The Port Authority of New York and New Jersey (PANYNJ), in partnership with American Airlines and Unibail-Rodamco-Westfield (URW) Airports, unveiled plans in mid-July on a $125 million commercial redevelopment program for Terminal 8 at John F. Kennedy International Airport in Queens.
The project will feature a new great hall and is expected to bring more than 60 new shopping and restaurant offerings to the terminal. With an emphasis on locally owned and diverse businesses that will create economic opportunities for the community, the new enterprise is designed to showcase New York's world-renowned culinary scene and establish a unique sense of place for travelers.
Following the recent completion of a $400 million expansion of Terminal 8, the commercial redevelopment will further enhance the customer experience at the terminal with a complete redesign and expansion of the concessions program, including new dining, retail, duty-free shopping, performance space and digitally enabled experiences for customers. Affordable dining options consistent with PANYNJ's street pricing policy will be included.
With the expansion of the concessions program, the project will create more than 300 new concessions jobs at Terminal 8, according to the Port Authority.
The connection to Queens, New York City and other New York State communities will be at the forefront of the redevelopment, from design and construction to operating opportunities for local business owners.
"This is another tremendous milestone in our extensive JFK redevelopment program," explained Port Authority Executive Director Rick Cotton. "We are excited for the continued transformation to bring customers a world-class travel experience, boost employment opportunities for our local communities, and provide a pathway for local and minority enterprises to propel their business as a design, construction or concession partner."
American selected JFK T8 Innovation Partners, a joint venture led by URW, to lead the redevelopment. The latter is an owner, developer and operator of sustainable, high-quality real estate assets across Europe and the United States.
Also joining the T8 Partners team, with a 30 percent equity stake, is Phoenix Infrastructure Group, a minority-owned, minority business enterprise (MBE)-certified investment firm focused on critical infrastructure projects; and Holt Construction, one of New York's premier construction management firms with experience in more than 100 aviation projects at airports across the country, including the expansion of Terminal 8 where Holt exceeded its 30 percent minority and women-owned business enterprise (MWBE) participation goal.
"It is an honor to partner with American Airlines and the Port Authority to help transform JFK and bring major benefits to New Yorkers and travelers from around the world," said Dany Nasr, CEO of URW Airports. "We're committed to ensuring Terminal 8's concession program celebrates New York's incredible diversity and represents the best of New York with a lineup that spotlights local, small and minority-owned businesses alongside global icons."
Big Opportunities for the Big Apple
At all of PANYNJ's airport redevelopment projects, an emphasis on including locally owned, iconic dining and shops is a key part of the agency's vision. The presence of local businesses at terminals helps to create airports with a sense of place unique to the region and economic opportunities for nearby communities.
To lower the barriers of entry into the airport industry for locally owned small businesses, T8 Partners will launch a small business accelerator program for Queens and other locally based enterprises that will provide technical assistance and innovative leasing approaches with low risk. T8 Partners is committed to achieving the Port Authority goal of 30 percent MWBE participation in the design and construction of concession spaces and 30 percent Airport Concessions Disadvantaged Business Enterprise (ACDBE) participation for concession operations.
With sustainability as another fundamental element to the redevelopment, T8 Partners has partnered with the Green Restaurant Association to deliver a food and beverage program with brands that value sustainable business practices and get 100 percent of all eligible tenants to become Certified Green Restaurants. The certification is based on the sustainability of the restaurant's energy, water, waste, chemicals, food sources and packaging.
"Visitors from around the world will get their first taste of what our region has to offer as soon as they step into JFK's Terminal 8, which, like all of our new airport terminals, will feature a wide range of local dining and shops," said Port Authority Chairman Kevin O'Toole. "Local businesses help us create a sense of place unique to the region."
Transforming JFK Into World-Class Gateway
In January 2017, the JFK Vision Plan was announced to transform JFK International into the world-class airport that New Yorkers deserve. The vision plan provides a strategic framework for the Port Authority and its partners to completely redevelop, modify and expand existing facilities and infrastructure.
Following that, four massive projects got under way at JFK International. They include:
- The $9.5 billion development of a New Terminal One to anchor the airport's south side broke ground last September.
- An expansion of Terminal 4, costing $1.5 billion and led by Delta Air Lines and JFK International Air Terminal, is also now under construction.
- Additionally, a new $4.2 billion Terminal 6, which will connect seamlessly with Terminal 5 to create an anchor terminal on the airport's north side, broke ground in February.
- The $400 million modernization and expansion of Terminal 8, led by American Airlines, which operates the terminal, and British Airways, which relocated to Terminal 8 late last year, was completed in November 2022.
Terminal 8 has since become recognized as a world-renowned gateway for American's one-world partners as Iberia and Japan Airlines joined British Airways in their relocating operations, and Qantas returned service to Terminal 8.
All of the privately financed terminal projects, combined with the PANYNJ's roadway, parking and infrastructure projects, represent a $19 billion transformation of the airport through an extraordinary series of public-private partnerships.
The Port Authority capital investment of $3.9 billion is leveraging private investment at a rate of nearly four to one when considering the full private investment of more than $15 billion that has been committed to the four projects comprising the full JFK redevelopment program.
Impressive Partnership Redeveloping Terminal 8
Unibail-Rodamco-Westfield (URW) is an owner, developer and operator of sustainable, high-quality real estate assets in the most dynamic cities in Europe and the United States. The group operates 78 shopping centers in 12 countries, including 45 which carry the iconic Westfield brand. These centers attract over 900 million visits annually and provide a unique platform for retailers and brands to connect with consumers.
Phoenix Infrastructure Group is a minority-owned firm focused on impactful equity investments in critical infrastructure projects. It also is a committed partner to and investor in public-private partnerships across the transportation, social infrastructure and smart city infrastructure amongst various asset classes. Headquartered in New York City and Washington, D.C., Phoenix actively pursues infrastructure investment opportunities across North America, with an emphasis on the United States.
The Port Authority of New York and New Jersey is a bi-state agency that builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. For over a century, the agency's network of major airports, critical bridges, tunnels, and bus terminals, a commuter rail line, and the busiest seaport on the East Coast has been among the most vital in the country — transporting hundreds of millions of people and moving essential goods into and out of the region.
PANYNJ historic $37 billion, 10-year capital plan includes unprecedented transformation of the region's three major airports — LaGuardia, Newark Liberty and JFK — as well as an array of other new and upgraded assets, including the $2 billion renovation of the 90-year-old George Washington Bridge.
The Port Authority's annual budget of $8 billion includes no tax revenue from either the states of New York or New Jersey or from the City of New York. The agency raises the necessary funds for the improvement, construction, or acquisition of its facilities primarily on its own credit.
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