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Governor Hochul Announces JFK Airport Construction Sets Record MWBE Participation With $2.3 Billion in Contracts Awarded

Government and Politics

April 29, 2024

From: New York Governor Kathy Hochul
Represents Largest Participation by MWBE Firms in Any Public-Private Project in New York State History

680 Separate MWBE Firms Have Been Awarded Contracts to Date

MWBE Participation Expected to Continue to Break Records With JFK Construction Through 2028

Contracts Awarded to Local, Queens-Based Businesses Reaches Nearly $1 Billion

Governor Kathy Hochul on Aprl 29th, announced a historic milestone in the ongoing transformation of JFK International Airport, where a record $2.3 billion in contracts have been awarded to Minority and Women-Owned Business Enterprises (MWBE). This is the largest participation of MWBE firms on any public-private partnership project in New York State history. With construction of new airport facilities fully underway, MWBE participation at JFK will continue to break records until the redevelopment is substantially complete expected in 2028. JFK redevelopment also demonstrates a significant focus on working with local contractors, awarding more than $950 million in contracts to Queens-based businesses to date.

"New York remains committed to providing travelers with a premier experience that includes world-class amenities and record involvement by local minority- and women-owned businesses will ensure just that," Governor Hochul said. “This transformative project uplifts these businesses and deepens investments in the community while bolstering the state workforce.”

With today’s announcement JFK surpasses the LaGuardia Airport redevelopment, which set the previous New York State record for MWBE participation in a public-private project with $2.2 billion in contracts awarded. As the $19 billion JFK project moves forward, additional contracts with MWBE firms will be awarded to meet with the Port Authority’s goal of 30 percent MWBE participation for the agency’s capital projects, consistent with Governor Hochul’s nation-leading goals for MWBE utilization in state projects. The Port Authority is working closely with its private terminal developer partners – the New Terminal One, Delta Air Lines and JFKIAT, JFK Millennium Partners, and American Airlines – to engage minority and women-owned businesses along with local businesses in every aspect of the redevelopment program. To date, 680 MWBEs have been awarded contracts at JFK along with more than 200 businesses based in Queens.

The latest MWBE and local business participation milestones were celebrated at JFK’s Building 111, a 76-year-old office building on the airport’s north side that underwent extensive renovations in order to create a collaborative workspace for the JFK Redevelopment construction and program management teams to work alongside each other, including the private terminal developers who are financing and overseeing the terminal projects. The $20 million renovation of Building 111 was designed and constructed mainly by MWBE and local contractors. Sabor Restaurant & Bakery, a local, Queens-based MWBE food vendor, will operate out of a brand-new cafeteria.

To increase MWBE participation at the JFK Redevelopment Program, and across the agency, the Port Authority and its private terminal partners at JFK hosted a variety of capacity-building and technical training programs that prepared firms to be successful in navigating what can at times be complex airport-related procurements. These programs include an academy for principals at architecture and engineering firms, contractor coaching programs that train firms to apply for contracts and construction mentoring programs that recruit, train and mentor MWBE firms to bid on large public construction projects, and project readiness bootcamps. The redevelopment team has also sponsored hundreds of seminars, webinars and forums to help firms become MWBE certified, meet and network with prime contractors, and build the skill sets needed to be successful in the field.

Port Authority Chairman Kevin O’Toole said, “The Port Authority is committed to supporting inclusiveness in the design, financing, construction and operation of our major redevelopment projects across the region by setting ambitious goals for MWBE participation. Just as we’ve done at Newark-Liberty’s new Terminal A and at LaGuardia Airport, JFK’s redevelopment is a game-changer for MWBE firms that were too often left on the sidelines during these historic capital projects.”

Port Authority Executive Director Rick Cotton said, “When we embarked on this historic, $19 billion public-private effort to transform JFK into a world-class international gateway we pledged that the economic opportunities generated at the airport would flow fairly to the neighborhood surrounding the airport. Working with our private partners at JFK and with our JFK Redevelopment Community Advisory Council, we have turned that pledge into economic reality for hundreds of MWBEs and local businesses.”

Representative Gregory W. Meeks said, “I understand the importance of creating wealth building and entrepreneurial opportunities for individuals who have historically faced barriers. As a Senior Member of the U.S. House Financial Services Committee, I continuously advocate for people in underserved communities to gain access to resources that establish a foundation of financial security and ownership. This more than $2.3 billion milestone emphasizes the commitment of the JFK Redevelopment project to drive economic growth that is beneficial to New Yorkers. Most importantly, this development continues to make key investments into local communities not only in Queens, but across the state.”

State Senator Joseph. Addabbo, Jr. said, "Governor Hochul's announcement of the record $2.3 billion in contracts awarded to Minority and Women-Owned Business Enterprises at JFK International Airport marks a historic milestone in New York State's commitment to diversity and inclusion. This unprecedented level of participation by M/WBE firms not only propels the ongoing transformation of JFK, but also sets a shining example for public-private partnership projects across the state. With a strong focus on local contractors and a clear dedication to empowering underrepresented businesses, this achievement at JFK paves the way for a more equitable and prosperous future for all New Yorkers.”

Assemblymember Michaelle C. Solages said, "Today marks a historic achievement in transforming JFK International Airport, with a record $2.3 billion in contracts awarded to Minority and Women-Owned Business Enterprises (M/WBE). The JFK redevelopment is a testament to our collaborative efforts and the positive impact of fostering a diverse business ecosystem. Embracing M/WBE participation and supporting local businesses strengthens our economy and enriches our communities, creating a more inclusive and prosperous future for all.”

Assemblymember Alicia L. Hyndman said, “Governor Hochul's commitment to diversity and inclusion in public-private partnerships sets a new standard for New York State. The record-breaking $2.3 billion in contracts awarded at JFK Airport, with substantial participation from MWBE firms, underscores the importance of equitable opportunities in major infrastructure projects. As an Assemblywoman representing Queens, I'm proud to see local businesses thriving, with nearly $1 billion in contracts awarded to Queens-based firms. This achievement not only surpasses past milestones but sets a precedent for future developments, ensuring that MWBE participation continues to break records as we work towards the substantial completion of JFK's redevelopment in 2028.”

Assemblymember Clyde Vanel said, “We are encouraged that we are working to make sure that we provide economic opportunities to our local community members, jobseekers and business owners. The JFK Redevelopment has and will continue to assist in building wealth for our local communities. We look forward to continuing to expand economic opportunities in the other various fields and industries.”

Queens Borough President Donovan Richards Jr. said, “The redevelopment of Kennedy Airport is about so much more than new gates and terminals. It’s about upward mobility and pathways to prosperity for thousands of Queens residents from historically marginalized communities who call the airport their workplace. Since ground was first broken, this project has been of, for and by Queens, and never has that been more clear than today, as we break MWBE participation records and surpass $1 billion in contracts for Queens-based businesses. Thank you to Governor Hochul, the Port Authority, Representative Gregory Meeks and all those who have touched this project.”

New York City Council Speaker Adrienne Adams said, "From the start of the redevelopment of JFK International Airport, it has always been clear that M/WBE firms, local small businesses, and Southeast Queens residents can contribute and benefit from the opportunities generated by this $19 billion project. The record-breaking M/WBE participation in this redevelopment project so far is welcomed progress that the Port Authority and all of its partners should continue to build upon to successfully engage and provide opportunities for M/WBEs and local businesses. I look forward to the continued partnership with my colleagues in government that ensures the investments from this project reach our Southeast Queens community and advance more equitable contracting."

New York City Council Member Nantasha Williams said, “In the ongoing transformation of JFK International Airport, they’ve reached a historic milestone with $2.3 billion in contracts awarded to Minority and Women-Owned Business Enterprises (M/WBE), representing the largest participation in any public-private partnership project in New York State history. This achievement underscores a commitment I played a role in initiating through JFK Redevelopment Program around diversity, equity, and inclusion, ensuring that opportunities are accessible to all. As someone who formerly worked for the JFK Redevelopment Program, I am proud to see the progress and the significant impact it's making on our community. With ongoing construction and continued engagement with M/WBE firms, we're set to surpass even greater heights before the project's completion in 2028. This milestone not only highlights the success of the JFK redevelopment but also serves as a testament to the power of collaboration and inclusivity in driving economic growth and prosperity.”

JFK’s The New Terminal One CEO Jennifer Aument said, "Our mission at The New Terminal One at JFK extends beyond building a world-class gateway to New York and our nation; we are also steadfast in our commitment to enhancing the lives of our local communities. The remarkable success of our MWBE participation underscores the transformative potential of inclusion and innovation working together, fostering opportunities, jobs and tangible benefits for our local businesses. I extend our heartfelt gratitude to Governor Kathy Hochul, Congressman Gregory Meeks, Queens Borough President Donovan Richards, along with area elected officials, the entire JFK Redevelopment Community Advisory Council, and Executive Director of the Port Authority of New York and New Jersey Rick Cotton, for their leadership and collaboration in driving these efforts forward.”

JFK Redevelopment Program at Delta Air Lines Director George Guillaume said, “JFK's future will revolve around a modern, elevated experience supported by New York entrepreneurs. Today’s milestone is a testament to the power of impactful public-private partnerships. We look forward to bringing the Queens community and New York businesses along the journey as we keep climbing toward the next era of travel.”

JFKIAT, JFK Terminal 4 Operator Chief Executive Officer Roel Huinink said, “As a Queens-based business, JFKIAT has a long history of supporting our local community, from facilitating local business owners’ participation in our Street Market program at T4, to providing resources to local non-profits and educational institutions through our 4GOOD program, and much more. We are very proud to work with the Port Authority of New York and New Jersey, Delta Air Lines, and our redevelopment partners to create more opportunities for minority- and women-owned businesses through this groundbreaking initiative, ensuring that our neighbors and our entire community benefit from JFK’s transformation into a word-class airport.”

JFK Millennium Partners Interim CEO Steve Thody said, “We are immensely proud to be part of JFK’s historic redevelopment and its future legacy as a model for other airports to follow. With over 200 MWBE and local firms currently working on the T6 project – and many more to follow, we are excited to play our part in providing social and economic opportunities for our surrounding community.”

American Airlines' Vice President of Airport Affairs and Facilities Amanda Zhang said, “Providing opportunities to local and underrepresented communities is tremendously important to American Airlines. American is proud to be a part of this major milestone. As the first terminal partner to kick off JFK’s redevelopment program, we engaged more than 115 unique M/W/LBE partners to create a world-class experience for our customers and our partners at Terminal 8.”

Building and Construction Trades Council of Greater New York President said Gary LaBarbera said, “Infrastructure projects like the ongoing work happening at JFK International Airport not only upgrade our transportation hubs and modernize our city, but they also generate countless opportunities for hardworking New Yorkers and those from disadvantaged communities in the form of good-paying careers, economic stimulus, and funding for local businesses. The $2.3 billion in contracts that have been awarded to MWBEs for this work is a testament to that and has played a crucial role in making these projects as impactful and beneficial as possible for all New Yorkers, including our tradesmen and tradeswomen, who are able to pursue the middle class and support their families because of them. We applaud Governor Hochul for maintaining her commitment to uplifting diverse business owners and working-class people and look forward to continuing our collaboration with her and these businesses on these critical initiatives.”

New York City Department of Small Business Services Commissioner Kevin D. Kim said ,“It's a fact that every dollar we invest in our city’s M/WBEs is an investment in our neighborhoods. By hiring local M/WBEs for this major infrastructure project, New York is delivering on our shared goal of growing our economy from the grassroots up and the middle out. I want to thank Governor Hochul and the Port Authority for their partnership in outreaching to local MWBEs for this project and am excited to see what comes next!”

Greater Jamaica Development Corporation President & CEO Justin Rodgers said, “This is an impressive milestone, with much more work still to come. While the redevelopment is not complete, the positive impact is being realized. We are proud to be a community partner working with Congressman Meeks and Borough President Richards to help Governor Hochul and her team to find minority and women-owned businesses in Southeast Queens to join in the work and share the benefits.”

Queens Chamber of Commerce President & CEO Tom Grech said, "As a proud member of the JFK Redevelopment Community Advisory Council, the Queens Chamber of Commerce commends Governor Hochul's commitment to fostering diversity and economic empowerment through record-breaking MWBE participation during construction at JFK Airport. We have long advocated for the inclusion of MWBE firms across all construction projects in Queens, and this accomplishment signifies not only progress but also the potential for continued growth within our local business community."

NY NAMC Tri-State Chapter President Nayan Parikh said, “On behalf of National Association of Minority Contractors and the NY Tri State chapter, we commend and congratulate Governor Hochul’s team, Congressman Greg Meeks, Borough President Donovan Richards, and the entire team at the Port Authority of NY & NJ for their outstanding work and support towards MWBE community.”

New York Women’s Chamber of Commerce President Quenia Abreu said, “As a leading advocate for women and minority entrepreneurs, the New York Women’s Chamber of Commerce celebrates the record-setting participation by M/WBE businesses at JFK International Airport. The $2.3 billion in M/WBE contracts awarded at JFK will ensure that hundreds of women and minority entrepreneurs of color are included in the economic opportunities created at the airport, allowing them to grow their businesses and create generational wealth.”

Redeveloping JFK Airport in Lockstep with the Local Community
In 2018, the JFK Redevelopment Community Advisory Council was formed. It is co-chaired by U.S. Rep. Gregory Meeks and Queens Borough President Donovan Richards, and is composed of elected officials, community boards, business and nonprofit organizations, civic organizations, and clergy leaders from the targeted local communities of southeast Queens, southwest Queens, the Rockaways, and western portions of Nassau County.

Since its inception, the council has been working with the Port Authority and its private partners to expand community outreach efforts and develop community-focused programs, ensuring that this ambitious project solicits ongoing feedback from local stakeholders and provides meaningful opportunities for local businesses, MWBEs, students and jobseekers. This includes programming to advance the Port Authority's commitment to a 30 percent MWBE contracting goal in all categories of work, and a special focus on opportunities for local businesses across all aspects of the redevelopment of JFK, including terminal projects, which will be built by union labor under project-labor agreements.

Other community development initiatives prioritized by the council focus on job opportunities and workforce development programs for residents in Southeast Queens, small business outreach and development, and educational programming for local students. Specifically, the Council for Airport Opportunity Rockaway Career Center is a job recruiting and referral program to match qualified job seekers with jobs in construction and airport operations focused on the Far Rockaway community. The Office of Second Chance Employment helps connect formerly incarcerated individuals and others with past involvement in the criminal justice system to jobs associated with both airport construction and airport operations. The Institute of Concessions is a specialized training program offering extensive training and mentoring to small, local, and diverse businesses intended to increase the number of local and diverse airport concessionaires. The Aviation and Aeronautics Academy provides an aviation-focused weekend and summer education and enrichment program in science, technology, engineering and math (STEM) for up to 700 students from grades 1 through 12 annually. In partnership with CUNY York College, it will introduce students from communities surrounding JFK to career opportunities in aviation, airport management and aerospace technology.

Transforming JFK Into a World-Class Global Gateway
In January 2017, the JFK Vision Plan was announced to transform JFK into the world-class airport that New Yorkers deserve. The vision plan provides a strategic framework for the Port Authority and its partners to completely redevelop, modify and expand existing facilities and infrastructure. The $9.5 billion development of a state-of-the-art New Terminal One that will anchor the airport's south side broke ground in September 2022. A new $4.2 billion Terminal 6, which will connect seamlessly with Terminal 5 to create an anchor terminal on the airport’s north side, broke ground in February 2023. The $1.5 billion expansion of Terminal 4, led by Delta Air Lines and JFK International Air Terminal (JFKIAT), is substantially complete. Additionally, the $400 million expansion of Terminal 8, led by American Airlines, which operates the terminal, was completed in November 2022.

All of the privately financed terminal projects combined with the Port Authority's roadway, parking and infrastructure projects represent a $19 billion transformation of JFK and an extraordinary series of public-private partnerships. The Port Authority’s capital investment of $3.9 billion is leveraging private investment at a rate of nearly four to one when taking into account the full private investment of more than $15 billion that has been committed to the four projects comprising the full redevelopment of JFK.