Port Authority approves $725M bond sale for RSW terminal expansion

Lee County Port Authority approved the sale of $725.24 million in airport revenue bonds, a move officials said will save about $4.5 million in interest costs as the $1.7 billion Terminal Expansion project at Southwest Florida International Airport reaches its midpoint. 

The Board of Port Commissioners, which also serves as the Lee County Commission, voted 5-0 Jan. 15 to authorize the bonds. The value could rise to no more than $875 million. The bonds will mature in 2056 and provide most of the funding for the two major construction phases underway at RSW. 

The board previously voted 4-1 in September 2024 to approve a separate bond authorization, with Commissioner Cecil Pendergrass dissenting. The amount of those bonds ended up being about $522 million, the port authority said.

Phase 1, managed by Manhattan Construction, consolidates security screening at the front of the terminal and expands concessions. The project broke ground in 2021 but required redesign — and refinancing — after design errors were disclosed at a May 2024 board meeting. Its budget has more than doubled, from $331 million to $678.3 million. In 2021, the port authority issued $217 million in bonds to begin funding the project.

“These are the only bond issuances related to the ongoing terminal projects,” said Vicki Moreland, director of communications for the Port Authority. “We have one other bond issuance outstanding — Series 2021A, which was a refunding of some of our older debt that went toward funding the original terminal construction, which opened in 2005. There's approximately $100 million outstanding on that debt series.”

Phase 2, led by Suffolk Construction, includes construction of the new Terminal E concourse. That project reached its halfway point in December 2025, marked by a private topping-off ceremony. Its budget is approximately $1.1 billion. 

“Had we borrowed all the money at once, we would have had to pay interest on money that was just sitting there, not being used,” Commissioner Brian Hamman said. 

As part of the new bond series, $33 million of prior port authority debt also was refinanced.

“That’s the equivalent of a higher-interest credit card being paid with a lower interest credit card,” Commissioner David Mulicka said.

A portion of the Series 2026 bond proceeds also will help fund a new public safety building at the airport, projected to cost about $18 million. 

The port authority relied on several national firms for the financing. J.P. Morgan and Raymond James are serving as co-managers, with BofA Securities Inc. as senior underwriter. PFM Financial Advisors LLC, Ricondo & Associates, and Nabors, Giblin and Nickerson P.A. are also involved. 

No local tax dollars are being used to fund the construction. Instead, travelers will help repay the debt through the fees airlines and rental-car companies pay to operate at the airport. 

Airlines currently pay an average of $14.14 per departing passenger, a figure projected to rise annually to a peak of $20.34 in 2030 as bond payments increase. While not charged directly to passengers, airlines may factor the cost into ticket prices. 

Rental-car customers also will see higher costs. Under a separate vote, commissioners approved raising the customer facility charge from $5 to $6 per rental, a 20% increase.