A Capital Development

Jan. 10, 2007
Virginia's capital city is finalizing an upgrade of its terminal and parking complex, part of the city's overall economic growth program.

This past July the Richmond International Airport recorded its best monthly passenger count ever, moving some 272,899 passengers through the airport. It's indicative of the turnaround sought by business leaders and the community at large, say officials, and best represented by a renovated and expanded terminal and parking complex. When completed in mid-2007, it will also feature dual in-line baggage screening systems. For Jon E. Mathiasen, A.A.E., it's the culmination of an initiative that has consumed his staff since he arrived in 2000. It's also proof one can arrive safely from the roller coaster ride of revitalizing and expanding an airport at a time when traffic counts were plummeting. For Richmond and its airport, it's all about tomorrow.

Mathiasen is the president and chief executive officer for the Capital Region Airport Commission, which owns and operates Richmond International. It is governed by 14 commissioners who represent the City of Richmond and three counties.

According to Mathiasen, what is happening at the airport reflects a more aggressive attitude toward economic development that has not long been a part of the social landscape here. It was not until the 1990s that the dramatic economic growth in the Northern Virginia/Washington, D.C. region, just 100 miles to the north, began to permeate the area around Richmond.

Once the capital of the South, Richmond has never lost its roots as a quiet Southern city. The area is imbedded in Civil War history and is a short drive from historic Jamestown and Williamsburg and Atlantic points east. A Richmond 2007 campaign seeks to bill it as "the most historic place in the United States." Besides its history with tobacco and auto racing, it now hosts major Fortune 500 companies, according to the Chamber of Commerce. The airport has some history of its own:

  • Both Union and Confederate 'aeronauts' used tethered balloons for reconniassance and artillery spotting from the region where the airport now sits;
  • The airport was originally named for explorer Admiral Richard E. Byrd, for whom the current terminal is named;
  • When completed in 1927, the airport's official first visitor when completed in 1927 was Colonel Charles Lindberg in his Spirit of St. Louis.

Yet in time, the airport's facilities and image within the community were becoming out of date.

Relates Mathiasen, "The airport was viewed by leaders in the business community and the Chamber of Commerce as being a liability. The business community was a major supporter of the need to expand this airport — not only the physical attributes but to facilitate additional carriers. The airport is now growing out of that and is being seen as a major asset."

Finding the Money

Mathiasen explains that when he arrived at Richmond the initial stages of the large capital development project now nearing completion had just begun, with a midfield taxiway complete. His first major undertaking was coordinating the funding for a terminal renovation and expansion; more parking; a two-tiered terminal roadway; and associated ramp expansions.

Says Mathiasen, "We were funding expansion of Concourse B, eight gates, and associated ramp at that time. We needed a new control tower, estimated at $12 million; it had no funds toward it.

"When I arrived the commission was anticipating borrowing money to fund it for the federal government, where the federal government would agree each year under an act of Congress to pay the debt service. I didn't want that because it would impede our ability to borrow money for airport projects.

"It took about 18 months, but we were able to put together $12 million in earmarks through Congress. It was not just the need to have a new tower; it was really a safety need. When that new tower opened it was the first time that the air traffic control people could actually see the entire airport. The existing tower on the existing terminal building ... had a tremendous amount of blind spots."

Within the past three years, the new tower has been commissioned and the elevated roadway and 2,000-space parking garage have been opened. Construction is nearing completion on Concourse B, with Concourse A renovated with new retail and concessions. Delaware North Companies is the food and beverage concessionaire; Hudson Group operates news and gifts. Mathiasen expects to have another 6,000-square feet of concessions space with the opening of Concourse B this year.

One of the ongoing challenges, says Mathiasen, has been the escalating costs of construction. While the cost for the terminal was essentially locked in, future projects face rising costs.

Explains Mathiasen, "Our parking garage that we opened in 2003 had 200 spaces at a cost of about $12,500 per parking space. We're designing the expansion of the north garage, another 2,200 spaces, and we are now looking at between $18,000 and $20,000 a space. About a 44 percent increase, all associated to the cost of steel and concrete. These are costs that we're not anticipating will go down; it's a new plateau."

Dual In-line Systems

Because of the terminal's 'H' design, says Mathiasen, the airport had to install dual in-line systems to attain integrated baggage screening. "There's no way to translate bags through the middle section, the connector," he explains. "We actually have two separate in-line systems, each being facilitated by two L-3 [explosives detection systems] from the TSA. It's been designed so they can fit up to four L-3s for future demand."

He estimates that total cost for the in-line systems is $9 million. He says that TSA requirements added another third to the cost of the systems from the original design.

On the topic of getting into the screening business, Mathiasen says, "I ran the numbers. I looked at the same issues that TSA has; and the labor pool that they have to draw from. I don't want it because I see the costs of that function going up. Can it be done by contractors? I think so, but they're going to have to have some tight guidelines.

"I'm perfectly happy with letting the federal government provide that service, from the experience that I've had in Richmond. Our Congressman has been quite active in helping us to ensure that we have adequate staffing of TSA."