Kansas City’s new airport will cost a little more than expected
On Thursday, the city council got an update on the project and the new price tag. But the increased isn’t building it, but rather financing it as interest rates go up across the country.
A big chunk of the increase comes down to financing. The developers said they’re at their maximum price and don’t anticipate the cost to go up. However, if it does, they’ll be paying for it.
In the afternoon, councilmembers heard a presentation from Edgemoor, the developers who will design and build a new terminal at the airport.
The company’s development team explained the increased price tag on the project.
Edgemoor’s guaranteed price is $1.45 billion. The aviation department and airlines have costs that add up to $1.6 billion, and when you add in about $300 million in financing, you get $1.9 billion.
The demolition of terminals B and C are not included in the current price.
Edgemoor’s project manager said taxpayers won’t be on the hook for it. Instead, it will come from the aviation department. However, it could become part of Edgemoor’s contract in the future.
The council introduced an ordinance that includes four documents: The development agreement, community benefits agreement, developers pledge, and airline use and lease term sheet.
It’s a development agreement that will be voted on by the end of the year.
“Well, we’ve reached the guaranteed maximum price so the cost won’t rise again and, as was described in the meeting, if it comes in at 1.5, ultimately, or 1.6, then we take a loss,” said Geoffrey Stricker, the project manager at Edgemoor. “So, we guaranteed that it’s a $1.45 million number. It’s something we’re comfortable standing behind and we think that’s the right number and we’re obviously motivated to hit that number.”
“We’re so early in the project there should be time through the design and the construction of the project that we can try and make up those six weeks,” said Patrick Klein, with the aviation department.
Right now, the project is about six weeks behind.
Demolition is planned for the spring, as long as the environmental clearance is approved by then. The F.A.A. is working on that now.
The new estimated date for the opening is January of 2023.
The airlines are expected to make a presentation at a meeting in a couple weeks.