2020.06.26 RDU public hearing comments.docx

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R A L E I G H- D U R H A M AIRPORT AUTHORITY
1 0 0 0 Trade Drive ' P 0 B o x 6 0 0 0 1 ' ROU Airport, NC 2 7 6 2 3
Michael J. Landguth, A.A.E. tel: [phone] • fax: [phone] • www.rdu.com
President & CEO
June 23, 2020
Attn: Judy Wehner
N.C. Department of Environmental Quality
Division of Energy, Mineral, and Land Resources
1612 Mail Service Center
Raleigh, N.C., 27699-1612
Ms. Wehner:
The Raleigh -Durham Airport Authority (Authority) supports Wake Stone Corporation's permit
modification request to expand its quarrying operations onto 105 acres of airport land.
The Authority's Board voted in March 2019 to generate new revenue through a land -lease agreement
with Wake Stone that would help fund critical infrastructure projects, including replacement of the
airport's primary runway, more gates and improved amenities. The agreement is conservatively
projected to generate $24 million for the airport from a 25-year, 105-acre expansion of the adjacent
existing quarry.
The land -lease agreement also requires Wake Stone to provide $3.6 million for a third party to lease
151 acres of airport land for mountain biking recreation. Wake Stone will contribute an additional $3
million at the end of the agreement to reclaim the site with recreational features. It is important to
note that Wake Stone has been a good neighbor to the airport and nearby state park for decades,
having operated an adjacent quarry since the 1980's without any environmental violations from the
N.C. Department of Environmental Quality (DEQ).
In the years leading up to the land -lease agreement, the Authority held 10 public workshops and
encouraged Wake Stone to seek input from local governments, the broader community and groups
who had concerns about how airport land should be used. The existing mineral lease, which is more
valuable than Wake Stone's initial offer, is the result of that thoughtful process.
At the time the Authority entered into the lease, Raleigh -Durham International Airport (RDU) was
experiencing record growth and financial projections showed its traditional funding sources — such
as grants, parking, airline service fees, terminal rentals and concessions revenue — would not cover
the capital expenses needed to maintain current infrastructure and accommodate increased passenger
traffic, more flights and larger aircraft.
The COVID-19 pandemic hit the U.S. one year later in March 2020 and revenue at airports across
the country plunged to levels that are unprecedented and unsustainable. RDU passenger traffic
reached a mid -April low of just 3.5% of traffic from a year earlier and remains 87% down. Industry
experts predict it will take three to five years to reach 80% of pre -pandemic levels.
R a l e i g h- D u
r h a m Airport
Authority Board
Members
John M. Kane, Chairman
Patrick Hannah, Esq., Vice -Chairman Robert D. Teer, Jr., Treasurer
Dlckie Thompson
Wake County
Durham County
City of Durham
City of Raleigh
David Morgan
Sepideh Saidi, PE, Secretary
David Kushner
Napoleon Wallace
Durham County
City of Raleigh
Wake County
City of Durham

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Michael J. Landguth, A.A.E.
President & CEO
R A L E I G H- D U R H A M A I R P OR T A U T H OR IT Y
1 0 0 0 Trade Drive ' P O B o x 6 0 0 0 1 ' R DU Airport, NC 2 7 6 2 3
tel: [phone] • tax: [phone] • www.rdu.com
The prolonged effects of the pandemic have intensified RDU's funding needs and underscored the
need for alternate sources of funding. Faced with a long road to recovery, it is more important now
than ever for RDU to diversify its funding sources and not depend solely on aeronautical revenue.
The land -lease agreement executed by the Authority is in the best interest of the airport and the
community, and we respectfully ask that DEQ grant Wake Stone's permit request.
Sincerely,
Michael J. Landguth
President & CEO, Raleigh -Durham Airport Authority
R a l e i g h- D u
r h a m Airport
Authority Board
M e m b e r s
John M. Kane, Chairman
Patrick Hannah, Esq., Vice -Chairman Robert D. Teer, Jr., Treasurer
Dickie Thompson
Wake County
Durham County
City of Durham
City of Raleigh
David Morgan
Sepideh Said[, PE, Secretary
David Kushner
Napoleon Wallace
Durham County
City of Raleigh
Wake County
City of Durham