Islip taps RXR to advance MacArthur Airport redevelopment plan
Islip’s tentative choice of RXR could push MacArthur Airport toward a north-terminal overhaul, with a $150 million rail link and new stakes for traffic, jobs and tax revenue.
The Town of Islip has tentatively selected RXR to move forward on Long Island MacArthur Airport redevelopment, a move that could shape traffic, noise, jobs and tax revenue across central Suffolk County. The plan puts a major New York City developer at the center of a long-running push to turn the airport into a bigger economic engine for the region.
Islip began searching for a developer in spring 2025 and initially weighed two paths: building a new terminal at the north end of the airport or revamping the existing south terminal. The town later narrowed its focus to a developer that wants to build the north terminal, making the selection of RXR the clearest sign yet that the project is shifting from broad concept to a more specific redevelopment track.
The airport plan is tied to transportation as much as construction. The Long Island Federation of Labor, AFL-CIO, has said the goal is an upgraded air terminal that could accommodate additional flights and connect to the Ronkonkoma Long Island Rail Road station north of the airport. Islip’s April project guidelines required that connection, and Gov. Kathy Hochul added momentum on Feb. 12, 2025, when she announced a $150 million state investment to connect MacArthur Airport to the Ronkonkoma station.
That rail link could prove as important as the terminal itself. A stronger connection to the Ronkonkoma branch would make MacArthur more useful to business travelers and Long Island commuters, while also increasing pressure on nearby roads, parking areas and surrounding commercial strips if passenger volumes rise. Any airport expansion also raises the familiar Suffolk County tradeoffs: more construction jobs and long-term airport work on one side, with added noise, congestion and land-use tension on the other.
Islip Supervisor Angie Carpenter has said the project would create high-paying jobs and spur economic opportunity. That promise matters in a county where major redevelopment often comes down to whether public assets can generate broader returns without pushing new costs onto nearby neighborhoods.
MacArthur already has signs of renewed momentum. JetBlue announced in 2024 that it would serve Long Island MacArthur Airport, and the airport was nominated for USA Today’s 10Best Small Airport readers’ choice award for a fourth year. Islip later said MacArthur finished second on the list, a boost in visibility that gives the redevelopment push a more marketable backdrop than the airport has had in past years.
What is different now is the combination of a named private developer, a state-financed rail connection and a clearer north-terminal direction. For Islip residents, that means the next phase of the airport debate is no longer just about whether MacArthur should grow, but who benefits first when it does.
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