Title
Aviation Department Five-Year Capital Improvement Program - Citywide
Description
This report summarizes the Aviation Department's five-year Capital Improvement Program (CIP) budget for Fiscal Year (FY) 2027-31. The CIP aligns with the department's goals of enhancing airport safety, security, capacity, customer service, and asset preservation.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
The proposed FY 2027-31 CIP includes 107 projects totaling $2.1 billion. The total CIP, including the current FY 2025-26 estimate, is $3.63 billion. The CIP includes projects for Phoenix Sky Harbor International Airport (PHX), Phoenix Goodyear Airport (GYR) and Phoenix Deer Valley Airport (DVT), and is scoped to align with available financial resources.
Major projects include:
- Taxiway Uniform and enabling projects.
- Terminal 3 North 2 Concourse and enabling projects.
- Terminal 3 North 2 New Apron.
- Terminal 3 Processor Improvement and Baggage Handling Systems Upgrades.
- Rental Car Center Vertical Transportation Modernization.
- Terminal 4 Infrastructure - Vertical and Horizontal Transportation Modernization.
- Terminal 4 Infrastructure - Central Plant Modernization.
- Facilities & Services Tonto Lot Campus Phase 1.
- West Terminal Enabling Projects and Planning.
- Terminal 4 Baggage Handling System Upgrades.
- Deer Valley Airport Taxiways and Connectors Rehabilitation.
- Goodyear Airport Apron Rehabilitation.
Taxiway Uniform
This project scope includes construction of a new Crossfield Taxiway Uniform and enabling work that will relocate and modify existing facilities and infrastructure impacted by the project. The construction of a new crossfield taxiway is a major airfield project necessary to improve aircraft movement between the north and south sides of PHX. The main enabling elements of the project include modifications to the existing City-owned Facilities and Services Complex, Air Cargo apron and building modifications, modifications to the sections of the existing roadway impacted by Taxiway Uniform, utility modifications, as well as modifications to aprons impacted by Taxiway Uniform. The project scope also includes grading, drainage, striping, lighting, and electrical and signage improvements. The estimated total project cost is $292.8 million, of which $6.2 million is budgeted in the FY 2027-31 Five-Year CIP.
Terminal 3 North 2 Concourse
This project is a necessary expansion of Terminal 3 and includes six new gates. The new concourse will allow for additional and newer facilities to enhance customer service and support long-term airline growth. The estimated total project cost is $465.9 million, of which $27.9 million is budgeted in the FY 2027-31 Five-Year CIP.
Terminal 3 North 2 New Apron
The project is part of the expansion of Terminal 3. The new concourse requires a new aircraft apron. The estimated total project cost is $26.7 million, of which $4.2 million is budgeted in the FY 2027-31 Five-Year CIP.
Terminal 3 Processor Improvement and Baggage Handling Systems Upgrades
This project is part of the expansion of Terminal 3. The addition of the new six-gate concourse requires improvements to the processor within the check-in area, bag handling system and security checkpoint to accommodate additional travelers and reduce passenger queue times at Terminal 3. The estimated total project cost is $163.9 million, of which $67.4 million is budgeted in the FY 2027-31 CIP.
Rental Car Center Vertical Transportation Modernization
This project will modernize numerous elevators and escalators at the Rental Car Center at PHX that have exceeded their useful life. The estimated total project cost is $75 million, of which $62.5 million is budgeted in the FY 2027-31 Five-Year CIP.
Terminal 4 Infrastructure - Vertical and Horizontal Transportation Modernization
This project is being completed in two phases and includes the modernization of numerous elevators, escalators, and moving walkways in Terminal 4 that have exceeded their useful life. The estimated total project cost is $90 million.
Terminal 4 Infrastructure - Central Plant Modernization
This project will replace critical heating, ventilation, and air conditioning equipment associated with the central air distribution system within Terminal 4 that is approaching the end of its useful life. Major components of this project include upgrades to the air distribution system, chillers, chilled water lines, air handler and fan coil units, and duct sealing. The estimated total project cost is $146 million, of which $11 million is budgeted in FY 2027-31 Five-Year CIP.
Facilities & Services Tonto Lot Campus Phase I
This is a multi-year development project to build out the Tonto Lot on the western side of PHX and redevelop 35 acres in the northwest corner of PHX. This phase includes development of new facilities that will consolidate various Facilities & Services field functions and the Phoenix Police Department Airport Bureau's K9 Unit. The estimated project cost of this phase is $26 million.
West Terminal Enabling Projects and Planning
The Aviation Department is in the planning stages of developing a new west terminal, the first phase of which is intended to be opened in late 2033 in order to meet airline growth projections. In order to meet this deadline, the department must concurrently complete a number of enabling projects to clear the property where the new west terminal will be built. This CIP includes 11 enabling projects as well as allocation of funds for planning and design. The estimated total of all these related projects is $463.7 million in the FY 2027-31 Five-Year CIP.
Terminal 4 Baggage Handling System Upgrades
As the Aviation Department continues to update the aging baggage handling system at Terminal 4, three additional sub-projects are being planned: International Inbound, International Outbound, and Electrical Service Entrance Sections. These projects are considered critical to maintain a fully operational system for airline operations. Project scopes are still being developed in consultation with the airlines, and fully vetted cost estimates and time frames are not currently available. Current CIP budget allocations are estimates based on recently completed work, and will be refined upon completion of scoping.
Deer Valley Taxiways and Connectors Reconstruction
The critical safety and capacity enhancement project in DVT's CIP is for the reconstruction of multple taxiway connectors, including connectors C4-C10. This project includes demolishing existing connectors and reconfiguring and reconstructing connectors to conform to FAA design standards. The estimated total project cost is $22.3 million, of which $13.8 million is budgeted in the FY 2027-31 Five-Year CIP.
Goodyear Apron Rehabilitation
The critical capacity enhancement project in GYR's CIP is the construction of a new apron. Most of the existing apron at GYR is leased and there are limited areas that can accommodate critical design aircraft. The project scope includes the design and construction of a new apron and taxiway connector, as well as grading, drainage, striping, signage, area lighting, and relocating groundwater monitoring wells. The estimated total project cost is $25.2 million, of which $21.2 million is budgeted in the FY 2027-31 Five-Year CIP.
Financial Impact
The Aviation Department has sufficient financial resources available to fund the proposed FY 2026-31 Six-Year CIP budget totaling $3.63 billion. The financial resources planned for this program includes $1.559 billion of Aviation Revenues, $995.4 million of federal and state grants, $614.6 million of bonds, and $459 million of Passenger Facility Charges and Customer Facility Charges.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road.
Phoenix Deer Valley Airport, 702 W. Deer Valley Road.
Phoenix Goodyear Airport, 1658 S. Litchfield Road, Goodyear, AZ.
Council Districts: 1, 8 and Out of City
Department
Responsible Department
This item is submitted by Deputy City Manager Frank McCune and the Aviation Department.