XNA Finance Committee Updated On New Master Plan

— Regional airport staff members will have a new toy to play with when the 20-year master plan is completed later this year.

The plan will include a financial planning tool to estimate the cost and economic impact of projects as well as match anticipated revenue with capital needs.

At A Glance

What’s Up

Potential projects identified in an updated 20-year plan for Northwest Arkansas Regional Airport include a second concourse, a parking deck and expanded areas for car rental companies and airlines. The airport board is being urged to reserve space on the east side of the property for a second runway, but it isn’t expected to be part of the plan.

Source: Staff Report

"We're going to be able to use this going forward as the market changes," said Kelly Johnson, airport director.

The master plan will include a financial overview of capital improvement projects and funding, said Andrew Borden, with Leigh Fisher, a consulting firm working on financial aspects of the plan.

"We'll focus on the projects and where the dollars will come from to pay for them," Borden told airport directors Wednesday.

Two pressing projects, an access road and a 900-space parking deck, will be included in the plan with detailed individual financials. Two other projects, a second concourse and a second parking deck, expected to be needed in 20 years will get the same treatment.

"We anticipate you will have to issue bonds to pay for those projects," Borden said.

The airport appears to be in good position, financially, going forward, said Scott Van Laningham, executive director and CEO. There's still wiggle room under the airport's debt ceiling and bonds issued last year will be paid off in 2027.

A toll system or airport access fee could be used to help pay for the access road. Officials could decide to begin collecting a fee or toll on airport-owned roads to raise money for the access road. A four-lane access road from the planned U.S. 412 bypass to the airport is expected to cost about $38 million. A two-lane road would cost about $30 million. Right-of-way acquisition is expected to begin in 2017 but could happen sooner.

"I think when we buy that first piece of right-of-way, we'll see things change," said board member Art Morris.

"I hope the first one is that old boot shop," Van Laningham quipped. The building is directly across from the airport's southern entrance.

The plan will list an estimated $210 million in capital projects, equipment replacement and maintenance projects, along with alternatives, Van Laningham said. It also will serve as a land use plan, indicating how, when and which areas of property will be developed. It will have a schedule for projects and show where the money will come from to pay for it all.

The document, being developed by Meade and Hunt, looks at projects expected to be needed within the next five years, five to 10 years out and 10 to 20 years down the road.

NW News on 04/17/2014

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