Fwd: Oakland airport may alter $1.5B expansion plan

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--- In BATN@xxxxxxxxxxxxxxx, "1/21 Contra Costa Times" <batn@xxxx> wrote:
Published Wednesday, January 21, 2004, in the Contra Costa Times

Changes ahead for Oakland airport

By Guy Ashley
Contra Costa Times

OAKLAND -- United Airlines decision to abandon its massive
maintenance hangar next to Oakland International Airport is spurring
airport officials to consider significant changes to the $1.5 billion
expansion plan.

The shuttered hangar has opened about 40 acres of land on the north
side of the airport, and airport officials are thinking seriously of
placing a third terminal for international flights there and
abandoning a plan to raise their two terminals into two-tiered
structures.

"When the facility was abandoned it freed up all kinds of property to
do things differently," said Steve Grossman, aviation director for
the Port of Oakland, which operates the airport.

United pulled out of the maintenance hangar last May, taking the
1,000 employees who worked there to San Francisco International
Airport in a cost-saving move that followed the airline's bankruptcy
filing.

Grossman said the change makes it highly likely that Port officials
in the coming months will discard an expansion plan that would have
modeled the airport's upgraded terminals after those at SFO, two-
level facilities served by a double-deck roadway.

Instead, he said he "would not be surprised" to see a third terminal
for international flights on the former United property, a scenario
that would preclude the need to build additional tiers on top of the
two existing terminals.

"It may be that we can separate traffic on a single level road, which
could end up saving us hundreds of millions of dollars," Grossman
said. "And if we don't have to build on top of the two terminals any
more, that again could save us hundreds of millions of dollars.

Questions about design will be left for a master-plan study to be
launched later this year. As it is, the airport is slated to embark
in March on construction of the first phase of expansion, a program
that calls for upgrades to its bustling south terminal and creation
of a new seven-story parking garage in front of the two terminals.

The projects reflect a strategic change airport officials embarked
on in 2002, as post-Sept. 11 security mandates ran headlong into
economic doldrums. These factors forced port officials to break the
expansion project into phases, to address the airport's most glaring
needs first while putting off other aspects of the expansion plan.

The first phase focuses on expanding the airport's south terminal to
accommodate Oakland's largest carrier, Southwest Airlines. The
project will add a new concourse onto the south end of the building
with seven new gates for airplanes, 10 security checkpoints and an
expanded ticket counter.

Port officials last week reached a tentative $109 million deal with
Turner Construction of Dallas to be the project's lead contractor.
Turner is also negotiating with the port on a price to build the
parking structure.

Officials hope the first-phase projects are done by the beginning of
2007. Airport officials then hope to begin the remaining phases of
the expansion plan, which probably will be redefined by the coming
master study.

These followup phases will probably require environmental studies in
addition to the Environmental Impact Report completed last year on
the expansion, Grossman said.

The airport's expansion is deemed essential as Oakland tries to
maintain steady passenger growth and its image as an easy-to-reach
alternative to SFO.

Oakland is one of the few airports in the country to maintain growth
as the aviation industry has faltered. Preliminary data indicate that
about 13.6 million passengers used Oakland last year, up 7 percent
from 2002. The airport was built to handle about 8 million
passengers, airport spokeswoman Cyndy Johnson said.

But the airport's reputation for easy access off Interstate 880 has
been challenged over the past year by a $115 million project to widen
its 98th Avenue approach. That project is expected to be completed
next month.
--- End forwarded message ---

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