May 31--With the massive makeover of Charleston International about to begin, the agency overseeing the state's busiest airport must decide how to pay for the nearly $200 million project.
The Charleston County Aviation Authority said Thursday it expects to begin issuing about $170 million in bonds in early August to finance the expansion and redevelopment of the aging terminal.
The airport owes about $3.8 million on its last bond refinancing in 2004, which is expected to be paid by 2015. It also holds a loan of $6 million from 2005, which will be paid by July 2016 or earlier, if the airport board chooses.
"We're basically going into this with no debt," airports director Sue Stevens said Thursday.
Much of the new borrowing will be financed through the $4.50 fee tacked onto boarding passengers' ticket costs. The FAA recently approved an extension of the fee through 2040.
The new bond issue is expected to be paid off over 30 years through different maturity dates.
The project will be fully funded when the bond sale starts, since Bank of America has agreed to buy what doesn't sell, said airport finance director Judi Olmstead.
The exact cost of the terminal redevelopment must be decided by June 10 to meet the issuing schedule. An airport committee meeting with contractors and others will determine the final cost before then.
The $199 million terminal overhaul includes six new gates, a third baggage carousel, a new rental car pavilion, consolidated security checkpoints, the relocation of offices and numerous cosmetic changes.
Officials have said the changes to the 28-year-old terminal are necessary to keep up with the airport's growing passenger traffic and to comply with new security guidelines.
Passenger growth has increased about 30 percent over the past three years. It is expected to rise 8 percent to 2.7 million boarding passengers over the next fiscal year, which starts in July.
Work is expected to be completed in 2015.
Reach Warren L. Wise at 937-5524 or twitter.com/warrenlancewise.
Copyright 2013 - The Post and Courier, Charleston, S.C.
