Sale of ORH

In April, 1998, New York State selected the U.K. firm National Express to lease Stewart Airport for 99 years. Stewart thus became the first U.S. airport to be fully privatized and the first participant in the FAA’s airport privatization pilot program to complete the process.National Express Group PLC offered $35 million in cash up-front, plus a percentage of airport revenues. Its bid was judged superior to those of the other four finalist teams: American Port Services (Baltimore), D.M. Airport Developers (Morristown, N.J.), Airport Group International (Glendale, Calif.), and LCOR / Schiphol Airport (New York City).

I have no idea how ORH stacks up against Stewart as far as a sale price goes, but lets for arguement's sake we sold it to MassPort for $20 million. Here is what I see as the benefits to Worcester:

1. One time cash infusion of $20 million
2. Relieved of an approximately $2,000,000 annual deficit. Over the past 9 years ORH has lost over $15 million dollars.
3. Negotiate with MassPort to make a PILOT (payment in lieu of taxes). Right now no property taxes are paid on this property.
4. MassPort will turn ORH into a successful airport with a mix of commercial, corporate and general aviation. This success will bring spin-off industry around the airport, which will mean more revenues to the City of Worcester.

SELL ORH