Atlanta hopes stimulus bill will pay for new airport terminal

The City of Atlanta has an idea for President Obama about how to spend $500 million of the much-debated economic stimulus plan — a new international terminal for Hartsfield-Jackson International Airport.

City officials included a request to partially fund the billion-dollar-plus Maynard Holbrook Jackson Jr. International Terminal in a wish-list submitted to the U.S. Conference of Mayors, an advocacy group for the nation’s larger cities.

The city, which runs the world’s busiest airport, submitted the request among three dozen other construction projects in a list that totals $1.8 billion and which the city said would create more than 18,000 jobs.

“I think it’s a long shot,” Hartsfield-Jackson General Manager Ben DeCosta said in a telephone interview Wednesday. “When you look at airport needs across the nation, the identified needs are around $15 billion. But if there is some discretionary money, we could get some.”

DeCosta said the nation’s airport are competing for a fraction of the $15 billion. He said the House version of the stimulus has about $3 billion for aviation projects, and the still-developing Senate bill about $1 billion.

Federal disclosure forms show Hartsfield-Jackson recently hired a Washington-based lobbyist with Crowell & Moring LLP to reach out to members of Congress on — among other things — “economic stimulus legislation.”

A new international terminal has been discussed for years. Initial construction has begun, but the project’s future is in limbo because of frigid credit markets and an ongoing feud between the airport and Delta Air Lines, Hartsfield-Jackson’s major tenant. Delta accounts for more than 70 percent of Hartsfield-Jackson’s flights.

Delta, which became the world’s biggest airline after it merged last year with Northwest, has objected to the size and cost of the new 12-gate, $1.68 billion terminal. Delta wants costs trimmed by $400 million, and it wants two gates cut from the project. Delta contacted the bond issuer in New York objecting to the terminal’s costs, and the city has been unable to secure financing to complete the project.

Airport officials have thus far agreed to about $300 million in cuts, but they still want a 12-gate facility. The terminal, which would be accessed off Interstate 75, is slated to open in three years.

DeCosta has said construction on the terminal, named after Atlanta’s late mayor, could have to soon cease if the city cannot secure funding. About 275 workers are employed on the project, but that number could jump to 3,000 if funding to finish the terminal is secured, DeCosta said.

“I’m having my staff do a cash-flow analysis so we can determine how much time they have left (before construction money runs out),” DeCosta said. “If we can keep going ,we’re very confident we can still bring it in the spring of 2012.”

Delta officials have said while they are specifically concerned about the cost of the international terminal, their bigger worry is escalating long-term construction costs at the airport. Those rising costs could increase Delta’s costs to board passengers at its main hub, making it less competitive with other airlines.

The airline backs the city’s attempt to secure stimulus money for airport construction projects.

“Delta supports any funding that would keep Hartsfield-Jackson capital costs low,” said Delta spokesman Kent Landers.