Charlotte-Douglas Airport (CLT) Expansion

[carolinagarnet]

I wonder how low the emplanement costs will be when the city gets pissed and starts billing the airport for everything.

[atlrvr]

I haven't followed this all that closely, but how is the state just allowed to take the airport from the city? Seems the city has invested a lot of money into the airport area to make it what it is today. How can a bill simply strip that away? Seems like this should be an FAA or DOT issue, not something that is decided by politicians, many of whom want to stick it to Charlotte whenever possible.

 

I think this is what most people are missing in this.  To the best of my knowledge, the city has invested little to no money in the airport.  The airport and the federal govt have paid for everything.  The airport is a "profitable" entity that uses its revenue to build runways, buy land, improve the terminal.  Therefore, everything that would become property of the authority was bought by the airport itself. 

 

The idea that the state is taking city assets is wrong in this case.  This is essentially an independent city-department that already runs like a business with its own budget and CEO, being spun-off into an independent department that runs like a business where the CEO isn't appointed by the City Manager/City Council.

[tozmervo]

But aren't all the construction projects financed by city backed bonds? I thought that's one of the things that had the NC Treasurer on edge.

[Niner National]

But aren't all the construction projects financed by city backed bonds? I thought that's one of the things that had the NC Treasurer on edge.

That was what I thought as well, but maybe I've misunderstood.

[rooster8]

The bonds are indeed in the City's name. They are revenue bonds, which means they are to be repaid using revenue from the airport fees.

*Edited to remove incorrect information.*

Edited April 23, 2013 by rooster8

[allthingsplanes]

While I think the money issues are very important, the thing about this situation that stinks the most is the fact that while this airport is located within Mecklenburg County and the city of Charlotte, those two entities will seemingly have the least amount of influence on the authority.  That would be like saying that only people from other cities / counties could sit on a school board.

[atlrvr]

The bonds are indeed in the City's name.  They are revenue bonds, which means they are to be repaid using revenue from the airport fees.  In theory, the City would be on the hook if there is not enough revenue to pay the debt, but that is pretty unlikely.

 

This is not true.  The city is not on the hook, but the bond holders COULD force the airport in Bankruptcy if the airport doesn't pay.  I do agree it is likely the city would step in and make up the difference if the airport couldn't pay the debt from airport revenues.

 

All that said, the bonds are rated assuming the city would not help, and the interest rate the airport pays is essentially indifferent, as bond investors don't assume the city would help cover payments.

 

Airport construction is financed by airport back bonds, not city backed bonds. (this is to answer tozmervo) 

[ssh214]

On a completely different note I just wanted to do a quick rant on how expensive it is to fly to the Miami area from Charlotte. I have to leave at 6 am in the morning on Monday and connect through DC and it still is over $325 for one night  ... Sorry for the maybe off topic rant but I have nobody else to share this with. I want Spirit AIrlines to fly to Charlotte!

[tozmervo]

Dorsch needs to go, he has completely abused his position and his secretive dealings behind the back of the council is inexcusable.

Alex

 

 

Dorsch needs to be fired. When you are a public official, whether elected or appointed by an elected official, you have no "private opinions". Anything you say, whether in public or in private, will be picked up by the media and used for you, or used against you. The whole "I am speaking personal opinions as a private citizen that is none of the city's business" thing is a ruse. I have the feeling though that Dorsch is snuggling up to the right people to get on the airport authority board once that comes to pass because unfortunately, I know it will pass. Once it does pass though, I have a feeling that lawsuits will begin to fly.

 

And yay verily, Foxx said "let it be so," and it was so.

[Norm2]

And yay verily, Foxx said "let it be so," and it was so.

 

So the other board members asked Dorsch to step down.....and he refused! So the board members asked the Mayor to remove him, which he did. The fact that his peers asked him to step down and he would not is just.....very arrogant! Riles my feathers.

[uptownliving]

This is not true.  The city is not on the hook, but the bond holders COULD force the airport in Bankruptcy if the airport doesn't pay.  I do agree it is likely the city would step in and make up the difference if the airport couldn't pay the debt from airport revenues.

 

All that said, the bonds are rated assuming the city would not help, and the interest rate the airport pays is essentially indifferent, as bond investors don't assume the city would help cover payments.

 

Airport construction is financed by airport back bonds, not city backed bonds. (this is to answer tozmervo) 

 

What you describe is how it is done now and in the recent past. However you don't have to go back too far to when the city did use general revenue bonds to pay for capital projects at the airport.

 

In any case this is pretty much a done deal with the NC Legislature...we shall see if the bond holders go along with it or not.

[Norm2]

So apparently the mayors of Mooresville, Waxhaw and Matthews have signed a letter asking for the airport authority bill to be delayed. WOW!

 

http://www.charlotteobserver.com/2013/04/25/4003485/mayors-urge-delay-on-airport-bill.html

[tozmervo]

The mayors of Matthews, Huntersville and Belmont were on Charlotte Talks this morning and seemed very disturbed by the State's actions. NCGA seems to be systematically pissing everyone off.

[MilZ]

Its good to hear some polititians actually being reasonable and at least trying to see if there might possibly be detrimental consequences. Understand the situation as much as possible before you fix something that isn't broken.

[allthingsplanes]

Isn't it interesting the difference in reaction between mayors and county board/commissions?  I think Mayors can much better understand the idea of city loosing control of something within city limits.

[49er]

I know this is an aside, but the local govt's are pretty much completely upset over HB150, which proposes to strip cities from having design requirements for single family residences. It's kind of funny in a way, seeing the local republicans so upset with their brethren in Raleigh. ETJ is also on the chopping block, so I can see why some of these mayors aren't happy with the GA. 

[Norm2]

I find it kind of funny that the republicans in Raleigh are pissing off the republics in the Charlotte area......and not only just over the airport issue.

[jednc]

Apparently the city funded independent study is recommending the Airport be run by an independent authority.

 

http://www.charlotteobserver.com/2013/04/25/4003837/city-funded-study-recommends-airport.html

[15895]

^ with Charlotte Mecklenburg having much more representation. Which is what everyone is saying... Slow down, let's talk & more representation for CLT.

[Norm2]

^ with Charlotte Mecklenburg having much more representation. Which is what everyone is saying... Slow down, let's talk & more representation for CLT.

I agree, and there should be no reason for the governor and the state to be appointing anyone to the board, period.

[Dale]

Apparently the city funded independent study is recommending the Airport be run by an independent authority.

 

http://www.charlotteobserver.com/2013/04/25/4003837/city-funded-study-recommends-airport.html

 

Ruh-roh.

[15895]

Ruh-roh.

Ruh-Roh?

This was excellent for Charlotte. It basically calls the current plan crap and said Charlotte has done an excellent job at running the airport.

So it appeases both sides. The big conundrum was Charlotte was going to lose representation.

This problem with the airport is simple; it had nothing to do with the airport... The STATE is playing politics with our airport. I'm willing to listen to an authority. But not get our representation completely stripped, being told we can't manage our airport, making the other airports safe from regional control, and being stabbed in the back & secret meetings about taking away our assets.

[MilZ]

Haha won't stop dorsh from thinking he won

[Dale]

Ruh-Roh?

This was excellent for Charlotte. It basically calls the current plan crap and said Charlotte has done an excellent job at running the airport.

So it appeases both sides. The big conundrum was Charlotte was going to lose representation.

This problem with the airport is simple; it had nothing to do with the airport... The STATE is playing politics with our airport. I'm willing to listen to an authority. But not get our representation completely stripped, being told we can't manage our airport, making the other airports safe from regional control, and being stabbed in the back & secret meetings about taking away our assets.

 

Wow! Are we even reading the same article ?

 

' ... turn the airport over to an independent authority ... deals a potential blow to city officials."

 

In any case ... chill. As a new Charlottean, I honestly hope for the most prudent resolution. That said, I think this knee-jerk "yahoos seeking recompense against the fair city" is a little transparent.

 

[15895]

Wow! Are we even reading the same article ?

' ... turn the airport over to an independent authority ... deals a potential blow to city officials."

In any case ... chill. As a new Charlottean, I honestly hope for the most prudent resolution. That said, I think this knee-jerk "yahoos seeking recompense against the fair city" is a little transparent.

I don't view it as a blow. That's just my opinion.