$1.5B KCI terminal construction cleared for takeoff
It has been more than a year since Kansas City, Missouri, officials and voters decided they would build a new terminal at the Kansas City International Airport, and it looks like they might finally be able to see construction start.
On Feb. 28, the City Council of Kansas City approved four major documents that will govern the $1.5 billion project. Three of the agreements are with Edgemoor Infrastructure and Real Estate, which the council selected to develop, design and build the terminal back in 2017. They are:
- The "KCI Airport Terminal Modernization Project Development Agreement."
- Edgemoor's "Developer Pledge."
- The “Terminal Workforce Enhancements Programs (TWEP)” agreement between Edgemoor and the city.
The project development agreement lays out most of the terms between the city and Edgemoor and includes a cost breakdown and preliminary schedule; the guaranteed maximum price (GMP) development model; the design-build agreement; information about the site’s condition, including geotechnical data; contract forms that will be used on the project and requirements for small business involvement, as well as for minority- and woman-owned business participation.
Edgemoor’s Developer Pledge also addresses minority and small business development, promises to update the city according to a specific timeline and says that Edgemoor will mirror provisions in the development agreement with the city in its own contractors with prime and other contractors.
The TWEP outlines what local workers can expect from Edgemoor, including free or subsidized transportation for those working on the terminal project; the funding of extended hours at local childcare centers for those construction workers with children; medical services provided at the project site and financial and other benefits for small, minority and disadvantaged contractors.
Perhaps the most important agreement the city approved last week is the one reached by the majority of airlines that fly in and out of KCI, the "Term Sheet for New Signatory Airline Use and Lease Agreement.” In fact, the airlines set the project’s $1.5 billion budget and scope, as well as cost-sharing responsibilities. The project would not be able to take off if not for this contract between carriers.
Still up in the air, however, according to The Kansas City Star, is the financing agreement that will allow funding to flow to the project while the city waits for cash generated by bond sales. At issue is $90 million of costs that have already been incurred, including $23 million for early design and $43 million for demolition and other work at KCI’s Terminal A. City staff will likely recommend borrowing the money from Morgan Stanley.
However, Geoffrey Stricker, managing director for Edgemoor, said that the team does not need to wait for that agreement to be executed in order to start work, which should come as welcome news to potential vendors, suppliers and subcontractors who have been looking forward to the opportunities that the new terminal work will provide.
- The Kansas City Star KCI single terminal construction could begin within weeks following Council approval
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