01/15/1986 Meeting - Laserfiche WebLink

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e Answering questions from Ms. Wooten, Mr. Shelby reviewed the revenue received by the airport from private aircraft. He said the private aircraft industry is decreasing here and nationally. He said financing of $2.3 million of construction is needed to complete the financing of the airport package. Mr. Gleason added that $450,000 will be needed annually to service that debt. Answering questions from Mr. Hansen, Mr. Shelby and Mr. Gleason discussed the request for lottery funds and said it will probably be approved. Sewer user fees and revenues from airport parking will pay the loan from the lottery funds. The airlines pay annual fees which are divided among them. It is not based on the number of passengers. Parking and car rental leases are for five years, the airline leases are for one year, the restaurant lease will probably be for 10 years plus, and the display advertising leases will be for three years. When an airline leaves the area, the fee is divided among the remaining airlines. Answering other questions from Mr. Hansen and Mayor Obie, Mr. Shelby discussed when income streams will be available. He said the requested fees from the airport service providers is a 20-year average and will service $9.4 million of capital for the expansion. The airport will try to keep its fees to about the same as paid at new airports in other communities about the size of Eugene. Answering questions from Ms. Ehrman, Mr. Shelby said the user's fees will probably decrease as the bonds for the expansion are paid. The expansion will be enough for about 10 years and then more space will be needed. e Mr. Gleason discussed the computer simulations used to plan the expansion. He said the second level concourse is extremely important to the airlines. Good facilities are needed to create routes which create ridership. v. DISCUSSION OF INCREASE IN EUGENE ROOM TAX Introducing the discussion of an increase in the Eugene room tax, Mr. Gleason said six months and about $500,000 "up-front cash" are needed to prepare the bid documents for the expansion. If design changes are made, the bids will be delayed and the expansion will cost more. The room tax increase would provide the needed "up-front" cash. A general obligation revenue bond would probably be the least expensive way to finance the expansion. He said the airport would be regionally financed if the recommendations and the increased room tax are approved because Federal and State grants are regional, and a room tax is not paid by local residents and, therefore, is regional. He said it would take about two years to receive funds from other jurisdictions. Mayor Obie asked each councilor to comment on the proposal to increase the Eugene room tax. Ms. Ehrman said a room tax in Eugene only would not really be a regional room tax. She wondered about a restaurant tax. e MINUTES--Eugene City Council January 15, 1986 Page 5