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The Terminal Redevelopment Program (TRP) at Salt Lake City International Airport has increased by $350 million to $2.9 billion.

The Salt Lake City Department of Airports announced the overrun at 4 p.m. Wednesday and attributed it primarily to rising construction and labor costs.

The TRP will replace the airport's aging passenger terminals, concourses and related facilities.

The first phase of the project, originally estimated at $1.8 billion, is on schedule to open in late 2020. It includes rental car service facilities, a terminal, a parking garage and South Concourse-West. But now it will cost $2.15 billion. Future phases have yet to be put out to bid.

The Salt Lake City Council will discuss a budget amendment during a work session and public hearing Dec. 6. The City Council is expected to vote on the budget amendment Dec. 13.

Utah's robust construction market has resulted in bids for labor and materials coming in higher than originally estimated in spring 2015, according to a statement from the Department of Airports. Typically, construction activity for the Utah market averages $2.5 billion annually; however, in the current economic climate, construction activity is hovering around $5 billion annually — an all-time high.

"Because of the checks and balances that the Department of Airports has in place, the airport staff was able to identify and validate the cost increases early on in the process," said Igor Best-Devereaux, airport advisory board chairman. "This enabled them to take the measures necessary to move forward and seek the required budget approvals."

The TRP increases were reviewed by the advisory board at its September and October public meetings, the statement said. According to the Airline Use Agreement, the added cost required airline approval, which was received in September.

The Department of Airports currently has signed contracts for almost 80 percent of the first phase of the TRP, which means these costs are locked in for the duration of the construction, according to the statement.

The TRP will be paid for by airport revenues, including airport surplus funds, passenger facility charges, rental-car facility charges, federal grants and revenue bonds. No local tax dollars will be used to fund the TRP, according to the airport.