Renderings Courtesy of Port Authority of NY/NJ
By Forum Staff
Governor Kathy Hochul on Monday announced that the Port Authority of New York and New Jersey has reached a revised agreement with The New Terminal One (NTO) – a consortium of financial sponsors – to build a 2.4 million square foot state-of-the-art new international terminal that will anchor the south side of John F. Kennedy International Airport. The $9.5 billion project will be built in phases and will create more than 10,000 jobs, becoming the fourth major terminal project announced by the Port Authority as part of a complete transformation of JFK into a world-class airport worthy of New York and the region. When completed, The New Terminal One will be the largest international terminal at JFK and aspires to be among the top rated airport terminals in the world.
“As we recover from this pandemic, I want to ensure that everyone traveling to New York has a welcoming and streamlined experience, and that New Yorkers have the modernized transportation hubs they deserve,” Hochul said. “The time to get large infrastructure projects done is now, and I’m committed to getting JFK’s brand new Terminal One underway and completed as soon as possible.”
The Port Authority Board of Commissioners will vote on the proposed lease agreement at its meeting this Thursday, Dec. 16. The full cost of the terminal will be privately financed by the NTO consortium which includes financial partners Carlyle, JLC Infrastructure, and Ullico. A joint venture of Munich Airport International and CAG Holdings is the operating and technical services partner to the consortium.
As part of the project, the Port Authority will undertake a number of infrastructure upgrades and improvements including roads, parking, and utilities including a new electrical substation. The New Terminal One will be built on the sites of the current undersized and outdated Terminal 1, the aging and obsolete 59-year-old Terminal 2, and the site of the former Terminal 3, which was demolished in 2013. Construction of the new terminal is scheduled to begin in mid-2022 and the first phase, including the new arrivals and departures hall and first set of new gates, is expected to open in 2026.
Renderings Courtesy of Port Authority of NY/NJ
The project was initially scheduled to break ground in 2020. Due to the severe impact of the COVID-19 on air travel, the terms of the agreement needed to be restructured. The restructured deal announced today marks a major step forward in the ambitious plan to transform JFK into a unified, 21st century global gateway. The new terminal will be built in phases, subject to international passenger traffic levels, with full completion anticipated in approximately 2030.
The New Terminal One will ultimately have 23 new gates, as well as bright and airy check-in halls and arrival spaces designed to enhance the customer experience and compete with some of the highest-rated airport terminals in the world. Customers will enjoy world-class, New York-inspired dining and retail amenities, as well as space for lounges, an indoor green space and family-friendly amenities. The New Terminal One will incorporate the latest advances in both sustainability and security and be infused a with uniquely New York sense of place.
In October 2018, following a competitive review of leasing proposals, the Port Authority entered into exclusive negotiations for the development of two major new international terminals, one each on the airport’s north and south sides, that would lead the transformation of JFK and increase the airport’s capacity to accommodate projected growth.
Renderings Courtesy of Port Authority of NY/NJ
This week, the Port Authority Board will also vote on the authorization of the full $2.9 billion of funds which were included in the Port Authority’s 2017-2026 Capital Plan for the JFK Redevelopment program. These funds are allocated to enabling infrastructure in direct support of JFK Redevelopment, including roadway improvements, utilities, improved parking facilities, a ground transportation center and airfield work. (To date, approximately $1.24 billion of those funds have been authorized through separate Board actions.) Thus, the Port Authority capital is leveraging private investment at a rate of more than 5:1 when taking into account the full private investment of more than $15 billion that has been committed to the four projects comprising the full JFK redevelopment program.
The development of The New Terminal One is expected to result in over 10,000 total jobs including more than 6,000 union construction jobs.
“I am so pleased to see that Terminal 1 will undergo a much needed transformation and will receive the investment needed to create a world class international terminal worthy of the Borough of Queens,” Assemblywoman Stacey Pheffer Amato (D-Howard Beach) said. “We’re sending a message to all who visit that New York is bold, and that everyone is welcome here. It has never been more important to invest in our aging airport infrastructure, and I’m glad that Gov. Hochul, the Port Authority, and the NTO group were able to come together. This project will provide much needed jobs to Queens, and opportunities for local vendors to bring that Queens culture to the ‘Front Door’ to New York City.
