Governor Cuomo Announces Start of Construction on Delta's $4 Billion New Facilities at Laguardia

Governor Also Announces JLC Infrastructure, a joint venture comprising Magic Johnson Enterprises and Loop Capital Partners LLC, to Become MWBE Investor in the Airport

For First Time in State History, MWBE Firm Investing Equity in a Public-Private Construction Project

State-of-the-Art New, Unified Airport at LaGuardia Now Fully Underway

Governor Andrew M. Cuomo, together with Delta CEO Ed Bastian, today announced the start of construction on Delta's new facilities at a groundbreaking ceremony at LaGuardia Airport after the Port Authority of New York and New Jersey signed a new, long-term lease with Delta. The groundbreaking marks the beginning of construction on the final component of the entirely new, unified airport at LaGuardia, which will provide all LaGuardia travelers with state-of-the-art amenities and expanded public transportation, including the planned AirTrain.

Governor Cuomo also announced on Tuesday a breakthrough with LaGuardia Gateway Partners (LGP), the firm that is building the western half of the airport. JLC Infrastructure, a joint venture comprising Magic Johnson Enterprises and Loop Capital Markets LLC, will become an MWBE investor with LGP, marking the first time in the state's history that there will be an MWBE firm investing equity in a public-private construction project.

"LaGuardia is a pillar of New York's transportation network and a key driver of economic growth, but for too long the airport has been unworthy of New York State," Governor Cuomo said. "The groundbreaking at Delta's facilities represents another step forward as we build an entirely new airport at LaGuardia. Together with our private sector partners, we are making rapid progress to create the world-class gateway to the Empire State that New Yorkers deserve."

"This is a historic day for Delta as we break ground on our state-of-the-art facility at LaGuardia Airport," Delta Air Lines CEO Ed Bastian said. "This investment underscores our commitment to LaGuardia, to New York and to providing our customers and employees here and across the state with a world-class experience at one of our most important hubs. We appreciate Governor Cuomo and the Port Authority of New York & New Jersey for their continued partnership in transforming LaGuardia into an airport that New Yorkers will be proud to call their own."

Delta is investing $3.4 billion to construct the eastern half of the new LaGuardia-the first new airport in the United States in more than 20 years. The western half, as well as the roadways, are already under construction following a groundbreaking in June 2016. The first new gates are scheduled to open next year and the new airport is on track to be fully completed by 2021.

The Port Authority is committing $600 million to leverage Delta's $3.4 billion investment to rebuild its terminal and gate facilities at LaGuardia Airport. The Port Authority's commitment includes $200 million towards the new Delta facilities, including the construction of new concourses and ramps; $185 million for a new electrical substation to support the power requirements of the new building, plus an expansion of the East Garage and temporary parking during construction; and $215 million for new roadway and additional supporting infrastructure that is typically the responsibility of the Port Authority in new terminal developments.

Delta's investment in the new facility is the airline's largest investment in its history and is one of the largest private investments in a public asset in New York State. This project builds on Delta's past investments in New York's airports, including more than $2 billion at John F. Kennedy Airport and LaGuardia airport over the past decade.

JLC LaGuardia's investment in LGP represents a necessary shift in the state's MWBE commitment from certified MWBE firms providing goods and services for value to the first ever opportunity for a MWBE firm to create wealth by investing in the nation's largest public private partnership here at LaGuardia.

In 2014, Governor Cuomo set the nation's highest goal for MWBE procurement at 30 percent. For fiscal year 2015-2016, MWBEs secured $1.9 billion in State contracts and under the Governor's leadership, more than 5,500 MWBEs have been certified since 2011. During his 2016 State of the State address, Governor Cuomo pledged to increase MWBE certification by an additional 2,000 businesses - the State is on track to meet that goal by 2018.

Congressman Joe Crowley said, "Today's announcement marks yet another important milestone in the transformative redevelopment of LaGuardia Airport. I'm thrilled with the progress being made to overhaul LGA and bring it into the 21st century because New Yorkers deserve a first-rate airport they can be proud of. As we continue to move toward its completion, I commend Governor Cuomo and all public and private partners for their commitment to ensuring the airport becomes a more comfortable, accessible and efficient transit hub while remaining an economic driver for Queens for generations to come."

Congressman Gregory W. Meeks said, "The historic new airport at LaGuardia will have a profound impact all across the region and transform the travel experience for New Yorkers. By leveraging private dollars for New York's infrastructure, this airport is a testament to the power of smart public-private partnerships. Under Governor Cuomo's leadership, New York is raising the bar for strategic, pioneering infrastructure investments that will improve quality of life and drive economic growth long into the future."

Senate Majority Leader John J. Flanagan said, "The Senate is proud to partner with Governor Cuomo in making infrastructure a priority, both here at LaGuardia and throughout the state. Today's groundbreaking at Delta's Eastern Arrival Hall is another major step towards the ongoing renewal of this world-class transportation hub. With a combination of public and private investments, LaGuardia Airport will be transformed to provide significantly better experiences for travelers, create jobs, and increase its capacity to grow our region's economy."

Senate Independent Democratic Conference Leader Jeff Klein said, "It's wonderful to see this last leg of the LaGuardia Airport upgrade take off. Our airport infrastructure needed a major upgrade, and now travelers will enjoy a unified airport with greater amenities and public transportation. It's welcome news that LaGuardia also has its first MWBE investor, making history. I applaud Governor Cuomo for his efforts to bring this project to life."

Senate Democratic Leader Andrea Stewart-Cousins said, "The agreement between the Port Authority and Delta Air Lines is yet another sign that LaGuardia Airport is being transformed into a state-of-the-art, modern transit hub. Investing in our state's infrastructure is a common sense way to put New Yorkers back to work and lay the foundation for our ongoing economic success. I commend Governor Cuomo for his efforts to renovate LaGuardia Airport and other facilities in need of reinvestment throughout New York State."

Queens Borough President Melinda Katz said, "We're at an important juncture here in Queens. Infrastructure upgrades are critical to the economic engine and future of our borough. Today's groundbreaking of Delta's terminals is a significant milestone in the transformation underway at LaGuardia and toward keeping New York City globally competitive. Thanks to the vision, dedication and substantial investments by Governor Cuomo and model partners like Delta Air Lines, LaGuardia Airport will soon be a top-flight, state-of-the-art, unified airport befitting of the international capital of the world."

Jane Garvey, Chairman, Meridiam North America and LGP Board Director, said, "As someone who has been in the airport business for nearly 30 yearsand the first female administrator of the U.S. Federal Aviation Administration, I want to commend Governor Cuomo for his bold ambition which has brought us here today. The complete reconstruction of LaGuardia into a single, unified gateway represents the first major transformation of any U.S. airport in over two decades. I am also especially proud to welcome JLC LaGuardia to the LaGuardia Gateway Partners team as an MWBE investor in the nation's largest public-private partnership here at LaGuardia."

Jim Reynolds, Managing Partner of JLC Infrastructure, said, "I know from experience that the current LaGuardia Airport is not worthy of the great state of New York. Today I am proud to be joining Governor Cuomo and the LaGuardia Partnership as an MWBE investor to build an entirely new airport for New York that will provide the service that New Yorkers expect. This beautiful, state-of-the-art new facility will transform the experience for those traveling through New York and provide a magnet for economic growth and jobs in New York. I applaud the Governor's bold vision and look forward to seeing what we can achieve together."

Marc Morial, President and CEO of the National Urban League, said, "Today, Governor Cuomo is once again stepping up for MWBEs. This marks the first time in New York State history that any governor has said you must have an MWBE equity partner in a project of this size and scale. By welcoming Loop Capital and Magic Johnson Enterprises as a full partner and owner - and not just contracting for work or services - the Governor's has sent a message loud and clear that this state demands MWBEs have the opportunity to not only partner and compete on the front lines, but also in the boardroom."

Source: New York State