Burbank-Glendale-Pasadena Airport Authority Celebrates 94^th Anniversary of Hollywood Burbank Airport With Closing of 2024 Airport Revenue Bonds for Replacement Passenger
Terminal Project

May 30, 2024 – Today, on the 94th Anniversary of Hollywood Burbank Airport (“BUR”), the Burbank-Glendale-Pasadena Airport Authority (“Authority”) closed on $724.78 million of its 2024 Series A, B and C Airport Senior Revenue Bonds (“Bonds”). The Bonds were issued through an underwriting syndicate led by BofA Securities with Public Resources Advisory Group serving as the Authority’s municipal advisor. The proceeds of the Bonds will finance the majority of the cost of the “Elevate BUR” program and the development of the Replacement Passenger Terminal (“RPT”) Project.

Over 100 institutional investors participated in the transaction, garnering orders about 12x the amount of bonds offered.

“The Authority and its financing team believe the overwhelming reception for the Bonds by the investment community provides a strong foundation for a second bond issue, anticipated to occur in 2026, to complete funding of the RPT Project,” says Felicia Williams, President of the Authority. The RPT is scheduled to open in October 2026.

Strong investor demand allowed BofA Securities to lower interest rates on the Bonds by as much as 15 basis points from those initially offered.  Select maturities of the Bonds are insured by Assured Guaranty, which also is providing a reserve fund surety policy that creates significant economic benefit for the project’s plan of finance.

The final pricing terms resulted in a true interest cost of 4.54% and total net debt service of $1.32 billion. These terms are approximately $180 million lower than preliminary estimates and improve the affordability of the RPT Project for the airlines operating at BUR.

Other key members of the Authority’s financing team were Orrick Herrington & Sutcliffe as Bond and Disclosure Counsel; Stradling as Underwriter Counsel; Richards, Watson & Gershon as General Counsel; and Ricondo & Associates as Airport Consultant.

Development of the RPT Project is being led by a joint venture of Holder Construction, Charles Pankow Builders, and TEC Management in association with Corgan, Cannon Design, and Burns & McDonnell. Jacobs Project Management is providing program management services for the Authority. More information on the RPT Project and the progress of the construction can be found at http://www.elevatebur.com.

 

Airport Authority Sets Maximum Cost for Construction of New Passenger Terminal

May 6, 2024 — The Burbank-Glendale-Pasadena Airport Authority (BGPAA) has unanimously approved a guaranteed maximum price (GMP) of $1.11 billion for the design and construction of the airport’s replacement passenger terminal.

“The GMP is in line with projections and the result of many years of hard work,” says Felicia Williams, President of the BGPAA. “Collaboration between the cities, staff, design-build team, and our airline partners will result in a safer terminal that will enhance the quality of life and economic vitality of the region.”

In 2016, voters in the City of Burbank approved the replacement terminal project, known as “Elevate BUR.” It is being built in the northeast quadrant of Hollywood Burbank Airport. The 355,000 square foot facility will have 14 gates and will resolve long-standing safety and accessibility issues with the current terminal. It is on track to open in October 2026.

Jacobs is providing project management services for Elevate BUR. The design-build team is led by Holder, Pankow, TEC, Joint Venture (HPTJV), with Corgan providing architectural services for the project in association with CannonDesign.

“The approval of the GMP allows the design-build team to award most of the balance of our trade contracts and it locks in ‘the plan’ for the remainder of the project,” says Kevin Fauvell, Senior Vice President at Holder Construction. “The team, along with the staff at BUR, Jacobs and our design and trade partners, are beyond excited to take this next big step to build this incredible new facility for Hollywood Burbank Airport and the entire community.”

With the GMP in place, the estimated total cost of the project is just under $1.3 billion.

Design and Construction GMP	$1,110,074,145
Other BGPAA/Owner Costs	$   164,225,855
Demolition – Existing Terminal and Garage	$     24,400,000
Total Project Cost:	$1,298,700,000

 

“The guaranteed maximum price establishes the financing requirement for the program,” says Frank Miller, Executive Director of Hollywood Burbank Airport. “The approval of the GMP by the Airport Commission sets in motion our ability to issue the bonds to complete the program.”

Besides the BGPAA’s issuance of general airport revenue bonds, Elevate BUR is to be funded by:

• Applicable federal airport improvement grants
• Bipartisan Infrastructure Law (BIL) grants
• Passenger Facility Charge (PFC) revenue
• Authority funds

A detailed description of the GMP and design-builder costs can be found here.

For more information on the replacement terminal project, visit elevatebur.com.com/info.

Hollywood Burbank Airport Breaks Ground on New Passenger Terminal

January 25, 2024 – Today, the Burbank-Glendale-Pasadena Airport Authority (BGPAA) broke ground on a new, safer, modern, and more convenient passenger terminal at Hollywood Burbank Airport. The project is known as “Elevate BUR.”

More than 300 community leaders and local stakeholders came together to celebrate the start of construction for this historic project.

“From the friendly staff, to the airlines, to the convenience, Hollywood Burbank Airport is the gem of this community,” said Felicia Williams, President of the BGPAA. “We have a great team of Airport Commissioners with backgrounds in finance, law, construction, and public service, who are dedicated to moving this project forward on time and on budget.

 

The new 355,000 square-foot terminal will replace the existing terminal to meet FAA standards and State building requirements, while improving the overall passenger experience.

New Amenities: The new terminal will offer a variety of options for shopping and dining, upgraded restrooms, and more space to move about. A new ticketing lobby, baggage screening system, updated TSA checkpoint and new baggage claim area will make traveling easier.

Improved Access & Safety: The safety of our passengers and employees is our priority. The design of the new facility includes added distance between airport runways and the terminal building. It also includes updates to meet current earthquake design and ADA accessibility standards. For passengers, we’re including a 45,900-square-foot aircraft parking area for boarding and deplaning, a new parking structure with EV charging, and a new on-airport access road.

Sustainable Solutions: As part of our commitment to air emissions reduction and sustainability, the new terminal is designed to reduce the airport’s overall emissions and achieve a minimum of LEED Silver certification. Sustainable features include electrical vehicle charging, electric ground service equipment airside, water use reduction connections to our regional transit network.

“We’re excited to celebrate this milestone that brings us one step closer to a more elevated travel experience for our passengers,” said Frank Miller, Executive Director of Hollywood Burbank Airport. “I want to thank our Commissioners and the Burbank residents for their support, without which this project will not be possible.”

Jacobs is providing project management services for Elevate BUR. The design-build project is led by Holder, Pankow, TEC, Joint Venture (HPTJV), with Corgan providing architectural services for the project in association with CannonDesign.

Construction of the new terminal is expected to take place from 2024 to 2026. The BGPAA is committed to minimizing construction impacts and keeping passengers and the community informed about construction. For more information, please visit elevatebur.com/info.

BGPAA Receives First Permits from City of Burbank

December 14, 2023 – The Burbank-Glendale-Pasadena Airport Authority (BGPAA) has received the first round of permits from the City of Burbank, and initial site work will begin on December 18th. It will include mobilization of construction and demolition of existing facilities on the construction site. Mass grading of the site is anticipated to begin in January 2024.

 

BGPAA Commission Selects Design Concept for
Replacement Terminal

April 17, 2023 – The development of the replacement passenger terminal has marked another major milestone, with Burbank-Glendale-Pasadena Airport Authority (BGPAA) Commissioners voting to move forward with the design concept known as “The Icon.” Renderings of the design are available here.

“The Commission’s decision to adopt ‘The Icon’ concept for the replacement terminal program takes us a step closer to bringing a new terminal to the airport,” says Frank Miller, Executive Director of Hollywood Burbank Airport.

“The Commission looked at what would be a ‘statement of arrival’,” explains Emily Gabel-Luddy, Burbank Commissioner and President of the BGPAA. “‘The Icon’ affords that statement with its roofline and its deep shadow-giving cover over the plaza and arrival point, but also how it goes across the face of the parking structure.”

“The Icon” is one of three concepts presented to the Commission for consideration. In making their final decision, Commissioners weighed comments from a public survey, feedback from design charrettes held earlier in the development process, and guidelines of the development agreement the BGPAA has with the City of Burbank.

The design concepts were generated by Corgan, the company providing architectural services for the project, in association with CannonDesign. The firms are part of the project’s design-build team: Holder, Pankow, TEC, Joint Venture (HPTJV). Jacobs Project Management is providing project management services.

Voters in the City of Burbank approved the replacement terminal in 2016. It will be located in the northeast quadrant of Hollywood Burbank Airport. The 355,000 square foot facility will have 14 gates and will resolve long-standing safety and accessibility issues with the current terminal.