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

The agreement still must be approved by the Port Authority boardof commissioners before it is finalized. The airports contributemore than $28 billion in economic activity in the New Yorkmetropolitan area, providing about 50,000 on-airport jobs whilesupporting more than 270,000 additional jobs in the region.

"This proposed agreement will give Kennedy and LaGuardiaairports the sound financial foundation and governance structureworthy of these vital entryways to the world's greatest city, andensures that the Port Authority will make the appropriateinvestment in our airports going forward," says Mayor MichaelBloomberg. The agreement also establishes and airport board, madeup of city and Port Authority officials, to review standards,operations and performance.