City Approves $161M Bond Issue for 435,000-SF JFK Cargo Project

NEW YORK CITY-The city has approved $161 million in bond funding for two air cargo facilities at John F. Kennedy International Airport. Airis Corp. will develop the project, which is scheduled for completion in 2003.

Approval of the Special Airport Facility Bonds was revealed by Andrew M. Alper, chairman of the New York City Economic Development Corp. and the Industrial Development Agency. Alper stood in for Mayor Michael Bloomberg at yesterday’s groundbreaking ceremony for the 435,000-sf Airis complex. The IDA previously approved a tax incentive package of approximately $12.4 million in mortgage recording tax waivers and sales tax exemptions for the project in addition to providing access to the triple tax-exempt bond market.

The buildings are 100% pre-leased by major cargo operators including Lufthansa Cargo, Gateway Cargo Service Center, Alliance Air and Lufthansa Technik, an aircraft logistics subsidiary of the airline. The project, a joint venture of the City of New York and the Port Authority of New York and New Jersey, is expected to generate more than 2,000 construction jobs and more than 500 permanent jobs. It also marks the first ever mortgage-backed financing on JFK Airport property.