Date: May 28, 2015
Press Release Number: 78-2015
The Port Authority's Board of Commissioners today voted unanimously to begin the first phase of a new vision for an overall redevelopment of LaGuardia Airport by selecting LaGuardia Gateway Partners to develop a $3.6 billion world-class facility to serve approximately 50% of the passenger volume at LaGuardia, consistent with the recommendations of New York Gov. Andrew Cuomo's Airport Advisory Panel. Today's vote is the culmination of a multi-year procurement process conducted by the Port Authority to select a team of leading private-sector construction, engineering, planning, airport management and finance firms to work with the agency in an innovative public-private partnership to construct the first phase of redevelopment of LaGuardia, which includes demolishing the Central Terminal Building and creating a new world-class facility including a new central entry portal to the airport and unifying previously unconnected terminals.
Today's Board action follows preliminary recommendations from Governor Cuomo's Advisory Panel and represents the first phase of a comprehensive master plan for a 21st century LaGuardia Airport that will be unveiled in the coming weeks. The Panel's recommendations also call for the creation of a state-of-the-art airport that will for the first time seek to unite the airport's current four disconnected terminals.
The new LaGuardia will be a world-class facility, and will be designed to seamlessly integrate with future amenities recommended by the Governor's Panel such as premier retail and dining space; a hotel; a conference and business center and other modern features that will generate revenue for the Port Authority. The amenities also will include transportation features such as an AirTrain, ferry service and a people mover to help passengers traverse the entire airport.
Construction of the project will be funded by a public-private partnership, with the private sector contributing more than $2 billion and the Port Authority contributing more than $1 billion to construct the airport and supporting infrastructure. LaGuardia Gateway Partners, the private development team, will be responsible for designing, constructing, operating and maintaining the new terminal.
The agreements for the new world-class terminal facility and the new central entry portal to the airport will be subject to multiple future Board approvals consistent with the Port Authority's capital plan.
"With today's Board action, the Port Authority continues to follow through on its commitment to modernize LaGuardia Airport, with the strong support of Governor Cuomo and his Advisory Panel," said Port Authority Chairman John Degnan. "By utilizing an innovative public-private partnership in this endeavor, the agency is also taking another important step in bringing state-of-the-art financing techniques to the task of updating our region's airports and other critical infrastructure."
"For too long, LaGuardia has been the stepchild of our region's airports compared to JFK and Newark International," said Port Authority Vice Chairman Scott Rechler. "Today we took the first step in moving forward with a comprehensive master plan to redevelop LaGuardia into a 21st century, world-class airport that the State of New York deserves." "Today's Board action is a major step in the modernization of LaGuardia and a huge step toward Governor Cuomo's goal of 21st Century airports in New York," said Port Authority Executive Director Pat Foye.
"We look forward to partnering with the Port Authority on this significant project for the city and state of New York," said Stewart Steeves of Vantage Airport Group, President and CEO of LaGuardia Gateway Partners. "The team is ready to deliver an exceptional experience for the airport community and the travelers who will pass through the new terminal. We will develop a world-class facility and bring the level of operational expertise needed to deliver the airport New Yorkers deserve, both during construction and throughout long-term operations."
The new terminal design is not expected to cost significantly more than previously anticipated for the old replacement concept. The board's action also limits the cost of the new entry portal to no more than $400 million, with construction based on future Board authorizations consistent with the Port Authority's Capital Plan process.
LaGuardia Gateway Partners selected today will now begin detailed negotiations with the Port Authority, airlines, and other stakeholders to finalize its proposal for developing, constructing and operating the new expanded terminal and portal while finalizing the financial terms of the public-private partnership deal.
LaGuardia Gateway Partners is comprised of Vantage Airport Group, Skanska and Meridiam for development and equity investment; Skanska and Walsh Construction as the construction joint venture; HOK and Parsons Brinckerhoff as the design joint venture; and Vantage Airport Group for management of the operations. LaGuardia Gateway Partners' members have worked on more than 350 aviation and transportation projects globally and domestically, including international airports in Chile, The Bahamas, New York (John F. Kennedy), Boston, Chicago and Los Angeles. More information is available at www.LaGuardiaGatewayPartners.com.
In January, Gov. Cuomo created a seven-member Airport Advisory Panel with expertise in business, planning and the local community to advise him and the Port Authority on the best ways to reimagine New York's two major airports. Last month, the Panel submitted preliminary recommendations to the Board in order to allow work to replace the Central Terminal to move forward in concert with a holistic master plan for the airport. Those recommendations included:
Port Authority of New York and New Jersey
Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. The agency's network of aviation, ground, rail, and seaport facilities is among the busiest in the country, supports more than 550,000 regional jobs, and generates more than $23 billion in annual wages and $80 billion in annual economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site, where the 1,776-foot-tall One World Trade Center is now the tallest skyscraper in the Western Hemisphere. The Port Authority receives no tax revenue from either the State of New York or New Jersey or from the City of New York. The agency raises the necessary funds for the improvement, construction or acquisition of its facilities primarily on its own credit. For more information, please visit http://www.panynj.gov.