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Norfolk Airport outlines nearly $1 billion development plan, seeks TEFRA approval for bond financing
Summary
Norfolk International Airport told the City Council it will seek local approval under the TEFRA process for tax‑exempt private activity bonds to fund a package of projects — including a consolidated rental car facility and terminal work — with an overall development tally of about $998 million and a timeline targeting bond pricing in April.
Norfolk International Airport President and CEO Mark Perryman told the City Council during a Jan. 13 work session that the airport plans to use a TEFRA (Tax Equity and Fiscal Responsibility Act) public‑hearing process to secure local approval for tax‑exempt private activity bond financing.
Perryman said the airport is preparing three categories of financing: consolidated rental‑car facility (CFC)‑backed bonds, general aviation revenue bonds and a line of credit the authority is renewing. “We really are right at 1000000000 dollars. I just got the latest tally, $998,000,000 of development work,” Perryman said, describing a multiyear program that includes terminal work, airfield improvements and roadway projects.
Under the plan Perryman outlined, the authority would hold a TEFRA public hearing the week of Feb. 2, and the city could consider a consent resolution on either Feb. 10 or Feb. 24. He said the airport expects meetings with rating agencies in March and initial bond pricing on April 9, with sale to follow in April.
Perryman provided a breakdown of major elements in the program: “just under $500,000,000” for the terminal, roughly $30 million for airfield work, $70,000,000 already invested in runway reconstruction in recent summers, and $213,000,000 in roadway improvements. He also cited work related to a new intersection and a 15‑acre parcel at the airport entrance that would be discussed with the city as development opportunities.
Perryman described the consolidated rental‑car facility and terminal renovations as part of a broader master plan that has been brought before the Planning Commission and said the TEFRA step is a process requirement under the Internal Revenue Code for tax‑exempt private activity bonds. He said there is no immediate fiscal obligation for the city tied to the TEFRA approval itself but that the airport’s financing schedule depends on market and agency reviews.
The airport also plans to pursue state discretionary funding for a dedicated de‑icing facility that airlines requested, Perryman said. He described the overall issuance strategy as multiple rounds of financing, with certain issues (CFCs) earlier in the year and other terminal revenue bonds later.
The council did not take formal action on the presentation during the work session; Perryman invited questions and the presentation concluded with the planning update to follow.
