09/09/1987 Meeting - Laserfiche WebLink

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Mr. Wong distributed copies of a chart titled IIFinance, Airport Terminal Expansion Project REVENUE BONDS. II Discussing the $9 million revenue bond, e Mr. Wong said $5.91 million will be provided by the airlines for the terminal expansion project. In addition, there will be issuance costs of $180,000, capitalized interest costs of $1.71 million, debt service reserve costs of $900,000, and an allowance for issuance size of $300,000. He said 20-year bonds will be issued but payments on the principal will not begin until the third year because the airlines will not begin paying until they have occupied the facilities. Mr. Wong said $9 million in bonds is the most that will be issued. The sta ff and airline officials are considering ways to reduce the amount. He sa i d the council will consider awarding the bonds in 1988. Referring to a September 8, 1987, memo from Councilor Holmer to the Mayor and Council, Mayor Obie said Mr. Wong's remarks answered Mr. Holmer's concern about the bonds. Mr. Rutan said the cost to the public of the airport terminal expansion project has not increased. The airlines have asked for changes totaling about $910,000 which they will pay for. Some of the changes are needed because Continental Airlines is now serving Eugene. Mr. Wong added that the $18,341,000 cost of the terminal expansion project has not changed since the council authorized it. He said the amount of the project funded by the airlines may increase and that would reduce the General Obligation Bond that will pay the public's share of the project. Answering a question from Ms. Wooten, Mr. Wong said he guesses the General e Obligation Bond will be $500,000 to $700,000 lower. He expects the public's share of the project to be about $5 million. Res. No. 4051--A resolution of the City of Eugene, Oregon, authorizing the issuance of airport revenue bonds for a total not to exceed $9,000,000, and providing for publication-of notice. Mr. Rutan moved, seconded by Mr. Miller, to adopt the resolution. Roll call vote; the motion carried unanimously, 5:0. Mr. Bennett arrived at 1:22 p.m. VII. ORDINANCE CONCERNING AIRPORT FEES AND CHARGES City Manager Micheal Gleason introduced the item. Bob Shelby, Mahlon Sweet Airport Director of Aviation, said the ordinance before the council makes Section 2.417 conform to other sections of the City Charter which give the City Manager the power to assign duties to administrative employees. The ordinance also clarifies airport rule-making procedures and establishes standards and procedures for setting airport fees and charges. e MINUTES--Eugene City Council September 9, 1987 Page 9