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Council approves TEFRA resolution, moves ahead on $105.7 million airport bonds to expand terminal and rental‑car facility
Summary
Council adopted a resolution required for tax‑exempt bond issuance and authorized a bond ordinance to fund a new concourse, terminal expansion and a quick turnaround rental‑car facility; staff said conservative financial modeling and airline participation support feasibility.
The council approved a TEFRA‑compliance resolution and authorized an ordinance to issue up to $105.7 million in full faith and credit bonds for airport projects, including a portion of a new terminal concourse and a quick turnaround rental‑car facility (QTA).
Jason Neff and Airport Director Zach Bass presented project scope, financing structure and conservative revenue projections. The $105.7 million request includes roughly $90 million allocated to the terminal portion included in this issuance, $5 million for the QTA, up to $700,000 in issuance costs and $10 million set aside for capitalized interest during construction. Bass described a new west concourse with seven jet bridges, 50,000 square feet of expansion and increased gates and concessions; the total terminal project budget is $180 million but only part was included in this series of bonds.
Neff said bond debt service is expected to be paid from airport operating revenues (passenger and facility fees) and that the issuance is structured as the city’s full faith and credit bonds. He and staff showed a 20‑year cash‑flow model built on conservative assumptions (2.5% annual passenger growth in projections, periodic capex and limited new non‑airport revenue assumptions) and described layers of protection including existing cash reserves and projected operating surpluses. Bass said the airport produced operating surpluses in recent years and that airlines have agreed in principle to contribute toward debt service beginning when the expanded terminal opens in 2028.
Council held a public hearing on the financing and then voted to approve Resolution 2025‑01 (TEFRA compliance) by voice and passed Ordinance 2025‑06 (authorizing issuance and delegation) on roll call. The final roll call recorded all councilors present voting yes.
Staff outlined the procurement timeline: enabling work begins this summer, construction award for the terminal GMP is expected in May and a two‑year construction cycle is planned; the QTA design and bid schedule would proceed in mid‑2025 with construction to complete in early 2026. Neff and Bass said airport debt service ratios are in line with the 2009 terminal project when measured against operating revenues and that the modeling shows the airport can support the proposed bonds under conservative assumptions.
