X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORLANDO-Seventeen national airlines, which underwrite Orlando International Airport’s debt, face an Oct. 31 deadline to decide the construction timeframe of a two-year planned new international terminal. A further delay will increase the construction cost by 21% to an estimated $692 million.

The project is one of the largest planned commercial construction ventures in metro Orlando in a decade.

The airlines want to delay the opening of the international terminal until June 2005 because they question the need for the expansion at this time. In return for the delay, however, the carriers would approve other construction work.

The deal currently being negotiated by the airlines and the Greater Orlando Aviation Authority would have the carriers pay for a portion of the $200 million in improvements scheduled for the main terminal, a larger Federal inspection station in the international terminal; and permanent stations for all people-mover trams. The balance of the $200 million cost would be covered by passenger fees.

The airlines fear GOAA will hit them with higher rents and fees to cover the new construction phase. That’s why the carriers have balked at giving the work a green light.

The new international terminal was supposed to open in December 2002. The facility would have a public terminal area, a 12-gate concourse, a VIP lounge, retail and parking.

Although the individual airlines are legally tenants at the airport, they have clout on big funding projects because they agreed years ago to cover whatever debt load the airport encumbers.

The new work allots $52 million for elevators and pedestrian skybridges leading to the parking garage; $49 million for an improved people-mover system between the north and south terminals; and expansion of the Federal inspection station to accommodate 2,000 passengers instead of 1,500.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.