Cargo-Only Airport Proposed for Eastern Pa.

Feb. 1, 2007
Investment bank is suing current tenant to get 2,500 acres for the $100 million facility.

Jan. 31--The company suing the owner of an off-road vehicle park in Hazle Township wants to construct a multimillion-dollar cargo airport on the park's leased land and adjacent land extending into Schuylkill and Carbon counties, a state source has confirmed.

Gladstone Partners L.P. -- the company suing the owner of Paragon Adventure Park -- invited local, state, county and federal officials to a "major announcement" at 1 p.m. today at First Quality Nonwovens in Humboldt Industrial Park.

A government source familiar with the project said the announcement will detail plans for a proposed air cargo facility near Humboldt Industrial Park that could create about 5,000 jobs and more than $100 million in investments.

It could also lead to the creation of 100,000 more jobs as businesses decide to locate near the airport, the source said.

Greater Hazleton Chamber of Commerce President Donna Palermo said Gladstone sent her an invitation to today's announcement.

Palermo said she has "an inkling" of what will be announced, but knows nothing definite. She said it wouldn't surprise her if the announcement was for a cargo airport.

Former Hazleton Mayor Michael Marsicano first proposed a plan to construct a cargo airport on the land in 1996, and U.S. Rep. Paul E. Kanjorski, D- Nanticoke, has backed the idea since 1999. Kanjorski helped secure a federal grant to pay for a feasibility study of the proposed Tri-County Airport about three years ago.

Kanjorski, in reiterating his support for a cargo airport on Tuesday, cited a February 2005 feasibility study that described the "tremendous economic development benefits" the facility would bring.

Marsicano, a former airline pilot, convinced Kanjorski of the importance of "a multipurpose airport that could handle not only air cargo, but also emergency landing capacity and aircraft maintenance facilities."

The congressman said he would support the endeavor and would offer his assistance.

"Private sector investment in a project such as this can potentially get it done more quickly, rather than waiting for the approval process of obtaining federal grants," Kanjorski said in a press release.

Marsicano could not be reached for comment.

Luzerne County Commissioner Greg Skrepenak said he recently met with state Rep. Todd Eachus, D-Butler Township, to discuss local issues, and the airport plan was mentioned. Skrepenak said he was told a group was looking into the project, which has "gained a lot of momentum and support."

"It seemed almost too good to be true," Skrepenak said. "It's going to have a tremendous positive impact on the local economy. ... And it's not just an airport, it goes beyond that."

One of the only obstacles to the project is a 25-year lease that Overland Enterprises -- the owner of Paragon Adventure Park -- has with landowner PCA Corp., headed by Philip Seltzer. Seltzer also heads Butler Enterprises, a firm that owns large parcels of land in the Hazleton area.

While the park occupies about 4,300 acres of land in Luzerne and Schuylkill counties, court documents show that Gladstone wants to purchase about 2,500 acres of the land from PCA Corp. at $9,000 per acre.

Gladstone and PCA are suing Overland and its president -- Kyle Knosp -- for breach of lease and want Overland evicted.

Knosp said last week he is being bullied into giving up the lease so the landowner can make a huge profit on a land sale.

Attorney Jill Moran is representing Gladstone. Moran said Knosp failed to make rent payments and to provide financial and insurance information to Seltzer as provided for in the lease. She said Overland damaged the land by cutting trees and paths and digging ditches.

Knosp denies he breached the lease and is fighting the eviction in court. A hearing on his appeal is scheduled at 2:30 p.m. today in Luzerne County Court of Common Pleas.

Moran, who is also the Luzerne County prothonotary, would not identify her Gladstone clients by name.

A Pennsylvania Department of State document lists the Gladstone business address as 10 Fox Run Road in Butler Township -- the same address as the Powell Law Group, where Moran is a partner.

Scores of off-highway vehicle owners are upset that the East Coast's premiere park might close if Gladstone's lawsuit is successful.

Unfazed by the scope of the airport project, Knosp on Tuesday vowed to continue his fight.

"I upheld my end of the contract. No matter what this project is, that does not change my feelings that I've been mistreated. ?I'm not opposed to working with the companies, but we tried to work with many of the involved parties, and we were unable to even come close to terms that were acceptable to us. They really haven't offered anything. ... I think they've taken the most aggressive path they could take," Knosp said.

The airport plan could also see opposition from area environmentalists, who voiced dissent when the plan was first proposed in the 1990s. Residents living near the site at Eagle Rock Resort -- an upscale, gated community -- also spoke out then because they are worried that traffic and airplane noise would ruin the tranquil lifestyle they enjoy.

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