The Port Authority of New York and New Jersey on Thursday approved spending $600 million on the redevelopment of Delta’s terminals at LaGuardia airport, leaving the airline to pay the remaining $3.6 billion for the project.
The bistate agency also approved new terms for Delta’s ground lease at the airport, which runs through 2050 and includes an up to $36.6 million tax abatement, the Commercial Observer reported. However, the project still needs to be certified by the Federal Aviation Administration before moving forward. To pay its share for the project, Delta will likely issue the debt through bonds.
Delta’s overhaul of Terminal C and D are just a portion of what’s planned for the airport. LaGuardia Gateway Partners broke ground on the redevelopment of Terminal B in June, which is expected to cost $4 billion. Last year, LGP issued $2.5 billion in tax-exempt bonds for its portion of the redevelopment. Delta’s new terminals, which will connect to Terminal B, will consist of 37 gates and 30 percent more concession space than the existing structures.
Port Authority commissioners have argued if the redevelopment of the airport will cost $4 billion or $5.3 billion.