Pease Development Authority board hears $75.5M capital plan and renews $7M revolving line of credit

The Pease Development Authority board heard a finance presentation laying out a proposed capital program of roughly $75.5 million over the next six and a half years and approved an associated short‑term financing move.

Finance staff reported consolidated operating revenues for the nine months ended March 30 are about 4.4% above budget while operating expenses are 1.7% under budget, leaving unrestricted cash at about $16.1 million. The proposed capital plan is roughly half grant‑funded and half internally funded; staff emphasized sensitivity to future FAA grant availability for airport projects and the need to preserve operating margins to sustain capital reinvestment.

Major internally funded items identified included a replacement of the air‑traffic control tower and construction of a new maintenance building. Staff said the air‑traffic control tower project cannot be postponed indefinitely and that, given FAA priorities, the PDA should plan to finance work privately while continuing to apply for grants.

To bridge near‑term capital needs, Director Farini moved that the executive director be authorized to renew the PDA’s $7,000,000 revolving line of credit (three‑year term), per the memorandum of the director of finance dated May 6, 2025. The board approved the motion by voice vote.

Staff presented cash‑flow projections showing unrestricted PDA cash declining to about $8.7 million over the coming nine months after planned capital spending, and port/harbor division cash dipping toward about $600,000. Days cash on hand was reported near 35. Staff said they expect to draw on the line of credit sometime in the planning horizon and that payoff could take several years once projects are complete.