TESTIMONY
Jennifer Sun on the Economic Impact and Governance of JFK Airport Redevelopment
0:10:12
·
7 min
Jennifer Sun testifies about the New York City Economic Development Corporation's involvement in the JFK Airport redevelopment, underlining its economic significance and governance structure.
- Sun details JFK International Airport's critical role in New York City's economy and its connectivity globally, supporting thousands of jobs and generating significant economic activity.
- She explains the land ownership by New York City and the lease agreement with the Port Authority of New York and New Jersey, placing EDC as the lease administrator for city-owned aviation sites including JFK.
- The testimony outlines the operational control of JFK by the Port Authority under a triple net lease agreement and EDC's involvement in the airport board.
- It highlights EDC's efforts to incorporate sustainability and community initiatives into the JFK redevelopment plans and address local concerns through collaboration.
- Sun introduces legislation Introduction 134, requiring EDC to report on JFK redevelopment progress biannually, noting its current review.
Jennifer Sun
0:10:12
Good afternoon, Cherisk Farias, and Brooks Powers, and members of the economic development, and the transportation infrastructure committees.
0:10:20
My name is Jennifer Sun, and I served as the Executive Vice President of Planning for the New York City Economic Development Corporation.
0:10:28
I'm joined by my colleague, Mikael Agate, Senior Vice President of Government And Community Relations.
0:10:36
We are here to testify about EDC's role in the JFK redevelopment program.
0:10:41
The John F Kennedy International Airport is critical to New York City's economy and the aviation industry is one of the largest employers and queens.
0:10:50
JFK supports tens of 1000 of direct and indirect jobs and generates over $40,000,000,000 in economic activity while connecting city residents to the world and bring the world to us.
0:11:01
According to the Port Authority of New York And New Jersey, JFK directly employs nearly 40,000 workers and generates more than a 16,000,000,000 in wages and nearly 300,000 jobs across the region.
0:11:15
As you may recall from our January 2023 the city of New York owns the land on which both LaGuardia Airport and John F Kennedy International Airport are located.
0:11:26
Through the maritime contract, between New York City's Department of Small Business Services And EDC.
0:11:32
The city retains EDC to perform services, including the promotion and administration of leases for certain city owned properties, which includes publicly owned aviation facilities.
0:11:44
As part of this arrangement, we at EDC are the lease administrator for the city's lease agreement with the Port Authority of New York and New Jersey for both airport sites.
0:11:54
The Port Authority is a financially self supporting by state agency that is tasked with building, operating, and maintaining critical in transportation and infrastructure assets in New York and New Jersey.
0:12:07
Port Authority is the lessee of JFK through a triple net lease agreement in which the tenant is responsible for the payment of all expenses related to the site such as rent and utilities, insurance, and maintenance costs.
0:12:21
The purpose of a triple net lease is to make the tenant responsible for everything related to the site and remove the land word from any involvement in the operations of the tenant at the site.
0:12:32
Under these terms, the Port Authority has complete operational control of JFK Airport.
0:12:38
Through its operational control, the Port Authority oversees capital planning such as renovations, as well as the current JFK redevelopment program.
0:12:48
The Port Authority is also responsible for all aspects of airport functions including air side operations, asset management, maintenance, customer service, capacity utilization, environmental stewardship, safety, secure and community relations.
0:13:03
Many of these activities that carries out through subleases, vendor agreements, and concessions.
0:13:10
The port authority has lead developed and operated JFK from the city through various leases and amendments dating back to 1947.
0:13:18
The current lease agreement for JFK began in 2004 and was set to expire in 2050.
0:13:25
However, a lease amendment facilitated by the city in 2021 extended the lease expiration to 2060.
0:13:32
As lease administrator, EDC participates on the airport board, with port authority staff.
0:13:38
The airport board was created in the 2004 lease to assist with and informed the administration of the lease.
0:13:45
To be clear, the airport board is not a reporting oversight or enforcement body.
0:13:51
Rather, it is tasked to review municipal air terminal operations at against certain financial, operational and performance standards that were established by the city and the port authority at the time.
0:14:03
With respect to the 2004 lease, the performance metrics shared by the port authority at the airport board include market share, passenger and cargo service, operations, capital spend in quality of service and community relations.
0:14:18
As part of the 2021 lease extension, the Port Authority agreed to share additional metrics related to environmental sustainability and community initiatives associated with the JFK redevelopment plan.
0:14:30
In addition, EDC on behalf of city can use airport board meetings to raise topics that advance shared goals.
0:14:37
For example, at an airport board meeting last year, EDI see echo the community's concerns regarding overnight truck parking and residential neighborhoods in Southeast Queens.
0:14:48
As a member of the deputy mayor of operation, its multiagency task force to address inadequate overnight truck parking throughout the city.
0:14:55
EDC was able to use its participation in the airport board.
0:15:00
To support the community's calls for the port authority to identify potential acreage for this use.
0:15:07
In collaboration, the port authority was able to negotiate with its private operator.
0:15:11
And in November 2023, he received porta board approval to provide approximately a 100 additional spots and 25 EV chargers at JFK Airport for overnight truck parking.
0:15:24
Although much work remains to address chronic overnight truck parking in residential areas, the expanded on airport truck parking provide by the port authority is supporting the city's efforts.
0:15:35
In 2018, in anticipation of a JFK redevelopment effort, the port authority convened the JFK Development Committee Advisory Council, co chaired by US Congressman Gregory Meakes and former Queensboro president Melinda Katz.
0:15:49
But the community advisory council has representatives from the New York State Legislature, New York City Council, New York City Community Board, as well as local nonprofits and community focused organizations.
0:16:01
The Community Advisory Council convenes regular early and currently receives information regarding the JFK redevelopment and works with the port authority to support community reach efforts and develop community focused programs to provide meaningful opportunities for local and diverse businesses.
0:16:19
MWA students and job seekers.
0:16:22
Between 2018 2020, the Port Authority was in negotiations with multiple terminal operators to advance various work streams related to the JFK revolvement effort.
0:16:33
In Mitsubishi's efforts, the global COVID 19 pandemic hit, restricting international travel, disrupting global supply chains, and precipitating a chilling effect on the financial markets.
0:16:45
JFK traffic volumes were severely affected, and the viability of the JFK redevelopment was jeopardized.
0:16:51
Against this batch drop.
0:16:53
In February 2021, the De Blasio administration signed an emergency executive order to extend the port authority's lease of JFK airport from 2050 to 2060.
0:17:04
This occurred in close consultation in coordination with congressman Meeks and Queensboro president Richards.
0:17:10
By extending the lease, the previous administration was able to facilitate the viability of the redevelopment projects and their associated community benefits.
0:17:19
Including nation leading minority and women owned business goals, local business goals, and sustainability initiatives.
0:17:27
In closing, I wish to turn to introduction 134, the proposed legislation which would require EDC to produce reports twice a year on the progress of the JFK redevelopment plans.
0:17:40
EDC is currently reviewing the legislation along with our colleagues at the law department and the port authority the latter which oversees and is responsible for the JFK redevelopment.
0:17:51
Thank you for your time this afternoon, and we will now take your questions.