GREAT HALL PROJECT
Airside Plaza
- 37,000 square feet of commercial space
- Several passenger experience features making the space a unique and appealing environment
- Conveying a modern western sense of place with the use of finishes and digital features
Meeters and Greeters Plaza
- 19,500 square feet of commercial space
- This space targets passengers, meeters and greeters, hotel guests and airport workers
Ticketing Lobby
- 176 new ticketing desks
- 224 self-service kiosks
- 12 curbside desks
TSA Security Check-Points
- 34 security lanes
This is an opportunity to offer an upscale and strongly differentiated choice of food and beverage, retail, and service outlets. The ultimate goal of the project is to keep Denver International Airport as one of the safest, most convenient airports in the world while creating a truly experiential environment– an environment that establishes Denver as a new benchmark in US airports from which others learn and seek to emulate. Our team shares DEN’s vision to leverage the grandeur of the monumental atrium within the Jeppesen Terminal to make the Great Hall an attractive focal point where the Rocky Mountains meet the world.
DEN and Great Hall Partners Kick-Off Construction
Project to Renovate Jeppesen Terminal
Terminal of the Future Will Enhance Security and Improve Passenger Experience
Denver International Airport (DEN) formally kicked off the start of construction of a three and a half-year renovation project of the Great Hall. The Great Hall is the area under the tents of the airport’s Jeppesen Terminal, which encompasses 1.5 million square-feet. The project will make substantial improvements to Levels 5 and 6.
“As the state’s largest economic engine, we must continue to invest in the airport for both today and tomorrow,” Denver Mayor Michael B. Hancock said. “This project will create a terminal for the future allowing Denver to accommodate its continued growth while competing on the global stage with some of the best airports and cities around the world.”
The Great Hall Project will enhance security, provide a more flexible and open airline check-in space and add new dining and shopping options. It will also increase capacity of the terminal, update the aging facility and improve the overall passenger experience at DEN.
“When the airport opened in 1995, the Transportation Security Administration (TSA) didn’t exist and passenger expectations of an airport were vastly different,” said airport CEO Kim Day. “Today, the Great Hall is well above its design capacity of 50 million passengers and is filled with noisy passenger screening operations and has no space in which to accommodate growth. The Great Hall Project will reconfigure and better utilize the existing space in the terminal to create a safer, more efficient and better travel experience while returning the Great Hall to its original purpose of a travelers’ oasis.”
Specifically, the project will:
• Enhance safety and security by relocating the TSA screening checkpoints from Level 5 to Level 6 and implementing new, state-of-the-art “automated security lanes” and a new queueing concept that will reduce lines and wait times
• Increase capacity of the terminal to accommodate future growth to 80 million passengers
• Make better use of technology and space in airline check-in areas
• Create a new meeting/greeting area at the south end of the terminal, which will serve as a new “front door” from the plaza to the airport
• Develop a new international passenger welcome center with seating, food money exchange and retail just outside of the Customs and Border Protection area
• Improve food and retail offerings throughout the terminal
• Upgrade infrastructure and systems in the terminal, including heating and cooling systems, escalators, elevators, restrooms and security
• Increase curbside drop-off capacity, including the addition of an express drop-off location adjacent to the TSA checkpoints for passengers without bags to check
Construction of the Great Hall will take place in four phases with some preparation work already underway. For instance, the restaurants in the middle of the Terminal have already closed, ground transportation counters have relocated and some of the artwork in the terminal has been temporarily placed in storage until construction is complete. The airport’s unique and conversational art will return upon completion of the project, and will be augmented with new pieces.
“The renovation process has been carefully planned with a phased approach so that passenger impacts will be minimized while still allowing for safe and efficient construction,” said Ignacio Castejon, CEO of Great Hall Partners. “The start of construction is a major milestone in the transformation of Denver’s Great Hall and we look forward to ultimately delivering a destination for passengers that offers enhanced security, innovative technology and new amenities and retail.”
The first phase of construction, which is scheduled to continue until spring 2019, will mainly take place in the center of the Great Hall and will not impact security screening or check-in processes. However, construction walls will be in place on Level 5 and Level 6, which may require additional time to navigate from the check-in counters to security.
The first three phases will take approximately 10 months each with the final phase lasting about 12 months.
Key milestones will include:
• Mid 2019: First phase of new check-in counters and the first phase of the new commercial area open
• Early 2020: All remaining new check-in counters open with all airlines in their final locations
• Late 2020: New TSA passenger screening areas open
• Late 2021: Construction complete including all the new commercial areas
The project is a public-private partnership (P3) with Great Hall Partners, comprised of Ferrovial Airports, JLC Infrastructure and Saunders Concessions. It is the City’s first P3, and allows DEN to shift the risk for cost and schedule for this very complicated construction in a 24-7-365 operating facility from the airport to the P3 team. DEN will continue managing the airport, while leveraging the creativity, expertise and financial capabilities of Great Hall Partners – which has proven experience developing world-class airports around the world, including redevelopment of T2 and T5 at London Heathrow Airport.
The 34-year agreement calls for Great Hall Partners to design and construct all improvements in the next four years, followed by 30 years of operations and maintenance within specific commercial areas of the terminal, including approximately 50 retail and restaurant units, some of which are currently being procured.
The anticipated cost to design and build the project is estimated at $650-$770 million, which includes an airport controlled contingency of $120 million to accommodate unexpected issues or changes including TSA or airline requests over the next few years. Great Hall Partners made an initial investment of $258 million that will be repaid over time through a combination of installments from the airport and a 20 percent share of the concession revenues from new shops and restaurants. They will also invest additional funds over time for renewal and replacement. DEN will also reimburse Great Hall Partners for operating and maintenance costs over the 30 years. DEN is paying for the remainder of the construction cost and will retain 80 percent of all concessions revenue and 100 percent of other revenues derived from the terminal spaces the airport will operate. The total amount of the contract with Great Hall Partners, which includes design, construction, operations, finance costs and maintenance for 30 years, is capped at $1.8 billion.
DEN is an enterprise of the City and County of Denver, so no taxpayer money from the city’s General Fund is used for this or any projects or operations at the airport. The Great Hall Project is expected to create 400-450 construction jobs, more than 800 new permanent jobs and generate an additional $3.5 million in annual taxes and General Fund revenue for the City of Denver. All of DEN’s current job postings are available online at jobs.flydenver.com.
MORE ON JLC:
Infrastructure hire as Magic Johnson Enterprises/Loop Capital works to up its game in sector
CHICAGO — MJE-Loop Capital Partners LLC — a participant in the early bidding process to lead Chicago’s proposed airport express rail line project — has hired infrastructure specialist Robert Keough as the firm looks to raise its game.
Keough joined the firm, which does business as JLC Infrastructure, as a managing partner in its New York office. He will work on building out the firm — on both staffing levels and its pursuit of deals — to lead the firm’s infrastructure investment efforts. He will work alongside Marlon Smith who leads the firm’s public private partnership investment endeavors from Chicago. The firm also has a presence in Los Angeles.
JLC is an infrastructure investment management firm formed in 2015 by Loop Capital and Magic Johnson Enterprises.
Prior to joining JLC, Keough served as a senior principal at Basalt Infrastructure Partners LLC, an independent investment advisor managing more than $2 billion of capital dedicated to the infrastructure sector. He led the firm’s investment strategy, particularly in regulated utilities and power. Earlier in his career, he was as a portfolio manager at John Hancock Life Insurance Company managing a $2.2 billion infrastructure equity portfolio.
The new hire will strenghten the investment capability of JLC Infrastructure, said co-founder James Reynolds.Bloomberg News
Keough’s “experience with senior leadership roles at both institutional and private equity infrastructure investors further strengthens our investment capability as we continue to work with communities to rebuild U.S. infrastructure,” said James Reynolds, co-founder of JLC and chief executive officer of Chicago-based investment banking, brokerage and advisory firm Loop Capital.
Loop is well-known in the municipal sector as one of the top ranked minority-owned public finance banking firms with a national presence. Magic Johnson Enterprises is a 20-year-old company led by retired professional basketball star Earvin “Magic” Johnson. It invests in varied businesses across multiple industries with community development and empowerment in mind.
The firm has approximately $300 million in assets under management including committed capital and has been a member of investment teams on a series of airport infrastructure transactions, including the planned redevelopments of Denver International Airport Great Hall Terminal and the LaGuardia Airport Central Terminal B.
The firm is part of the O’Hare Xpress LLC team along with Meridiam, Antarctica Capital, Mott MacDonald, and First Transit. The team is one of four respondents that submitted their qualifications for review by Chicago to lead a proposed P3 to design, build, finance, and operate express rail service between downtown and O’Hare International Airport.
The other proposals are from tech entrepreneur Elon Musk’s The Boring Company; Oaktree Capital Management; and O’Hare Express Train Partners, which is a team that includes OHL Infrastructure, Kiewit, and Amtrak.
Keough’s hiring marks the next stage of growth after hitting several milestones that included capital goals and the completion of some high profile deals, Keough and Smith said in an interview this week.
“The franchise is pretty well established and it’s a business that is growing and looking to be more active going forward,” Keough said.
The firm now employs four professionals including Keough and Smith and is looking to close out the year with eight to 12.
Keough and Smith didn’t disclose much on their pursuit of the O’Hare project noting it’s early in the process. Mayor Rahm Emanuel has a said no taxpayer funds will go to fund the project so project revenues such as fares will have to be sufficient to back the financing. Industry officials have said the project could run between $1 billion and $2 billion.
MORE ON MR. JOHNSON:
Magic Johnson invests in NYC’s LaGuardia airport
He’s invested before in Starbucks, movie theaters, restaurants and three L.A. sports teams — the Dodgers, the WNBA’s Sparks and Major League Soccer’s Los Angeles Football Club.
But this time he’s investing in New York infrastructure as part of the LaGuardia Airport redesign.The multibillion-dollar LaGuardia Airport renovation is getting a little Magic.
Former Lakers star Earvin “Magic” Johnson’s well-funded infrastructure firm has signed on to invest in LaGuardia Gateway Partners, the consortium of companiestasked with rebuilding the airport once referred to as the “third world” by former Vice President Joe Biden.
JLC Loop Capital Partners, a partnership between Magic Johnson Enterprises and the Chicago-based Loop Capital, was formed in April 2016 to invest money in the country’s infrastructure.
Magic Johnson Enterprises teamed up with Loop Capital Markets LLC and its CEO Jim Reynolds to become equity investors in LaGuardia Gateway Partners. They will design, build and maintain the airport as part of a 35-year lease with the Port Authority of New York and New Jersey.
National Urban League CEO and President Marc Morial said it was the first time in New York state history that a governor had required that a minority or women-owned business enterprise be an equity partner in such a large project.
In total, the renovation of LaGuardia will cost $8 billion. More than half of that money will come from the private sector.
It’s the largest public-private partnership in the history of U.S. aviation, according to a release from Governor Andrew Cuomo. It will be the first new U.S. airport since Denver International opened in 1995.
Magic Johnson Poised to Invest in New LAX Train
Local, minority-owned JLC Infrastructure Joins Kiewit-Skanska-Meridiam team, Gateway Connectors
JLC Infrastructure is an investment management firm formed by Magic Johnson Enterprises and Loop Capital with a significant focus on U.S. infrastructure.
“Supporting this project—the LAX Train—is central to our mission of investing in opportunities that enable community engagement and economic growth. During construction and for years ahead with the operations and maintenance of the train systems, this project will engage local, small and minority businesses and employees,” said Earvin “Magic” Johnson. “Gateway Connectors has a great solution for LAX and it is the best positioned team to bring maximum and lasting benefits to Los Angeles. We are committed to working with small, local and disadvantaged businesses to help them grow, while helping individuals build careers using the skillsets learned and enhanced on this project.”
JLC Infrastructure joins Kiewit, Skanska and Meridiam as an equity investor and developer, committed to partnering with LAWA to deliver the LAX Train by investing risk capital and securing long-term financing for the entire project, which is estimated to be the largest public works contract in the history of Los Angeles.
“Our partnership with JLC Infrastructure reflects Gateway Connectors’ commitment to expanding investment opportunities to local and minority investors,” said Jane Garvey, Chairman of Meridiam North America. “Through partnering, subcontracting and direct employment, our Gateway Connectors team is proud to magnify the project’s benefits for the diverse communities of Los Angeles.”
JLC Infrastructure (“JLC”) is an investor and asset management firm focused on the infrastructure sector in the United States. The firm was formed in 2015 by Loop Capital and Magic Johnson Enterprises and currently has approximately $300 million in assets under management (including committed capital) as of September 30, 2017. Since JLC’s launch, the firm has become involved in several prominent airport transactions, including the planned redevelopments of the Denver International Airport Great Hall Terminal and the LaGuardia Airport Central Terminal B. Magic Johnson Enterprises has developed a trusted brand for supporting and investing in communities throughout Los Angeles and is part of the ownership group that operates retail concessions in terminals 4, 5, 7, and 8 at Los Angeles International Airport.
The LAX Train (Automated People Mover System) is a critical project of the multi-billion dollar capital improvement program to modernize LAX. It will provide reliable, time-certain access to the airline terminals for passengers, employees and other users via a 6-station train system that will connect a new rental car center, airport parking and Metro facilities to the airline terminal.
