Provo Council OKs $14.5 million interim loan for airport apron expansion

The Provo City Council on Jan. 28 approved a resolution authorizing the city to accept a $14,500,000 interim loan from the State Infrastructure Bank to complete terminal apron paving at Provo Municipal Airport.

Airport Director Brian Torgerson told the council the city previously contracted engineered fill and placed borrow to prepare the apron area; settlement has occurred and final pavement work can begin once interim funds are secured. Torgerson said the Metropolitan Area Government (MAG) awarded $16,900,000 toward the project but those MAG funds are not available until 2028, creating a shortfall the city will cover with the state loan until MAG disburses its award.

The loan is structured to be repaid from the MAG award when it becomes available. Torgerson said the State Infrastructure Bank offered a favorable rate, cited in the presentation as about 3.08 percent, and the city has the option of a single “balloon” repayment timed to the MAG disbursement. He said construction is expected to start when weather warms and the ground is no longer frozen.

Council members asked clarifying questions about who pays interest and timing. City staff said MAG will cover the interest burden, so the city’s general fund is not expected to directly shoulder the interest cost. No public comments were received on the item. The council used an implied motion and voted 7–0 to approve the resolution.

Clarifying details: the loan amount approved by the council was $14,500,000; MAG award cited by staff was $16,900,000; MAG funding availability was described as 2028; the interest rate shown in staff remarks was roughly 3.08 percent; construction timing contingent on thawing and bid procurement.

The council approved the loan 7–0, allowing airport contractors to proceed with final pavement work pending the later MAG payment timeline.