11/17/1986 Meeting - Laserfiche WebLink

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negotiating with the airlines on agreements which essentially call for the airlines to make a debt service payment on a certain amount of money. He e said it also guarantees that if there is an operating deficit at the airport, the airlines will make up the difference. He said that if airport revenues exceed expenditures, operating profits will result. He said that projections indicate that profits will come on-line between 1990-1992 and profits are to increase substantially within 10-15 years. Mr. Wong said these are profits after the debt service is already covered. In answer to a question by Mr. Holmer, Mr. Wong said that a revenue bond, without general obligation backing, has a higher rate of interest than a general obligation-backed bond. A revenue bond without general obligation backing would require that a debt service reserve be set up, as well as a coverage ratio. Mr. Wong said the airlines have tentatively agreed to fund the debt service and coverage ratio. Mr. Wong said the airlines would not share in the two percent car rental tax because it would be a city-wide tax, not a revenue of the airport. He said that the car rental tax will also apply to other car rental agencies in the city, not only those agencies located at the airport. Christine Andersen said there are two parts to the airport project--the land/air side and the terminal side. She said the design work on the land/air side includes taking the work that was prepared last summer, reconfiguring it for the entire land/air side, and putting out an advertisement for bids by mid-February and construction could begin in May. It would be a 12-month construction period, but by starting in mid- Mayor June it would allow the City to complete the paving work on the project before the terminal activities were started after October. She e said that lighting and landscaping work would continue after October. .On the terminal side, Ms. Andersen said that in order to keep within the proposed schedule, design authorization will be needed by December 10. She said that will allow eight months for the design work on the terminal to be completed, advertisements for bid would be initiated in mid-August, and construction could begin in November. Land work would be done first to get the pavi ng work completed before construction begins on the terminal to keep disruption of airport operations minimal. She said that if the City is unable to get a construction date which will a 11 ow a complete construction season out at the airport, it could turn into a two- year paving activity. Ms. Andersen said that by January 1, 1987 the Lane County road fund issue wi 11 be settled. She said that these funds are tied closely to the land/air side of the program. She said that in order to move forward on a March 31 election date, it is necessary for the council to decide on the amount of the bonded figure that will be put on the ballot by January 10. She said that it is anticipated that the County road funds will be allocated for that project--but that staff is preparing a contingency plan in case the funds are not available. She said that if the council does not opt to pay for the full $750,000 in capital projects as payment for the project, whatever remains would be a recommended gap closure for County road funds. e MINUTES--Eugene City Council Dinner Session November 17, 1986 Page 4