Authorization and Assignment of the Commission

Established by P.L. 1993, ch. 336 of the New Jersey State Legislature on 
December 27, 1993, the New Jersey General Aviation Study Commission 
(hereinafter "Commission") was mandated to study and determine:

1. The effectiveness of New Jersey's general aviation airports as reliever 
airports;

2. The history of closures of New Jersey's general aviation airports and 
recommendations on reversing this trend;

3. The relationships between municipalities and the airports located in or 
adjacent to them;

4. The proper balance (or "mix") between publicly- and privately- owned 
public use airports;

5. The feasibility of direct State intervention through the purchase of 
private facilities, a public-private partnership for the purchase, or any 
other arrangement that would facilitate the improvement of general 
aviation airports; and

6. Recommended measures to preserve and improve New Jersey's general 
aviation airports.

Constitution of the Commission

The Commission consists of 16 members, including four members appointed by 
the President of the Senate;1 four members appointed by the Speaker of the 
General Assembly;2 five public members appointed by the Governor with the 
advice and consent of the Senate;3 the Commissioner of Transportation; the 
Commissioner of Commerce, Energy and Economic Development; and the 
Executive Director of the Port Authority.4 Finally, the Secretary was 
appointed by the Chairman in accord with the law's provision.

Appointments to the Commission were completed by November 1994 and the 
first meeting was held in January 1995. More than 80 witnesses testified 
during the 23 Commission hearings conducted over a two-year period. 
Testimony was heard from representatives of the New Jersey Department of 
Transportation, the Federal Aviation Administration, New Jersey League of 
Municipalities, individual municipalities that host and neighbor airports, 
experts on noise pollution from both the Massachusetts Institute of 
Technology and the State of New Jersey, real estate evaluation experts, 
New Jersey residents and operators of both privately and publicly owned 
airports in the State. The Commission has received and evaluated over 
10,000 pages of documentary evidence. Commission subcommittees have 
conducted seven surveys and held more than 100 meetings. The entire 
Commission met numerous times to deliberate its findings and to prepare 
this report. 

REVIEW OF FINDINGS SET FORTH IN P.L. 1993, ch. 336

The Legislature mandated specific inquiries in the enabling statute. The 
following paragraphs briefly respond to these inquiries. Further 
elaboration is included later in this report. 

Economic Impact of General Aviation Airports  

With reference to P.L. 1993, ch. 336 º1(a), the Commission was tasked with 
determining the economic impact of general aviation airports on New 
Jersey. In 1993, the New Jersey State Legislature believed that general 
aviation airports affected 8,000 jobs and upwards of $1.5 billion on 
revenue to New Jersey. The Commission found that New Jersey's system of 
airports substantially impacts the economies of the State, the region and 
host and neighboring municipalities. According to a study conducted during 
1995/1996 by The Airport Technology and Planning Group Inc. (AirTech), 
general aviation at airports in New Jersey, excluding Newark International 
and Atlantic City International, create 70,500 jobs and generate an 
economic impact of $1.3 billion to the State. Including general aviation 
activity at Newark International and Atlantic City International creates a 
total economic impact from general aviation of $1.7 billion.

Almost every economic sector in New Jersey, even those that never directly 
use an airport or its many services, receives some benefit from general 
aviation airports. Individuals who benefit from the aviation 
infrastructure include employees of businesses and corporations that base 
their corporate aircraft at New Jersey airports; commercial and industrial 
employers whose shipments arrive or depart via these airports; the 
proprietors and employees of area retail establishments who provide 
shopping opportunities for visitors arriving by air; and the proprietors 
and employees of hotels, restaurants and tourist-related activities whose 
patrons arrive at the local general aviation facilities. Annual economic 
activity associated with the general aviation airports, when combined with 
the businesses that depend on them, exceeds $4.6 billion.
 
General Aviation Airport Closures

With reference to P.L. 1993, ch. 336 º1(b), the Legislature determined 
that nine general aviation facilities of regional significance had closed 
in recent years. Through its study, the Commission determined that 53 
general aviation airports have closed in New Jersey since 1952. In 1952, 
87 percent of the airports were privately owned. This attrition is a 
direct function of that private ownership. The leading causes of these 
airport closures are high property taxes, refusal of the host community to 
allow these businesses to evolve, and the growing temptation to sell 
airport land for non-airport uses due to increased real estate values. It 
can be anticipated that privately owned public use airports will continue 
to close at the historic rate. If allowed to continue, the closure of 
these general aviation facilities will ultimately result in an 
irreversible economic slowdown that will have far-reaching effects on the 
State's economy; irreversible because once airport land is lost to 
non-airport development and use, it is lost forever.

Role of Reliever Airports

With reference to P.L. 1993, ch. 336 º1(c), the Commission was charged 
with reviewing the role of reliever airports5 in New Jersey. Reliever 
airports in New Jersey are general aviation airports designated by the 
Administrator of the Federal Aviation Administration (FAA) to relieve 
congestion at Newark and Philadelphia International airports. They are 
vital since they serve as alternative landing areas for general aviation 
traffic during inclement weather and help to ease crowded airspace 
situations. They are also eligible for certain Federal Airport Improvement 
Program (AIP) Funds.

Officials of the Port Authority of New York and New Jersey testified that 
New Jersey's reliever airports are important and that they must be 
preserved and enhanced to handle the growth in the region's air traffic. 
The two leading obstacles to an integrated regional airspace system are 
airspace sharing and funding for ground infrastructure. Adequate funding 
mechanisms for both air carrier and reliever facilities are essential to 
support the growth of air commerce in the New York-New Jersey-Philadelphia 
region. 

According to the Port Authority, the demands placed on the primary 
airports, Newark, JFK, and La Guardia, often exceed the capacity of those 
airports. These three airports handle 5,000 flights per day, approximately 
one-tenth of the national total. Additionally, these airports are unable 
to accommodate general aviation aircraft without incurring expensive 
delays for commercial airlines and the traveling public. For every year 
but one since 1991, Newark International Airport has been the worst 
airport in the nation for delays in scheduled airline service, with six to 
nine percent of its flights delayed (28,454 flights arrived late because 
of congestion at Newark in 1996). In 1997, La Guardia ranked as the second 
worst in the nation and JFK ranked ninth. The delays at Newark 
inconvenienced approximately four million passengers in 1996. The 
Administrator of the FAA, speaking about delays at Newark, stated that 
"[people] are terribly upset about the delays. [They] have missed 
appointments, missed conferences and missed connections."6 It is estimated 
that delays cost the airlines more than a billion dollars annually.

Relationship with Host and Neighboring Communities

With reference to P.L. 1993, ch. 336 º1(d), the Commission was tasked with 
determining the relationship between general aviation airports and their 
host and neighboring communities. The Commission has found the quality of 
this relationship to be one of the more important factors in determining 
the longevity of privately owned airports. These relationships range from 
very cordial to very hostile depending on the township, the persons in 
office or whether an airport improvement is proposed. Where this relatio
nship is less than cordial, there is usually a lack of effective 
communication between the airport and the community officials. Community 
officials generally lack training in technical aviation matters and where 
there is a gap in communication misperceptions can flourish. This is 
sometimes exacerbated by the intentional dissemination of misinformation 
by community residents opposed to the proposed airport improvement.
There is also a general lack of awareness in communities of the economic 
and social benefits provided by general aviation facilities. Most 
municipal officials testified that airports had little or no economic 
value to their community. Some of the community's problems are 
self-induced. For example, many municipal representatives testified of 
conflicts resulting from their allowing residential development in close 
proximity to long established airports.

New Jersey State Airport System Plan

With reference to P.L. 1993: ch. 336 º1(e), upon the establishment of the 
Commission, the Legislature accurately recognized the statutory 
responsibility of the State of New Jersey, acting through the Department 
of Transportation to develop, promote and regulate aviation in the State. 
However, the Commission discovered that New Jersey's planning mechanism 
has broken down. The NJDOT State Airport System Plan is incomplete and 
needs revision. The New Jersey Development and Redevelopment Plan does not 
even include a reference to the State Airport System Plan. Both of these 
plans will require substantial revisions to take into consideration the 
findings of the Commission set forth in this report.
The Proper "Mix" of Privately Owned to Publicly Owned General Aviation 
Facilities
With reference to P.L. 1993: ch. 336 º1(F), the Commission was tasked with 
determining the proper "mix" of private and public facilities, the 
feasibility of direct State intervention through outright purchase of the 
facilities, a public-private partnership in particular airports or other 
arrangements which would facilitate the preservation and expansion of the 
State's general aviation airports.  

Airports are the sole method of transportation in New Jersey that remain 
privately held. Roads, railways, bus transportation, ports and publicly 
owned public use airports are all maintained with public capital. Unless 
some form of public support is brought to privately owned  public use 
airports, New Jersey risks losing this vital means of transportation 
entirely. Fortunately, New Jersey may be able to preserve and improve this 
public service infrastructure without bearing the entire cost of doing so. 
Certain costs can be borne by Federal Aid Programs. Certain cost can 
continue to be borne privately. 

The Commission concluded that the most cost-effective and timely 
arrangement to preserve the State's aviation system would be an agreement 
between the State and private airport owners. Such an agreement would 
provide that:

1. The State will pay all the costs, which are not paid by the federal 
government, to upgrade the airport to a modern facility.

2. The State will purchase, at fair market value, all the development 
rights of the land committed to the airport whenever the owner desires to 
sell them.

3. The State will give the private owner a financial incentive to remain 
in the airport business by assuring the owner a reasonable opportunity to 
develop airport business. This is accomplished by amending the Municipal 
Land Use Law to create an airport zone, which will include all of the 
airport land and where all uses reasonably compatible with an airport will 
be allowed (including maintenance and storage hangars, terminals, 
restaurants, car rental, overnight accommodation, air freight servicing 
centers, commercial offices, etc.).

4. The State will authorize the Commissioner of Transportation, in 
weighing approval or disapproval of an airport improvement, to make 
aviation safety the paramount concern over any competing concerns, 
including environmental concerns, particularly with regard to improvements 
such as the lengthening of runways and taxiways, the crossing of wetlands, 
or the removal of obstacles.
5. The State will exercise its power of eminent domain to add such land as 
is necessary to existing airports to make them safe, economically viable 
and environmentally compatible. The State will thereafter retain title to 
the land acquired in this manner and grant an easement to the airport 
owner for airport uses.

6. The State will not allow real estate taxes to be assessed on the 
portions of the airport that are committed to public use (including 
runways, taxiways, terminals, aircraft and car parking areas, driveways) 
and all undeveloped land perpetually committed to clear areas or future 
airport use.

7. The private owner will agree to commit all airport land to the airport 
use in perpetuity.  
The Commission's recommendation is designed to avoid an outright purchase 
of New Jersey's aviation infrastructure. The Commission estimates that 
direct purchase by the State of general aviation airports would cost $1.6 
billion. Of this amount, $235 million would result from condemning and 
purchasing existing aviation facilities.7 In certain areas, the State 
would have to also purchase land adjoining the airport as needed for 
improvements, estimated at $1.125 billion.8 Actual improvements to 
aviation facilities would cost an additional $250 million.9 While New 
Jersey can avoid substantial amounts of these costs altogether and delay 
incurring the balance of them for substantial periods, it will have to 
plan to spend those amounts required to defray the State's share to 
purchase development rights and adjoining land, and to make certain safety 
improvements.

While the federal government could be expected to contribute a portion of 
this amount, it may not be able to do so fast enough to preserve the 
general aviation system infrastructure. It is the Commission's estimate 
that if the federal government could provide 65 percent of the funds over 
a ten-year period, the total cost to New Jersey would be $460 million over 
ten years or $46 million per year. One benefit of this is that by 
preserving the present system of private ownership the State need not take 
over the cost of providing management and staff to operate these 
facilities. These airports already have fully-trained, highly dedicated 
management and staff in place. The State can anticipate the most efficient 
operation since private ownership would defray all costs except those for 
long-term maintenance of capital improvements, and customary public land 
maintenance expenses such as snow plowing.. Clearly, the recommendations 
provided above are prudent policy that give the greatest chance to improve 
the system at the lowest cost.


Footnotes:

1Section 2(a) Public Law 1993, Chapter 336.  The Senate President shall 
appoint four members to the Commission, "one of whom shall be a member of 
the Senate, one of whom shall be a representative of a privately owned 
public use general aviation airport, one of whom shall be a representative 
of a publicly owned general aviation airport and one of whom shall be a 
person who has been licensed as a private pilot for more than ten years."
2Section 2(a) Public Law 1993, Chapter 336.  The Speaker of the General 
Assembly  shall appoint four members to the Commission, "one of whom shall 
be a member of the General Assembly, one of whom shall be a representative 
of a privately owned public use general aviation airport, one of whom 
shall be a representative of a publicly owned general aviation airport and 
one of whom shall be a member of the public."
3Section 2(d) Public Law 1993, Chapter 336.  The Governor shall appoint 
with advice and consent of the Senate five public members, "one of whom 
shall be a local government official, one of whom shall be an expert on 
aviation matters, two of whom shall be members of the business community 
which use general aviation airports, and one of whom shall be an owner of 
a commercial enterprise providing aviation services to the general public."
4Section 2( c ) Public Law 1993, Chapter 336. The Executive Director of 
the Port Authority of New York and New Jersey shall have no vote on the 
Commission. 
5 See Appendix G, note 6.
6 "U.S. To Remap Routes to Ease Air Congestion," New York Times, April 14, 
1998.
7 The State's 34 privately owned general aviation airports contain 4,561 
acres that, it is estimated, have a value of $40,000 per acre, indicating 
a purchase price of $182,440,000, as well as improvements at each of these 
airports which average $1,500,000, combining for a total purchase price of 
$233,440,000.
8 It is estimated that the minimum land needed for a safe, economically 
viable, environmentally compatible business aircraft airport is 800 acres. 
The 48 general aviation airports in New Jersey require 24,000 acres.  They 
currently have 11,215. However, five airports (Teterboro, Trenton-Mercer, 
Milleville, Cape May and Allaire) already have 940 acres more than 800 
acres each.  Thus, 28,125 acres are needed at an estimated average cost of 
$40,000 per acre, for a total estimated price of $1.125 billion.
9 Estimated costs include runways at $200 per foot and taxiways at $100 
per foot,