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DFW Airport Board to Revise CMAR Contract as Prelude to Phase 1 Work on $3Bn Terminal F

Feature Photo (above): The south airfield of Terminal D. The future site of Terminal F appears below the overpass to the far left. Image: Google Streets.

Update: 5-30-2019:  APR Aviation Partners will host an MBE Outreach Event this evening (May 30, 4-6 p.m.) at the Main Event in Grapevine, 407 W. Tx-114. APR Aviation Partners holds the contract for DFW Terminal F-Phase 1 (formerly known as Terminal D South Expansion). Point of Contact:  Sam Huff, shuff@phillipsmay.com

Originally Posted: 5-29-2019

by Adolfo Pesquera

Dallas (Dallas County) — Design work is underway on a sixth terminal for Dallas Fort Worth International Airport–a 24-gate terminal that will cost between $3-to-$3.5 billion.

DFW International and American Airlines issued a joint statement last week stating design work would begin immediately.

DFW is exploring several configurations for its Terminal F site. Details on the final layout will be part of the new lease agreement with American Airlines. This project also includes enhancements to Terminal C.

The DFW Board of Directors plan to finance the terminal through bonds and get repaid through airline rates and charges over the life of the bonds.

The five existing terminals are aligned on opposite sides of International Parkway, which functions as the connecting spine for all vehicular traffic. Terminal F will be opposite Terminal E from the parkway and south of Terminal D on what is presently the Express South Parking facility.

The future Terminal F will be located across International Parkway from Terminal E. Image: Google Earth/graphics by Adolfo Pesquera.

The future Terminal F will be located across International Parkway from Terminal E. Image: Google Earth/graphics by Adolfo Pesquera.

The DFW Board of Directors will hold their regular monthly meeting tomorrow (May 30). The agenda includes an action item authorizing DFW Chief Executive Officer Sean Donohue to increase a contract (#9500647) for Terminal F Phase 1-Construction Manager at Risk, “with APR Aviation Partners JV of Irving, Texas in an amount not to exceed $69,250,000, for a revised contract amount of $75,050,000.”

This contract, as described, involves improvements that would affect Terminal D and the future Terminal F.

In other business, the Board of Directors will consider a lease agreement for DFW Commerce Center III LLC, a two-building, industrial development for 947,600 square feet of space (744,800 SF and 202,800 SF) to be located on 57.5 acres of undeveloped land in the southeast sector of the airport (See Below).

APR Aviation Partners  is a joint venture comprised of Archer Western Construction (60%); Phillips/May Corporation (HM-C: 25%); and Reyes Group Ltd. (HM-C: 15%).

APR Aviation Partners JV has committed to achieving 60% minority business enterprise (MBE) self-performance and percentage participation for Pre-Construction Services, and 42% MBE participation for Construction Services.

The increase is to establish the first “Component Guaranteed Maximum Price, allowing Terminal F Phase I construction to commence.”

The guaranteed maximum price will include, but isn’t limited to, enabling project elements such as earthwork, site demolition, electrical duct banks, site utilities, building concrete, masonry; long lead procurement items such as structural steel, elevators, escalators, moving walks, passenger boarding bridges and baggage handling system; and an owner controlled allowance.

The Phase 1 contract stated that it will provide four swing gates capable of accommodating both domestic and international flights “at the southern end of Terminal D.” However, there are already eight gates on the south side of Terminal D that occupy the entire length of that terminal. An extension would be possible along the access road, as was done on the north side.

Image: Google Earth/graphics by Adolfo Pesquera.

Image: Google Earth/graphics by Adolfo Pesquera.

The board of directors initially approved the CMAR contract with APR Aviation Partners on Dec. 6, 2018, referring to it then as “Terminal D South Expansion.” The contract name was later amended to “Terminal F Phase 1-CMAR.”

A final Guaranteed Maximum Price will be brought back to the board in the future for approval.

Completion of CGMP is planned for March 30, 2021. The overall contract completion date will be set when the GMP is established.

Terminal F is projected to open “as soon as” 2025.

Donohue said in his prepared May 20 statement, “The new Terminal F and the expansion that could follow will provide the region with the growth it needs to compete with international business centers. The airport is growing faster than ever, and it needs to keep pace with the Dallas-Fort Worth economy to provide jobs and connections for businesses and families.”

DFW International is American Airlines’ largest hub.

Doug Parker, American Airlines chairman and CEO, said the expansion will ensure the airport remains a premier gateway for American for many years to come.

“The fact that American Airlines believes in the DFW International Airport Board and management enough to make this tremendous investment in the future of the airport is something we should all celebrate,” said Dallas Mayor Mike Rawlings.

Terminal C is one of the airport’s original terminals, having opened in 1974. DFW and American plan to significantly improve the customer experience at Terminal C, bringing it in line with the renovations that were completed in 2018 at Terminals A, B and E. Those renovations included redesigned check-in areas, larger security checkpoints, expanded concessions spaces, and improved lighting and flooring.

DFW Commerce Center III

Source: DFW International Airport

Source: DFW International Airport

Thursday’s agenda include an action item to authorize the CEO to execute a 40-year lease agreement with DFW Commerce Center III LLC. The contract includes a reimbursement to tenant provision for costs incurred to design and construct certain improvements (tree clearing and mass grading).

This is the final phase of a three-phase development. When completed, the three phases will have a cumulative 175.4 acres and almost 3 million square feet of industrial warehouse space for an initial rent annual value of $2,987,500. The cost to construct the new facilities is approximately $34.5 million, according to the briefing documents submitted to the board.

The DFW Airport Board previously approved two leases with Copeland Commercial LLC at Walnut Hill Industrial:

  • DFW Commerce Center I was completed Dec. 2018. This is a 59-acre lease with a single building of 1,000,800 SF. Peinado Construction of Frisco was general contractor on the first warehouse.
  • DFW Commerce Center II was approved January 2019. This is a 59-acre lease for a single building that will have 1,029,000 SF upon completion.
DFW Commerce Center I was built by Peinado Construction of Frisco. Image: Google Streets.

DFW Commerce Center I was built by Peinado Construction of Frisco. Image: Google Streets.


adolfo@virtualbx.com

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By |2019-05-30T13:33:28-05:00May 29th, 2019|Construction Preview, Feature Story|

About the Author:

Adolfo Pesquera (Reporter/Editor) is a veteran news journalist. He has worked for Hearst Corp., American Lawyer Media, News Corp and Freedom Communications. His work has been published in newspapers and magazines across the USA. He is a journalism graduate of UT-RGV. He writes, edits and creates digital pages for VBX.

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