The terminal, to be built on a site previously occupied by General Dynamics, likely wouldn't be ready for its first passengers until at least 2004, according toofficials with the San Diego Port District. The Port District oversees the airport—formally called Lindbergh Field—as well as the city's waterfront.

The first phase of the project calls for a 10-gate facility of about 245,000sf, along with new taxiways and parking for up to 4,000 vehicles. Also, theairport would move cargo operations to Lindbergh¹s infield area. The secondphase would expand on that, adding four more gates, more parking and morecargo capacity.

The district is preparing environmental studies for the $150-million projectin an entitlement process expected to take up to two years, followed by atleast two years of construction.