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City to Reap $700M in Airport Leases

NEW YORK CITY-The Port Authority and City of New York have reached an agreement that means approximately $700 million to the city when the deal closes. The Port Authority will increase its future PILOT payments for the World Trade Center site.

By Barbara Jarvie | Updated on October 16, 2003

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.

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