MegaProject 705: Meridiam reaches Financial Close on LaGuardia Central Terminal B Redevelopment Project
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LaGuardia Gateway Partners (LGP) consortium has reached financial close on the New York’s LaGuardia Central Terminal B Redevelopment Project.
LPG is the consortium in charge of the design, operation, financing and maintenance of the project under a P3 contract with the Port Authority of New York and New Jersey (PANYNJ), with a lease term through 2050.
LaGuardia Gateway Partners is comprised of Meridiam, Skanska Infrastructure Development, Vantage Airport Group as project sponsors and co-investors, with Vantage Airport Group managing operations. Skanska USA and Walsh Construction form the design-build joint venture.
Contract price for the P3 scope of the project is US$2.8 billion, with an additional US$1.2 billion for the New Improvements and Central Hall elements, being funded by the Port Authority.
The project will be financed using equity, debt, PANYNJ milestone payments, as well as retail and airline revenues with equal shareholding amongst the three consortium partners. The debt component is comprised of up to approximately $2.35 billion in tax exempt AMT bonds; up to approximately $150 million in taxable bonds; and up to $500 million in taxable delayed draw private placement bonds.
Construction of permanent works will begin immediately, with most of the new terminal opening in 2020 and substantial completion anticipated during 2022.
The new LaGuardia Central Terminal B will be built adjacent to the existing terminal, while flight operations continue without interruption. The new design, expected to achieve LEED Silver Certification (Leadership in Energy and Environmental Design). The project involves:
- participate with the Authority in the replacement and financing of the existing Central Terminal Building at LaGuardia Airport including Frontage Roads, aprons, utilities, a central heating and refrigeration plant and other support facilities;
- operate and maintain the existing CTB during the construction period
- manage the transition of airline and non-airline tenants to occupancy of the replacement CTB;
- operate and maintain the CHRP;
- operate and maintain the New CTB for a specified term.
- build a new central hall to connect the new terminal to the rest of the airport and adding security screening and retail space and, potentially, a hotel.
Jane Garvey, Chairman, Meridiam North America and LGP Board Director, stated:
"Our team has brought together several of the world's aviation leaders to benefit the Port Authority, the more than 14.3 million passengers who travel through LaGuardia's Central Terminal B Building annually and the airlines who serve them. We understand the vital role that LaGuardia plays as a transportation hub, a regional economic engine, and a critical link in the nation's aviation network. We look forward to delivering the best possible terminal to fulfill each of those essential roles."
Thierry Déau, Meridiam's CEO and Founder, commented:
"The LaGuardia Airport Central Terminal B Project is an emblematic example of how we, through Public Private Partnership, can expedite delivery of vital infrastructure to meet the US's critical needs. This project joins Meridiam's North American growing footprint alongside the Port of Miami Tunnel, the Long Beach Court House, and the North Tarrant Express, all game-changing projects for the communities they serve."