Alex Goldmark is the senior producer of New Tech City, a storytelling show about how technology is changing society. Subscribe here to get New Tech City shows delivered right to your devices. Follow him on Twitter @alexgoldmark.
NY's Airports So Old, Millionaire Is Putting Up Private Fortune to Lobby for Renovations
Monday, January 14, 2013 - 05:56 PM
Real Estate mogul Joe Sitt knows how to court the jet set. He's the head of Thor Equities, one of the city's biggest landlords for high end retail and offices. And as he sees it, New York's aging airports are holding the region back. "The experience [in our airports] is pitiful," Sitt said.
And he's putting up $1 million of his personal money to change it.
His campaign to overhaul New York area airports launched last week isn't an expensive personal quest for a better travel experience. It's an unusual lobbying campaign in the public (and also self) interest.
A 2011 report by the Regional Plan Association found that NY area airports need to expand and upgrade air traffic technology if they are to keep up with forecasts of air travel growth. Average flight delays at NY area airports are already twice the national average. A 2008 study (pdf) by the Partnership of New York City estimated that if New York's airports aren't modernized, it could cost $79 billion in losses to the regional economy between 2008 and 2025.
"What's one of our business fears? Businesses moving out of the city," said Sitt, the landlord of about 40 buildings, many in tourist hot spots like 5th Ave and Meatpacking. "I love New York City. It is creative. Every tech company should want to be here. But from an infrastructure, transportation, airport [perspective], no offense, versus San Francisco, we fail. They put us to shame out there."
His group the Global Gateway Alliance will lobby all levels of government to invest more in infrastructure for air travel. "I think government needs some prodding. This needed somebody to carry the torch," Sitt said.
It's not the first time business leaders and planners have called for investment -- the RPA launched the Better Airports Alliance in 2011 -- but Sitt's $1 million of seed money makes the new effort more serious from the start. "It's really the first time we've had a comprehensive, well funded effort to focus on the great need for airport improvement," said Kathy Wylde of the Partnership for New York City, who has joined the board of the Global Gateway Alliance. Lobbying, she said will pressure all levels of government and could include public messages like TV commercials.
The agency that runs NY airports concedes upgrades are needed. “We recognize that some of our facilities are aging and in need of capital infrastructure investment to ensure the continued economic growth of the region," said Port Authority Executive Director Patrick Foye. "The Port Authority and our airline partners invested over $1 billion in 2012 on infrastructure projects at our region’s airports, which includes construction of high speed exit taxiways, terminal improvements, and runway rehabilitation. Additionally, the Port Authority is in the process of establishing a public/private partnership to invest $3.6 billion on a new Central Terminal Building at La Guardia.”