An overhaul of LaGuardia Airport is closer to taking flight after the Port Authority of New York and New Jersey Board of Commissioners voted Thursday to approve a public-private partnership for the $4 billion project.
The commissioners approved a lease with developer LaGuardia Gateway Partners to build and operate a new state-of-the-art Terminal B as well as construct a central hall and connecting concourse that would unify the 77-year old New York City airport in Queens. The plan is also aimed at enhancing transportation access with an air train station, new roads, runway improvements and parking garage.
"Modernizing our aging airport terminals demonstrates the Port Authority's commitment to focusing on the region's transportation infrastructure," said Port Authority Vice Chairman Scott Rechler in a statement. "To achieve operating efficiencies, offer our customers the best in world-class service and meet the anticipated rise in passenger demand, it is imperative that the agency continues to make these investments in our airports."
New York Gov. Andrew Cuomo, who first announced his vision for LaGuardia last July, praised the Port Authority action Thursday and said construction should begin shortly with portions of new airport opening around 39 months after shovels hit the ground. Cuomo said two-thirds of the project will be financed by private funds and existing passenger fees. The Democratic governor estimates the LaGuardia modernization will result in $1.3 billion in new wages and $5.2 billion in regional economic activity.
"Our plan will fundamentally transform LaGuardia – replacing what is now an outdated and poorly designed complex with the world-class airport New York has always deserved," said Cuomo in a statement. "This represents a major milestone for the project – the first of many – and I look forward to seeing construction begin later this year."
Under the P3 arrangement, LGP will design, build, operate and maintain the airport facility. Risks of cost overruns or schedule delays will be transferred from the Port Authority to LGP, which was selected after a competitive request-for-proposals process.
"Approval of the lease with LGP is both the first major step toward Governor Cuomo's modernization of LaGuardia Airport and the largest public private partnership for new transportation infrastructure in U.S. history," said Port Authority Executive Director Pat Foye in a statement. "The transaction brings private capital and expertise to an airport in desperate need of investment, and shifts the risks of complex construction in an operating airport environment from the Port Authority to well-capitalized private parties."
While fixed expenses for the comprehensive redesign are estimated at $4 billion, Port Authority Chairman John Degnan pointed out in a press conference after Thursday's meeting that some additional costs may make total amount around $5.3 billion. The Port Authority has operated LaGuardia under a lease with the City of New York since 1947.
