Grand Traverse County hears Cherry Capital Airport request for up to $71 million in county-backed bonds amid tree and noise concerns

County commissioners on Monday heard a presentation from Cherry Capital Airport and its advisers seeking a county pledge of up to $71 million in full faith and credit to support a $120 million terminal expansion.

Kevin Klein, speaking for the airport, said the project would be split across two bond series and federal funding, with roughly $60 million of federal grants assumed and $60 million to be financed by bonds (roughly $11 million in financing costs make the county’s requested pledge about $71 million). "This allows the project to proceed, sign contracts and comply with FAA grant requirements," Klein said during the presentation.

The airport’s consultants presented the financial plan and revenue assumptions. Christina Woodward of Recondo & Associates said the capital program was modeled with conservative forecasts and that pledged revenues would include passenger facility charges, parking, terminal rents, rental-car concession fees and other non-airline revenue. Sean Wall of PFM, the airport’s municipal adviser, told commissioners the illustration tied to current market assumptions produced a not-to-exceed principal near $70.8 million and an illustrative true interest cost around 4.73 percent.

The airport team cited recent and local passenger volume as part of the justification: Klein reported 787,114 passengers in 2024 and said the airport was up about 24 percent year-to-date. He said roughly 175,000 of those passengers live within 10 miles of the airport, and termed the investment a community partnership that supports local jobs and businesses.

Residents who spoke during the public-comment period urged caution. Tracy Talbot, a lifelong Traverse City resident, said she supported keeping the airport in town but opposed the county backing the $71 million bond and warned that airport growth "could mean removing 80 trees in Oakwood Cemetery," a 165-year-old city park. Tom Brooklyn, who represents the Oakwood Triangle Neighborhood Association, made similar points about old-growth trees and noise, and asked the county to delay expansion and study sites outside the city.

Airport officials responded that "there is no project for tree cutting in Oakwood Cemetery at this time," and that tree-height and navigation easement matters are governed by city and federal rules. Klein and Carrie Sites, the authority’s legal counsel, said past easement negotiations included payments to property owners and that future mitigation or replanting programs have been discussed; Plomondon, chair of the airport authority, said the airport had discussed investing in cemetery improvements but reiterated there was no active tree-removal project.

Pat McGow, bond counsel to the airport authority, reviewed the bond documents and the county pledge mechanics. He described the two primary documents—an airport bond ordinance approved by the authority board and a county resolution that would include the full faith and credit pledge—and explained protections built into the ordinance: a bond reserve account (roughly a year’s debt service), a rate covenant aimed at 125 percent coverage of annual debt service, and additional-bonds tests requiring demonstration of sufficient future revenues.

Steven Burke, the county’s financial adviser, told the board the county has legal capacity to make the pledge but cautioned that timing and cumulative borrowing matter for the county’s credit rating. He said his updated analysis pushed the likely tipping point for a rating downgrade closer to $100–125 million of additional county debt if all projects were issued at once; staged issuances and revenue growth could mitigate that risk. "These protections—reserve and rate covenants—improve the likelihood the county general fund will not be called on," Burke said.

Members of the board pressed for more supporting data. Commissioners asked for the detailed spreadsheets behind summary charts, breakdowns of assumed matching funds and PFC projections, and a written record about any plans affecting Oakwood Cemetery. Airport officials said they would provide the additional information and modeling the board requested.

At the meeting’s end, commissioners had not taken a formal vote on the county pledge. Staff and advisers said follow-up materials and ordinance drafts would be provided to the board ahead of any formal resolution or vote.

The presentation is expected to return for further consideration once staff distributes the requested financial breakdowns, sensitivity analyses and written clarifications about tree mitigation and zoning processes.