Financing arrangements for the $4 billion renovation of LaGuardia Airport have been finalized.
The Port Authority of New York and New Jersey, which runs the airport, reached financial close on a 34-year lease with LaGuardia Gateway Partners, a consortium headed by Vantage Airport Group, Skanska and Meridiam, The team will design, build, operate and maintain the facility for the life of the agreement, reported Reuters and Gov. Andrew Cuomo’s office June 1.
The New York Transportation Development Corporation, an affiliate of Empire State Development, issued $2.4 billion in primarily tax-exempt bonds for the project, most of which will be paid for through private financing and passenger and retail fees.
“The bonds were almost 10 times oversubscribed on average, demonstrating strong interest by investors in the complete redevelopment of LaGuardia Airport,” according to the governor’s office.
The project will include renovation and expansion of the central Terminal B, which will cover 1.3 million square feet, twice the size of the current facility, and contain 35 gates. Construction also will include the world’s first double set of pedestrian bridges spanning aircraft taxi lanes, a new central entrance hall and a new garage that will be connected to the terminal by a pedestrian walkway, according to LaGuardia Gateway Partners and the airport. New restaurants and lounges, and better baggage and screening areas will be provided with the anticipation that the airport will handle 17.5 million passengers per year.
The project is expected to create 8,000 direct and 10,000 indirect jobs and generate $1.3 billion in wages and $5.2 billion in direct economic activity, Cuomo’s office said.
The airport will remain open during the renovation, which will begin immediately. New facilities will begin to be open to the public in 2018 and all of Terminal B will open by the end of 2021.