The Phoenix City Council took the first step Wednesday to expand Phoenix Sky Harbor International Airport’s Terminal 3.
The council awarded an $18 million design contract to "HuntAustin Joint Venture"for the Terminal 3 modernization project. Airport Spokeswoman Deborah Ostreicher said the project will expand Terminal 3 and eventually close Terminal 3.
“Terminal 2 was designed and planned in the late 50's and constructed and opened in 1962, and it is not going to sustain us into the future with the demand for air service here in the Valley," said Ostreicher.
Ostreicher said closing Terminal 2 will not mean a reduction in air carriers. Although the airport is owned by the city, funding for the expansion will not come from the general fund or local taxes. The airport uses the revenue it generates from retail sales and parking to fund projects.
There is not yet a timeline for construction.
