Airport Sells Revenue Bonds And Signs Terminal Construction Contract

Airport Sells Revenue Bonds And
Signs Terminal Construction Contract

After three years of financial and design planning, the Gulfport-Biloxi International Airport will begin construction of a major terminal expansion in March 2004. The project will focus on four areas of expansion in the terminal complex – construction of new ground transportation access and traffic lanes, expanded ticket counter lobby, expanded baggage and passenger screening areas, and new baggage claim facilities. New areas will also be provided for post security food, beverage and gift concessions and a federal inspection facility for future international flights.

“The Airport Authority sold $37,940,000 Airport Revenue Bonds on February 25, 2004 to finance the project”, said Ron Werby Airport Authority Chairman, and “the bonds will be repaid with revenue from the passenger facility charge (PFC)”, he continued. The bond issue was sold through UBS Financial Services in New York City and will be retired in approximately 25 years at an effective interest rate of 5.89% including bond insurance. The Airport Revenue Bond Issue carried an “A” rating based upon bond insurance provided by ACA Financial Guaranty Corporation and a yield to bond buyers of approximately 4.99%.

Construction will begin in March 2004 under a $25,437,000 construction contract with Yates Construction of Biloxi, MS. “The construction will take about two years to complete”, said Bruce Frallic Airport Director. The project will be phased beginning with ground transportation and other infrastructure followed by expansion of the terminal building on all sides.

Total square footage in the Terminal will increase from 92,000 sq. ft. to 165,000 sq. ft. When complete, the existing airlines, AirTran, Continental, Delta, Northwest and Southeast will have 50% more area in which to expand and space for two new airlines will be available for occupancy. “The terminal is currently near capacity with total annual passengers of 850,000”, Frallic said. “And when complete the terminal will be able to accommodate up to 2.2 million total passengers,” he said.

The Airport Authority Commissioners think this “project is perhaps the most important public project undertaken on the Coast in years because it will set the tone of development for the next 20 years”, said Chairman Werby. “Tourism, business and economic development are heavily dependant upon air transportation, and this terminal project will assure that adequate capacity is in place to satisfy demand”, said Werby.

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