Council authorizes airport lease and preliminarily approves up to $300 million in Aviation Board bonds
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Summary
Council approved a five-year lease for GATT Airline Ground Support Inc. at Louis Armstrong New Orleans International Airport and granted preliminary approval for up to $300 million in New Orleans Aviation Board revenue refunding bonds to finance airport capital improvements.
The City Council approved two airport-related measures: an ordinance authorizing the New Orleans Aviation Board to enter a five-year lease with GATT Airline Ground Support Inc. at a facility near Louis Armstrong New Orleans International Airport, and a resolution granting preliminary approval for the Aviation Board to issue up to $300,000,000 in revenue refunding bonds.
Councilmember Green described the lease ordinance as a staff-recommended action that authorizes the Aviation Board to execute a five-year lease for a ground-level office/warehouse facility in Kenner; the ordinance was moved, seconded by Councilmember Leslie Harris, and passed by recorded vote, 7-0.
On the bond resolution, Green explained that state law authorizes the Aviation Board to issue bonds in its own name and that the board’s credit is separate from the city’s. The $300 million authorization would allow the Aviation Board to refinance prior series and finance capital improvements. In public comment, a resident expressed concern that refinancing shifts long-term costs onto airport users and that airport debt service comprises a large share of airport operating budgets. Council members clarified that airport revenues and debt are self-contained and not part of the city’s general fund. The resolution passed by recorded vote (7 yeas).