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Commissioners table airportfull-faith-and-credit request after hourslong debate over risk and savings
Summary
After hours of testimony, the Grand Traverse County Board of Commissioners voted to table a request to pledge county full faith and credit for airport revenue bonds so staff and the countyfinancial consultant can re-run stress tests with an alternate project timeline and answer residentsquestions about risk to county projects and the Cherry Festival air show.
The Grand Traverse County Board of Commissioners on Dec. 3 tabled a request by the Northern Regional Airport Authority to have the county pledge its full faith and credit behind roughly $71 million of revenue bonds for a planned terminal expansion.
The airportauthority and its financial advisers told the board the pledge would lower interest costs and save an estimated $16.2 million in interest over 30 years, roughly $375,000to $528,000 a year in net savings depending on the bond series and financing assumptions. Airport representatives said the passenger facility charge (PFC) is already pledged to the project and cannot be raised beyond federal caps, and that rents or airline rates could absorb remaining costs.
Commissioners repeatedly pressed the airport and consultants on the assumptions behind projected…
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