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ARTICLE 1. DEFINITIONS; INTERPRETATION | ||||
Section 1.01. Definitions | 2 | |||
Section 1.02.Interpretation | 22 | |||
ARTICLE 2. DEMISE; PREMISES | ||||
Section 2.01.Demise; Premises | 24 | |||
Section 2.02.Use Rights | 27 | |||
Section 2.03.Additional Phase I Gates; Hardstand Positions | 27 | |||
Section 2.04.Nonresidential Real Property; Non-Severable | 28 | |||
Section 2.05.Noninterference | 29 | |||
ARTICLE 3. TERM | ||||
Section 3.01.Effective Date Of This Agreement; Duration Of Agreement Term | 30 | |||
ARTICLE 4. REPRESENTATION AND WARRANTIES | ||||
Section 4.01.Representations And Warranties Of IAT | 31 | |||
Section 4.02.Representations And Warranties Of Delta | 32 | |||
ARTICLE 5. PORT /IAT LEASE; BASIC LEASE; TRANSACTION DOCUMENTS | ||||
Section 5.01.Port/IAT Lease and Basic Lease | 34 | |||
Section 5.02.Transaction Documents | 37 | |||
ARTICLE 6. CONSTRUCTION OF THE PHASE I IAT PROJECT | ||||
Section 6.01.Construction Of The Phase I IAT Project | 40 | |||
Section 6.02.Cost Overruns | 44 | |||
Section 6.03.Terminal 2-4 Connector | 45 | |||
Section 6.04.Installation Of Trade Fixtures By Delta | 45 | |||
Section 6.05.Leasehold Improvements And Trade Fixtures | 46 | |||
Section 6.06.Sales Tax Exemption and Abatement | 46 | |||
Section 6.07.Access; Permits; IAT Cooperation; Site Security | 46 | |||
Section 6.08.Revisions to Exhibits at Phase I DBO | 48 | |||
Section 6.09.Phase I IAT Project Management Structure | 48 |
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ARTICLE 7. RENT CHARGES, PAYMENTS | ||||
Section 7.01.Pre-DBO Rent | 49 | |||
Section 7.02.Delta Post-DBO Rent | 49 | |||
Section 7.03.Reserved | 50 | |||
Section 7.04.Semi-Annual And Annual Reconciliations | 50 | |||
Section 7.05.Additional Rent | 50 | |||
Section 7.06.Payments | 50 | |||
Section 7.07.Overdue Interest | 51 | |||
Section 7.08.No Additional Charges | 51 | |||
ARTICLE 8. USE AND OPERATION | ||||
Section 8.01.Use | 52 | |||
Section 8.02.Operation As Air Terminal | 52 | |||
Section 8.03.Port Authority Rules And Regulations | 52 | |||
Section 8.04.Terminal 4 Rules And Regulations | 52 | |||
Section 8.05.Ramp Services And Passenger Handling | 53 | |||
Section 8.06.In-flight Meals; etc. | 53 | |||
Section 8.07.FIDS And BIDS | 53 | |||
Section 8.08.Public Address And Paging Systems And Directional Signage | 54 | |||
Section 8.09.CUTE System; RIDS | 54 | |||
Section 8.10.Telecommunications System | 55 | |||
Section 8.11.FIS Facility | 55 | |||
Section 8.12.Additional Understandings Regarding Terminal 3 | 55 | |||
Section 8.13.Right Of Entry | 56 | |||
Section 8.14.Trademark License | 56 | |||
ARTICLE 9. MAINTENANCE AND OPERATIONS OF TERMINAL 4 | ||||
Section 9.01.O&M Services | 59 | |||
Section 9.02.Failure To Perform O&M | 59 | |||
Section 9.03.O&M Performance Standards | 59 | |||
Section 9.04.Delta Janitorial Services | 59 | |||
Section 9.05.Emergency Situations | 59 | |||
ARTICLE 10. OPERATIONS ADVISORY COMMITTEE; MANAGEMENT COMMITTEE; TRILATERAL COMMITTEE; AND BUDGET | ||||
Section 10.01.Operations Advisory Committee | 61 | |||
Section 10.02.Management Committee | 61 | |||
Section 10.03.Budgets; Calculation of Delta Rent And Adjusted Terminal Management Fees | 63 | |||
Section 10.04.Trilateral Committee | 65 |
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ARTICLE 11. SECURITY | ||||
Section 11.01.Airport Security Program | 66 | |||
Section 11.02.Terminal 4 Security | 66 | |||
Section 11.03.Additional Delta Security Rights And Obligations | 67 | |||
ARTICLE 12. ALTERATIONS AND ADDITIONS | ||||
Section 12.01.Alterations Generally | 68 | |||
Section 12.02.IAT Alterations; Limitations | 68 | |||
Section 12.03.Delta Alterations | 68 | |||
Section 12.04.Signs | 69 | |||
Section 12.05.Mechanic’s And Materialman’s Liens | 69 | |||
ARTICLE 13. IDENTIFICATION AND USE OF AVAILABLE GATES | ||||
Section 13.01.Use of Delta Gates and Delta Hardstand Positions | 71 | |||
Section 13.02.Use of IAT Gates | 73 | |||
Section 13.03.Mutual Agreement During Airport-wide or Terminal-wide Irregular Operations | 74 | |||
ARTICLE 14. CONCESSIONS | ||||
Section 14.01.Concessions Operations | 75 | |||
Section 14.02.Concession Master Plan | 75 | |||
Section 14.03.Failure To Perform Concession Management Services | 76 | |||
ARTICLE 15. BOOKS, RECORDS AND AUDIT | ||||
Section 15.01.IAT Books And Records | 77 | |||
Section 15.02.Delta Books And Records | 77 | |||
Section 15.03.Overpayments; Underpayments | 78 | |||
ARTICLE 16. COVENANTS | ||||
Section 16.01.Maintenance Of Existence | 79 | |||
Section 16.02.Further Assurances | 79 | |||
Section 16.03.Licenses And Permits and Applicable Laws | 79 | |||
Section 16.04.Delta Minimum Liquidity | 79 |
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ARTICLE 17. SUBLEASING AND ASSIGNMENT BY DELTA | ||||
Section 17.01.Subleasing And Assignment By Delta | 81 | |||
Section 17.02.No Pledges, Assignments, Encumbrances, etc | 82 | |||
ARTICLE 18. COLLATERAL ASSIGNMENT BY IAT; NON-DISTURBANCE BY TRUSTEE | ||||
Section 18.01.Collateral Assignment by IAT; Recognition, Non-Disturbance, Attornment and Consent Agreement | 83 | |||
ARTICLE 19. TAXES | ||||
Section 19.01.Delta Responsibility For Taxes | 84 | |||
Section 19.02.IAT Responsibility For Taxes | 84 | |||
Section 19.03.Delta Tax Liens | 84 | |||
ARTICLE 20. INSURANCE | ||||
Section 20.01.IAT Insurance | 85 | |||
Section 20.02.Property Insurance By Delta | 85 | |||
Section 20.03.Additional Insureds | 86 | |||
Section 20.04.Commercial Liability Insurance By Delta | 86 | |||
Section 20.05.OCIP | 87 | |||
Section 20.06.Certificates Of Insurance | 87 | |||
Section 20.07.Other Insurance By Delta | 88 | |||
Section 20.08.Additional Coverage | 88 | |||
Section 20.09.Notices | 88 | |||
Section 20.10.Right To Purchase Insurance | 88 | |||
ARTICLE 21. DAMAGE OR DESTRUCTION | ||||
Section 21.01.Notice And Protection | 89 | |||
Section 21.02.Insurance Proceeds | 89 | |||
Section 21.03.Restoration | 89 | |||
Section 21.04.Delta’s Insurance | 90 | |||
Section 21.05.No Liability | 90 | |||
Section 21.06.Relocation | 90 | |||
Section 21.07.Express Agreement Governing Damage or Destruction | 91 | |||
Section 21.08.Application of Certain Insurance Proceeds | 91 |
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ARTICLE 22. CONDEMNATION | ||||
Section 22.01.Damages | 92 | |||
Section 22.02.Proceedings | 92 | |||
Section 22.03.Extinguishment Of Interest In Terminal 4 | 92 | |||
Section 22.04.Restoration; Relocation; Adjustment To Rent | 93 | |||
Section 22.05.Payment Of Awards | 94 | |||
Section 22.06.Sale In Lieu Of Condemnation | 94 | |||
ARTICLE 23. TEMPORARY SUSPENSION OF UTILITIES | ||||
Section 23.01.Temporary Suspension Of Utilities | 95 | |||
Section 23.02. Limitations on IAT’s Obligation to Supply Electricity | 95 | |||
ARTICLE 24. INDEMNIFICATION | ||||
Section 24.01.Indemnification By Delta | 96 | |||
Section 24.02.Indemnification By IAT | 96 | |||
Section 24.03.Procedures for Third Party Claims | 97 | |||
Section 24.04.Procedures for Direct Claims | 98 | |||
ARTICLE 25. SURRENDER; HOLDING OVER | ||||
Section 25.01.Surrender | 99 | |||
Section 25.02.Holdover Rent | 99 | |||
Section 25.03.Removal Of Property And Signage | 99 | |||
Section 25.04.Survival | 100 | |||
ARTICLE 26. DELTA EVENT OF DEFAULT; IAT REMEDIES | ||||
Section 26.01.Delta Event Of Default | 101 | |||
Section 26.02.Monetary Default | 101 | |||
Section 26.03.Non-monetary Default | 101 | |||
Section 26.04.Notice And Opportunity To Cure | 102 | |||
Section 26.05.Remedies | 103 | |||
Section 26.06.Cumulative Remedies | 104 | |||
Section 26.07.Waiver Of Redemption | 105 | |||
Section 26.08.No Consequential Damages | 105 | |||
ARTICLE 27. IAT EVENT OF DEFAULT; DELTA REMEDIES | ||||
Section 27.01.IAT Event Of Default | 106 |
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Section 27.02.Monetary Default | 106 | |||
Section 27.03.Non-monetary Default | 106 | |||
Section 27.04.Termination of Port/IAT Lease by Port Authority | 106 | |||
Section 27.05.Notice And Opportunity To Cure | 106 | |||
Section 27.06.Remedies | 106 | |||
Section 27.07.No Implied Waiver | 107 | |||
Section 27.08.Cumulative Remedies | 108 | |||
Section 27.09.Offset | 108 | |||
Section 27.10.No Consequential Damages | 108 | |||
ARTICLE 28. DISPUTE RESOLUTION | ||||
Section 28.01.Dispute Resolution | 109 | |||
Section 28.02.Arbitration | 109 | |||
ARTICLE 29. ATTORNEYS’ FEES AND EXPENSES | ||||
Section 29.01.Attorneys’ Fees And Expenses | 112 | |||
ARTICLE 30. NO RECOURSE AGAINST EXCULPATED PARTIES | ||||
Section 30.01.IAT Exculpated Parties | 113 | |||
Section 30.02.Delta Exculpated Parties | 113 | |||
ARTICLE 31. DISCLOSURE, CONFIDENTIALITY AND PUBLIC ANNOUNCEMENTS | ||||
Section 31.01.Disclosure, Confidentiality And Public Announcements | 114 | |||
Section 31.02.Confidential Information | 114 | |||
Section 31.03.Survival | 115 | |||
ARTICLE 32. OTHER REQUIREMENTS | ||||
Section 32.01.Federal Airport Aid Assurances | 116 | |||
ARTICLE 33. DISCRIMINATION AGAINST INDIVIDUALS | ||||
Section 33.01.Port/IAT Lease; Federal Law | 117 | |||
Section 33.02.State Law | 117 | |||
Section 33.03.Ongoing Affirmative Action/equal Opportunity Commitment. | 118 | |||
Section 33.04.General | 118 | |||
Section 33.05.Benefit Of The Port Authority | 119 |
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ARTICLE 34. ENVIRONMENTAL OBLIGATIONS | ||||
Section 34.01.Liability for Environmental Damages | 120 | |||
Section 34.02.Compliance | 121 | |||
Section 34.03.Prohibited Releases | 121 | |||
Section 34.04.Post-Term Obligations | 122 | |||
Section 34.05.Remedial Standards | 122 | |||
Section 34.06.Agents and Contractors | 123 | |||
Section 34.07.Environmental Information | 123 | |||
Section 34.08.Access | 123 | |||
Section 34.09.Third Parties | 124 | |||
Section 34.10.Survival | 124 | |||
ARTICLE 35. PHASE II/III OPTIONS | ||||
Section 35.01.Phase II/III Option | 125 | |||
ARTICLE 36. MISCELLANEOUS | ||||
Section 36.01.Force Majeure | 128 | |||
Section 36.02.Waste | 128 | |||
Section 36.03.Attornment | 128 | |||
Section 36.04.Quiet Enjoyment | 129 | |||
Section 36.05.Notices | 129 | |||
Section 36.06.Entire Agreement | 130 | |||
Section 36.07.Port/Delta Lease | 130 | |||
Section 36.08.2026 Condition Survey | 130 | |||
Section 36.09.Recording Of Memorandum | 132 | |||
Section 36.10.Severability | 132 | |||
Section 36.11.Binding Effect | 132 | |||
Section 36.12.No Third Party Beneficiaries | 132 | |||
Section 36.13.Amendment | 132 | |||
Section 36.14.Waiver Of Breach | 133 | |||
Section 36.15.Relationship | 133 | |||
Section 36.16.No Brokers | 133 | |||
Section 36.17.Choice Of Law | 133 | |||
Section 36.18.Choice Of Venue | 133 | |||
Section 36.19.Waiver Of Jury Trial | 133 | |||
Section 36.20.Specific Performance | 133 | |||
Section 36.21.Counterparts | 133 | |||
Section 36.22.Delta Space Permit | 133 | |||
Section 36.23.IAT Confidential Information | 134 |
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Exhibit A-1 | Pre-DBO Premises; Location of Delta Premises; Concession Space; Concourse A; Delta Hardstand Positions | |
Exhibit A-2 | Location of Perimeter Dig Area; FIS Facility; Terminal 2-4 Connector Area | |
Exhibit A-2-1 | Triangle Plume | |
Exhibit B | Master Plan | |
Exhibit C | Approved Signage Locations | |
Exhibit D | Form of Construction Contract Assignment Agreement | |
Exhibit E | Form of Contractor Consent and Agreement (Construction Administration Agreement and Major Contracts) | |
Exhibit F | Non-Major Contract Stipulated Contract Language | |
Exhibit G | Reserved | |
Exhibit H-1 | Reserved | |
Exhibit H-2 | Form of Recognition, Non-Disturbance, Attornment and Consent Agreement | |
Exhibit I | Reserved | |
Exhibit J | Form of License Agreement between IAT and Scheduled Aircraft Operators (other than ATA Airline Sublessees) for use of Delta Gates and Delta Hardstand Positions | |
Exhibit K | Form of Letter of Credit |
Schedule 1-1 | ATA Permitted O&M Expenses | |
Schedule 4-1 | Port/IAT Lease | |
Schedule 4-2 | Series 6 Bond Documents | |
Schedule 4-3 | Series 8 Bond Documents | |
Schedule 4-4 | Transaction Documents | |
Schedule 6-1 | Approved Phase I IAT Project Contract Documents | |
Schedule 6-2 | Phase I IAT Project Contract Documents Pending Approval | |
Schedule 6-3 | Standard Draw Documentation | |
Schedule 6-4 | Phase I IAT Project Management Structure | |
Schedule 7-1 | Pre-DBO Rent (with per gate increases) | |
Schedule 7-2 | Reserved | |
Schedule 7-3(a) | Post-DBO Rent | |
Schedule 7-3(b) | Terminal 4 Gate Use Fee/Terminal 4 Hardstand Use Fee | |
Schedule 7-4 | Adjusted Terminal Management Fees | |
Schedule 8-1 | Port Authority Rules and Regulations | |
Schedule 8-2 | Terminal 4 Rules and Regulations | |
Schedule 8-3 | Terminal 3 Parking Fee | |
Schedule 10-1 | Committee Representatives | |
Schedule 10-2 | Pro Forma Budget | |
Schedule 36-1 | Agreements Surviving Execution of this Agreement |
viii
DEFINITIONS; INTERPRETATION
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DEMISE; PREMISES
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TERM
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REPRESENTATION AND WARRANTIES
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PORT /IAT LEASE; BASIC LEASE; TRANSACTION DOCUMENTS
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CONSTRUCTION OF THE PHASE I IAT PROJECT
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RENT CHARGES, PAYMENTS
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USE AND OPERATION
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MAINTENANCE AND OPERATIONS OF TERMINAL 4
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OPERATIONS ADVISORY COMMITTEE;
MANAGEMENT COMMITTEE; TRILATERAL COMMITTEE; AND BUDGET
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SECURITY
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ALTERATIONS AND ADDITIONS
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IDENTIFICATION AND USE OF AVAILABLE GATES
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CONCESSIONS
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BOOKS, RECORDS AND AUDIT
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COVENANTS
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SUBLEASING AND ASSIGNMENT BY DELTA
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COLLATERAL ASSIGNMENT BY IAT;
NON-DISTURBANCE BY TRUSTEE
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TAXES
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INSURANCE
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DAMAGE OR DESTRUCTION
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CONDEMNATION
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TEMPORARY SUSPENSION OF UTILITIES
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INDEMNIFICATION
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SURRENDER; HOLDING OVER
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DELTA EVENT OF DEFAULT; IAT REMEDIES
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IAT EVENT OF DEFAULT; DELTA REMEDIES
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DISPUTE RESOLUTION
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ATTORNEYS’ FEES AND EXPENSES
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NO RECOURSE AGAINST EXCULPATED PARTIES
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DISCLOSURE, CONFIDENTIALITY AND PUBLIC ANNOUNCEMENTS
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OTHER REQUIREMENTS
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DISCRIMINATION AGAINST INDIVIDUALS
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ENVIRONMENTAL OBLIGATIONS
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PHASE II/III OPTIONS
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MISCELLANEOUS
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John F. Kennedy International Airport (Terminal 4)
Room 161-022
Jamaica, New York 11430
Attention: President
Fax: 718-751-3729
919 Third Avenue
New York, New York 10022
Attention: Darius Tencza
Fax: 212-909-6836
Corporate Real Estate, Dept. 877
1030 Delta Boulevard
Atlanta, Georgia 30354
Attention: Vice President-Properties & Facilities
Fax: 404-715-2548
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JFK INTERNATIONAL AIR TERMINAL LLC | ||||
By: | /s/ Michael E. Sibilia | |||
Name: | Michael E. Sibilia | |||
Title: | Chief Financial Officer | |||
DELTA AIR LINES, INC. | ||||
By: | /s/ John W. Boatright | |||
Name: | John W. Boatright | |||
Title: | Vice President — Corporate Real Estate | |||
Hardstand Positions
Major Contracts)
ATA Airline Sublessees) for use of Delta Gates and Delta Hardstand Positions
Delta Hardstand Positions
![](https://capedge.com/proxy/10-K/0000950123-11-014364/g24877g24877z0001.gif)
Curbside / Exterior Exterior Delta Branded sign on new curbside "V" column similar to new curbside check-in canopy structure Curbside Check-In Delta branded millwork & signage at new curbside check-in area and canopy structure ATA Lease Exhibit C November 23rd, 2010 1 |
![](https://capedge.com/proxy/10-K/0000950123-11-014364/g24877g24877z0002.gif)
Delta Check-In Check-In Rows 1 & 2 Delta branded millwork at check-in positions & freestanding kiosk Overhead suspended Lobby Information Display monitors and graphics behind check-in positions ATA Lease Exhibit C November 23rd, 2010 2 |
![](https://capedge.com/proxy/10-K/0000950123-11-014364/g24877g24877z0003.gif)
Sky Priority Check-In Sky Priority Check-In Delta branded millwork, backwall & graphics at Sky Priority check-in area ATA Lease Exhibit C November 23rd, 2010 3 |
![](https://capedge.com/proxy/10-K/0000950123-11-014364/g24877g24877z0004.gif)
Gate Holdroom Typical Holdroom Delta branded millwork at gate counter & backwall; wall graphics; suspended Gate Information Display monitors Wall graphics subject to coordination with advertising program ATA Lease Exhibit C November 23rd, 2010 4 |
![](https://capedge.com/proxy/10-K/0000950123-11-014364/g24877g24877z0005.gif)
Delta Sky Club Entrance Concourse level entry to Sky Club Sky Club branded signage on concourse and within lobby visible from concourse ATA Lease Exhibit C November 23rd, 2010 5 |
PLANS AND SPECIFICATIONS, AND
SERVICE AND OTHER CONTRACTS
a Delaware corporation,
a New York limited liability company,
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ASSIGNOR: DELTA AIR LINES, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
JFK INTERNATIONAL AIR TERMINAL LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
STATE OF NEW YORK | ) | |||||
) | ss.: | |||||
COUNTY OF NEW YORK | ) |
Notary | ||||
STATE OF NEW YORK | ) | |||||
) | ss.: | |||||
COUNTY OF NEW YORK | ) |
Notary | ||||
As Trustee
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[Name of Contractor] | ||||
By: | ||||
Name: | ||||
Title: | ||||
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1. | Capitalized Terms. Capitalized terms used herein and not otherwise defined in this Agreement shall have the respective meanings ascribed to them in the Terminal 4 Lease or in the Anchor Tenant Agreement. | |
2. | Subordination. Subject to the terms of this Agreement, the Anchor Tenant Agreement and the terms thereof are, and shall at all times continue to be, subject and subordinate in each and every respect, to the Leasehold Mortgage and the terms thereof, and to any and all renewals, modifications, extensions, substitutions, replacements and/or consolidations of the Leasehold Mortgage. Except as provided in Section 3 below, nothing herein contained shall be deemed or construed as limiting or restricting the enforcement by the Trustee of any of the terms, covenants, provisions or remedies of the Leasehold Mortgage, whether or not consistent with the Anchor Tenant Agreement. |
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3. | Nondisturbance. In the event (i) the Trustee shall become the lessee under the Terminal 4 Lease by reason of foreclosure or other proceedings brought to enforce the Collateral Documents (a “Foreclosure Action”) or (ii) of a cancellation or termination (including a rejection in a bankruptcy proceeding) of the Terminal 4 Lease or of the surrender thereof by IAT, whether voluntary, involuntary, or by operation of law, at any time prior to the expiration date of the Anchor Tenant Agreement (collectively with a Foreclosure Action, a “Terminal 4 Lease Termination”) where the Trustee (or any successor to the Trustee in connection with the exercise of remedies pursuant to the Terminal 4 Project Bond Documents, such assignee or the Trustee, as applicable being hereinafter referred to as a “Replacement Operator”) is in possession of the Terminal 4 Lease and is exercising the rights of IAT as lessee thereunder, or has become the lessee under a New Lease as defined in and in accordance with the provisions of the Basic Lease, and so long as Delta is not in default or in breach of its duties under the Anchor Tenant Agreement (beyond the expiration of any applicable notice and cure period), the Trustee hereby covenants and agrees (and shall cause any Replacement Operator, as a condition precedent to succeeding to Trustee’s rights) to covenant and agree, as follows: |
(i) | The right of possession of Delta to Delta’s Terminal 4 Premises and Delta’s rights under the Anchor Tenant Agreement shall not be affected or disturbed by the Terminal 4 Lease Termination, and the Anchor Tenant Agreement shall continue in full force and effect. |
(ii) | If the Terminal 4 Lease is cancelled or terminated and a new lease is entered into between the Port Authority and a Replacement Operator, the Anchor Tenant Agreement will continue in full force and effect as a direct lease between any Replacement Operator and Delta, upon and subject to all of the terms, covenants and conditions of the Anchor Tenant Agreement, for the balance of the term of the Anchor Tenant Agreement (a “Direct Lease”), subject to the provisions of Section 3(b) below. So long as the Anchor Tenant Agreement is still in effect, the Replacement Operator (I) will recognize the Anchor Tenant Agreement and the rights of Delta thereunder and will not disturb the possession of Delta in, or under, the Anchor Tenant Agreement, and (II) agree not to join Delta as a party defendant in any action or proceeding to terminate the Terminal 4 Lease or to recover possession of Terminal 4 or the Terminal 4 Site. Such recognition and agreement shall be effective and self-operative as of the date of termination of the Terminal 4 Lease without execution of any further instrument. |
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(iii) | Upon the request of Delta, the Replacement Operator shall promptly execute and deliver such agreements or other instruments, in recordable form, as may be necessary or appropriate to evidence such non-disturbance. |
(iv) | If the Replacement Operator becomes a Successor Sublessor (as defined in Section 3), it shall be bound by all the terms, covenants, agreements, conditions and other provisions of the Anchor Tenant Agreement. |
4. | Attornment. Notwithstanding anything in the Anchor Tenant Agreement to the contrary, if the Trustee or any other person succeeds to IAT’s estate in Terminal 4 or Delta’s Terminal 4 Premises as a result of a Terminal 4 Lease Termination (each such successor, a “Successor Sublessor”), then Delta agrees as follows: |
(a) | Delta will perform and observe its obligations under the Anchor Tenant Agreement for the benefit of Successor Sublessor. |
(b) | Delta will attorn to and recognize Successor Sublessor as lessor under the Anchor Tenant Agreement for the remainder of the term of the Anchor Tenant Agreement, such attornment to be automatic and self-operative as of the date of Successor Sublessee’s succession to IAT as aforesaid (the “Attornment”). |
(c) | Upon the request of Successor Sublessor, Delta will promptly execute and deliver any instrument that such Successor Sublessor may reasonably request to evidence the Attornment. |
5. | Protection of Successor Sublessor. Successor Sublessor will not be liable for, subject to or bound by any of the following to the extent such have arisen under the Anchor Tenant Agreement during the period IAT was lessor thereunder: |
(a) | claims, offsets or counterclaims which Delta might have against IAT; |
(b) | rent or additional rent which Delta might have paid for more than one month in advance, except for any amounts owing to Delta at the end of any Annual Period or Semi-Annual Period for reconciliation pursuant to Section 7.04 of the Anchor Tenant Agreement of Delta’s payments of estimated Delta Rent, or Additional Rent during such period against the actual amounts due; |
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(c) | any security deposit or other prepaid charge paid to IAT that is not transferred by IAT to the Successor Sublessor or acquired by the Successor Sublessor from IAT; |
(d) | any obligation to perform any work, or make any alteration or installation, or make any payment pursuant to the Anchor Tenant Agreement other than (a) payment for Terminal 4 Improvements made in accordance with the documentation for the Series 8 Bonds, out of (i) the proceeds of the Series 8 Bonds or (ii) any amounts payable from any fund or deposit account to which Successor Sublessor succeeds in interest, (b) Delta Rent, ATA Permitted O&M Expenses, and Additional Rent reconciliation payments described in Section 4(b) above, or (c) any amount for an obligation which arises after Attornment; or |
(e) | any obligation of, or liability resulting from any acts or omissions of IAT. |
6. | Estoppels. To Delta’s knowledge, there does not exist any default, claim, controversy or dispute under the Anchor Tenant Agreement. Delta has not commenced any action nor sent or received any notice to terminate the Anchor Tenant Agreement. The Trustee has not commenced any action or sent or received any notice for the termination of the Terminal 4 Project Bond Documents to which it is a party or the Terminal 4 Lease. | |
7. | Consents. Delta understands and agrees that IAT and the Port Authority may pledge and assign to the Trustee, as security for all obligations to the Trustee and the holders of Terminal 4 Project Bonds under the Terminal 4 Project Bond Documents, all of their respective rights, title and interest in, to and under the Anchor Tenant Agreement or pursuant to, among other things, the Trust Indenture, the Personal Property Security Interest and the Assignment of Leases and Rents. By its execution of this Agreement, Delta hereby consents to each such referenced agreement and to such pledges and assignments by the Port Authority and IAT to the Trustee (or any Replacement Operator) in connection with the exercise of remedies by the Trustee pursuant to the Terminal 4 Project Bond Documents and the Terminal 4 Lease and exercising such rights and remedies of IAT and performing such obligations of IAT under the Anchor Tenant Agreement under the circumstances and to the extent provided in the relevant documents evidencing the pledges and assignments contemplated in this paragraph (a). |
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8. | No Obligation to Exercise Remedy. Nothing in this Agreement shall be construed as requiring the Trustee to exercise any particular remedy, or any remedy, if an Event of Default by IAT under the Terminal 4 Lease shall occur. | |
9. | Right to Cure IAT Defaults. In the case of an Event of Default by IAT under the Anchor Tenant Agreement, the Trustee (or any Replacement Operator) and the Bond Insurer shall have a period of sixty (60) additional days beyond that provided to IAT in Article 27 of the Anchor Tenant Agreement, to remedy the Event of Default, or cause such Event of Default to be remedied (“IAT Cure Period”). Provided a notice of the intent to cure (with a description of the plan and a schedule) is given to Delta within 10 days after the end of the IAT Cure Period, Delta agrees that it shall accept such performance by the Trustee (or any Replacement Operator) or the Bond Insurer of any covenant, condition or agreement on IAT’s part to be performed under the Anchor Tenant Agreement in order to cure the Event of Default with the same force and effect as though performed by IAT and subject to conditions and obligations set forth in Article 27 of the Anchor Tenant Agreement in the case of an Event of Default by IAT under the Anchor Tenant Agreement. | |
10. | [Reserved]. | |
11. | Delta Recital. Delta makes the following recital and hereby acknowledges that the Trustee is entering into this Agreement in reliance thereon: Delta has all the necessary power and authority under Law and otherwise to enter into, perform, enforce and observe the agreements evidenced by this Agreement. The execution and delivery by Delta of this Agreement and the consummation and performance of the obligations contemplated by this Agreement will not violate any provisions of Law applicable to Delta or violate, or constitute a default under the provisions of, any Law, agreement or other instrument to which Delta is a party or by which Delta is bound. | |
12. | Severability. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction or in an arbitration, then all of the remaining portions will remain in full force and effect, and, so far as is reasonable and possible, effect will be |
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given to the intent manifested by the portion or portions held to be invalid or unenforceable. |
13. | Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York. | |
14. | Notices. |
(a) | All notices, demands and other communications (“notice”) under or concerning this Agreement must be in writing. At the time of delivery of any notice, a copy of such notice shall be provided to the Bond Insurer by the party sending such notice. Each notice shall be addressed to the intended recipient at its address set forth in this Agreement, and shall be deemed to be duly given only if given in accordance with the notice provisions in Section 80 of the Terminal 4 Lease or, in the case of the Trustee, Section 23 of the Indenture. |
(b) | Each party hereto and the Bond Insurer may change its address for notices by giving written notice thereof to the other parties in accordance with the terms of Section 80 of the Terminal 4 Lease or, in the case of the Trustee, Section 23 of the Indenture. |
Corporate Real Estate, Dept. 877
1030 Delta Boulevard
Atlanta, Georgia 30354
Attention: Vice President-Properties & Facilities
Fax: 404-715-2548
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101 Barclay Street, 7 W Floor
New York, NY 10286
Attention: Mirian Moraca
Fax: (732) 667-9210
c/o National Public Finance Guarantee Corporation
113 King Street
Armonk, NY 10504
Attention: Insured Portfolio Surveillance
Fax: (914) 765-3799
15. | Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the parties to this Agreement and their respective heirs, legal representatives, successors, successors-in-title and assigns. | |
16. | Third Party Beneficiary. For so long as Series 6 Bonds for which any portion of the principal or interest is insured by the Bond Insurer, the Bond Insurer shall be a third party beneficiary of this Agreement. | |
17. | Counterparts. This Agreement may be executed in any number of counterparts, all of which when taken together will constitute one and the same instrument. | |
18. | Incorporation by Reference. In connection with its execution and acting hereunder, the Trustee is entitled to all rights, privileges, protections, immunities, benefits, immunities and indemnities provided to it under the Indenture. |
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DELTA AIR LINES, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
THE BANK OF NEW YORK MELLON, Trustee | ||||
By: | ||||
Name: | ||||
Title: | ||||
Acknowledged and Agreed: JFK International Air Terminal LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
ATA Airline Sublessees) for use of Delta Gates and Delta Hardstand
Positions
TERMINAL 4 — LICENSE AGREEMENT
AIRLINE’S ADDRESS: | ||
TERM: | , 20(the “Effective Date”) | |
, 20 (the “Expiration Date”) | ||
TERMINAL 4 LICENSE FEES: | ||
Passenger Fee | See Exhibit A attached hereto | |
Overtime Gate Parking Fee | [ ] | |
Common Use Check-in Counter Fee | [ ] | |
Hardstand Parking Fee | [ ] | |
SECURITY DEPOSIT: | [ ] | |
ANNUAL INFLATION ESCALATOR: | The fees set forth in this Agreement shall be adjusted each January first by an amount equal to the greater of four percent (4%) per annum or the Annual CPI Percentage Increase. The “Annual CPI Percentage Increase” shall mean the Consumer Price Index increase, if any, as published by the Bureau of Labor Statistics of the United States Department of Labor for all Urban Consumers, New York-Northern New Jersey, Long Island, NY-NJ-CT-PA (All Items unadjusted 1982-84=100) for the twelve month period ending November of the prior contract year. |
JFK INTERNATIONAL AIR TERMINAL LLC | [Airline] | |||||||
By: | By: | |||||||
Alain Maca | Name: | |||||||
President | Title: | |||||||
By: | ||||||||
Michael E. Sibilia | ||||||||
Chief Financial Officer |
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4.2 | Terminal 4 License Fees. |
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(1) | Comprehensive aircraft liability insurance covering property damage liability, bodily injury (including death) liability, personal injury liability, host liquor liability, contractual liability, premises liability, products and completed operations liability, hangar keepers liability, baggage liability, cargo liability, mail liability, excess automobile liability and excess employers liability in respect of Airline’s operations at Terminal 4, and including legal liability arising out of Airline’s operations (licensed and unlicensed) on the airport premises, and including extended coverage endorsement (aviation liabilities, war and allied risk liabilities) AVN52D or equivalent resulting from Airline’s activities into, on, and leaving any part of the Airport, in an amount not less than $500,000,000 combined single limit. |
(2) | Automobile liability insurance to cover owned, non-owned and hired vehicles operating on the Airport in an amount not less than $25,000,000 per person and per occurrence. |
(3) | Property insurance to cover personal property and trade fixtures in an amount adequate to cover 100 percent of the replacement cost of the property and fixtures. |
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Passenger Fees
License Agreement
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[L/C Bank]
[Address]
TERMINAL LLC
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: |
1) | We hereby demand payment in the amount of USD _____________ under said Standby Letter of Credit. | ||
2) | [a] The amount demanded is hereby due and owing by Delta Air Lines, Inc. (the “Account Party”) pursuant to the terms and conditions of the Anchor Tenant Agreement effective December __, 2010 (“Anchor Tenant Agreement”) between the Beneficiary and the Account Party. | ||
or | |||
[b] Both (a) the date of this demand for payment and certificate is not earlier than 60 days prior to the Expiration Date (as defined in clause (iii) of Section 3 of said Standby Letter of Credit) and Delta Air Lines, Inc. (the “Account Party”) has not heretofore delivered to the Beneficiary a substitute letter of credit with an expiration date at least one year after such Expiration Date and (b) either (x) the Anchor Tenant Agreement effective DATE (“Anchor Tenant Agreement”) between the Beneficiary and the Account Party is still in force and effect or (y) the Anchor Tenant Agreement is no longer in full force and effect but amounts remain unpaid under such Anchor Tenant Agreement. |
JFK INTERNATIONAL AIR TERMINAL LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
2[a] | This alternative is to be used if the reason for the draw is to obtain funds to make a payment in respect of amounts that are due and owing. | |
2[b] | This alternative is to be used if the reason for the draw is the pending expiry of the letter of credit. |
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1. | Agreement of Lease between The Port Authority of New York and New Jersey (the “Port Authority”) and JFK International Air Terminal LLC, a New York limited liability company (“JFK IAT”), dated as of May 13, 1997, bearing Port Authority agreement number AYC-685 |
2. | Supplemental Lease Agreement No. 1 by and between the Port Authority and JFK IAT, dated as of August 10, 2001 |
3. | Supplemental Lease Agreement No. 2 by and between the Port Authority and JFK IAT, dated as of December 20, 2002 |
4. | Supplemental Lease Agreement No. 3 by and between the Port Authority and JFK IAT, dated as of January 1, 2004 |
5. | Supplemental Lease Agreement No. 4 by and between the Port Authority and JFK IAT, dated as of December 1, 2004 |
6. | Fifth Supplemental Agreement by and between the Port Authority and JFK IAT, dated as of [__________], 2010 |
(a) | Series 6 Bonds, |
(b) | Trust Indenture, |
(c) | Trust Administration Agreement, |
(d) | Assignment of Rents, |
(e) | Series Resolution authorizing Series 6 Bonds, adopted October 17, 1997, |
(f) | Special Project Bond Resolution, |
(g) | Personal Property Security Interest, |
(h) | Leasehold Mortgage, |
(i) | Guaranty, |
(j) | Assignment of Construction Contracts, Plans and Specifications, and Service and Other Contracts, |
(k) | Assignment of Tenant Leases and Rents, |
(l) | Port Authority Financing Consent and Agreement, |
(m) | Lease Assignment, and |
(n) | Any other Security Document defined as such in the Lease relating to the Series 6 Bonds. |
(a) | Series 8 Bonds, | ||
(b) | Trust Indenture, | ||
(c) | Trust Administration Agreement, | ||
(d) | Assignment of Rents, | ||
(e) | Series Resolution authorizing Series 8 Bonds, adopted August 5, 2010, | ||
(f) | Special Project Bond Resolution, | ||
(g) | Personal Property Security Interest, | ||
(h) | Leasehold Mortgage, | ||
(i) | Guaranty, | ||
(j) | 2010 Assignment of Construction Contracts, Plans and Specifications, and Service and Other Contracts, | ||
(k) | Assignment of Tenant Leases and Rents, | ||
(l) | Port Authority Financing Consent and Agreement, | ||
(m) | Any Parity Resolution, | ||
(n) | Lease Assignment, and | ||
(o) | Any other Security Document defined as such in the Lease. |
[Address]
DELTA AIR LINES, INC. | ||||
By | ||||
Title: | ||||
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Element of the | ||||||||||||||
Address/ | 2010 | |||||||||||||
Wiring | Amount | Expansion | ||||||||||||
Name of Payee | Instructions | to be Paid | Project | Purpose |
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Costs | Costs Included | Costs | ||||||||||
Previously | in This | Paid and/or | ||||||||||
Expenditure | Paid and/or | Standard Draw | Requisitioned | |||||||||
Category | Requisitioned | Document | To Date | |||||||||
Headhouse Improvements | ||||||||||||
Concourse B Expansion | ||||||||||||
Interest During Construction | ||||||||||||
Issuance Costs | ||||||||||||
Amount expended pursuant to Section 3.2(B) of the TAA | ||||||||||||
Column Totals |
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![](https://capedge.com/proxy/10-K/0000950123-11-014364/g24877g2487700.gif)
Construction /Operations Management Committee M. Medeiros - Delta R. Arisz - JFKIAT S. Makinen - JFKIAT P. Greci - Delta Program Director D. Stolt - Delta Construction Services M. Chalmers, RA - AECOM Contract Packaging G. Eggington, RA - AECOM Design/Integration/ Constructability K. Velsor - AECOM Systems Integration N. Abrams, PE - AECOM Environmental Manager B. Heckman - AECOM Safety Project Controls/Contract Administration P. Mehta, PMP - AECOM Project Controls Advisor J. Bayersdorfer, PE - AECOM Estimating L. Harrod - US Cost Estimating Support G. Duller - AECOM Scheduling G. Higgins - US Cost Control Mgt/Bidding & Purchasing Connectors G. Gehring AECOM T3 Demolition G. Gehring AECOM Concourse B D. Quast AECOM Headhouse A. Roscigilone, RA AECOM Construction Advisory Committee J. Lievers - JFKIAT J. Greenwald - Delta Controls Manager J. McCabe, CPA AvAirPros Administration N. Marquez - AECOM Construction Administrator C. McDermott, PE, LEED, AP AECOM Assistant Program Director T. Lang - Delta Technical Support D. Brown, PE - AECOM M. Chalmers, RA - AECOM Design Manager K. Seabolt KDS Architecture On-site Design Coordination BHS JFKIAT Finance M. Sibilia R. van Veen Delta Bond Trustee Executive Committee Alain Maca - JFKIAT John Boatright - Delta Internal Auditor SCHEDULE 6-4 Phase I IAT Project Management Structure NY1 7395615 |
2011 — 2.5% | ||||
2012 — 2.5% | ||||
2013 — 2.0% | ||||
2014 — 2.0% |
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(1) | If the Delta Premises includes fewer than seven (7) Delta Gates located in the portion of Terminal 4 as Terminal 4 existed prior to the Phase I IAT Project (the “Original Terminal 4”) as of Phase I DBO, the Post-DBO Rent shall be calculated and paid in accordance with the “Cost Allocation Methodology” pursuant to the terms of Section V below until the date that the Delta Premises includes seven (7) or more Delta Gates located in Original Terminal 4. |
(2) | If the Delta Premises includes a total of seven (7) Delta Gates located in Original Terminal 4 at any time from and after Phase I DBO, the Post-DBO Rent shall be calculated and paid in accordance with the“Percentage Methodology”pursuant to the terms of Section VI below commencing as of the date that the seventh Delta Gate located in Original Terminal 4 is added to the Delta Premises and continuing until the earlier of (x) the date on which the Delta Premises includes more than seven (7) Delta Gates located in Original Terminal 4 or (y) January 1, 2020, in which cases the provisions of clause (3) below shall apply. |
(3) | If the Delta Premises includes more than seven (7) Delta Gates located in Original Terminal 4 at any time from and after Phase I DBO, or if the Delta Premises includes at least seven (7) Delta Gates located in Original Terminal 4 on or after |
January 1, 2020, the Post-DBO Rent shall be the greater of the rent calculated in accordance with (x) the Cost Allocation Methodology established pursuant to Section V below, or (y) the Percentage Methodology established pursuant to Section VI below; provided that, if at any time the Delta Premises includes sixteen (16) Delta Gates located in Original Terminal 4, then (i) for each Annual Period (or portion thereof) Delta shall receive a credit against the Post-DBO Rent in an amount equal to 100% of the revenues of IAT during such period less (x) the revenues derived under the Concession Subleases during such period, and (y) revenues derived by IAT from the operation and management of the Terminal 3 Site during such period, and (ii) credits or payments for the Terminal 4 Gate Turn Fee and the Terminal 4 Hardstand Use Fee shall no longer be made. |
A. | Components of “Fixed Costs” and assigned definitions: |
• | “Ground Rental” is defined in the Port/IAT Lease. | ||
• | “Capital Charge” means an amount equal to $85,400,000 per annum, which such amount is in lieu of any allocation to Delta of Facility Rental (as such term is defined in the Port/IAT Lease), or any amounts under that certain Supplemental Lease Agreement No. 1 to the Port/IAT Lease that became an Additional Investment pursuant to, and as defined in, that certain Supplemental Lease Agreement No. 2 to the Port/IAT Lease in connection with the completion of Terminal 4. | ||
• | “Additional Capital Charge” means, initially, an amount equal to $2,135,000. Commencing on December 1, 2013 and on the first day of each Annual Period thereafter, an amount shall be added to the then applicable Additional Capital Charge equal to (1) the sum of (i) the preceding Annual Period’s Additional Capital Charge plus (ii) the Capital Charge, multiplied by (2) the greater of (x) 2.5%, or (y) one-half of any CPI increase (expressed as a percentage) over the prior Annual Period; provided that the Additional Capital Charge will be adjusted, if applicable, upon the final determination of any applicable CPI increase. | ||
• | “Lessee Terminal Management Funds” is defined in the Port/IAT Lease. |
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• | “First Additional Land Rental Charge” means an amount equal to $2,750,000 per annum, which such amount is in lieu of any allocation to Delta of Series 6 First Additional Land Rental (as such term is defined in the Port/IAT Lease) and shall be included in Post-DBO Rent through December 1, 2025. | ||
• | “Series 8 Bonds Debt Service”shall mean the actual annual principal, interest and other scheduled annual payments to be made under the Series 8 Bonds but shall not include any optional redemption payments unless made with Delta’s consent, or any accelerated redemption payments unless, and then only to the extent, required due to the act or omission of Delta. | ||
• | “Series 8 First Additional Land Rental” is defined in the Port/IAT Lease. |
B. | Components of “Variable Costs” and assigned definitions: |
• | “ATA Direct O&M Expenses” means the actual costs related to the following categories of ATA Permitted O&M Expenses: (i) Repair & Maintenance, (ii) Outsourced Labor, (iii) Utilities, and (iv) IAT’s obligation to fund the Major Maintenance and Renewal Fund, the Operation & Maintenance Reserve Fund and the Capital Improvements Reserve Fund in any Annual Period (each such fund a “Reserve” and, collectively, the “Reserves”). | ||
• | “ATA Indirect O&M Expenses” means the actual costs related to the following categories of ATA Permitted O&M Expenses: (i) General Administrative, and (ii) Personnel. | ||
• | Note that the combination of ATA Direct O&M Expenses and ATA Indirect O&M Expenses is intended to cover all items of ATA Permitted O&M Expenses and the general identified categories above (such as Repair & Maintenance and etc.) will be as per the identified categories in the Budget from time to time. |
C. | Miscellaneous components that do not follow the allocation methodologies. |
• | Adjusted Terminal Management Fee. |
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A. | Fixed |
• | Ground Rental: shall be allocated between the Terminal Cost Center and the Airfield Cost Center based on the relative share of the total acreage of the Terminal 4 Site under the Terminal Cost Center and under the Airfield Cost Center. After completion of the Phase I IAT Project the percentages shall be fixed on the actual acreage. For purposes of this Agreement, the parties estimate that the Terminal Cost Center will occupy approximately 26 acres and the Airfield Cost Center will occupy approximately 138 acres, resulting in a preliminary Ground Rental allocation as follows: |
Airfield Cost Center: | 84.0 | % | ||
Terminal Cost Center: | 16.0 | % |
• | The Capital Charge, Additional Capital Charge, First Additional Land Rental Charge, and Lessee Terminal Management Funds shall be allocated between the Terminal Cost Center and the Airfield Cost Center in accordance with the following fixed percentages, which are based on the relative percentage of actual construction costs incurred by IAT for the completion of Original Terminal 4: |
Airfield Cost Center: | 14.8 | % | ||
Terminal Cost Center: | 85.2 | % |
• | Series 8 Bonds Debt Service and Series 8 First Additional Land Rental shall be allocated between the Terminal Cost Center and the Airfield Cost Center based on the actual costs of construction of the Phase I IAT Project funded with the Series 8 Bonds. The percentages shall be fixed after Phase I DBO and final closeout of the Phase I IAT Project based on the actual costs of construction of the Phase I IAT Project funded with Series 8 Bonds. As of the date of this Agreement, the percentages are estimated to be as follows: |
Airfield Cost Center: | 9.0 | % | ||
Terminal Cost Center: | 91.0 | % |
B. | Variable |
• | ATA Direct O&M Expenses shall be allocated between the Airfield Cost Center and the Terminal Cost Center based on actual expenditures except for Reserves and Utilities (for example, the types of expenses that would typically be allocable to the Airfield Cost Center would include, among other items, ramp repair, ramp striping, ramp security, snow removal, fod removal, and other expenses of a similar nature customarily allocated to operation and maintenance of an airport ramp position). As of the date of this Agreement, the percentages are estimated to be as follows: |
Airfield Cost Center: | 10.0 | % | ||
Terminal Cost Center: | 90.0 | % |
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• | The Utilities component of the ATA Direct O&M Expenses shall be allocated between the Airfield Cost Center and the Terminal Cost Center based on the following fixed percentages: |
Airfield Cost Center: | 3.0 | % | ||
Terminal Cost Center: | 97.0 | % |
• | ATA Indirect O&M Expenses shall be allocated between the Airfield Cost Center and the Terminal Cost Center in the same aggregate proportion as all ATA Direct O&M Expenses (including Utilities) are allocated to the Airfield Cost Center and the Terminal Cost Center. |
• | “Original Gate Parking Positions” means the Original Gate Parking Positions adjacent to the 16 Gates in the Original Terminal 4. | |
• | “Expansion Gate Parking Positions” means the 9 expansion gate Aircraft Parking Positions to be constructed pursuant to the Phase I Concourse B Expansion. | |
• | Remote Aircraft Parking Positions with Fuel Pits. | |
• | Remote Aircraft Parking Positions — Group V. | |
• | Remote Aircraft Parking Positions — Group IV. |
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Allocation of Airfield Costs to Terminal 4 Aircraft Parking Positions
3 | ||||||||||||||||
Allocation | 4 | |||||||||||||||
Column | 1 | Percentage Costs | Total Allocation | |||||||||||||
Airfield Sub-Cost | Current Number of | 2 | per Parking | Percentage by | ||||||||||||
Center | Parking Positions | Weighting Factor | Position | Sub-Cost Center | ||||||||||||
Original Gate Parking Positions | 16 | 100.00 | % | 2.9412 | % | 47.0588 | % | |||||||||
Expansion Gate Parking Positions | 9 | 100.00 | % | 2.9412 | % | 26.4706 | % | |||||||||
Remote Aircraft Parking Positions — With Fuel | 3 | 70.00 | % | 2.0588 | % | 6.1765 | % | |||||||||
Remote Aircraft Parking Positions — Group V | 9 | 60.00 | % | 1.7647 | % | 15.8824 | % | |||||||||
Remote Aircraft Parking Positions — Group IV | 3 | 50.00 | % | 1.4706 | % | 4.4118 | % | |||||||||
Total | 40 | 100.0000 | % |
Allocation of Airfield Cost to Original Terminal 4 Gates
3 | ||||||||||||||||
Allocation | 4 | |||||||||||||||
Column | 1 | Percentage Costs | Total Allocation | |||||||||||||
Airfield Sub-Cost | Current Number of | 2 | per Parking | Percentage by | ||||||||||||
Center | Parking Positions | Weighting Factor | Position | Sub-Cost Center | ||||||||||||
Original Gate Parking Positions | 16 | 100.00 | % | 4.0000 | % | 64.0000 | % | |||||||||
Remote Aircraft Parking Positions — With Fuel | 3 | 70.00 | % | 2.8000 | % | 8.4000 | % |
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3 | ||||||||||||||||
Allocation | 4 | |||||||||||||||
Column | 1 | Percentage Costs | Total Allocation | |||||||||||||
Airfield Sub-Cost | Current Number of | 2 | per Parking | Percentage by | ||||||||||||
Center | Parking Positions | Weighting Factor | Position | Sub-Cost Center | ||||||||||||
Remote Aircraft Parking Positions — Group V | 9 | 60.00 | % | 2.4000 | % | 21.6000 | % | |||||||||
Remote Aircraft Parking Positions — Group IV | 3 | 50.00 | % | 2.0000 | % | 6.0000 | % | |||||||||
Total | 31 | 100.0000 | % |
1. | Ground Rental, ATA Direct O&M Expenses, and ATA Indirect O&M Expenses shall be allocated to the Airfield Sub-Cost Centers in Table C in accordance with the allocation percentages in column 4 of Table A. | |
2. | The Capital Charge, Additional Capital Charge, First Additional Land Rental Charge and Lessee Terminal Management Funds shall be allocated to all of the Airfield Sub-Cost Centers in Table C, except for the Expansion Gate Parking Positions, in accordance with the allocation percentages in column 4 of Table B. | |
3. | The Series 8 Bonds Debt Service and the Series 8 First Additional Land Rental shall be allocated to the Expansion Gate Parking Positions only, as shown in Table C, and shall be divided equally by the number of Expansion Gate Parking Positions (9), all of which have a 100.0% weighting factor. | |
4. | Notwithstanding anything to the contrary contained in this Section III.B.4, all costs and expenses that IAT is permitted to fund from its Capital Improvements Reserve Fund or its Major Maintenance and Renewal Fund (whether or not paid from such funds) related to the repair, rehabilitation or replacement of pavement and any sub-base (if required), to the applicable Port Authority specifications and standards for “replacement” thereof, in the areas shown on Annex 7-3-1 as “Pavement Rehabilitation Area” (both green area and gray diagonal hatched area), “New Asphalt Pavement”, “New Concrete Pavement” and “Rehabilitated Pavement”, in each case to the extent the same is on the Terminal 4 Site and has not been completed in connection with the Phase I IAT Project (collectively, the “Specified Paving Areas”), including all costs and expenses to Remediate and all costs and expenses that may be required to satisfy Environmental Requirements to excavate, store, dispose, treat or transport any items or materials, including soil and water, containing Hazardous Substances incurred in connection with such repair, rehabilitation or replacement of such pavement and sub-base, to the same extent as would have been required by Delta if such repair, rehabilitation or replacement of such pavement and sub-base were performed and such costs and expenses were incurred as part of the Phase I IAT Project, and regardless of whether IAT is permitted to fund any such costs and expenses to Remediate or to satisfy such Environmental Requirements from its Capital Improvements Reserve Fund or its Major Maintenance and Renewal Fund, shall be allocated to the Expansion Gate Parking Positions Airfield Sub-Cost Center only. Once any such repair, rehabilitation or replacement of all or any portion of the Specified Paving Areas has been performed to the applicable Port Authority specifications and standards for “replacement” thereof, and all related costs and expenses have been paid for by Delta in accordance with the special allocation described in this Section III.B.4, the special allocation described in this Section III.B.4 with |
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respect to the applicable “replaced” portion of the Specified Paving Areas shall be of no further application to subsequent costs and expenses of repair, rehabilitation or replacement thereof. | ||
5. | The costs calculated pursuant to the allocations in Sections III.B.1-4 above shall be summed by Airfield Sub-Cost Center, and divided by the number of Aircraft Parking Positions in each Sub-Cost Center, to determine the Rental Rate Per Aircraft Parking Position as illustrated in Table C below: |
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Airfield Sub-Cost Cost Requirement and Cost Per Aircraft Parking Position
3 | 4 | 5 | ||||||||||||||||||||||
1 | 2 | Remote Aircraft | Remote Aircraft | Remote Aircraft | ||||||||||||||||||||
Original Gate | Expansion Gate | Parking Positions | Parking Positions - | Parking Positions - | 6 | |||||||||||||||||||
Column | Parking Positions | Parking Positions | with Fuel Pits | Group V | Group IV | Total | ||||||||||||||||||
Ground Rental | $ | 8,161,242 | $ | 4,590,699 | $ | 1,071,163 | $ | 2,754,419 | $ | 765,116 | $ | 17,342,640 | ||||||||||||
Capital Charge | $ | 8,089,088 | $ | — | $ | 1,061,693 | $ | 2,730,067 | $ | 758,352 | $ | 12,639,200 | ||||||||||||
Additional Capital Charge | $ | 202,227 | $ | — | $ | 26,542 | $ | 68,252 | $ | 18,959 | $ | 315,980 | ||||||||||||
Lessee Terminal Management Funds | $ | 331,520 | $ | — | $ | 43,512 | $ | 111,888 | $ | 31,080 | $ | 518,000 | ||||||||||||
Series 6 First Additional Land Rental | $ | 260,480 | $ | — | $ | 34,188 | $ | 87,912 | $ | 24,420 | $ | 407,000 | ||||||||||||
ATA Direct O&M Expenses | $ | 2,235,962 | $ | 1,257,729 | $ | 293,470 | $ | 754,637 | $ | 209,621 | $ | 4,751,420 | ||||||||||||
ATA Indirect O&M Expenses | $ | 931,284 | $ | 523,847 | $ | 122,231 | $ | 314,308 | $ | 87,308 | $ | 1,978,979 | ||||||||||||
Debt Service on Series 8 Bonds | $ | — | $ | 6,579,000 | $ | — | $ | — | $ | — | $ | 6,579,000 | ||||||||||||
Series 8 First Additional Land Rental | $ | — | $ | 98,685 | $ | — | $ | — | $ | — | $ | 98,685 | ||||||||||||
Total Sub-CostCenter Requirement | $ | 20,211,804 | $ | 13,049,960 | $ | 2,652,799 | $ | 6,821,484 | $ | 1,894,857 | $ | 44,630,904 | ||||||||||||
Cost/Position | $ | 1,263,238 | $ | 1,449,996 | $ | 884,266 | $ | 757,943 | $ | 631,619 |
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• | “Original Headhouse” means that portion of the Headhouse existing prior to the Phase I Head House Improvements. | ||
• | Phase I Headhouse Improvements. | ||
• | Concourse A. | ||
• | “Original Concourse B” means that portion of Concourse B in existence prior to the Phase I Concourse B Expansion, excluding the Concourse B Bus Gate. | ||
• | “Concourse B Bus Gate” means the Concourse B Bus Gate. | ||
• | Phase I Concourse B Expansion. |
Ground Rent Allocation to Terminal Sub-Cost Centers
Column | 1 | 2 | ||||||
Terminal Sub-Cost Center | Acreage | Percentage/ Allocation | ||||||
Original Headhouse | 8.04 | 50.5660 | % | |||||
Phase I Headhouse Improvements | 1.28 | 8.0503 | % | |||||
Concourse A | 1.30 | 8.1761 | % | |||||
Original Concourse B | 2.72 | 17.1069 | % | |||||
Concourse B Bus Gate | 0.11 | 0.6918 | % | |||||
Phase I Concourse B Expansion | 2.45 | 15.4088 | % | |||||
Total | 15.90 | 100.0000 | % |
-10-
Original Terminal 4 Sub-Cost Centers Allocation Percentages
Terminal Sub-Cost Center | Allocation | |||
Original Headhouse | 81.1033 | % | ||
Concourse A | 6.8075 | % | ||
Original Concourse B | 11.6197 | % | ||
Concourse B Bus Gate | 0.4695 | % | ||
Total | 100.0000 | % |
Phase I Concourse B Expansion: 65.1685%
-11-
-12-
Calculation of total cost per square foot of Usable Area for each Terminal Sub-Cost Center
Phase I | Phase I | |||||||||||||||||||||||||||
Headhouse | Original | Concourse B | Concourse B | Total (for | ||||||||||||||||||||||||
Allocated Costs | Original Headhouse | Improvements | Concourse A | Concourse B | Bus Gate | Expansion | verification) | |||||||||||||||||||||
Ground Rental | $ | 1,670,378 | $ | 265,931 | $ | 270,086 | $ | 565,103 | $ | 22,853 | $ | 509,008 | $ | 3,303,360 | ||||||||||||||
Capital Charge | $ | 59,011,400 | $ | — | $ | 4,953,200 | $ | 8,454,600 | $ | 341,600 | $ | — | $ | 72,760,800 | ||||||||||||||
Additional Capital Charge | $ | 1,475,285 | $ | — | $ | 123,830 | $ | 211,365 | $ | 8,540 | $ | — | $ | 1,819,020 | ||||||||||||||
Lessee Terminal Management Funds | $ | 2,418,500 | $ | — | $ | 203,000 | $ | 346,500 | $ | 14,000 | $ | — | $ | 2,982,000 | ||||||||||||||
Series 6 First Additional Land Rental | $ | 1,900,250 | $ | — | $ | 159,500 | $ | 272,250 | $ | 11,000 | $ | — | $ | 2,343,000 | ||||||||||||||
Debt Service on Series 8 Bonds | $ | — | $ | 23,170,262 | $ | — | $ | — | $ | — | $ | 43,350,738 | $ | 66,521,000 | ||||||||||||||
Series 8 First Additional Land Rental | $ | — | $ | 347,554 | $ | — | $ | — | $ | — | $ | 650,261 | $ | 997,815 | ||||||||||||||
ATA Direct O&M Expenses | $ | 24,924,382 | $ | 3,229,209 | $ | 6,849,852 | $ | 11,038,703 | $ | 231,893 | $ | 10,419,542 | $ | 56,693,580 | ||||||||||||||
ATA Indirect O&M Expenses | $ | 10,381,069 | $ | 1,344,974 | $ | 2,852,981 | $ | 4,597,648 | $ | 96,584 | $ | 4,339,766 | $ | 23,613,021 | ||||||||||||||
Total Sub-Cost Center Requirement | $ | 101,781,264 | $ | 28,357,930 | $ | 15,412,448 | $ | 25,486,169 | $ | 726,471 | $ | 59,269,315 | $ | 231,033,596 | ||||||||||||||
-13-
Phase I | Phase I | |||||||||||||||||||||||||||
Headhouse | Original | Concourse B | Concourse B | Total (for | ||||||||||||||||||||||||
Allocated Costs | Original Headhouse | Improvements | Concourse A | Concourse B | Bus Gate | Expansion | verification) | |||||||||||||||||||||
(Divided by) Usable Area1 | 434,365 | 57,470 | 167,046 | 259,627 | 7,737 | 245,087 | ||||||||||||||||||||||
Cost Per ft2 of Usable Area | $ | 234.32 | $ | 493.44 | $ | 92.26 | $ | 98.16 | $ | 93.90 | $ | 241.83 | N/A | |||||||||||||||
Series 8 & FALR Cost Per ft2 of Usable Area | N/A | N/A | N/A | N/A | N/A | $ | 179.53 | N/A | ||||||||||||||||||||
ATA Permitted O&M Expenses Per ft2 of Usable Area | N/A | N/A | N/A | N/A | N/A | $ | 62.30 | N/A |
1 | Square footage is based on drawings attached asAnnex 7-3. |
-14-
Square footage of Usable Area by Functional Areas within the Terminal Sub-Cost Centers
(Each Functional Area is defined below based on the respective areas identified as such onAnnex 7-3, page 16)
Column | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |||||||||||||||||||||
Phase I | Phase I | Total Usable Square | ||||||||||||||||||||||||||
Original | Headhouse | Original | Concourse B | Concourse B | Footage by | |||||||||||||||||||||||
Functional Area | Headhouse | Improvements | Concourse A | Concourse B | Bus Gate | Expansion | Functional Area | |||||||||||||||||||||
“Delta Space — Exclusive/Preferential” | 17,857 | 1,690 | — | 123,715 | — | 192,843 | 336,105 | |||||||||||||||||||||
“IAT Space — Exclusive/Preferential” | 144,933 | 505 | 153,952 | 85,467 | 7,737 | 20,196 | 412,790 | |||||||||||||||||||||
“Customs/FIS Space (Headhouse)” | 207,808 | 11,095 | — | — | — | — | 218,903 | |||||||||||||||||||||
“Customs/Sterile Area (Concourse)” | — | — | 13,094 | 50,445 | — | 32,048 | 95,587 | |||||||||||||||||||||
“Domestic Baggage Claim Space” | 1,296 | 26,929 | — | — | — | — | 28,225 | |||||||||||||||||||||
“Baggage Recheck Space” | 6,324 | — | — | — | — | — | 6,324 | |||||||||||||||||||||
“Checked Baggage Screening Space” | 56,147 | 17,251 | — | — | — | — | 73,398 | |||||||||||||||||||||
Total Usable Area | 434,365 | 57,470 | 167,046 | 259,627 | 7,737 | 245,087 | 1,171,332 | |||||||||||||||||||||
-15-
Calculation of Functional Area Requirements by Terminal Sub-Cost Centers
Column | 1 | 2 | 3 | 4 | 5 | 6 | 7 | |||||||||||||||||||||
Total | ||||||||||||||||||||||||||||
Phase I | Phase I | Functional | ||||||||||||||||||||||||||
Original | Headhouse | Original | Concourse B | Concourse B | Area | |||||||||||||||||||||||
Functional Area | Headhouse | Improvements | Concourse A | Concourse B | Bus Gate | Expansion | Requirement | |||||||||||||||||||||
Delta Space — Exclusive/Preferential | $ | 4,184,287 | $ | 833,912 | $ | — | $ | 12,144,428 | $ | — | $ | 47,893,325 | $ | 65,055,952 | ||||||||||||||
IAT Space — Exclusive/Preferential | $ | 33,960,987 | $ | 249,187 | $ | 14,204,334 | $ | 8,389,830 | $ | 726,471 | $ | 3,625,832 | $ | 61,156,640 | ||||||||||||||
Customs/FIS Space (Headhouse) | $ | 48,693,981 | $ | 5,474,704 | $ | — | $ | — | $ | — | $ | — | $ | 54,168,685 | ||||||||||||||
Customs/Sterile Area (Concourse) | $ | — | $ | — | $ | 1,208,114 | $ | 4,951,911 | $ | — | $ | 7,750,158 | $ | 13,910,183 | ||||||||||||||
Domestic Baggage Claim Space Capital | $ | 186,142 | $ | 11,019,859 | $ | — | $ | — | $ | — | $ | — | $ | 11,206,000 | ||||||||||||||
Domestic Baggage Claim Space O&M | $ | 117,540 | $ | 2,267,956 | $ | — | $ | — | $ | — | $ | — | $ | 2,385,495 | ||||||||||||||
Baggage Recheck Space | $ | 1,481,852 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,481,852 | ||||||||||||||
Checked Baggage Screening Space | $ | 13,156,476 | $ | 8,512,313 | $ | — | $ | — | $ | — | $ | — | $ | 21,668,789 | ||||||||||||||
Total Terminal Sub-Cost Center Requirement: | $ | 101,781,264 | $ | 28,357,930 | $ | 15,412,448 | $ | 25,486,169 | $ | 726,471 | $ | 59,269,315 | $ | 231,033,596 | ||||||||||||||
-16-
Delta Share of Terminal Functional Area Requirement for each Terminal Functional Area
Allocation | Estimated Delta | |||||
Functional Area | Methodology | Allocation | ||||
Delta Space — Exclusive/ Preferential | Actual Square Feet | Actual Square Feet | ||||
Customs/FIS Space (Headhouse) | International Arriving Passengers in FIS Facility | 55.0 | % | |||
Customs/Sterile Area (Original Concourse B) | Usable Area of Occupied Gates/Usable Area of All Gates | 67.5 | % | |||
Customs/Sterile Area (Concourse B Expansion) | Usable Area of Occupied Gates/Usable Area of All Gates | 100.0 | % | |||
Customs/Sterile Area (Concourse A) | Usable Area of Occupied Gates/Usable Area of All Gates | 0.0 | % | |||
Domestic Baggage Claim Space Capital — Original Headhouse | Actual number of bags | 95.0 | % | |||
Domestic Baggage Claim Space Capital — Expansion Headhouse | Delta | 100.0 | % | |||
Domestic Baggage Claim Space O&M | Actual number of bags | 95.0 | % | |||
Baggage Recheck Space | Actual number of bags | 95.0 | % | |||
Checked Baggage Screening Space | Actual number of bags | 62.0 | % |
-17-
• | a portion of the total costs allocated to the Customs/Sterile Area (Concourse) located in the Phase I Concourse B Expansion which shall be calculated based upon the ratio of the square footage of the Usable Area of the Delta Gates located in the Phase I Concourse B Expansion to the total square footage of the Usable Area of all Gates located in the Phase I Concourse B Expansion; plus | ||
• | a portion of the total costs allocated to the Customs/Sterile Area (Concourse) located in Original Concourse B which shall be calculated based upon the ratio of the square footage of the Usable Area of the Delta Gates located in Original Concourse B to the total square footage of the Usable Area of all Gates located in Original Concourse B; plus | ||
• | a portion of the total costs allocated to the Customs/Sterile Area (Concourse) located in Concourse A which shall be calculated based upon the ratio of the square footage of the Usable Area of the Delta Gates located in Concourse A (if any) to the total square footage of the Usable Area of all Gates located on Concourse A. |
• | Capital costs of the Original Terminal 4 Area to the Domestic Baggage Claim Space shall be allocated to Delta based on the ratio of bags through the system, as shown in Table I. | ||
• | Capital costs of the Terminal 4 Expansion Area to the Domestic Baggage Claim Space shall be allocated 100% to Delta, as shown in Table I. | ||
• | ATA Permitted O&M Expenses allocated to the Domestic Baggage Claim Space shall be allocated to Delta based on the ratio of bags through the system, as shown in Table I. |
-18-
• | Adjusted Terminal Management Fee (100% allocated to Delta without regard to space occupied by Delta at Terminal 4) shall be payable in equal monthly payments based on the applicable Semi-Annual Period for which it is due. | ||
• | Delta shall receive a credit against Post-DBO Rent on account of all common area maintenance, expenses and utility charges reimbursable by the Concession Sublessees located in the Phase I Concourse B Expansion. | ||
• | Post-DBO Rent shall be adjusted up or down, as applicable, on account of applicable Delta Gate Use Fees and Terminal 4 Hardstand Use Fees to be credited to, or paid by, Delta, as applicable. | ||
• | Delta shall receive a credit against Post-DBO Rent on account of all amounts previously paid by Delta which are reimbursed to IAT by any ATA Airline Sublessee. | ||
• | Delta’s Share of ATA Permitted Remediation Costs shall be included as Additional Rent in accordance with the terms of Section 7.05. | ||
• | In calculating Post-DBO Rent, any components of debt service (or payments in-lieu of debt service) used in calculating Post-DBO Rent attributable to any Terminal 4 Project Bonds shall be excluded where the costs of redemption have been paid or reimbursed by Delta directly or indirectly (recognizing that Delta has no obligation to pay or reimburse such amounts). | ||
• | From and after the completion of the 2026 Condition Survey report, and implementation of the Approved 2026 Capital Repairs Financing, Delta will receive a semi-annual credit in the amount equal to fifty percent (50%) of Additional Re-lifing Rental for such Semi-Annual Period, but not in excess of seventy-five percent (75%) of the Capital Charge paid during that Semi-Annual Period. | ||
• | Delta’s Share of the Concourse B Bus Gate Terminal Sub-Cost Center shall be allocated based on Delta’s proportionate share of the total number of Delta Passengers using the Concourse B Bus Gate as compared to the total number of passengers at Terminal 4 using the Concourse B Bus Gate. | ||
• | If curbside space is allocated exclusively or preferentially for Delta’s use, such curbside space shall be allocated as Usable Area. | ||
• | The use of the loading dock by Delta shall only be included in the calculation of Delta Rent to the extent Delta’s use thereof is greater than de minimis use. |
-19-
Total Delta Post-DBO Rent
Cost Center/Sub-Cost Center | Delta Allocated Share | |||
Airfield | $ | 25,429,690 | ||
Original Headhouse | $ | 40,819,249 | ||
Expansion Headhouse | $ | 22,297,049 | ||
Concourse A | $ | — | ||
Original Concourse B | $ | 15,485,540 | ||
Concourse B Bus Gate | $ | — | ||
Concourse B Expansion | $ | 55,643,484 | ||
Total Delta Post-DBO Rent | $ | 159,675,012 |
-20-
Delta Share of Original Terminal 4 Airfield Costs
Delta Occupied | ||||||||||||||||
Cost Per Aircraft | Aircraft | Delta | ||||||||||||||
Airfield Sub-Cost | Requirements | Parking Position | Parking | Allocable | ||||||||||||
Centers | (From Table C) | (From Table C) | Positions | Rent | ||||||||||||
Original Gate Parking Positions | $ | 20,211,804 | $ | 1,263,238 | 7 | $ | 8,842,664 | |||||||||
Expansion Gate Parking Positions (Ground Rental and ATA Permitted O&M only) | $ | 6,372,275 | $ | 708,031 | 9 | $ | 6,372,275 | |||||||||
Remote Aircraft Parking Positions with Fuel | $ | 2,652,799 | $ | 884,266 | — | $ | — | |||||||||
Remote Aircraft Parking Positions Group V | $ | 6,821,484 | $ | 757,943 | 3 | $ | 2,273,828 | |||||||||
Remote Aircraft Parking Positions Group IV | $ | 1,894,857 | $ | 631,619 | 2 | $ | 1,263,238 | |||||||||
Total Airfield Costs | $ | 37,953,219 | 21 | $ | 18,752,005 |
-21-
Delta Share of Original Headhouse Sub-Cost Center Requirement
Sub-Cost Center | ||||||||||||
Requirement | ||||||||||||
Functional Area | From Table H | Delta Share | Delta Rent | |||||||||
Delta Space - Exclusive/Preferential | $ | 38,145,274 | Actual Square Footage | $ | 4,184,287 | |||||||
Customs/FIS Space (Headhouse) | $ | 48,693,981 | 55.0 | % | $ | 26,781,689 | ||||||
Customs/Sterile Area (Concourse) | $ | 0 | Concourse A: 0.0% Concourse B: 67.5% | $ | 0 | |||||||
Domestic Baggage Claim Space | $ | 303,681 | 95.0 | % | $ | 288,497 | ||||||
Baggage Recheck Space | $ | 1,481,852 | 95.0 | % | $ | 1,407,760 | ||||||
Checked Baggage Screening Space | $ | 13,156,476 | 62.0 | % | $ | 8,157,015 | ||||||
Total Original Headhouse | $ | 101,781,264 | $ | 40,819,249 |
-22-
Delta Share of Concourse A Sub-Cost Center Requirement
Sub-Cost Center | ||||||||||||
Requirement | ||||||||||||
Functional Area | From Table H | Delta Share | Delta Rent | |||||||||
Exclusive/Preferential | $ | 14,204,334 | Actual Square Footage | $ | 0 | |||||||
Customs/FIS Space (Headhouse) | $ | 0 | 55.0 | % | $ | 0 | ||||||
Customs/Sterile Area (Concourse) | A: $1,208,114 B: $0 | Concourse A: 0.0% Concourse B: 67.5% | $ | 0 | ||||||||
Domestic Baggage Claim Space | $ | 0 | 95.0 | % | $ | 0 | ||||||
Baggage Recheck Space | $ | 0 | 95.0 | % | $ | 0 | ||||||
Checked Baggage Screening Space | $ | 0 | 62.0 | % | $ | 0 | ||||||
Total Concourse A | $ | 15,412,448 | $ | 0 |
Delta Share of Original Concourse B Sub-Cost Center Requirement
Sub-Cost Center | ||||||||||||
Requirement | ||||||||||||
Functional Area | From Table H | Delta Share | Delta Rent | |||||||||
Exclusive/Preferential | $ | 20,534,258 | Actual Square Footage | $ | 12,144,428 | |||||||
Customs/FIS Space (Headhouse) | $ | 0 | 55.0 | % | $ | 0 | ||||||
Customs/Sterile Area (Concourse) | A: $0 B: $4,951,911 | Concourse A: 0.0% Concourse B: 67.5% | $ | 3,341,113 | ||||||||
Domestic Baggage Claim Space | $ | 0 | 95.0 | % | $ | 0 | ||||||
Baggage Recheck Space | $ | 0 | 95.0 | % | $ | 0 | ||||||
Checked Baggage Screening Space | $ | 0 | 62.0 | % | $ | 0 | ||||||
Total Original Concourse B | $ | 25,486,169 | $ | 15,485,540 |
-23-
Delta Share of Concourse B Bus Gate Sub-Cost Center Requirement
Sub-Cost Center | ||||||||||||
Requirement | ||||||||||||
Functional Area | From Table H | Delta Share | Delta Rent | |||||||||
Exclusive/Preferential | $ | 726,471 | Actual Square Footage | $ | 0 | |||||||
Customs/FIS Space (Headhouse) | $ | 0 | 55.0 | % | $ | 0 | ||||||
Customs/Sterile Area (Concourse) | $ | 0 | Concourse A: 0.0% Concourse B: 67.5% | $ | 0 | |||||||
Domestic Baggage Claim Space | $ | 0 | 95.0 | % | $ | 0 | ||||||
Baggage Recheck Space | $ | 0 | 95.0 | % | $ | 0 | ||||||
Checked Baggage Screening Space | $ | 0 | 62.0 | % | $ | 0 | ||||||
Total Concourse B Bus Gate | $ | 726,471 | $ | 0 |
Calculation of Delta’s Share of Original Terminal 4 Requirements
Cost Center/ | Total | Delta Rent as % of | ||||||||||
Functional Area | Requirement | Delta Rent | Total Requirement | |||||||||
Airfield Cost Center (Table I-1) | $ | 37,953,219 | $ | 18,752,005 | 49.4082 | % | ||||||
Original Headhouse (Table I-3) | $ | 101,781,264 | $ | 40,819,249 | 40.1049 | % | ||||||
Concourse A (Table I-4) | $ | 15,412,448 | $ | 0 | 0.0000 | % | ||||||
Concourse B (Table I-5) | $ | 25,486,169 | $ | 15,485,540 | 60.7606 | % | ||||||
Bus Gate (Table I-6) | $ | 726,471 | $ | 0 | 0.0000 | % | ||||||
Totals | $ | 181,359,570 | $ | 75,056,794 | 41.3856 | % | ||||||
(“Original Terminal | (“Delta Original | |||||||||||
4 Requirement”) | Terminal 4 Rent | |||||||||||
Percentage”) |
-24-
Number of Delta Gates located | Delta’s Share of Original | |
in Original Terminal 4 | Terminal 4 Requirement | |
7 | 40.0% | |
8 | 46.7% | |
9 | 53.3% | |
10 | 60.0% | |
11 | 66.7% | |
12 | 73.3% | |
13 | 80.0% | |
14 | 86.7% | |
15 | 93.3% | |
16 | 100.0% |
-25-
I. | Calculation of “Terminal 4 Gate Use Fee”: | |
A. | Determine the Terminal 4 Gate Use Fee as follows: |
Concourse B | Phase I Concourse B | |||||||||||||||||||
Concourse A | Original Concourse B | Bus Gate | Expansion | Total | ||||||||||||||||
Cost Per Square Foot of Usable Area (Table F) | $ | 92.26 | $ | 98.16 | $ | 93.90 | $ | 241.83 | ||||||||||||
Gate Holdroom Sqft. | 39,110 | 67,609 | 3,377 | 62,445 | 172,541 | |||||||||||||||
Total Holdroom Costs | $ | 3,608,472 | $ | 6,636,807 | $ | 317,086 | $ | 15,101,062 | $ | 25,663,427 | ||||||||||
Gate Requirement (Table C) | Included | 20,211,804 | Included | 13,049,960 | $ | 33,261,764 | ||||||||||||||
Total Holdroom and Gate Costs | $ | 58,925,191 | ||||||||||||||||||
Total Terminal 4 Gates | 25 | |||||||||||||||||||
Average Annual Cost/Gate | $ | 2,357,008 |
1
Concourse B | Phase I Concourse B | |||||||||||||||||||
Concourse A | Original Concourse B | Bus Gate | Expansion | Total | ||||||||||||||||
Daily Gate Cost Allocation (360 days) | $ | 6,547 | ||||||||||||||||||
Average Turn Number | 5 | |||||||||||||||||||
Terminal 4 Gate Use Fee | $ | 1,309 |
II. | Calculation of “Terminal 4 Hardstand Use Fee”: |
Remote Aircraft Parking Positions w/ Fuel Pits | $ | 2,652,799 | ||
Remote Aircraft Parking Positions Group V | $ | 6,821,484 | ||
Remote Aircraft Parking Positions Group IV | $ | 1,894,857 | ||
Total Hardstand Parking Positions Requirements | $ | 11,369,140 | ||
Terminal 4 Aircraft Parking Positions | 15 | |||
Daily Cost Per Hardstand Position | $ | 2,105.40 | ||
Hourly Hardstand Cost Allocation | $ | 87.72 |
2
3
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- 4 -
AIRPORT RULES AND REGULATIONS
1. | JFK INTERNATIONAL AIR TERMINAL, LLC TERMINAL 4 — AIRSIDE OPERATIONS GUIDE |
2. | JFK INTERNATIONAL AIR TERMINAL, LLC TERMINAL 4 OPERATIONS MANUAL Effective as of April 2006 | |
Including: | ||
Attachment 1: Solicitation Attachment 2: Quality and Customer Service Standards — Food and Beverage Attachment 3: Quality and Customer Service Standards — Shops and Services Attachment 4: Terminal and Landside Technical Instructions Attachment 5: Airside Technical Instructions Attachment 6: Safety and Security Policy and Procedures |
Ground Rental | Note | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||||||||
Terminal 3 Acres | 48.3497 | 48.3497 | 48.3497 | 48.3497 | 48.3497 | 48.3497 | 48.3497 | |||||||||||||||||||||||||
Terminal 3 Ground Rental/Acre (AYC-325) 1/ | 1/ | 108,844 | 113,198 | 117,726 | 122,435 | 127,333 | N/A | |||||||||||||||||||||||||
Terminal 3 Ground Rental/Acre (Permit) | N/A | N/A | N/A | N/A | N/A | 148,304 | ||||||||||||||||||||||||||
Terminal 3 Deferred Ground Rent | 2/ | 10,878,840 | 3,508,398 | 5,473,101 | 1,897,342 | — | — | — | ||||||||||||||||||||||||
Terminal 3 Ground Rent | — | — | 3,794,683 | 5,919,706 | 6,156,494 | 7,170,454 | ||||||||||||||||||||||||||
Terminal 3 Deferred Ground Rent Amortized | 3/ | 6.50 | % | — | — | 1,533,433 | 2,300,150 | 2,300,150 | 2,300,150 | |||||||||||||||||||||||
Total Terminal 3 Ground Rent & Deferred Ground Rent | — | — | 5,328,117 | 8,219,856 | 8,456,644 | 9,470,604 | ||||||||||||||||||||||||||
Capital Investment | 1,000,000 | |||||||||||||||||||||||||||||||
Terminal 3 Capital Charge | 4/ | 133,225 | — | 88,816 | 133,225 | 133,225 | 133,225 | |||||||||||||||||||||||||
Terminal 3 Additional Rental | 5/ | — | — | — | — | — | ||||||||||||||||||||||||||
Operation & Maintenance Expenses | 6/ | T4 - 2010 Budget | ||||||||||||||||||||||||||||||
Direct O&M Expenses | ||||||||||||||||||||||||||||||||
Marking & Line Painting | 70,332 | 15,464 | 23,892 | 24,609 | 25,347 | |||||||||||||||||||||||||||
Ramp Scrubbing | 22,012 | 4,840 | 7,477 | 7,702 | 7,933 | |||||||||||||||||||||||||||
Ramp Sweeping | 45,099 | 9,916 | 15,320 | 15,780 | 16,253 | |||||||||||||||||||||||||||
Maintenance | 500,000 | 109,935 | 169,850 | 174,946 | 180,194 | |||||||||||||||||||||||||||
Snow Removal | 1,371,687 | 301,594 | 465,963 | 479,941 | 494,340 | |||||||||||||||||||||||||||
Incineration/Trash Removal | 320,543 | 70,478 | 108,889 | 112,155 | 115,520 | |||||||||||||||||||||||||||
FOD Program | 232,661 | 51,155 | 79,035 | 81,406 | 83,848 | |||||||||||||||||||||||||||
Utilities | 596,337 | 131,117 | 202,576 | 208,653 | 214,913 | |||||||||||||||||||||||||||
Total Direct O&M | 3,158,671 | 694,499 | 1,073,002 | 1,105,192 | 1,138,347 | |||||||||||||||||||||||||||
Indirect O&M Expenses | ||||||||||||||||||||||||||||||||
Personnel (10% of Direct O&M) | 69,450 | 107,300 | 110,519 | 113,835 | ||||||||||||||||||||||||||||
G&A Costs (5% of Direct O&M and Personnel) | 38,197 | 59,015 | 60,786 | 62,609 | ||||||||||||||||||||||||||||
Total Direct and Indirect O&M | 802,147 | 1,239,317 | 1,276,496 | 1,314,791 | ||||||||||||||||||||||||||||
Total Terminal 3 Hardstand Expenses | 6,219,080 | 9,592,397 | 9,866,365 | 10,918,620 | ||||||||||||||||||||||||||||
Terminal 3 Hardstand Positions | 16 | 16 | 16 | 16 | ||||||||||||||||||||||||||||
Terminal 3 Annual Cost Per Position | 7/ | 388,692 | 599,525 | 616,648 | 682,414 | |||||||||||||||||||||||||||
Terminal 3 Hardstand Daily Use Fee Per Position | 1,619.55 | 1,665.35 | 1,712.91 | 1,895.59 | ||||||||||||||||||||||||||||
Terminal 3 Hardstand Average Hours of Utilization Per Day | 24.00 | 24.00 | 24.00 | 24.00 | ||||||||||||||||||||||||||||
Terminal 3 Hardstand Hourly Use Fee Per Position | 67.48 | 69.39 | 71.37 | 78.98 |
1/ | Terminal 3 Ground Rental rate is based on current AYC-325 rate through 2017. | |
2/ | Terminal 3 Ground Rent assumed deferred from 5/1/2013 through 5/1/2015. | |
3/ | Terminal 3 Deferred Ground Rent is amortized at the long bond rate through 2020. | |
4/ | Based on Delta equity investment at Terminal 3 site amortized for 10 years at 6% (long bond rate) | |
5/ | Based on actual future investement recoverable through the Hardstand Use Fee | |
6/ | Terminal 3 Hardstand O&M Expenses are based on Terminal 4 actual ramp O&M expenses for illustration purposes only. | |
7/ | Proforma estimate only,Terminal 3 Hardstand Use Fee will be based on the above methodology and actual annual costs. |
• | Delta Corporate Real Estate Vice President | |
• | SUSA Inc. President | |
• | President |
• | President | |
• | Delta Director Corporate Real Estate |
• | Delta Vice President — Airport Customer Service JFK | |
• | IAT COO | |
• | Additional designees appointed by Management Committee |
2010 Annual Operating Budget
($000’s)
Dec-09 | Jan-10 | Feb-10 | Mar-10 | Apr-10 | May-10 | Jun-10 | Jul-10 | Aug-10 | Sep-10 | Oct-10 | Nov-10 | Total | ||||||||||||||||||||||||||||||||||||||||||||
Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Enplanement — Signatories | $ | 3,766 | $ | 3,996 | $ | 3,872 | $ | 3,418 | $ | 4,109 | $ | 4,356 | $ | 4,690 | $ | 4,756 | $ | 4,935 | $ | 5,151 | $ | 4,377 | $ | 4,361 | $ | 51,787 | ||||||||||||||||||||||||||||||
Enplanement — Contracted | 5,547 | 5,271 | 6,700 | 5,452 | 6,410 | 6,725 | 6,867 | 6,931 | 8,174 | 8,371 | 6,633 | 6,284 | 79,367 | |||||||||||||||||||||||||||||||||||||||||||
Enplanement — Arrivals Only | 107 | 112 | 94 | 75 | 75 | 82 | 88 | 75 | 88 | 82 | 75 | 94 | 1,048 | |||||||||||||||||||||||||||||||||||||||||||
Enplanement — Domestic | 348 | 472 | 366 | 338 | 414 | 489 | 531 | 575 | 627 | 627 | 314 | 321 | 5,421 | |||||||||||||||||||||||||||||||||||||||||||
Total Enplanement | 9,768 | 9,851 | 11,032 | 9,283 | 11,008 | 11,652 | 12,177 | 12,338 | 13,823 | 14,231 | 11,399 | 11,060 | 137,622 | |||||||||||||||||||||||||||||||||||||||||||
Other Airline Charges | 296 | 307 | 307 | 307 | 307 | 307 | 307 | 307 | 307 | 307 | 307 | 342 | 3,712 | |||||||||||||||||||||||||||||||||||||||||||
Handling Fees | 271 | 334 | 316 | 287 | 314 | 263 | 273 | 273 | 301 | 301 | 269 | 278 | 3,481 | |||||||||||||||||||||||||||||||||||||||||||
Counter Charges | 237 | 254 | 254 | 219 | 247 | 247 | 254 | 249 | 274 | 273 | 245 | 239 | 2,993 | |||||||||||||||||||||||||||||||||||||||||||
Base Rent Exclusive Space | 3,234 | 3,180 | 3,302 | 3,408 | 3,191 | 3,181 | 3,089 | 3,115 | 3,060 | 3,069 | 3,143 | 3,131 | 38,102 | |||||||||||||||||||||||||||||||||||||||||||
Total Airline Revenue | 13,807 | 13,926 | 15,211 | 13,505 | 15,068 | 15,650 | 16,100 | 16,282 | 17,765 | 18,181 | 15,364 | 15,049 | 185,910 | |||||||||||||||||||||||||||||||||||||||||||
Retail Revenue | 2,173 | 2,508 | 2,361 | 2,232 | 2,544 | 2,533 | 2,383 | 2,570 | 2,586 | 2,655 | 2,485 | 2,357 | 29,387 | |||||||||||||||||||||||||||||||||||||||||||
Other Income | 27 | 27 | 35 | 35 | 38 | 38 | 38 | 33 | 33 | 33 | 38 | 33 | 407 | |||||||||||||||||||||||||||||||||||||||||||
Total Income | $ | 16,007 | $ | 16,461 | $ | 17,608 | $ | 15,772 | $ | 17,649 | $ | 18,221 | $ | 18,521 | $ | 18,885 | $ | 20,384 | $ | 20,870 | $ | 17,886 | $ | 17,439 | $ | 215,704 | ||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Personnel | $ | 512 | $ | 1,303 | $ | 519 | $ | 522 | $ | 520 | $ | 602 | $ | 520 | $ | 742 | $ | 519 | $ | 518 | $ | 521 | $ | 1,180 | $ | 7,977 | ||||||||||||||||||||||||||||||
Maintenance | 826 | 859 | 931 | 902 | 1,006 | 1,111 | 1,049 | 1,009 | 914 | 1,045 | 857 | 865 | 11,374 | |||||||||||||||||||||||||||||||||||||||||||
Outsourced Labor | 1,262 | 1,259 | 1,417 | 1,275 | 985 | 1,004 | 1,011 | 1,024 | 1,024 | 996 | 990 | 1,053 | 13,300 | |||||||||||||||||||||||||||||||||||||||||||
Utilities | 674 | 761 | 754 | 622 | 717 | 564 | 455 | 709 | 1,537 | 1,896 | 2,041 | 1,199 | 11,927 | |||||||||||||||||||||||||||||||||||||||||||
General & Administrative | 256 | 530 | 510 | 520 | 507 | 923 | 569 | 432 | 527 | 419 | 507 | 282 | 5,981 | |||||||||||||||||||||||||||||||||||||||||||
Ground Rent | 1,419 | 1,475 | 1,475 | 1,475 | 1,475 | 1,475 | 1,475 | 1,475 | 1,475 | 1,475 | 1,475 | 1,475 | 17,648 | |||||||||||||||||||||||||||||||||||||||||||
Total Operating Expenses | 4,949 | 6,187 | 5,606 | 5,316 | 5,211 | 5,679 | 5,080 | 5,391 | 5,996 | 6,349 | 6,391 | 6,054 | 68,207 | |||||||||||||||||||||||||||||||||||||||||||
Net Operating Income | 11,058 | 10,274 | 12,002 | 10,456 | 12,439 | 12,542 | 13,441 | 13,494 | 14,389 | 14,521 | 11,496 | 11,385 | 147,497 | |||||||||||||||||||||||||||||||||||||||||||
Facility Rent | 5,933 | 5,942 | 5,942 | 5,942 | 5,942 | 5,942 | 5,942 | 5,942 | 5,942 | 5,942 | 5,942 | 5,940 | 71,296 | |||||||||||||||||||||||||||||||||||||||||||
Net Income Before Interest | 5,125 | 4,332 | 6,060 | 4,514 | 6,497 | 6,600 | 7,499 | 7,552 | 8,446 | 8,578 | 5,554 | 5,445 | 76,201 | |||||||||||||||||||||||||||||||||||||||||||
Interest Income | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 6 | |||||||||||||||||||||||||||||||||||||||||||
Net Income Prior to Reserves | 5,126 | 4,332 | 6,060 | 4,515 | 6,497 | 6,601 | 7,499 | 7,552 | 8,447 | 8,579 | 5,554 | 5,445 | 76,207 | |||||||||||||||||||||||||||||||||||||||||||
Payments to MM&R Reserve | — | 132 | 132 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments to O & M Exp. Reserve | — | 61 | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Prior to Sub.Pay Obligations | 5,126 | 4,332 | 6,060 | 4,515 | 6,497 | 6,601 | 7,499 | 7,552 | 8,447 | 8,579 | 5,554 | 5,252 | 76,014 | |||||||||||||||||||||||||||||||||||||||||||
Subordinated Payment Obligations | — | — | — | — | — | 4,791 | — | — | — | — | — | 13,712 | 18,503 | |||||||||||||||||||||||||||||||||||||||||||
Net Income Prior to Terminal Mgt Fee | 5,126 | 4,332 | 6,060 | 4,515 | 6,497 | 1,810 | 7,499 | 7,552 | 8,447 | 8,579 | 5,554 | (8,460 | ) | 57,511 | ||||||||||||||||||||||||||||||||||||||||||
Terminal Management Fee | — | — | — | — | — | 1,554 | — | — | — | — | — | 1,554 | 3,108 | |||||||||||||||||||||||||||||||||||||||||||
Net Inc. Prior to Add’l Contingent Oblig. | 5,126 | 4,332 | 6,060 | 4,515 | 6,497 | 256 | 7,499 | 7,552 | 8,447 | 8,579 | 5,554 | (10,014 | ) | 54,403 | ||||||||||||||||||||||||||||||||||||||||||
First Additional Land Rent | — | — | — | — | — | 1,375 | — | — | — | — | — | 1,375 | 2,750 | |||||||||||||||||||||||||||||||||||||||||||
Retail Management Fee | — | — | — | — | — | 610 | — | — | — | — | — | 639 | 1,249 | |||||||||||||||||||||||||||||||||||||||||||
Net Income Prior to Payments to CIR | 5,126 | 4,332 | 6,060 | 4,515 | 6,497 | (1,730 | ) | 7,499 | 7,552 | 8,447 | 8,579 | 5,554 | (12,028 | ) | 50,403 | |||||||||||||||||||||||||||||||||||||||||
Payments to Capital Improvement Res. | — | — | — | — | — | 933 | — | — | — | — | — | 1,464 | 2,397 | |||||||||||||||||||||||||||||||||||||||||||
Net Cash Flow | $ | 5,126 | $ | 4,332 | $ | 6,060 | $ | 4,515 | $ | 6,497 | $ | (2,663 | ) | $ | 7,499 | $ | 7,552 | $ | 8,447 | $ | 8,579 | $ | 5,554 | $ | (13,492 | ) | $ | 48,006 | ||||||||||||||||||||||||||||