Islip Taps RXR Joint Venture to Build New MacArthur Airport Terminal

The Town of Islip announced Monday that Fly Long Island — a joint venture between real estate firm RXR and airport operator Avports — has been chosen as the preferred developer to construct a replacement terminal at Long Island MacArthur Airport.

The town launched a request for qualifications in 2025 to find a developer capable of designing, building, and operating a new terminal at the Ronkonkoma facility, along with a direct connection to the adjacent Long Island Rail Road station. Town officials said Fly LI Partners has been put forward to the Town Board as the top candidate, though the board is still completing its due diligence ahead of any final vote.

Competing developers were given a choice between two design approaches: erecting a brand-new terminal north of the airport with a direct physical link to the LIRR station — such as a monorail or enclosed walkway — or upgrading the current south terminal while pursuing an alternative rail integration strategy.

Substantial public funding underpins the effort. New York State committed $150 million in 2025 for infrastructure upgrades around the LIRR station, and Suffolk County added a pledge of $50 million for the surrounding area.

Even so, the town board voted 3-2 last week to hold back $250,000 that had been earmarked for outside legal, financial, and planning consultants working on the project. Council Member John Lorenzo, one of the dissenting votes, argued that the board should first see the results of a separate Suffolk County request for proposals covering nearby county-owned land before authorizing further spending.

"Now we want $250,000 more and we don't even know what the county RFP is going to produce," Lorenzo said. "So, I say we pump the brakes."

Town Supervisor Angie Carpenter said she hoped the funding question would be addressed at a future meeting.

RXR, which is based in Uniondale, ranks as Long Island's largest commercial property owner and is among the development teams working on the new Terminal 6 at JFK International Airport. MacArthur Airport welcomed more than 1.3 million passengers in 2023, and officials expect those numbers to climb as the airport continues its expansion.