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Hot Springs County moves forward with USDA loan application for new airport hangar
Summary
The Hot Springs County Board of Commissioners approved forms to begin a USDA financing application for a $1.3 million, 100 ft. x 90 ft. hangar at the county airport while continuing to explore local bond and bank options.
The Hot Springs County Board of Commissioners on March 16 approved measures to begin a USDA loan application to finance a new 100 ft. x 90 ft. hangar at the Hot Springs County Airport.
Commissioner Bob Aguiar and Commissioner Tom Ryan described the capital need and the county’s plan to seek $1.3 million in financing for construction. County Clerk Becky Kersten noted the USDA loan requires automated clearing-house payments and told the board she had informed the county treasurer to prepare. "The rate will never go above 4.625%," Kersten said of the USDA offer, and she added that the USDA will lower the rate if a lower benchmark becomes available.
The board voted to sign the federal application form SF-424 and related assurances to allow the USDA process to proceed while the county pursues local financing alternatives. Commissioners emphasized the USDA loan's lack of a prepayment penalty and a 30-year term as advantages, but also discussed federal project costs and administrative requirements that can increase total project expense.
The county will continue evaluating interim financing options and expects to use airport enterprise funds and entitlements as early revenue cushions. The board also authorized staff to collect community letters of support and to sign a commitment letter from a bond attorney once received.
