Industrial Realty Group, LLC (IRG), one of the largest industrial real estate developers in the nation, announced that the company has reached agreement with the South Jersey Transportation Authority (SJTA) on a ground lease of approximately 400 acres in the northwest corner of the Atlantic City International Airport (ACY). The agreement is a culmination of more than six years of the Atlantic County Economic Alliance (ACEA) working cooperatively with the SJTA to unlock the site for development. The agreement calls for the SJTA and IRG to work cooperatively towards the construction of a new, mixed industrial and commercial use development with the potential for multi-modal infrastructure.
The ACEA has been working with IRG for more than a year on the deal that could stimulate tens of millions of dollars in new private investment in the region. As the business facilitator for the Aviation District that surrounds the airport, the ACEA regularly helps companies identify and access all local, state, and federal government assistance and tax/financial incentive programs as well as financing opportunities available.
According to Lauren H. Moore, Jr., president of the ACEA, the deal marks a critical milestone for a development project that has been many years in the making.
“IRG’s proposed development supports our mission to diversify and strengthen the economy of Atlantic County and to develop one of its most valuable parcels,” said Moore. “It’s particularly exciting because these 400 acres were only recently unlocked for development. We look forward to working with IRG and the SJTA to support this exciting project to build a mixed industrial and commercial use development with a goal to focus on aeronautical in the Aviation District.”
Before the land could be approved for development, the county had to relocate a sanctuary for endangered birds, a move in 2020 that required the purchase of 233 acres of land in nearby Hamilton Township. The move also required a 2019 amendment to the SJTA’s memorandum of agreement with the state’s Pinelands Commission allowing the establishment of the new conservation site. Successfully moving the aviary has resulted in better protection for the endangered upland sandpiper and the threatened grasshopper sparrow, while also enhancing safety at the airport and freeing up valuable runway-side land to be used in support of the ACEA economic development and diversification plan.
With the 400 acres cleared for development, in July of 2022 the SJTA authorized its Executive Director, Stephen F. Dougherty, to enter negotiations and execute an agreement for the development of the northwest quadrant of the airport. This lease agreement with IRG is the culmination of efforts of the two parties under the July 2022 authorization.
“We could not have found a better partner to make this project a reality,” said Dougherty. “We look forward to a rewarding and mutually beneficial business relationship with IRG for many years to come.”
“This agreement is conducive with our efforts to explore the development of an air cargo maintenance and repair facility that could result in hundreds of short-term construction jobs and many more long-term jobs,” stated Atlantic County Executive Dennis Levinson.
Higher utilization through industrial development has been a key component of the ACEA’s regional master planning since its inception almost six years ago. Immediately upon the signing of the lease agreement, the ACEA began coordinating high-level meetings with state and federal officials to ensure the infrastructure required will be in place for this project to proceed. The ACEA will now work with IRG to ensure regulatory requirements are met and to help navigate the permitting process and environmental assessments necessary for Department of Environmental Protection and Pinelands Commission approvals. Simultaneously, ACEA will partner with IRG to ensure funding is available for infrastructure to make this project happen.
IRG’s background made the established, national developer a well-suited selection for the project. As a leader in the conversion and privatization of federal properties, including closed military bases, IRG owns and is master developer of three closed military bases, a former NASA manufacturing facility and a closed Veterans Affairs site.
“IRG has a wealth of experience in the aviation segment of commercial development,” said Stuart Lichter, President of IRG. “We have already discussed site opportunities with many job-creating tenants. We believe this momentum will continue to grow because of the property’s location and airport proximity.”
ACY is a designated Smart Airport Research Test Bed Facility and is adjacent to the National Aerospace Research & Technology Park and the FAA William J. Hughes Technical Center, the premier federal aviation laboratory dedicated to advancing the safe and efficient operation of the National Airspace System. Collectively these assets, as well as the surrounding one-mile area, constitute New Jersey’s only officially recognized Aviation District, which also lies within a Federal Opportunity Zone.
ACY’s Class C Airspace lies just outside of Philadelphia’s Class B and New York City’s Class B airspaces. Therefore, aircraft utilizing ACY can avoid flow control delays, ground stops, holding patterns, arrival and departure sequencing delays, and taxi delays. Plus, ACY’s airport-use fees are significantly lower than other airports in the Northeast. Featuring two runways (10,000 feet and 6,144 feet), ACY is a Part-139 Class 1 airport with a 175,000-sq.-ft. passenger terminal that services 1 million passengers annually. The SJTA and NJ Transit are currently conducting an ACY rail station feasibility study that includes examining a potential cargo spur into the Northwest Quadrant of the airfield.
The Atlantic County Economic Alliance is a private-sector-directed, nonprofit economic development corporation established in 2017 for business attraction, retention, and marketing efforts in Atlantic County. Visit www.aceanj.com or call (609) 245-0019 for more information.
