435,000 square-foot State-of-the-art Air Cargo Complex Will Create 2,000 Construction and 500 Permanent Jobs

New York City Economic Development Corporation President and New York City Industrial Development Agency (IDA) Chairman Andrew M. Alper announced today that the IDA, on behalf of the City, has issued approximately $161 million in Special Airport Facility Bonds for Airis Corporation to develop two air cargo facilities at John F. Kennedy International Airport. The announcement was made at a groundbreaking ceremony Mr. Alper attended on behalf of New York City Mayor Michael R. Bloomberg.

The IDA previously approved a tax incentive program of approximately $12.4 million in mortgage recording tax waivers and sales tax exemptions for the project in addition to providing access to the triple tax-exempt bond market.

"This is an important initiative for JFK and the City," said Mayor Bloomberg. "With JFK as a global air cargo hub, it is imperative that carriers have access to world-class cargo facilities. With this project, New York City will gain more than 435,000 square feet of state-of-the-art air cargo facilities. These facilities will provide improved services to companies currently operating at the airport, and will attract new air cargo carriers and related businesses to JFK."

"We have worked with many different parties to make this landmark project a reality," said Airis Chairman Dave Garrett III. "Our aim is to build the premier air cargo terminal in JFK's extraordinary history. Our experienced team is ready to meet this goal for Kennedy Airport, Mayor Bloomberg, Governor Pataki and the Port Authority. Airis is immensely proud to be working with our public-sector partners on this important project."

This initiative, a cooperative effort between the City of New York and the Port Authority of New York and New Jersey, represents the first ever mortgage-backed financing on JFK Airport property, and the first Agreement to Enter Into Lease issued by the City of New York. This agreement promises to give Airis leasing rights for the 30-year duration of the project's financing.

The future facilities are 100 percent pre-leased by some of the largest cargo operators in the industry, including Lufthansa Cargo, Gateway Cargo Service Center, Alliance Air, and Lufthansa Technik, an aircraft logistics subsidiary of the airline. Scheduled for completion in the summer of 2003, the project will generate more than 2,000 construction jobs and more than 500 permanent jobs.

"This project is an important step in our continuing efforts to expand and upgrade the infrastructure of JFK to accommodate its air cargo growth," said Deputy Mayor for Economic Development and Rebuilding Daniel L. Doctoroff. "JFK currently moves more than 1.7 million tons of freight a year and could well double that amount by 2011. For JFK to remain a leading cargo airport, we must bring this project and others like it online."

"The Airis facility will join the numerous other airport-related projects at JFK that have been aided by the IDA," said IDA Chairman Andrew M. Alper. "These projects and others expected to be financed by the IDA in the future will fund more than $3 billion in private investment at JFK and create thousands of jobs."

Including Airis, the IDA has now financed almost 1.5 million square feet of cargo space at JFK and environs for six airfreight companies and airlines, including Korean Airlines, Northwest Airlines and United Airlines. The IDA also financed a $115 million renovation of British Airways' passenger terminal at JFK with tax-exempt bonds in 1998.

More recently at JFK, the IDA has approved tax-exempt bond-financing for Continental Airlines' $30 million air cargo facility, American Airlines' $1.3 billion overhaul and replacement of its passenger terminals, and the $100 million second phase renovation of British Airways' passenger terminal.

The IDA is the City's primary vehicle for providing financial assistance to businesses, including small industrial and manufacturing companies. The IDA is a conduit agency that issues tax-exempt industrial revenue bonds that assist eligible industrial, not-for-profit and other qualified entities to finance expansion opportunities. The IDA also offers qualified companies abatements on sales, real estate and mortgage recording taxes.