01/15/1986 Meeting - Laserfiche WebLink

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e e e Mr. Chase said the airport is exceeding the projections in the long-range plan. The expansion is designed to serve five airlines and two 727 stretch aircraft simultaneously, which is occurring now. Discussing financing of the airport, Mr. Chase said 66 percent of the people using the airport are from outside the Eugene/Springfield area. Thirty-six percent of the people in the airport use the restaurant and lounge, 25 percent use car rentals, and 23 percent use the gift shop. Forty-three percent of the airport users who do not live in the Eugene/Springfield area use local mote~s and hotels. Mr. Chase said an increase in the room tax is very reasonable and is the key to putting a financing package for the expansion together. It will help lease negotiations with the airport and service providers. They are asking what the community will do to help finance the expansion. An increase in the room tax will respond. Mr. Chase said alternate ways of financing the expansion are being explored. The Federal Aviation Administration (FAA) trust funds are generated by an eight percent ticket tax, and additional FAA trust fund moneys are being requested. State lottery funds are being sought. FAA ticket user fees could finance 24.3 percent, the on-site use of the facility could finance 53.4 percent, the room tax could finance 18.3 percent, and the lottery funds could finance four percent of the expansion. Mr. Chase said the Airport Commission recommends that no changes in the design of the expansion be considered until the negotiations for user fees and discussions with the bonding underwriters are completed. He said some of the cuts being proposed in the design will decrease revenue producing space. He said the design is not ostentatious. It is a good design, but if reductions must be made, the Airport Commission has assigned priorities to suggested changes. He said changing the project will increase the design costs. Answering a question from Ms. Wooten, Mr. Chase said structural changes in the expansion seem to be counter-productive. Non-revenue producing areas of the terminal are the baggage claim area and the observation area, and Mr. Chase did not think the public would want those areas reduced. Mr. Shelby distri- buted two pages indicating potential cost reductions to the councilors. Answering a question from Ms. Ehrman, Mr. Chase said some improvements in the expansion might be deferred until later. Responding to a question from Mayor Obie, Aviation Director Bob Shelby said the Airport Commission may recommend deferring some of the expansion after the negotiations with the airlines. He discussed how the expansion can be funded. He said increased fees are being requested from the airport's service providers. He recommended no changes in the design be made until the negotia- tions are complete. Only about $3 million of construction needs to be funded by the community now. He said more space for American and PSA airlines has been added to the design. A snack bar in the lobby was added at the council's request. Council also requested more landscaping along Greenhill Road. MINUTES--Eugene City Council January 15, 1986 Page 3