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June 4, 2001
For Release Upon Receipt

TAA BOARD APPROVES CONTRACT WITH SUNDT CONSTRUCTION FOR TERMINAL EXPANSION
At their meeting today, the Tucson Airport Authority board of directors approved a contract with Sundt Construction, Inc. which will add appx. 80,000 sq. ft. to Tucson International Airport. The amount of the contract is $45,980,414.

Sundt was named as the Construction Manager at Risk, CMAR, by the board in December for the next phase of the appx. $65 million project, subject to satisfactory negotiation of the contract approved this afternoon. The CMAR is a construction delivery method that enables TAA to select a contractor based upon qualifications rather than a traditional low bid process.

The board also approved a supplemental financing plan for the next phase of construction that includes appx. $6 million in alternates not included in the original financing package.

These improvements satisfy additional needs identified by TAA, including: generator package to provide emergency power for the main terminal and central plant; concourse sewer upgrades; addition to central plant and relocation of gas and water lines; upgrades to HVAC; upgrades to existing air handling units; new ticket counters; and upgrade of third level elevator.

The financing plan consists of using airport special reserve funds, outside financing, and submitting an amendment to the FAA for additional federal funding available from the Passenger Facility Charges, PFCs, currently being collected at TIA (a $3 charge on each departing ticket).

Sundt expects to begin work within the next two weeks with completion of the project planned for early 2005.

The Terminal Expansion Project will increase baggage claim and ticket queuing areas to the building's maximum potential and is designed to handle an estimated eight million arriving and departing passengers.

"Assuming an annual rate of growth between 2-4%, this investment will take care of the community's aviation needs for the next 20-30 years," said TAA President/CEO Bonnie Allin.

"If for some reason passenger traffic increases more dramatically than our forecasts, that would be a happy problem for us to resolve," said Ms. Allin.

Not included in this project, but anticipated in the near future, are modifications necessary to meet increased security requirements mandated by the Transportation Security Administration in the wake of September 11.

"Concurrent with the terminal expansion we had begun to develop plans to add restrooms and expand some of the departure lounges on the concourses. However, there are too many unknowns about new security equipment that will be installed in the airport later this year so we will take a look at those improvements at a later date," said Ms. Allin.

Construction of the terminal is being phased to minimize the impact on airport users and will begin in mid-June with demolition of the center part of the building in order to move the structure forward about 50'. Arriving passengers will still be able to check in and drop off bags using the new upper level roadway.

During this phase of construction baggage will be processed through the belts on the east and west ends of the building while the first of seven new tilt-plate baggage belts are installed. This part of the project is expected to take appx. 16 months.

Once the center is complete, the ends of the terminal will be closed and activity will be routed through the center of the complex.