Airport City at MIA, a 33-acre development with hotels, meeting space, office space, and restaurants, is similar to other "aerotropolis" projects in and near airports in the United States and around the world. The structure and role of these mini-cities are similar to those of typical metropolises, but they are centered around airports rather than central cities. properties
According to Odebrecht USA, a Coral Gables-based affiliate of the Brazilian-based Odebrecht Organization, which will lead the construction, Miami is joining the ranks of Dublin, Frankfurt, Amsterdam, Dubai, Singapore, and Hong Kong in launching the Airport City project. According to a statement released by Odebrecht USA, the company will be responsible for all project funding, design, and operating expenses, and the county's aviation department will share in project revenues.
The Aurora/Denver, Colorado and Atlanta metros are two other cities in the United States that are developing or planning similar projects. Dr. John Kasarda, a University of North Carolina professor and director of UNC's Kenan Institute for Private Enterprise's Center for Air Commerce, was the first to coin the term "aerotropolis." According to his ideology, it is easier for companies to compete in the global economy when regions and/or countries make greater use of airport lands and land surrounding airports. The aerotropolis is becoming a major urban destination as more companies and commercial service providers cluster around airports, but these areas must adhere to urban planning principles, according to Kasarda.
Airport City at MIA will be anchored by a hospitality center with a four-star hotel and conference center that will be connected to the terminals, according to plans unveiled last Wednesday. The project's investment budget is expected to be $512 million, with a payroll impact of $827 million. Miami's Airport City will be privately financed, but will be constructed on Miami-Dade County-leased property.
Airport City's business park will include up to one million square feet of mostly Class A office space, a 150 to 300-room limited-service hotel, retail and restaurant services, and an MIA People Mover Station.
The land lease agreements for the Airport City concession include a 40-year initial term plus an optional 10-year extension. Miami-Dade County will receive rent for the county land as well as additional payments in the form of percentages of certain gross revenues generated on the parcels through its aviation department.
The Airport City project is still in its early stages. According to Greg Chin, communications director for the Miami-Dade Aviation Department, potential partners for the retail and hotel portions of the development are in the negotiating stages.
According to Tom Dixon, president of Dixon Commercial Real Estate in Miami, "every development has a plus and a minus." On the positive side, he says, the project's profits would help fund the airport and could allow landing fees to be reduced or at least not increased in the future, making MIA more competitive with Ft. Lauderdale's airport, which has landing fees that are far lower than MIA's. Also, according to Dixon, the more people who visit MIA, the better for the local economy.
"The land at MIA is valuable, but it isn't being used to its full potential, so it behooves (Miami-Dade County Aviation Department officials) to use it effectively," Dixon says. "Right now, the airport receives about 1000 flights a day," he says. According to Dixon, with the new growth, that number could rise to 1500 per day.
At the same time, as the airport expands its facilities and adds retail, businesses in the surrounding area will suffer, according to Dixon. "I'd be anxious if I had a hotel near the airport," he says. Furthermore, owners of buildings on airport property are exempt from paying real estate taxes, giving them a competitive advantage over other companies, according to Dixon.
On the plus side, according to Guy Trusty, president of Miami-based Lodging & Hospitality Realty Advisors, "Airport City may lift us up another tier and cement our reputation as an international destination in the same way the Four Seasons and Ritz-Carlton lifted the hotel industry."