regional benefit,16 then we have to have specific data that17 we can put forth as a benefit to our18 neighbors in Delaware County.19

Councilman,20 can I add something?21

Yeah, sure.22

If you have23 all visitation to Delaware County, not24 necessarily specific to the conventions25 178 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and the events you had mentioned, but2 they do welcome over 3 million visitors a3 year, more than a million of whom stay4 overnight. As I mentioned in my5 testimony, that spending results in $6746 million in impact. I can give you a7 couple of other numbers - $93 million8 generated in taxes, over 9,000 jobs9 supported and 227 million wages based on10 those jobs. And that's from a GPTMC11 study. So we do track each of the12 counties separately.13

I think14 that's important as we discuss how we15 become better neighbors.16 This Administration, if I could17 give them some kudos, Mayor Nutter made18 specific impacts inroads to regional19 cooperation. Our Chairman, Councilman20 Kenney, is true, this is interlocking21 relationships on multiple issues and22 what -- where we have the advantage23 today, they may have the advantage24 tomorrow. So we should not disregard our25 179 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 neighbors' interests, because it goes2 around real quick.3

Councilman, I might4 suggest that maybe your office also5 contact a gentleman by the name of6 Patrick Killian, who runs the Delaware7 County Chamber, and is very able and a8 former member of the Airport Advisory9 Board many years ago.10

Okay.11 Couple of other questions very12 briefly. Have we ever had a documented13 cancellation of a convention based on14 transportation issues, specifically15 Airport related? And a nod will do,16 affirmative or -- to your knowledge.17

Not specifically.18

Not19 specifically, for the record. Okay.20 Anyone at the table here?21

I'm not going to22 speak to conventions because that's23 really what PCVB and GPTMC are involved24 in, but we get questions from companies25 180 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 that are looking to expand into the2 region and they ask us to analyze the3 availability of service to particular4 markets, the frequency of the service to5 those markets and the cost, and that's an6 important factor in their decision. If7 they can't get all the places they want8 to go, that knocks us down the list in9 terms of being able to be competitive.10 Right now, for example, we have11 terrific service to Europe, and we12 brought -- 55 percent of the companies13 that have come here, in the time I've14 been doing this, have come from overseas,15 but we don't have a single flight to16 Africa, Asia or non-stop to South17 America. We need to develop a full18 pattern of international air service to19 be fully plugged in to the global20 economy, and that's a critical need, and,21 frankly, this program is an important22 part of having the capacity, the gates23 and the operational efficiency to do24 that.25 181 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381

Well,2 further evidence of our interlocking3 relationship is the fact that we don't --4 the soccer stadium is in Delaware County5 and another one of the gambling6 facilities is in Delaware County, and I7 know no one goes to a convention and8 selects it because of amenities such as9 soccer or gambling or things like that.10 We know they're strictly there for the11 meet of the conference, but I'm wondering12 how these kinds of cause and effect13 things matter.14

Well, you15 bring -- two things that you bring up16 there. Let's go back to the Convention17 Center, your questions about the18 convention. When we were talking about19 rheumatology, it's about a $40 million20 economic impact in about four days into21 the City. What happens is -- and,22 remember, they're rheumatologists from23 all over the world. Their primary focus24 is networking and sessions in the25 182 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Convention Center from, say, as early as2 6 o'clock in the morning to about 5:30 at3 night. After that, the activities4 continue on and it's all about venues,5 and those venues include cultural,6 historical, restaurant, sporting events,7 shopping. They all play into it. And if8 you have 10,000 or 18,000 people in the9 City at a given time, not all 18,00010 people do the same thing.11 The beauty of Philadelphia and12 its selling of its package to13 conventions, to trade shows and to people14 coming in, twofold. First of all, we're15 a very tight-packaged city. We're16 walkable once you get there. The fact17 that the Airport is only seven miles from18 downtown and you're there in 15 minutes,19 whether you take a cab or you take the20 regional rail, is unbelievably a huge win21 for us against the competition, against22 the competitive set. It's a very23 important thing to understand how the24 total package is sold, and that makes us25 183 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 very, very competitive.2 The other thing that makes us3 very competitive is the fact that where4 we're located in the United States.5 We're within 40 percent of the U.S.6 population by a day's drive. So you've7 got rail and you've got air and you've8 also got automobile. They're great modes9 of transportation to get to whether it's10 selling to the leisure traveler or it's11 selling to the conventioneer.12 What we try to do13 organizationally, both groups, is to take14 the conventioneer and convert him or her15 to a leisure traveler or to a business16 traveler on their own and vice-versa.17 You have a leisure person that comes in18 and they own a business or they belong to19 an association and society and said, I20 have not been to Philadelphia before,21 it's been so long since I've been in22 Philadelphia, this would be a great place23 to have a meeting. So that's why we work24 closely with Select Greater Philadelphia25 184 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and their initiatives on the business2 side of it, and we work with the leisure3 side of it with Meryl and her team to4 accomplish this so that Philadelphia wins5 over someone else. But the Airport is a6 critical, critical component in the7 success of the hospitality industry.8

Finally,9 Mr. Chairman, I want to just say that I10 want to extend an opportunity at least11 for myself and I'm sure other members of12 this Committee to do two things. One you13 suggested is spend some quality time with14 the Administration out at the Airport to15 go into these matters, because we're not16 going to get all of them done today, but17 also I want to take a ride out to Tinicum18 Township and maybe go out there. I want19 to meet with the community, because we'll20 be representative of Philadelphia, but21 maybe you could escort us out there and22 show us some of your concerns so we have23 a better sense of what is going on, what24 needs to happen and how we can be25 185 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 cooperative.2

I wonder if I3 can just share one other thing with you4 that might help you in your understanding5 of the hospitality business, and I don't6 want to make an assumption that you know7 that the Philadelphia Convention and8 Visitor Bureau is a membership-driven9 organization of 900 members. Now, that's10 900 company members. That means tens of11 thousands of people want to be where the12 customer is coming in. Included in that13 are the hotels in Delaware County.14

All right.15

We have 8516 member hotels. Many of them we do not17 put conventions in. We put meetings18 specifically for their hotel in their19 hotels.20

So we have a21 mutual benefit relationship --22

Absolutely.23

-- but we24 have to do it right. I mean, again, we25 186 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 can't -- Councilman Kenney was right on2 point that to take advantage of leverage3 today winds up tomorrow's disadvantage if4 we don't take into those concerns, and5 we're going to be mindful of that as we6 proceed.7 Thank you.8

Thank you.9 And as far as site visit to Tinicum, my10 grandparents lived in Clifton Heights, so11 I should be pretty much all right.12

At least you13 know your way.14

It should15 be okay.16 But thank you, and thank you17 for your testimony. Thank you for coming18 today, and hopefully we've opened a19 dialogue that will be productive, both20 for the Airport's needs and for our21 fellow Pennsylvanians in Delaware County.22 Thanks.23 (Joint Committees on24 Legislative Oversight and Transportation25 187 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and Public Utilities concluded at 4:002 p.m.)3 - - -4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 188 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on December 2, 2010, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25