Port Auth. Signs Two Hangar Leases At Stewart Valued at $119 Million
NEW WINDSOR—The Board of Commissioners for the Port Authority of New York and New Jersey approved two new corporate hangar leases at New York Stewart International Airport here late last month that will facilitate approximately $119 million in new development at the property.
The Port Authority reported the leases will develop a parcel of airside property at New York Stewart International Airport with the goal of expanding the Hudson Valley airport’s capacity to meet burgeoning demand for private or corporate jet facilities and access in the region. The parcel, which is not in use, will be developed into two general aviation aeronautical support facilities, according to the Port Authority.
The Orange County Partnership of Goshen reported that the two leases will facilitate a combined more than 300,000 square feet of new development at the airport.
The first lease deal is with SWF Development, LLC, a development consortium composed of Sky Harbour, LLC of White Plains, MJJ Builders, Corp. of Warwick, NY and Passero Associates of Newburgh, NY, which will construct approximately 13 corporate jet hangars totaling 182,000 square feet The second lease deal inked by the Port Authority is with Aviation Facilities Company Management, LLC, of Washington, DC, which will construct two hangars totaling 125,000 square feet.
The commissioners’ vote to develop New York Stewart was characterized as a vote of confidence in the airport by Port Authority Chairman Kevin O’Toole who said, “We want to maximize the full potential of every square foot of New York Stewart so that it can fulfill its goal as a driver of economic activity in the Hudson Valley and beyond.”
The developers have indicated to the Port Authority that the new leases will help create an estimated 245 permanent private-sector jobs in the region, as well as 260 jobs stemming from the construction of the proposed facilities. In keeping with the Port Authority’s commitment to driving diversity and local economic opportunities, the leases include ambitious goals to involve local businesses, minority and women-owned business enterprises (MWBE) and service-disabled veteran-owned businesses (SDVOB).
The leases also require the tenants to align with the Port Authority’s sustainability goals, which include the construction of facilities that meet or exceed current industry-leading building energy efficiency standards and achieve net-zero emissions by 2050.
“Stewart International Airport’s strategic focus on expanding services for corporate jets and charter operations will drive substantial economic growth in our region,” said Heather Bell, president and CEO of the Orange County Chamber of Commerce. “This initiative not only boosts revenue through increased fuel flowage and land rents but also attracts specialized companies and skilled labor, further enhancing our business community. Importantly, this growth is being achieved without compromising our commitment to cargo development or commercial air service expansion, ensuring a balanced and thriving economic environment for Orange County.”
Lease execution on the two transactions is expected in the fall of 2024, with operations of the new facilities expected to begin in 2028.