San Diego’s new Terminal 1, still a year away from the completion of its first phase, has scored yet another multi-million-dollar grant from the federal government to help defray costs.
The $26.3 million grant — the 11th over the past several years — covers a few specific airport upgrades, including the construction of two Terminal 1 aprons and a new taxiway. The nearly $4 billion project, which has grown considerably in cost since it was first finalized, has to date been awarded 11 federal grants totaling $192.1 million.
In addition to adding 11 more gates in what will be a brand new building, the Terminal 1 project will feature an expanded and much-improved lineup of food and retail concessions, a 5,200-space parking garage, and a baggage handling system that will be able to process up to 2,000 bags per hour during peak periods. Also part of the redevelopment is a new three-lane airport access road from Laurel Street and North Harbor Drive that airport planners say will remove 45,000 vehicle trips per day from Harbor Drive.
The first 19 gates in the new terminal, now under construction, are expected to open by late summer of next year. Demolition of the old 1960s-era terminal will immediately follow. The additional 11 gates should be ready by early 2028.
Apart from the Terminal 1 upgrade, the overall $3.8 billion project will include a second taxiway for the airport. The latest grant includes money for both shifting the existing taxiway about 37 feet to the south and building a new 6,300-foot-long taxiway. And the apron construction that is being funded will provide positions for overnight aircraft parking.
“As the busiest single runway airport in the U.S., effective utilization of the limited space of the airfield is critical to meeting future operational needs and to reducing delays,” San Diego airport spokesperson Nicole Hall said.
San Diego was one of 56 California airports, from Monterey to Los Angeles, that were awarded more than $219 million in grant funding from the FAA. The money comes by way of the Airport Improvement Program, which invests in airport infrastructure projects such as runways, taxiways, noise cancellation, zero-emission equipment, and airport signage. Nationwide, nearly $2 billion in federal grant money was awarded to airports across the country and in U.S. territories.
In addition to on-site physical upgrades, San Diego’s grant included money to acquire and install noise mitigation treatments for 201 impacted residences located within a 65-plus decibel noise area near the airport. Eligible mitigation measures include replacing doors and windows, caulking, weatherstripping, and installing ventilation.
The Terminal 1 project, which broke ground almost three years ago, has already hit some major milestones, the most recent being the opening of the first phase of what will eventually be a 5,200-parking garage dedicated to Terminal 1. By late summer, the second stage of the parking garage will be completed, coinciding with the opening of the first phase of the new terminal.
While the project cost has grown from an original estimate of $3.4 billion to the current $3.8 billion, airport officials say the increase has been offset by higher-than-expected federal funding and lower than anticipated interest rates on bond issuances in fiscal years 2021 and 2023. In addition to the $192.1 million in federal grants received so far, the San Diego airport has future funding commitments from the government totaling $104.2 million, Hall said.
