NEW YORK CITY-In a deal 10 years in the making, the Port Authority and city officials reached an accord for nearly 50-year lease extensions at two of the world’s busiest airports. The city will reap approximately $700 million from the pact, which also significantly raises annual payments on John F. Kennedy International and LaGuardia airports through 2050.

The $700 million includes a $500 million lump sum and a $90-million-per-year increase over the present annual lease payment of $3.5 million. Over the years, the agreement is expected to put billions into the city coffers. The Port Authority has operated the two commercial airports in the city for more than 55 years.

The agreement still must be approved by the Port Authority board of commissioners before it is finalized. The airports contribute more than $28 billion in economic activity in the New York metropolitan area, providing about 50,000 on-airport jobs while supporting more than 270,000 additional jobs in the region.

“This proposed agreement will give Kennedy and LaGuardia airports the sound financial foundation and governance structure worthy of these vital entryways to the world’s greatest city, and ensures that the Port Authority will make the appropriate investment in our airports going forward,” says Mayor Michael Bloomberg. The agreement also establishes and airport board, made up of city and Port Authority officials, to review standards, operations and performance.

The Port Authority will also increase its future Payment In Lieu Of Taxes for the World Trade Center site, which it owns. City officials hope the agreement will act as an economic stimulus for the city, state and region.” Port Authority executive director Joseph J. Seymour says the agreement establishes a fair and equitable payment to the city that will increase as the renaissance in Downtown Manhattan progresses.

The formula for the annual minimum PILOT will be based upon net lease revenues received by the Port Authority and $14 million annual minimum PILOT based upon current net lease revenues. There will be a $55 million annual PILOT after World Trade Center site is fully built out and the Port Authority will pay the equivalent of full property taxes on the Deutsche Bank and Millstein sites until site is developed.

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