nothin Tweed Development Deal Teed Up For Final Vote | New Haven Independent

Tweed Development Deal Teed Up For Final Vote

Avports image

Rendering of expanded Tweed airport.

Timeline for proposed airport expansion.

Nearly 11 months after the Board of Alders signed off on a new 43-year lease between the city and Tweed’s airport authority, the Morris Cove airport’s board is set to vote on a parallel agreement that would pave the way for a long-sought major expansion.

That vote is scheduled to take place during the Airport Authority Board of Directors’ next meeting, scheduled to occur online via Zoom on Wednesday at 4 p.m.

According to a 660-page Board Packet” document posted to the airport authority’s website on Monday night, Tweed’s board of directors plans to vote on several key resolutions on Wednesday that relate to expansion plans that airport boosters and local, state and federal politicians first detailed at a celebratory press conference in May 2021.

In particular, those expansion plans would include the construction of a new four-to-six gate passenger terminal and parking garage on the East Haven side of the airport authority, as well as the lengthening of the runway in a bid to attract new passenger air service.

One of the proposed resolutions up for a vote on Wednesday calls for the airport authority to board to approve a 43-year lease agreement between the City of New Haven and the Tweed New Haven Airport Authority. That’s virtually the same document that the Board of Alders OK’d back on Sept. 23, 2021, nearly 11 months ago.

Another one of the proposed resolutions slated for a vote on Wednesday is a lease and development agreement” between the airport authority and The New HVN LLC, which is an affiliate of the Goldman Sachs-owned airport management company Avports. 

That 384-page so-called facility agreement” between the airport authority and Avports offers the most detailed look yet at how and when the small regional airport plans to grow its footprint by moving into a new yet-to-be-constructed terminal on the East Haven side of the property and by lengthening its runway from 5,600 feet to 6,635.

These votes come as commercial air service out of Tweed has increased dramatically since November 2021, after the new budget airline Avelo made New Haven its East Coast” hub and is currently running nonstop flights to 14 different communities, including Orlando, Tampa Bay, Nashville, Savannah, Charleston, Chicago, Washington D.C., and Raleigh. It also comes as the town government in East Haven has stepped up its resistance to the airport’s expansion plans, on the grounds that it will come at too high an environmental and quality-of-life and financial cost for neighboring residents.

Thomas Breen photo

Airport director Sean Scanlon at May 2021 presser.

This is a big deal,” Tweed New Haven Airport Authority Executive Director Sean Scanlon told the Independent when asked why it took 11 months between the alders’ approval of the city-airport authority lease and the airport authority board’s vote on a separate, parallel agreement with Avports.

It’s something that is relatively unprecedented in this country, and we wanted to make sure that we got it right. I think the deal that the board will consider tomorrow is a reflection of what we heard from the city, and, frankly, from the Town of East Haven, and what we’ve heard from neighbors,” he said. 

He also said that the plan as detailed in the proposed facility agreement with Avports meets the needs of the public,” which in large part has been very, very” supportive of Tweed’s expansion to date.

According to the airport’s current expansion plans, once the new East Haven-side terminal is built, the current terminal on the New Haven side of the property will be used only as office space. If Avports or the airport authority want to use that area in any other way, he said, they’ll have to go before the City Plan Commission to get approval.

What’s the latest with the airport authority’s discussions with East Haven town government about the planned Tweed expansion?

We’ve never stopped talking to them, and we won’t stop talking to them,” Scanlon said. And I’m hopeful that we can continue working through challenges that they identify.”

Asked about the estimated pricetag of the airport’s planned privately funded expansion, Scanlon said that, thanks to inflation, the $70 million that airport leaders put forward back in May 2021 has now likely risen to closer to $100 million.

Click here to read the full agenda packet for Wednesday’s meeting, and click here to read the full proposed lease and development agreement between the airport authority and Avports.

New Terminal; Runway Extension; $550K Base Rent

Proposed new terminal's footprint.

So. What exactly does this proposed facility agreement” between the airport authority and Avports actually say?

Well, the document is 384 pages long. So there’s a lot in there. Here are a few highlights:

• The term of the agreement would be 43 years, which is the same amount of time as the parallel city-airport authority lease.

• After winning necessary federal and state environmental approvals, Avports shall be permitted” to build a new passenger terminal on the East Haven side of the property. The airport management company shall begin construction on the new terminal within 180 days of closing on financing for the project, and it must achieve substantial completion” of that new terminal construction work within 30 months of starting construction. The lease and development document defines new terminal” as the new passenger terminal building to be designed and constructed on the Leased Property.” In a Monday afternoon phone interview with the Independent, Scanlon said the scope for the proposed new terminal is the same as it was when the alders signed off on the city-airport authority lease last September — that is, a four-to-six-gate new terminal on the East Haven side.

• If Avports has not started work on the new terminal within three years of the effective date of the lease and development agreement, then Avports will in good faith seek any required FAA approval to relocate a portion of the vehicle parking spaces from the West Terminal Facilities to the Leased Property by developing 1,000 parking spaces that take advantage of existing pavement on the east side of the Airport and Existing Airport Gate 23 on Thompson Avenue”.

• If the airport wins all necessary government approvals for the construction of a longer runway prior to Nov. 1 of this year, then the airport authority shall commence the extension of the runway by May 1 (otherwise, it must begin that runway extension work within 180 days of getting all necessary approvals.) That runway extension, in turn, will bring the runway to a length no greater than 6,635 feet and no less than 6,500 feet.

• Avports shall pay the airport authority an annual base rent of $550,000, to be adjusted each year for inflation. It would also have to pay the authority an annual revenue rent” based off of Avports’ gross annual revenue running the airport. That would equal to, for example, 1 percent of the portion of gross revenue greater than $20 million and less than $30 million and, for another example, 8 percent of the portion of gross revenue greater than $40 million. 

• The authority will complete its environmental assessment for its expansion plans by no later than Dec. 31 of this year.

• Avports shall make available a total of $5 million for traffic and noise mitigation initiatives for the areas surrounding the airport.

Click here to watch the Tweed airport authority’s board meeting online via Zoom at 4 p.m. on Wednesday, Aug. 17.

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