CREST HAVEN – A resolution before the county commissioners on Jan. 28 to develop bid specifications seeking an operator for Cape May Airport prompted a discussion about whether county officials should make another attempt at negotiating with the Delaware River and Bay Authority, the airport’s current operator, over the DRBA’s lease of the property.
The commissioners last June formally notified the DRBA that the county would not automatically renew its 30-year lease agreement with the authority, which at the time had five years to run; the county was required to give the DRBA 60 days’ notice of such a move.
Since then there have been no negotiations between the county and the DRBA because the DRBA refuses to talk, county officials say.
On Jan. 28 Commissioner Will Morey, during the discussion of the specifications resolution at the commissioners meeting, raised the issue of trying to reestablish talks with the DRBA, citing among other things the multimillion dollar financial aspects of the situation, and he volunteered to be part of the process.
County Counsel Jeffrey Lindsay responded, saying the county has attempted to renegotiate its contract with the DRBA “a number of times,” both in writing and in-person, but there has been no willingness on the part of the DRBA to do so.
On May 7, 2024, the county reached out to the DRBA and said it wished to regain control of the airport property while at the same time allowing the DRBA to continue operating the airport. The county would like to develop plans for part of the property, possibly including plans for housing.
But the DRBA responded on May 9 that it had no interest in being the airport’s operator.
On June 6, the county announced its intention not to automatically renew the lease for another 30 years when it expires in 2029. A new airport operator could take over at that time.
Morey said he would like to see the county make overtures to the DRBA and try to begin negotiations. He said he has had 12 to 13 years’ experience dealing with the authority and knows a lot of its key players. He asked if he could help with the process.
“You are part of the board. Of course you can help,” Commission Director Leonard Desiderio said.
But Commissioner Bobby Barr said, “I don’t think any commissioner should involve himself in negotiations at this time.” Barr would later twice attempt to call for a vote, which would have stopped discussion about the resolution and airport.
Morey outlined various reasons for maintaining a relationship with the DRBA, including its work with the Federal Aviation Administration to secure matching grants, for which the DRBA often had to put up only 10% of the funds.
In addition, he said, the DRBA took the lead on capital improvements at the airport, for which county taxpayers might have to repay a currently estimated $34 million if the county ends up canceling its lease with the DRBA.
“It would seem to me that we try to push through this turbulence we had,” Morey said.
He said if the county could not strike a deal with the DRBA the county is looking at significant acquisition costs, some of which would be offset by rents, but not all. The county, besides paying back the estimated $34 million in capital investments, would take on full responsibility for such investments.
The county would also lose the revenue “pipeline,” as Morey called it, from DRBA bridge revenues, which mostly paid for the new $7.4 million terminal at the airport.
Morey said he believes the previous attempts at negotiating with the DRBA were hamstrung by the short window of opportunity to do so. He supported putting together a proposal of what the county wishes to do with the property and attempt to open talks with the DRBA.
Lindsay said every indication from the DRBA was that it did not care to move forward, but that did not foreclose the possibility of opening negotiations.
The commissioners ended up voting for the resolution to prepare bid specifications for an airport operator.
Contact the reporter, Christopher South, at csouth@cmcherald.com or call 609-886-8600, ext. 128.
