Title
Aviation Department Five-Year Capital Improvement Program
Description
This report summarizes the Aviation Department's Fiscal Years (FY) 2026-2030 Five-Year Capital Improvement Program (CIP) budget. The focus of the CIP is on airport safety and security, capacity enhancement, customer service, and asset preservation projects.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
The proposed FY 2026-2030 Five-Year Aviation CIP includes 99 projects and totals $2.59 billion. The total CIP program, including the current FY 2024-2025 estimate, is $3.76 billion. The program includes projects for Phoenix Sky Harbor International Airport (PHX), Phoenix Goodyear Airport (GYR) and Phoenix Deer Valley Airport (DVT). The CIP has been analyzed to align with the financial resources available. Aviation staff recommends the most critical projects to move forward and optimize the budget and financial resources.
The major projects at PHX include:
- Taxiway Uniform (Taxiway U).
- Terminal 3, North 2 (T3 N2) Concourse which includes a passenger connector between Terminal 3 and 4.
- Terminal 3 Processor Improvement and Baggage Handling Systems Upgrades.
- RCC Vertical Transportation Modernization.
- T3 N2 New Apron.
- F&S Tonto Lot Campus Phase 1.
- T4 Infrastructure Modernization - Central Plant.
- Deer Valley Taxiways and Connectors Reconstruction.
- Goodyear New Apron & Taxiway Connector.
Taxiway Uniform
This project scope includes construction of the new crossfield Taxiway U and enabling work that will relocate and/or modify existing facilities and infrastructure impacted by the project. The construction of the a new crossfield taxiway is a major airfield project necessary to improve aircraft movement between the north and south sides of the airport. 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 U, utility modifications as well as modifications to aprons impacted by Taxiway U. The project scope also includes grading, drainage, striping, lighting, electrical and signage improvements. The estimated total project cost of Taxiway U is $288 million, of which $14 million is budgeted in the FY 2026-2030 Five-Year Aviation CIP.
Terminal 3 North 2 Concourse which includes T3/T4 Passenger Connector
This terminal project is a necessary expansion of Terminal 3 and includes six new gates. The T3 N2 project is comprised of multiple project components which include a new concourse, apron and T3/T4 passenger connector along with other terminal processor improvements. The new concourse will allow for additional and newer facilities to enhance customer service and support long-term airline activity. The estimated total project cost of T3 N2 is $610.5 million, of which $336 million is budgeted in the FY 2026-2030 Five-Year Aviation CIP.
T3 Processor Improvement and Baggage Handling Systems (BHS) Upgrades
This project is part of the expansion of Terminal 3. The addition of a new six-gate concourse (T3 N2) requires improvements to the processor within the check-in area, bag handling system and security checkpoint to accommodate additional travelers. These improvements are intended to expedite this critical process and reduce passenger queue times at Terminal 3. The estimated total project cost of T3 Processor Improvement and BHS Upgrade is $147.1 million, of which $78.2 million is budgeted in the FY 2026-2030 Aviation CIP.
Rental Car Center (RCC) Vertical Transportation Modernization
This project entail the replacement of numerous elevators and escalators at the Rental Car Center at Sky Harbor International Airport that have exceeded their useful life. The estimated total project cost of RCC Vertical Transportation Modernization is $75 million, of which $75 million is budgeted in the FY 2026-2030 Five-Year Aviation CIP.
T4 Infrastructure Modernization - Central Plant
This project entails the replacement of critical equipment associated with the air distribution system within Terminal 4 that is approaching the end of its useful life. The key 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 of T4 Infrastructure Modernization - Central Plant is $146 million, of which $19.8 million is budgeted in the FY 2026-2030 Five-Year Aviation CIP.
T3 N2 New Apron
The project is part of the north side expansion of Terminal 3. The new T3 N2 Concourse requires a new aircraft apron. The estimated total project cost of the T3 N2 New Apron is $48 million, of which $45 million is budgeted in the FY 2026-2030 Five-Year Aviation CIP.
Facilities & Services (F&S) Tonto Lot Campus Phase I
This project is the first phase of multi-year development project to build out the Tonto Lot on the western side of airport and redevelop 35 acres in the northwest corner of airport. This phase includes a new building that will house consolidated Facilities & Services Division operations and the Phoenix Police Department Airport Bureau's K9 Unit. The estimated total project cost of F&S Tonto Lot Campus Phase I is $26 million, of which $22.7 million is budgeted in the FY 2026-2030 Five-Year Aviation CIP.
Deer Valley Taxiways and Connectors Reconstruction
The key project in DVT's CIP is the DVT Taxiway Connector project, including connectors C4-C10. This includes the demolishing of existing connectors, and the reconfiguration and reconstruction of connectors to conform to FAA design standards. The estimated total project cost of DVT Taxiway Connectors C4-C10 is $22.3 million, of which $13 million is budgeted in the FY 2026-30 Five-Year Aviation CIP.
Goodyear New Apron & Taxiway Connector
The key project in GYR's CIP is GYR New Apron Construction. Most of the existing apron at GYR is leased and there are limited areas that critical design aircraft can utilize. The project's scope includes design and construction of a new apron and taxiway connector (approximately 20,000 square yards of asphalt pavement) as well as grading, drainage, striping, signage, area lighting and the relocation of ground monitoring wells. The estimated total project cost of GYR New Apron Construction is $10 million, of which $8.8 million is budgeted in the FY 2026-30 Five-Year Aviation CIP.
Financial Impact
The Aviation Department has sufficient financial resources available to fund the proposed FY 2025-2030 Six-Year CIP budget, which totals $3.76 billion. The financial resources planned for this project includes $1.31 billion of Aviation Revenues, $1.16 billion of Federal and State Grants, $797 million of Bonds, and $489 million in Passenger Facility Charges (PFCs) and Customer Facility Charges (CFCs).
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 Mario Paniagua and the Aviation Department.