• Largest Privately Developed Airport Facility in the U.S.
• Sets High Standards for Public/Private Partnerships

NEW YORK (May 31, 2001) — The new Terminal 4 at John F. Kennedy (JFK) International Airport, one of the largest air terminals in North America, opened officially last week, marking the first time that a U.S. air terminal has been financed, developed and constructed by non-airline private interests — a paradigm for the way major public works can be completed in the future.

The 1.5-million-square-foot facility is an achievement of JFK International Air Terminal LLC, a private consortium consisting of LCOR Incorporated, a national real estate firm specializing in public/private development; Lehman Brothers, the investment bank; and Schiphol USA, the U.S. subsidiary of Schiphol Group, operator of Amsterdam Airport Schiphol. The consortium was selected by the Port Authority of New York & New Jersey for a unique public/private partnership to manage the existing terminal while building and operating the new one.

"The Port Authority is proud that it was able to make this new Terminal 4 possible with the largest public-private partnership of its kind at a North American airport," said Neil D. Levin, Executive Director of the Port Authority. He noted that the Port Authority conducted a worldwide search to identify a private-sector team to develop the terminal.

Levin added, "The terminal is one of the key elements of a $10.3 billion reconstruction project, which will see every terminal at the airport replaced or significantly modernized and expanded. We are proud to welcome airport travelers to the future."

David Sigman, Senior Vice President of LCOR, called the new JFK facility “an excellent model for airport redevelopment across the country. Innovative off-balance-sheet financing techniques, private-sector development and management expertise, and a committed, dedicated public partner all combined to bring this terminal to life.”

"With this new facility,” Sigman added, “we’re setting a trend by creating an efficient operation that’s also a place people will look forward to visiting. The design combines the best aspects of functionality with an exciting and dramatic look."

The new Terminal 4 replaces the old International Arrivals Building, erected in 1957 on the same 165-acre site. It is designed for the easy addition of gates and arrival facilities with a minimal effect on operations. The terminal handles domestic as well as international flights — some six million passengers annually.

Initially, the new terminal has 144 check-in counter positions, 10 gates, 52 INS and 20 U.S. Customs positions, seven baggage carrousels each capable of handling two 747 loads of baggage at once, and two baggage conveyors for skis, golf clubs and the like. Aircraft gates will be increased to 16 when demolition of the old building is finished in April 2002. Designed as the only 24-hour terminal at JFK, the new Terminal 4 can accommodate 3,200 arriving passengers an hour, compared with 2,000 at the old facility.

The 100,000-square-foot retail concourse spans the length of four city blocks and includes landscaped mini-parks and other areas for relaxation. Leases have been signed by Restaurant Associates for 15 food service outlets and by DFS for a 12,000-square-foot duty free shop and gift boutiques.

With Delta Air Lines’ plan to move its JFK international hub to Terminal 4, an expansion of the terminal is already being designed. The $1.6 billion Delta addition is slated for completion in mid-2005, subject to approval by the Port Authority.

The new Terminal 4 was designed and engineered by TAMS, Skidmore Owings & Merrill LLP and Arup Engineers, with AMEC heading the construction team.

LCOR, based in Berwyn, Penn., is a national real estate development, investment, operations and asset management firm that specializes in public/private development, including transit-oriented development. With nine offices in the U.S., the firm’s portfolio includes approximately $10 billion of developments either completed, under construction or in pre-development. LCOR has been involved in some of the nation’s largest, most complex and creative developments, including the $1.4 billion International Air Terminal at JFK International Airport, one of the largest public/private airport projects in U.S. history; the $600 million U.S. Patent and Trademark Office campus in Alexandria, Virginia, the largest lease ever signed by the General Services Administration; the $450 million White Flint Metrorail mixed-use development in Bethesda, Md.; and the $292 million Foley Square Federal Office Building in New York City.