Airport News, "Cost of Southwest Florida Int'l Airport expansion grows by $70 million"

["Stephen Irwin" <Stephen.Irwin@pmail.net>]

Sunday, September 26, 1999

Cost of SWFIA expansion grows by $70 million
By VICTOR EPSTEIN, Staff Writer
Naples Daily News


The cost of expanding Southwest Florida International Airport appears to be
growing as fast as the airport itself.

The initial $356 million price-tag for its new midfield terminal grew by $30
million within hours of being announced to the public last month and has
ballooned another $40 million over the ensuing weeks to now $426 million.

Airport officials claim the increase is merely a matter of definition.
However, some citizens and elected officials already are concerned that the
project's true scope may not have been fully disclosed to the public when it
was outlined Aug. 30.

"I don't like when anyone goes public on a project and then comes back the
next day and says, 'Oops, it's going to cost $30 million more,'" said
Collier County Commissioner James Carter. "You have to level with the
public, particularly since it seems that we're now talking about an increase
more on the order of $70 million."

Carter is not alone in his concern over the increase. Lee County Commission
Chairman Ray Judah, a longtime supporter of the expansion project, said he
too was alarmed by the manner in which costs have been disclosed to the
public.

"I'm concerned with the discrepancy in the numbers," said Judah. "As a
public servant I'm committed not only to public scrutiny of the
international airport project, but to public scrutiny of all government
projects."

Robert M. Ball, executive director of the Lee County Port Authority, was
traveling in Europe and unavailable for comment, according to aides.
However, SWFIA spokeswoman Susan Sanders indicated Friday that the $70
million increase was more perception than reality.

Sanders said the original $356 million figure covered the entire cost of the
midfield terminal expansion project, noting that another $30 million was
needed for an unrelated project and $40 million more was needed to cover
interest payments on the bonds financing the two projects. She contends that
because these costs always were anticipated they don't amount to an
increase.

"If we're going to build a new terminal, which everyone agrees we need, then
this is the dollar amount we'll need to build it," Sanders said of the $356
million figure.

That logic doesn't wash for Helen Philbin, of the Naples-based political
action committee "Citizens for a More Responsive Government." The retired
new York City district manager scoffed at Sanders' arithmetic, indicating
that it amounted to quoting a cash price for a purchase being made on
credit.

Philbin said major public works projects, like the midfield terminal
expansion, almost always go up, particularly when they're not scrutinized
closely by the public.

"This kind of thing is an insult to people's intelligence," Philbin said of
the $70 million increase. "Disclosure should mean disclosure and $356
million should mean $356 million. It's not right."

The final cost could increase even more, according to SWFIA finance director
Don Roode, if the Federal Reserve increases interest rates again. They've
been hiked a half of a percentage point since May, he said, an increase
which could add another $5 million to the $426 million total.

For that price, Southwest Florida residents will get virtually a new airport
that includes a 685,000-square-foot terminal building, access road from the
Alico Road exit of Interstate 75, 2,200-spot parking garage, stormwater
drainage pond, and 9,800 outdoor parking spots.

The $30 million project, which Sanders claims is unrelated to the midfield
terminal expansion, will pay for a new airline cargo building, upgraded
airfield lighting, and new car rental facilities.

The airport's retinue of private-sector consultants will spend the next two
years designing the state-of-the-art facility, which is scheduled for
completion in January of 2005. It's one of the most ambitious airport
projects in the world and continues to enjoy widespread support despite the
apparent increases.

Lee County Commissioner Andy Coy said he was comfortable with the project
and the manner in which it was being disclosed to the public, particularly
since commercial airline carriers are shouldering much of the cost. However,
they're expected to pass them on to passengers, who eventually will pay off
the $426 million in municipal bonds issued by Lee County.

"I know there are questions, but I'm comfortable with the way the Port
Authority is moving," Coy said. "I'm confident they'll do the right thing."

Robert McGrath, of the Citizens Association of Bonita Beach, said he too
remains an admirer of the airport. He said it would take another $70 million
increase to make him suspicious.

"I guess like everything else prices do escalate," said McGrath, who is a
private pilot.

Commissioner Carter, who made a living as a business management consultant
before taking public office, isn't so willing to overlook the $70 million
increase. He also took exception to the notion it was insignificant because
the money was coming from the airlines.

"The public ultimately pays for all of these projects because they're the
ones that buy airline tickets and I want them to know what's going on,"
Carter said. "I'm not saying we shouldn't do the project, but the people at
the airport shouldn't mislead the public by presenting a lower cost figure.
They need to level with people."

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