Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Airport Finance topic
No spam. Unsubscribe anytime.
City Council preliminary OKs $300 million airport refunding bonds and approves lease with ground‑support firm
Summary
The City Council gave preliminary approval for up to $300 million in New Orleans Aviation Board revenue refunding bonds and adopted an ordinance authorizing a five‑year lease with GATT Airline Ground Support Inc. Councilors recorded unanimous support; a resident warned refinancing costs could burden airport users.
The New Orleans City Council voted unanimously to give the New Orleans Aviation Board preliminary approval to issue up to $300,000,000 in revenue refunding bonds and approved an ordinance authorizing a five‑year lease at Louis Armstrong New Orleans International Airport with GATT Airline Ground Support Inc.
The bond authorization (resolution R25605, by request of Council member Green) is intended to refinance series 2024 bond anticipation notes and to finance additional capital improvements at the airport. Council members recorded seven yeas on the preliminary authorization. Separately, the council adopted ordinance 3500304 to allow the Aviation Board to enter a five‑year lease for a ground‑level office and warehouse facility; that ordinance passed 7–0.
The airport bond plan drew public comment from Michael Eric Burnside, who warned about the cost of refinancing. “I will bet you that the reissuance of this is gonna cost taxpayers who fly in and out of that airport more than $300,000,” Burnside said, citing general concerns about financing and bond‑related fees. The presiding officer responded with a clarification about airport finances, saying that because of federal law the airport’s funds and debt are separate from the city’s general fund and “Airport money cannot be used anywhere else but in the airport.”
Council members and staff noted that the New Orleans Aviation Board issues debt under its own credit and that board credit is separate from the city. The resolution authorizes the Aviation Board to issue general revenue refunding bonds in one or more series; the measure provides the council’s preliminary consent for the board to proceed with the refunding under its established process. The council did not record additional financing details or a final sale schedule during the meeting.
Next steps: the Aviation Board will proceed with refunding plans consistent with the council’s preliminary approval; staff and the board must complete the formal bond documents and market the bonds as required by law. The transcript does not specify the timetable for the final bond issuance or whether further city approvals will be required.
