Sacramento Market Report

$1.02-billion Sacramento International Airport’s ‘Big Build’ expansion and modernization project is on target for a 2012 completion

By David Silva

Corgan Associates and Fentress Architects teamed up on the design.

Just as its name suggests, Sacramento International Airport’s “Big Build” project is a case study in all things large.

At $1.02 billion, the terminal and concourse modernization and expansion program is one of the most expensive projects in the city’s history. Upon completion in January 2012, it will include a four-story, 675,000-sq-ft Terminal B -- three times larger than the existing 216,000-sq-ft terminal. A 19-gate Concourse B will offer six more gates than the current concourse.

Additionally, an estimated 19,557 sq ft of concession space on the landside of the concourse and 23,108 sq ft on the airside will provide the traveling public with 25% more retail and dining facilities.

“The current Terminal B opened in the late ‘60s, and it became obvious over time that it couldn’t handle the new fleets of aircrafts operating here and the new passenger and bag-screening requirements of the Transportation Security Administration,” says Leonard Takayama, deputy director of special projects for the airport. “[The new terminal and concourse] is being built to accommodate an increased number of passengers and to provide the concession amenities that the flying public expects today versus what they expected decades ago.”

Other features include an international arrivals facility designed to accommodate 400 passengers an hour; a two-level roadway allowing access to both arrival and departure facilities; and a dual-track automated people mover system to whisk passengers across the estimated 1,800 ft from the concourse to the farthest gate.

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A Phoenix-based joint venture of Austin Commercial and Walsh Construction was chosen by the airport to build the landside terminal. The Sacramento office of Turner Construction was awarded the contract to build the airside portion of Concourse B, with Flatiron Construction Corp. of Benicia and Sacramento-based Teichert Construction assisting with design and construction.

Dallas-headquartered Corgan Associates Inc. was selected as architect of record, with the San Jose offices of Fentress Architects serving as associate architect.

Sacramento International Airport was built in 1967, opening as Sacramento Metropolitan Airport and serving as a hub to only five airline carriers. Additions such as an FAA field inspection office, a second air cargo facility and east-west runway were added in the 1980s.

The last major construction project at the airport took place in the mid-1990s, with the addition of a 5,500-space parking garage for Terminal A.

The new Concourse B will offer 19 gates, six more than the current concourse.

Takayama says that along with providing enough space to accommodate future passenger growth, a major benefit of the Big Build is the speed at which it is being built. Using a streamlined design-build process, construction of the project – which began in July 2008 – should take no more than 3.5 years.

“We used the design-build system as way to start construction before the design was actually completed,” Takayama says. “For us, this meant we could start construction 18 months in advance of actually finishing the design.

“Those 18 months that we’re saving allow us to avoid price escalation from being added on to the project cost. Right now, everything is on time and on budget.”

The Terminal B and concourse portion of the project is expected to be completed in late 2011. Crews will demolish the facility’s interim international arrivals building in January 2012, and the old Terminal B will be torn down in May 2012.

Brent Kelley, an aviation principal with Corgan Associates, says the project was designed to accent the Central Valley’s geographical features.

“One of the things we were looking at was to establish a sense of place for the Sacramento region,” he says. “The Central Valley has a kind of uniqueness with its mountain ranges. The vertical wall of the terminal is canted out toward the mountains – leaning out toward the ranges themselves.

Turner Construction, along with Flatiron and Teichert, are the airside building contractors.

“One of the first ideas we struck upon was the idea of bringing the ‘outside’ into the building. The building itself is a three-sided glass box, which is somewhat unique for an air terminal, since terminals tend to have only side with glass.”

Kelley says designers also considered Sacramento’s nickname as the City of Trees.

“We brought that influence into the building with a structural column grid,” he adds. “The structure creates a shadow effect we likened to filtered light through a tree canopy. As you proceed through the building you flow to the middle, which is the defined circulation spine of the building. That spine is covered with a glass roof that allows natural sunlight to flood down into the building.”

Some green elements are being incorporated into the project, which is anticipated to achieve LEED silver certification. These include use of recycled materials in the building structure, floor and ceiling finishes; extensive use of daylighting; natural ventilation provided when possible; low-E glass to minimize heat gain through glazing; and low-flush fixtures and automatic water used throughout the facility.

Funding for the Big Build got a big boost in late July when the Sacramento County Airport System closed $480,050,000 in tax exempt revenue bonds to finance a significant portion of project.

Austin Commercial/Walsh Construction JV are building the landside portion.

The assortment of bonds, Senior Revenue Bonds (Series 2009A and 2009B) and Subordinate PFC/Grant Revenue Bonds (Series 2009C and 2009D), will fund construction of the new facilities.

The bond sale was popular with retail investors with minimum purchase price for retail buyers of $5,000. Over $120 million in retail orders alone demonstrated the popularity of the bonds and the popularity of some maturities exceeded the number of bonds available, the airport says. An underwriting team comprised of J.P Morgan, the senior underwriter; Goldman Sachs & Company; Morgan Stanley; De La Rosa & Company; and Piper Jaffray & Company completed the transaction.

“With regional investment in such a vital facility, local investors have the ability to see their dollars at work improving the community they live in as well as receiving financial rewards,” says Terry Schutten, Sacramento County executive. “The Big Build is an investment in the future of the region as a whole. This project generates much needed jobs throughout the construction period and will also enhance Sacramento International Airport’s presence as a regional economic engine and its important role in business attraction.”

Steel rises on the Big Build project.

Despite a decline in passenger numbers associated with the current economic recession, Sacramento International Airport was the 41st busiest North American Airport during 2008 with nearly 10 million passengers during the calendar year. Standard and Poor’s and Moody’s both noted Sacramento County Airport System’s financial strengths such as ample debt service coverage, sufficient cash on hand and a healthy mix of carriers, tenants and revenues.

Approximately $178 million in bonds will also be issued in 2010 to complete financing of the Big Build.

The Sacramento International Airport Big Build Project Team

Owner: County of Sacramento
Landside Building Contractor: Austin Commercial/Walsh Construction, Phoenix (joint venture)
Airside Building Contractor: Turner Construction, Sacramento, in association with Flatiron Construction Corp., Benicia, and Teichert Construction, Sacramento
Architect of Record: Corgan Associates, Dallas
Associate Architect: Fentress Architects, San Jose
Project Management Team: AECOM, Sacramento, and Pasley Management Group, Sacramento
Steel Contractor: Schuff Steel Co., Phoenix
Mechanical Engineering Contractor: ACCO Engineered Systems, Glendale