Delta agrees to replace outmoded Terminals C and D with new facility to be integrated into a new unified terminal complex, with Port Authority investment capped at $600 million

The Port Authority’s Board of Commissioners today authorized $600 million toward the construction of a new terminal to replace Terminals C and D for Delta Air Lines, Inc. at LaGuardia Airport, marking the second phase of the airport’s redevelopment and modernization program.

The authorization, consistent with recommendations made by Gov. Andrew Cuomo’s Airport Advisory Panel, will help unify the airport through the interconnection of Terminal B with the new 37-gate Terminal C&D facility that will house Delta. This second phase of the redevelopment project is expected to cost an estimated $4 billion overall. Delta has agreed to finance the project, perform the construction and be responsible for any cost overruns, while the Port Authority’s investment would be capped at $600 million with no responsibility for any cost overruns.

Pending approval from the Federal Aviation Administration, work on the Delta phase of the project could begin as early as 2017, with a targeted completion date of 2024. The main head house of the new terminal is expected to open in 2020.

Including the prior authorization for LaGuardia Airport’s new Terminal B, the overall cost of the airport’s redevelopment is estimated at $8 billion, with approximately 80 percent funded through private financing and existing passenger fees. It is a multi-phased project in coordination with the Port Authority and LaGuardia Gateway Partners, which is overseeing the Terminal B project.

When completed, the new LaGuardia Airport will be a unified facility connecting Terminal B and the Central Hall through to the redeveloped Terminal C&D, which will be located closer to the Grand Central Parkway to increase airfield space and improve the efficiency of aircraft movements into and within the terminal ramp area. Road, utility and other improvements also are integral to the development plan. Additionally, Delta’s new terminal will feature best-in-class passenger amenities in both the pre- and post-security areas.

“Today’s board action exemplifies the Port Authority’s commitment to our passengers by continuing our efforts to modernize our transportation facilities and create world-class airports,” said Port Authority Chairman John Degnan.

“Nearly a year ago, Governor Cuomo unveiled his vision for a 21st century, unified LaGuardia Airport,” said Port Authority Vice Chairman Steven M. Cohen. “With nearly 80 percent of the $8 billion project funded through private finance and existing passenger fees, the new LaGuardia Airport is a model of the private sector and government working together to deliver critical transportation projects for the region.”

The deal includes plans to negotiate a long-term lease with Delta for the new terminals, which would run through 2050 – the same timeframe for the agency’s airport lease with the City of New York and the Terminal B project. Terms and conditions of the lease with Delta, which are expected to be generally consistent with existing Port Authority terminal leases, are being finalized and will be presented to the Port Authority Board of Commissioners for approval.

LaGuardia Airport is vital to the region’s tourism and economy, welcoming more than 28 million passengers annually and supporting 129,100 total jobs, which generates $6.4 billion in annual wages. [The Terminal C&D project with Delta is expected to generate 8,000 direct jobs and 10,00 indirect jobs, $1.3 billion in wages and $5.2 billion in economic activity.]

Of the agency’s $600 million commitment, the Port Authority plans to contribute $200 million toward the Delta terminal for new concourses and ramp work and $185 million toward construction of the electrical substation to support the power requirements of the new building and an expansion of the East Garage, along with any necessary temporary parking solutions during construction.

Additionally, the agency would commit $215 million towards roadways and other supporting infrastructure that typically has been the responsibility of the Port Authority in terminal developments at the agency’s airports. Delta Air Lines will be responsible for performing and managing the construction work, with full responsibility for any cost over-runs.


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