Title
Adopt an Initial Findings Resolution and Set a Public Hearing on Airport 2022 General Airport Revenue Bonds and Bond Anticipation Notes
Action
Action:
A. Adopt an initial findings resolution and authorize the Chief Financial Officer to make appropriate application to the Local Government Commission for issuance of General Airport Revenue Bonds not to exceed $425,000,000 and revenue bond anticipation notes not to exceed $300,000,000, and
B. Adopt a resolution setting a public hearing on April 11, 2022, for this financing as required by Internal Revenue Service regulations.
Body
Staff Resource(s):
Haley Gentry, Aviation
Teresa Smith, Finance
Matthew Hastedt, Finance
Explanation
§ Authorize the issuance of up to $425,000,000 General Airport Revenue Bonds (GARBs) to provide permanent financing for projects listed below, including expenses funded with short-term construction-period financing issued in 2021.
§ This action would also authorize a new construction period financing program for up to $300,000,000 in short-term notes to provide financing for other projects that are in the design phase; it is expected that permanent financing for these projects will be secured in two or three years.
§ The 2022 GARBs will provide long-term financing for the following or other similar projects which are part of the Aviation Capital Investment Plan:
- Terminal Lobby Expansion,
- Terminal Lobby Expansion - Canopy, and
- Terminal Lobby Expansion - Roof.
§ The 2022 Bond Anticipation Notes will provide short-term financing for the following or other similar projects:
- Concourse A Expansion Phase 2,
- Federal Inspection Facility Renovations,
- North End Around Taxiway and Relocation,
- Taxiway F Extension, Deice Pad, and Taxiway South Cross Field, and
- Concourse E Dual Taxilanes.
§ Long and short-term financing authorized by these actions is secured by Airport revenue, and the Airport’s signatory airlines have approved the projects.
§ Prior to issuing this debt, a third-party feasibility study will be completed to indicate that sufficient revenues are forecasted to be available to repay the debt.
§ Debt issuances must be approved by the Local Government Commission (LGC). Action A authorizes the City to submit an application for the issuances to the LGC for approval.
§ Internal Revenue Service regulations require a public hearing on new, tax-exempt, debt-funded projects. Action B sets a public hearing for April 11, 2022.
Fiscal Note
Funding: Airport Debt Service Fund
Attachments
Attachment(s)
Initial Findings Resolution