Business Conflict Provokes A Resignation From Charleston Airport Board

Charleston County Aviation Authority board member Joseph H. Jefferson III resigned last week following the agency’s award of a $150 million construction contract for expansion of Charleston International Airport to Austin Commercial LP of Dallas. Jefferson’s resignation letter to Authority chairman Chip Limehouse says Jefferson’s engineering company Palmetto Civil Group expects to be considered for subcontracting work on the airport expansion from Austin Commercial’s local partner Hitt Contracting, Inc.

Jefferson says he resigned from the Authority committee spearheading the expansion last December, when it became clear his company might have a chance to work on the construction. He claims he distanced himself from discussions about the project, and never participated in deliberations about contractor selection. Jefferson recused himself, disclosing his relationship with Austin/Hitt the day the contract was awarded, and he now says he needs to step down because his business relationships could require more recusals in the future.

Federal Construction Budget Tradeoffs

No matter where you may believe the federal Highway Trust Fund spending level will ultimately rest on the spectrum between the House measure’s $34.6 billion annually and the Obama administration’s $79.2 billion annually, the sad fact is that these appropriations are offset by dramatic cuts to other federal construction spending programs, to the ultimate long term continuing injury to this important sector of the American economy. Obama’s own budget proposal cuts $450 million a year from transit construction funding in Illinois alone.

HR 7 takes us “back to the dark ages,” according to Transportation Secretary Ray LaHood, eliminating all funding for building bike paths, bike lanes and pedestrian safety projects. With the current Highway appropriations expiring March 31, 2012, the industry is undoubtedly looking at another series of short term extensions, making government and industry planning impossible until a long term funding measure is ultimately passed through both houses.

Meanwhile, even the comparatively generous Obama budget slashes Defense Department construction spending by 20%, Corps of Engineers civil construction projects by 13%, clean water state revolving funds by 20%, drinking water state revolving funds by 8%, Veterans Administration construction by 10%, and airport improvement grants by 28%. While the heavy civil sector of the US construction economy will feel these cuts most severely, resultant price increases in construction materials and equipment, due to the loss in sales volume, will impact all construction businesses across the country. Our national elected leadership continues to fail our industry.

Chicago Based Walsh Construction Participates In $1.3 Billion LAX International Terminal Expansion

Family owned Chicago contractor Walsh Construction, in a joint venture with Austin AECOM, has been awarded $1.3 billion in contracts for expansion and renovation of passenger terminals at Los Angeles International Airport. The bond financed project is not part of the federal stimulus appropriations. This work represents the first significant improvement to the LAX international terminal since the City of Angels hosted the 1984 Summer Olympics. It will add over a million square feet of space to the terminal, with two new concourses and nine new gates.

FAA Reauthorization Passes House

The House of Representatives voted 263-154 Thursday to approve legislation appropriating $53.5 billion for airport improvements during the next two years. Republican opposition to the bill centers on provisions requiring more frequent U. S. inspection of overseas aircraft repair facilities, which Republicans fear will set off a trade war with the European Commission.