Developers negotiating deals for a $15 billion modernization of John F. Kennedy International Airport were thrown a lifeline Monday when New York City extended the airport’s lease to 2060.
Plans to redevelop the airport in Queens stalled last year as the coronavirus pandemic decimated passenger numbers and airline revenue world-wide.
The airport’s operator, the Port Authority of New York and New Jersey, has spent the past year renegotiating deals with private-sector consortiums of airlines, terminal operators and developers, who were expected to finance more than $10 billion of the redevelopment plans.
But the negotiations were hampered by the airport lease, which was set to expire in 2050, leaving investors with too little time to complete lengthy construction projects, recoup costs and make a profit.
Seth Lehman, an analyst at Fitch Ratings, said Mayor Bill de Blasio’s decision Monday to extend the lease by 10 years should help developers secure financing and continue the airport’s modernization.
