REPORT TO THE CITY COUNCIL
FROM: HENRY L. THOMPSON, Director of Aviation
Airports Department
SUBJECT
Title
RESOLUTION - Declaring its official intent to use proceeds of indebtedness to reimburse the City for certain expenditures related to the Terminal Expansion Project at Fresno Yosemite International Airport (Requires 5 votes).
Body
RECOMMENDATION
Staff recommends that City Council adopt a Resolution declaring the City's official intent to use the proceeds of indebtedness to reimburse certain expenditures related to the Fresno Yosemite International Airport Terminal Expansion Project.
EXECUTIVE SUMMARY
The City of Fresno has undertaken an expansion of Fresno Yosemite International Airport (FAT) Terminal facilities (Project) to meet the growing air travel needs of the region. The vision for this Project began in 2018 and has proceeded through the planning, environmental, and design phases. Funding for the estimated $145,000,000 project has been identified and committed from numerous sources with an estimated $70,000,000 required through debt service support in the form of Airport Revenue Bonds. In accordance with federal regulations the City is required to declare its official intent to reimburse prior expenditures for the Project with proceeds of a bond issuance. The proposed resolution meets that requirement.
BACKGROUND
Council awarded Phase 1 of a progressive design build contract to Q&D Construction to provide preconstruction services for FAT's Terminal expansion program. The project is fully designed, and the Department is finalizing funding sources for Phase 2 to construct and complete the Terminal Expansion.
The attached resolution is necessary for the City to establish compliance with federal regulations (26 CFR ? 1.150-2) by officially declaring its intent to use proceeds of indebtedness to reimburse itself for prior expenditures. This declaration does not bind the City to make any expenditure, incur any indebtedness or proceed with t...
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