Edgemoor Infrastructure & Real Estate secures US$1.5 billion airport project in Kansas City

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Edgemoor Infrastructure & Real Estate secures US$1.5 billion airport project in Kansas City

The City Council of Kansas City, Missouri have approved an ordinance that authorises KCI-Edgemoor to develop a new terminal at Kansas City International Airport (KCI). This confirms the Edgemoor Infrastructure & Real Estate-led team as the City’s development partner and enables the commencement of construction.

Estimated to cost US$1.5 billion, the new terminal will be built on the site of the airport’s existing Terminal A, which has been decommissioned and will be deconstructed this spring.

The facility will open in 2023 with 39 gates and the ability to expand up to 50 gates in the future. Additional features of the project include a 6,300-space parking structure, which will be constructed adjacent to the terminal building, a central utility plant, and landside and airside improvements. When complete, the terminal will replace the airport’s aging B and C terminals, which were built in 1972.

The ordinance includes a Development Agreement with Edgemoor Infrastructure & Real Estate, as well as the Developer’s Guaranty (Pledge), Terminal Workforce Enhancement Program and the airlines’ Use and Lease Term Sheet.

The City selected KCI-Edgemoor to develop the project in September 2017. However, the parties could not agree a final Development Agreement due to the extended negotiations between the airlines operating at the airport over the project financing. Seven airlines representing 95.5% of airline volume at KCI signed a term sheet last week.

The new terminal will be funded by 100% tax-exempt debt. Edgemoor, the Kansas City Aviation Department (KCAD), the City of Kansas City, and the airlines have been working in partnership to structure the transaction in order to achieve a strong credit rating. Bonds to fund the project will be sold through the Kansas City Industrial Development Authority this spring. 

Also last week, the Federal Aviation Administration approved the project’s Environmental Assessment, an important prerequisite to construction.

Edgemoor has partnered with design-builder Clark | Weitz | Clarkson (CWC) to construct the new terminal. The construction joint venture, which is comprised of Clark Construction Group, LLC, The Weitz Company, and Clarkson Construction Company, has collectively delivered more than 40 aviation projects nationwide; Skidmore Owings & Merrill is the project designer.

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