Kansas City Council approves MOU with Edgemoor for $1B KCI Airport contract
UPDATE, Feb. 9, 2018 — Kansas City Council officials approved a memorandum of understanding Thursday, paving the way for Edgemoor Infrastructure & Real Estate to move forward with the $1 billion Kansas City (Missouri) International Airport terminal project, according to KCUR.
The updated memorandum includes a more substantial incentive package from Kansas City, including free or reduced-rate transportation options and child care services for workers. The benefits will also see the creation of an apprenticeship program to train workers and ensure employment on the project. Edgemoor has also said it would commit to employing women- and minority-owned firms for the project's lifespan.
Edgemoor and city officials must still reach a consensus on the terminal's design and maximum cost.
UPDATE, Dec. 22, 2017 — Kansas City Council officials voted Thursday to continue negotiations with Edgemoor Infrastructure & Real Estate on a memorandum of understanding for the $1 billion Kansas City (MO) International Airport terminal project, the Kansas City Business Journal reported. The vote reneges a resolution that would have replaced Edgemoor.
Under the new resolution, city officials and Edgemoor are slated to reach an agreement — or a stalemate — by the end of next month.
UPDATE, Dec. 19, 2017 — AECOM, the firm at the helm of KCI Partnership, announced Monday that it has partnered with Burns & McDonnell in a renewed push for the Kansas City International Airport contract, according to The Kansas City Star. The partnership comes as somewhat of a surprise, given the two firms' rocky relationship with each other during the procurement process this summer in which Edgemoor Infrastructure & Real Estate emerged as victor.
Mayor Pro Tem Scott Wagner said the Kansas City Council needs to give Edgemoor a fair chance to address concerns and noted that considering the AECOM-Burns & McDonnell partnership was premature. Officials with the KCI Partnership say they are merely preparing in case the council does fully sever ties with Edgemoor.
- A super-majority of the Kansas City, MO, city council voted to void a memorandum of understanding with Edgemoor Infrastructure & Real Estate for the development of a new $1 billion terminal at Kansas City International Airport, casting doubt on the firm's future involvement with the project, according to The Kansas City Star.
- Council members cited a potential $30 million reimbursement commitment to the company — even if the project doesn’t happen — and a lack of specifics around its financing and community benefit plans as their reasoning against finalizing a deal with winning-bidder Edgemoor. One council member introduced a resolution that would permanently cut ties with Edgemoor; a council committee will further discuss the measure this week.
- Critics of the council's action alleged that it was a roundabout way to award the project to AECOM, the second-place bidder, although, according to The Star, it is not certain whether officials will be permitted to negotiate with AECOM or if the project will have to be put out for bid once again.
Last month, Kansas City voters, obviously eager for a more expansive and amenity-rich terminal, approved the new project by an overwhelming 75%. For many, the vote was supposed to be the culmination of a contentious procurement process that saw consortia led by AECOM and hometown team Burns & McDonnell, who first proposed the terminal project, lose out to Edgemoor.
The council's selection committee gave the nod to Edgemoor back in September, but it wasn't even a few weeks later that questions about the selection process began to arise — not the least of which was how the bidders were ranked. An informal tally had AECOM leading the pack as late as mid-August.
Massive airport terminal and redevelopment projects are moving forward with greater frequency because many terminals were built during the 1960s and 1970s in order to accommodate an uptick in public air travel.
Two projects at LaGuardia Airport in New York City total $8 billion, representing one of the most ambitious airport redevelopments currently underway. LaGuardia Gateway Partners (LGP) is engaged in a $4 billion replacement of Central Terminal B and will operate and maintain the new building when construction is complete.
Delta is also building a new terminal at LaGuardia, this one $4 billion as well. While the Central Terminal B project will use at least two-thirds private financing and passenger fees, Delta is funding $3.4 billion of the new terminal, with the Port Authority of New York and New Jersey picking up the rest of the bill.
- The Kansas City Star Updated: AECOM and Burns & McDonnell confirm they’re doing business together on KCI
- The Kansas City Star Updated: KCI in the lurch after KC Council shoots down agreement with Edgemoor
- KCUR Kansas City Council Approves Airport Development Agreement With Edgemoor
- Kansas City Business Journal Officials vote to get KCI negotiations with Edgemoor back on track