County Supports SJEDD In Hope of NextGen Impact

CREST HAVEN – Cape May County freeholders were asked by Director Gerald Thornton at the Jan. 22 caucus if any had “a problem” with a proposed resolution, passed later during the regular meeting that authorized the county to enter an agreement with SJEDD (South Jersey Economic Development District) and three other member counties.
“I am very much in support of it,” said Freeholder Will Morey, who is director of planning, economic development and transportation infrastructure. As such, he oversees economic development. Atlantic County is “fulfilling an important role…given the proximity in their county” of SJEDD’s NextGen project.
“It is logical to do that,” Morey said.
Atlantic County Freeholder Chairman Frank Formica and Chief of Staff Howard Kyle attended the Dec. 27 freeholder meeting to ask the board’s support of that county paying contractors on the massive project. Some of them had not received payment for services in over two years. The pair sought assurance from freeholders that Cape May County would allow Atlantic County to be credited the sum paid contractors as its portion in the four-county regional entity.
“Previously, I thought it (SJEDD) had stellar performance,” Formica stated at the December meeting.
“What they are doing, they are fronting the money to pay off all contractors,” Morey reminded peers. If Atlantic County officials did not take that action, he said, “in a certain period of time” reimbursement from the federal government would be lost. That time, he said, would be March 1.
Atlantic County will pay for the architectural work on the project. “It should be a benefit to the area,” Morey added.
Thornton said the neighboring county would pay about $478,000 of those accumulated bills.
When Formica and Kyle appeared, they cited a figure over $650,000, possibly before further accounting was done.
Morey said Cape May County would “not be admitting to any liability, if ever a day comes when they talk what the county owes.”
“No matter what, all four counties are liable for indebtedness,” Thornton replied.
Thornton turned to his right and asked Vice Director Leonard Desiderio if he had any objection.
“No,” said Desiderio, who is current chairman of the SJEDD.
The resolution stated, “It appears to the member counties that the immediate project with which financial support must be provided is the NextGen project in Atlantic County, and Atlantic County has agreed, as indicated in the attached agreement, to serve as the lead agency for resolving SJEDD’s financial obligations with this project.”
It further stated that member counties “wish to assist SJEDD during this reorganizational phase by agreeing to the terms and conditions of a mutually acceptable agreement.”
The agreement was executed under “the expressed condition that at least three of the four member counties and the SJEDD are signatories thereto.”
Member counties of SJEDD include Cape May, Atlantic, Cumberland and Salem. According to the resolution “It is estimated that the SJEDD has received grant funding and/or secured affordable loans in excess of $60 million, which funding has been advantageous to the member counties, as well as the municipalities within the member counties that the SJEDD has assisted…”
The document also notes, “It appears as though recent operational issues have adversely affected the financial ability of the SJEDD to perform its stated purpose and to satisfy outstanding financial obligations with respect to a project in Atlantic County referred to as NextGen Aviation Park.”
Formica said selection of the park in Atlantic County was unique due to the location near the sea as well as to FAA’s technical center and the Warren Grove and Air Force facility.
“It is virtually impossible to find anything like it elsewhere in the United States,” Formica told the board in December. He cited aircraft manufacturers such as Boeing and Lockheed Martin which may be interested in linking with the project to change air traffic control.
The economic impact of the project is “incalculable,” he said, but added the FAA might expend upward of $20 billion over 20 years, and $7 billion as soon as we prove the park is viable.”
“I explained to the board I believe it’s absolutely incumbent on the four counties to make sure this NextGen project is successful. It would be horrible for us to lose the project,” said Thornton at the time. Many do not understand, he added, but “It will change the entire air traffic control program with technology developed right here in Atlantic County, South Jersey. It is worth billions of dollars and a lot of jobs will be generated,” he added.
“The impact will be significant on the southern part of the state,” Thornton said. “I am talking as a former air traffic controller. I know the system…This is the biggest change to air traffic control systems in 50 years. This technology is far reaching, and we should do everything possible to protect this project.”
It is expected that some of the technology that will be perfected in the project will be on non-military remotely piloted vehicles (drones) that may find favor with law enforcement agencies such as the N.J. State Police.