SALT LAKE CITY — Construction costs are going up, which means the price tag for the redesigned terminal at Salt Lake City International Airport is going up.
The Salt Lake City Department of Airports announced on Wednesday the cost for the terminal redevelopment is going up by $350 million. That now brings the cost of the airport to $2.9 billion.
The airport authority is blaming it on the good economy in Utah: construction bids have been higher than originally estimated a year ago.
“Utah is enjoying a very strong economy, which is resulting in severe labor constraints and a substantial increase in the cost of materials,” Airport Advisory Board Chair Igor Best-Devereux said in a statement. “Because of the checks and balances that the Department of Airports has in place, the Airport staff was able to identify and validate the cost increases early on in the process. This enabled them to take the measures necessary to move forward and seek the required budget approvals.”
The redesigned Salt Lake City International Airport, which will open in 2020, is not costing local taxpayers any money to build. The project is being paid for through a combination of surplus funds, federal grants, revenue bonds and airline ticket/rental car fees.
The airport said it has locked in most of the construction costs for the first phase of the project through contracts it has signed. The massive project will include a brand new terminal with concourses, new rental car facilities, parking garages and related facilities. It is being built near the existing terminal and concourses.
The Salt Lake City Council will discuss the increased costs at its Dec. 6 meeting.