Detroit Metropolitan Airport Sells Bonds

April 25, 2005
The Wayne County Airport Authority sold bonds to pay for the new North Terminal project, but it might have to go to voters to approve other projects.
The Wayne County Airport Authority sold bonds to pay for the new North Terminal project, but it might have to go to voters to approve other projects.

The authority, which runs Detroit Metropolitan Airport, closed a $507-million bond sale last week. The bonds are to be repaid with a $4.50 fee the airport charges on departing passengers.

Construction for the 27-gate terminal, which will house most carriers other than Northwest Airlines, is to cost $298 million, the authority determined Wednesday. The entire project, including design, demolition and management, should cost $443 million.

The bond sale gives the airport money to pay for the new terminal to replace the Smith Terminal and will be built where the Davey Terminal stands, said airport spokesman Michael Conway.

But the airport could have trouble paying for other projects, such as expanding and upgrading hangars for Northwest and Spirit Airlines.

A union that represents janitors who were laid off last year has collected signatures to have voters decide if the airport may sell bonds to pay for that work and other airport projects.

The airport authority is to determine if those signatures are valid. If they are, the airport might have to seek voter approval to pay for some future projects.