HomeMy WebLinkAbout2003-02-10 Correspondence AVIATION COMMERCE PARK (ACP)
City Council - Airport Commission policy on the distribution of sale/lease proceeds from the
Aviation Commerce Park (ACP).
Purpose: Upon sale/lease of ACP property, the monies generated will be distributed to the
following obligations, in order of priority; that is, each obligation is to be fulfilled
before distributing money to the next obligation.
1. Aviation Commerce Park - ACP Capital debt
The current debt on the ACP is approximately $1.6 million. General obligation bonds and
internal financing have been used to construct ACP. Monies from the sale/lease of ACP
property will reduce the principal - interest costs of the existing debt plan as a 1st priority.
2. Other Airport Capital debt
Several internal loans used to cor)struct airport improvements (e.g., hangars) will be
repaid in order to reduce annual tax subsidy. It is expected that all properties will
continue to require market rate rentals on all income generating property.
3. Improvement Reserve - Depreciation Account
Create an account for the purpose of financing future airport capital replacement as well
as serve as match for grant program.
*To the fullest extent practical, interest income generated after repayment of debt
will accrue as revenue to the Airport.
rngrlacp-p[an.doc