Avports, which has operated Tweed New Haven Airport (HVN) on behalf of the city of New Haven, CT for more than 20 years, will invest $100 million to construct a new 74,000-square-foot terminal with four gates and extend the airport’s main runway to 6,635 feet.
In exchange, the Tweed New Haven Airport Authority has agreed to extend Avports’ management contract for an additional 43 years, so the private company can recover its investment.
HVN and Avports, a private company owned by Goldman Sachs, cleared the final hurdle in moving forward with the plan late last week when the New Haven Board of Alders voted unanimously to approve an amended lease and operating agreement between the city and the authority.
“This expansion has been discussed for longer than I can remember and it’s now finally coming to fruition because we have the right partner in our existing operator, Avports,” says Sean Scanlon, director of the authority. “Having worked with Avports for some time, I am confident they will bring high levels of managerial experience as we develop operations at HVN to the benefit and convenience of our flyers and community.”
Terms of the agreement between the authority and Avports are being finalized. During the term of the lease, the more than $100 million project is expected to create up to 11,000 direct and indirect jobs and generate $47 million in state and local taxes, according to research commissioned by Avports, which approached the authority about discussing the public-private partnership.
The Federal Aviation Administration and the Board of Alders still must approve those final terms. But the partners seem eager to get started.
“After a months-long process that included extensive input, this vote clears the way for the city, the airport authority and Avports to finally begin long-awaited infrastructure improvements,” said New Haven, Conn. Mayor Justin Elicker.
“We’re confident that our decades of experience operating and developing regional airports will serve HVN and the community well,” added Jorge Roberts, CEO of Avports. “We look forward to working together with HVN and the community as we continue to ensure the safest possible air travel and the highest level of service at HVN.”
Scanlon told AXN this summer that the expanded terminal and runway would help attract commercial air service to the airport. Already two airlines have made commitments: American Airlines and Avelo Airlines will begin service from the airport by 2023, with Avelo, a start-up, committing to make HVN its east coast hub.
