Redmond council approves $98 million GMP for airport terminal, boosts design and inspection contracts

The Redmond City Council on an evening vote approved a $98,059,008 guaranteed maximum price amendment to Skanska for construction of the Redmond Airport terminal expansion, authorized a $19,500,000 amendment to the RS&H architectural and engineering contract for expanded design and construction management work, and approved a not-to-exceed $225,000 contract with Wallace Group for special inspections. The council also adopted Ordinance 2025-10, which updates the airport customer facility charge.

The measures together advance a project that will add roughly 80,000 square feet to the terminal, a 71% increase in hold-room space, six thousand square feet of new retail concessions and seven jet bridges. Airport Director Zach Bass told council, “It is for the full construction of the terminal. Right now, that's at $98,000,000. That's what we're looking for tonight.”

The council and project team said the package targets LEED Silver certification and includes upgraded HVAC, lighting and building controls. Bass estimated the construction approvals to date put construction spending near $141 million once furnishings, fixtures and equipment (an estimated $13 million) are added; he told council the project as currently scoped remains below the city—s $180 million overall limit.

Councilors heard that the GMP came in roughly $7.5 million below the project—s design-developed estimate and that about $66 million of the current GMP is expected to be subcontracted locally. Bass said 75 or more bidders offered prices on work packages and that local subcontractors would perform a majority of the work in the immediate community.

Council approved an amendment to the architectural and engineering contract with RS&H to increase the not-to-exceed amount for design and construction management from $13 million to $19.5 million, reflecting the increase in total project cost and added construction-management needs for building an airport while keeping the facility operational. Zach Bass said the earlier $13 million was based on a smaller project estimate and that the revised figure brings the design/management percentage to about 11% of the now-projected total, in line with airport-industry comparables.

The council also approved a special-inspections contract with Wallace Group. Bass explained independent testing is required for every concrete pour and similar work, and asked for a not-to-exceed amount of $225,000 to allow flexibility if the number of tests rises.

Separately, council voted to adopt Ordinance 2025-10, amending Redmond City Code Chapter 2 to update the airport customer facility charge (CFC). The change follows an earlier administrative update increasing the CFC from $3 to $5 and removing a seven-day cap; the ordinance removes the conflicting seven-day cap from the code itself.

Discussion: Council members and staff emphasized the project—s local economic benefits and the extensive staff work to vet costs. Bass and finance staff presented a consolidated financing picture showing available contingencies and projected cost certainty, and urged keeping contingency reserves for unforeseen conditions.

Outcome and next steps: The motions for the GMP, design amendment and inspection agreement passed by voice vote. Staff indicated one additional contract (an FFE package) will come back to council later for approval, and that contingencies remain available to cover alternates or scope changes.