Port Authority Exec. Dir. Rick Cotton
AIRPORT VOICE, APRIL 2020 11
JFK redevelopment on pause
Deferred but not cancelled
Stakeholder groups meet monthly
BY JEFF YAPALATER
At the Port Authority
Board meeting in
March Executive Director
Rick Cotton said the
JFK Airport redevelopment
is being reviewed
and
“Port is creating
various scenarios of
the economic impact
and net result of federal
legislation. All analysis
are preliminary but
are a major focus.” However,
Cotton added that
redevelopment construction
already underway
at LaGuardia
Terminal is continuing
although small delays
were possible given the
nature of the virus on
the workforce. “Capital
construction work,
because is its essential,
all construction projects,
are moving forward.
The Challenge is
maintaining safety put
in place, and social distancing.”
According to Jim
Heitman who has been
the face of the redevelopment
at the JFK
amplified Cotton’s remarks
saying the redevelopment
plan has
been impacted by the
virus. He said there
would certainly be a
delay, but a question of
how much of a delay,
He added, “ There is a
lot of analysis in each
of the deals. Port has
to look at our own capital
capacity and liquidity
constraints so there
is not any activity any
time really soon,”
At a Queens Chamber
of Commerce small
business conference,
JFK Airport Redevelopment
Community Advisory
Council Co-Chair
Congressman Meeks
said that Terminal One
(TOGA) is ready to go
but waiting. The other
projects are reviewing
the conditions and
working with Port Authority.
“ We anticipate
discussions by Port
which is t
As a part of the JFK
airport redevelopment,
stakeholder groups
were formed as an advisory
body for ideas and
suggestions to the Port
Authority JFK Redevelopment
team.
However since the
outbreak of the Covid-19
virus which has been
so widespread and invasive,
the groups are
currently meeting once
a month for the time
being instead of every
week. According to JFK
GM Charles Everett,
“ The JFK -redevelopment
activities are still
ongoing. We are trying
to understand the environment
and what we
need to do, but we will
be transparent with the
groups.”
Heitman said that
because of the virus
and these changes, it is
not productive for the
stakeholders group to
meet so often since so
much is in flux. With
things changing every
day, it is important
for the redevelopment
to focus on priorities
he said. He assured
everyone that Port is
“not going off and making
decisions without
you.”
He said they will
be looking at different
scenarios since this is
a fast moving environment
and when certain
areas need attention
Port will reach out and
get feedback from the
group.
There is not a lot to
report now but there
are is lots of analysis.
“ This is a deferral not
cancellation. We are
Looking at how quickly
capacity comes back
and to be ready to respond
when we have
more info and clarity.
Traffic has a lot of impact.
Heitman added that
the Port is keeping the
airport operation open
since it is an essential
operation to the region
and cargo is of crucial
importance given the
supply shortages.
He added, “ We are
working with developers
and project teams
to see how they are
adapting and how this
event is impacting
their schedules. Some
developers are trying
to figure out these impacts
and their steps to
a financial close on the
lease signing with uncertainly
of the market
but are still committed
to move forward, but
when?
We anticipate discussions
by Port which
is taking the leadership
role in communication
in how we will get
through this. That push
and pull is going on
now. We will communicate
that with you.”
PANYNJ offers business relief
Concessions to concessionaires
At the end of March
the Port Authority sent
out this letter to its terminal
Operators and
concession business
partners outlining the
relief they would be extended
during this unprecedented
loss of airport
business. Dear
Port Authority Terminal
Operators and Concession
Business Partners:
Thank you for
your continued commitment
to our airports
during these very challenging
times. We hope
you, your employees,
and your loved ones
remain safe. The COVID
19 pandemic has
resulted in an unprecedented
reduction in
air traffic and passengers
traveling through
our airports and airports
across the nation.
The financial impact
has been devastating
for our industry and we
recognize the impact
this has had on your
business In response to
the reduction of passengers,
the Port Authority
is taking the following
actions for its terminal
concessions agreements:
1. Minimum Annual
Guarantee (MAG)
payment requirements
will be waived and calculation
of rents payable
to the Port Authority
will be converted to
percentage fees only for
all direct Port Authority
terminal concessions
agreements for
the period of March 1,
2020 to May 31, 2020. 2.
Concessionaires will be
permitted to defer the
remittance of all percentage
fees due to the
Port Authority for the
period March 1, 2020 to
May 31, 2020. Deferred
amounts may be repaid
in six equal monthly
installments commencing
July 1, 2020. This
deferral does not alter
the underlying obligations
for payment of
those percentage fees
and other conditions
in the respective concession
agreements. 3.
Given the uncertainty
of air travel activity in
the upcoming months,
the Port Authority will
evaluate the then-current
conditions and
forecasts in late May
to make an evaluation
with respect to any ongoing
relief for the periods
thereafter. The Port
Authority is calling on
its terminal operators
to take action and likewise
waive MAG payment
requirements and
defer payment terms
for concessionaires operating
in their respective
terminals. Such
waiver and deferrals
will be reflected in the
revenue shares due to
the Port Authority under
the respective terminal
agreements. The
actions to be taken by
the Port Authority, as
set out above, will help
to ensure continuity of
airport operations. To
advance this same goal,
the agency urges recipients
of this letter to take
actions of their own, as
set out below: As a result
of the coronavirus
crisis, certain employees
have lost their jobs
or may lose their jobs.
Employers should not
contest these employees’
applications for unemployment
insurance.
After the crisis has
passed, laid off or furloughed
workers should
get first priority in
terms of airport re-hiring.
The recently-enacted
federal relief law
allocates funds to certain
airport stakeholders,
provided they take
particular steps, including
with respect to keeping
their workforces
intact. Airport stakeholders
should accept
these funds. We will be
providing contractual
notices to Port Authority
concessionaires in
the very near term and
ask that all terminal operators
share their intentions
with respect to
relief that will be provided
to respective concessionaires.
Thank
you again for your partnership
with the Port
Authority New York &
New Jersey.