Mikes The Man

Mayor Michael Bloomberg has announced that the City of New York and the Port Authority have come to an agreement that will extend the lease for JFK and LaGuardia airports until 2050. The short term of the agreement promises hundreds of millions of dollars to the city and provides billions of dollars to the city over the life of the lease.
The agreement guarantees a $700 million dollar payment to the city from the Port Authority and includes $50 million in funding for Queens capital projects.
The lease extension includes a $500 million lump sum payment to the city and an annual rent of $93.5 million which represents a yearly increase of over $90 million dollars.
The original 50-year lease was signed in 1947 and extended to 2015 in an agreement reached in 1965. The deal was struck at a time when it was exceedingly fashionable for a city to have an airport, which was not necessarily seen as a for profit venture.
The $50 million will be disbursed to community boards in Queens based on the effect the airport has over each district. The boards that have been hardest hit with problems due their proximity to the airports will receive the largest share of the capital projects in Queens chosen by the city, according to sources.
"This agreement on the airport leases goes a long way to provide a tangible benefit to the residents of Queens as a result of both city airports being in our borough," said Betty Braton, chairperson of Community Board 10.  
"We’ve suffered from the downside, airport noise and pollution, for far too long.  This deal is a giant step in the right direction and definitely reflects what Community Board 10 has suggested to both city and PA officials.  I certainly hope that the city intends to consult with the borough’s community boards in regard to how the funds earmarked for Queens are to be spent."
The new deal, subject to the approval of the Port Authority Board of Commissioners, comes in the wake of uncertainty that has shrouded the current leasing deal scheduled to expire in 2015. Although the Giuliani administration repeatedly failed to secure a deal with the Port Authority, Bloomberg has made good on the promise he made in his first State of the City address. 
"One of the mistakes made by the Giuliani administration when it tried to hand over the airports to a British company was to try to avoid the city’s ULURP process," said Braton.  "That process provides for review at the local community board level. This deal on the airport leases should certainly have to go through that process so that the details are looked at by those who will be most affected."
The new leasing agreement offers incentive to the city beyond financial compensation. Provisions in the deal call for the joint oversight of the operations at JFK and LaGuardia through an airport board.
The Board has been established to review airport standards, operations and performance. Initial reports indicate that the board will be comprised of city and Port Authority officials and will be funded by both entities. Funds will be derived from a small percentage of the citys rent payments and additional contributions from the PA.
All requested financial and non-financial information will be provided by the Port Authority to the city as well as a proviso that affords the city full audit rights with respect to airport rents.
Additionally, the PA has committed to provide funding for one-seat rides from downtown Manhattan to JFK and Newark.
"In my first State of the City, I pledged to establish a revitalized relationship with the Port Authority and to ensure that New York City, and particularly Queens, receives fair compensation for the airports within our borders," said Mayor Bloomberg. "This proposed agreement will give Kennedy and LaGuardia airports the sound financial foundation and governance structure worthy of these vital entryways to the Worlds Second Home, and ensures that the Port Authority has the ability to make the appropriate investment in our airports going forward. And for the first time, the city will have a substantial role in making sure that our airports are managed properly. I want to thank Governor Pataki and the Port Authority for their hard work and cooperation. The investment we are making today will benefit the entire region for decades to come and secure New York Citys status as a premier international city."