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County hears $38M airport plan and interim $8.5M financing proposal from consultants
Summary
Consultants told the Washington County Board the Virginia Highlands Airport Authority plans about $38 million in capital projects over five years, with roughly $9 million of local responsibility; Davenport proposed up to $8.5 million in interim financing to serve as the county’s local match and urged a drawdown approach tied to federal and state grants.
David Rose of Davenport & Company told the Washington County Board of Supervisors that the Virginia Highlands Airport Authority has identified roughly $38 million in capital improvements over five years, with about 75 percent expected to come from federal and state grants and an estimated local responsibility of roughly $9 million. "To get the roughly $28.4 million in federal and state funding, you have to have about $5.9 million in required local match," Rose said. He added about $3.4 million of elective local hangar-related projects that would generate revenue for the authority and the county.
Rose proposed an interim financing strategy of about $8.5 million, using the industrial development authority as a conduit, to be drawn down as needed and prepaid or term‑out later. "This would be a single borrowing for several years to be flexible and allow projects to be incorporated,” Rose said. He emphasized guardrails: drawdowns would occur only when both staff and the Airport Authority approved specific projects.
Mickey, the airport’s executive director, said hangar projects could generate net new property tax revenue and estimated that revenues from hangars and other projects could materialize within roughly two years. "We're thinking within a couple of years of this going forward," Mickey said when asked about timing.
Board members pressed for a conservative, drawdown approach, and asked staff to align any county decision with budget cycles and assurances about grant availability. "If it's federal funding or state funding, it depends on the percentage, but the one thing they're asking is, do you have the local share?" Mickey said, describing grant conditions. Rose said the county's current support is roughly $530,000 a year and the proposed additional annual request would average about $600,000, meaning a modest net increase in county outlay over time.
No formal county action was requested that night; consultants asked only for the board's feedback and suggested returning in January or, more likely, February or March with detailed financing proposals and a request to proceed with an interim financing RFP.
What's next: consultants said they would return with financing options, an RFP process for banks and brokers, and details on how a drawdown structure could be used so the county would only borrow what it needed. The board asked staff to coordinate detailed budget analysis before any formal borrowing decision.
