Airport board narrows financing options for Apron A2; favors 15-year Banner Bank loan if it can fund full amount

The Truckee Tahoe Airport District Board of Directors on Thursday reviewed competitive proposals from eight lenders to finance the $4.1 million shortfall on the $5,500,000 Apron A2 construction project and gave staff direction to pursue a 15-year installment-sale loan with Banner Bank if Banner can commit to the full amount. Staff and the board discussed interest rates, rate-lock windows, prepayment premiums and ancillary conditions such as deposit relationships and insurance requirements.

Board members were presented with a ranking of bids by interest rate and a financing-scenario comparison prepared by Oppenheimer, the district's placement agent. Tri-County Bank and River City Bank submitted low-rate proposals for various terms but had conditions that the placement agent flagged as potentially problematic: Tri-County's quote carried a short floating rate lock (three to four weeks before closing), increasing interest-rate risk; River City required an in-person…