Growing the Region - News from the Port Authority of NY & NJ
Vol. 5, No. 6, August 11, 2010
BRIEFS

PATH to Purchase
10 Additional Cars

The Port Authority Board August 5 authorized the agency to exercise an option under the PATH Railcar procurement contract with Kawasaki Rail Car Inc., to purchase 10 additional rail cars at a total cost of $15 million. These 10 cars will augment the original 340-car purchase of new PA-5 cars from Kawasaki. Many of the new cars are now in service and more are being added to the fleet on a regular basis to allow us to meet future capacity needs.

Public Meetings
Visit panynj.gov to view minutes and actions from previous Board of Commissioners meetings, and to view webcasts from the August 5 Board and committee meetings.

Did you know?
You can walk, run, bike across the George Washington Bridge. Details on access and directions are available on the Port Authority Web site.

Port Authority Board Finalizes Agreement with Durst
For Equity Stake in One World Trade Center

The Port Authority Board of Commissioners has authorized the final terms of an agreement with The Durst Organization for an equity membership interest in One World Trade Center.

The Board took the action at its August 5 meeting. The agency had announced the selection of Durst as an equity partner in July. Staff negotiated the partnership agreement for approval by the Board this month.

The new partnership repositions One World Trade Center in the market with a private sector overlay and equity backing. This will increase its economic competitiveness, brings in best-in-class private sector expertise in development, construction, leasing and management whose economic interests are aligned with the Port Authority, and limits the Port Authority's long-term financial risk by partnering with a private developer with a proven track record for developing large, Class A office buildings in New York City.

Under the agreement, Durst will make a minimum equity investment of $100 million for its membership interest in One World Trade Center LLC. At the Port Authority's option to be determined in the future, Durst will commit an additional $100 million under the same terms as the initial $100 million, or an additional $200 million in preferred equity that would draw a fixed rate of return on the investment.

The agreement also will allow Durst to bring its expertise to advise the Port Authority with ongoing construction of One World Trade Center and take on primary responsibility for tenant fit-out, leasing and property management.

Full Story.

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One WTC Rises to 34th Floor and Climbing
One World Trade Center is becoming a fixture in the Lower Manhattan skyline, having risen to the 34th floor. Work is also under way on the building's concrete core. Visit WTCProgress.com for more updates, or to view a live camera of the construction in progress.

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State-of-the-Art Terminal Construction Approved
For Delta Airlines at JFK International Airport

The Port Authority Board of Commissioners at its August 5 meeting approved a plan for Delta Air Lines to build new state-of-the-art terminal space at John F. Kennedy International Airport's Terminal 4 replacing the antiquated space the airline now occupies in Terminal 3.

Under the plan, Delta's international traffic will move into Terminal 4 into nine newly constructed passenger gates and up to seven of the building's existing gates, occupying 16 of the expanded terminal's 25 total gates. Delta Air Lines handles almost a quarter of JFK’s annual passenger traffic. JFKIAT, the largest private terminal operator in the country, will continue to have overall responsibility for the management and operation of the terminal.

Once the new gates are built in Terminal 4, JFK's existing Terminal 3 will be demolished to provide 16 additional aircraft parking spaces allowing Delta and other airlines to have increased access to their equipment and help alleviate congestion on airport runways and taxiways.

Full story.
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