Cargo airport study proposals due: Economic impact study that will come out in 2008 will determine if public funds are used in the project.

Aug. 24--HARRISBURG -- The deadline approaches for contractors to submit proposals on conducting an economic impact study of the cargo airport planned near Hazleton.

The state Legislative Budget and Finance Committee will accept proposals until 5 p.m. today that will determine whether Pennsylvania will appropriate public economic development funds for the project estimated to cost $1.6 billion.

Philip Durgin, executive director of bipartisan committee made up of members of the state General Assembly, said Thursday that at least one response was received.

"I would anticipate a decision will be made in early October by the committee," Durgin said of when a contractor will be selected.

The contractor must provide a draft outline of its study on Jan. 4, 2008. The completed study is due on May 15. The 12-member committee must report the study's findings and conclusions to the Senate by June 30.

Gladstone Partners LP is seeking state money to complement funding from Luzerne County and private investment in the business venture that the developer said will transform the region's economy through new-home starts, the attraction of companies dependent upon expedited shipment of products and the creation of thousands of jobs.

The committee issued a request for proposal on July 16, after the state Senate passed a resolution calling for the study.

Sens. Ray Musto, D-Pittston Township, and Lisa Baker, R-Lehman Township, introduced the resolution in June, saying the project raised numerous questions that required answers before the state commits any money for the construction of the airport.

Legislators attempted to use gaming revenues to back $250 million in bonds to be taken out by the airport developer. The state capital budget also included a line item of $250 million for the project.

Durgin said the committee's staff does projects in-house. But the committee goes outside when it does not have the "specific kind of skill sets" necessary to undertake a study such as the one for the airport.

He explained a team of three staff members will review each proposal and assess the qualifications of the people and the contractor and the "soundness of approach" to be taken by the contractor in the course of the study.

Determining the cost of the study follows, Durgin explained. "After we score the projects and rank them all, we open up the cost envelope."

Finally, Durgin said, he makes a recommendation to the four officers of the committee, composed of one member each of the four caucuses in the Senate and House of Representatives.

Jerry Lynott, a business writer for The Times Leader, may be contacted at 829-7237.

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