Aug. 18—SALEM — A state-backed $13.5 million bond will pay to build an on-ramp to a new cargo terminal at Boston-Manchester Regional Airport that will create 200 jobs, according to state officials.
The Executive Council approved the state guarantee on a 4-1 vote with Councilor David Wheeler, R- Milford, opposed to the Business Finance Authority financing this project.
Ted Kitchens, airport director, said plans call for construction of the apron to begin next spring
Negotiations continue with a potential tenant to operate the cargo terminal once it is constructed, Kitchens said.
The BFA guarantee means New Hampshire would be on the hook financially if the airport were to default on the 10-year financing the Service Federal Credit Union will issue to the state at a 2.5% annual interest rate.
BFA Executive Director James Key-Wallace said the airport will be able to repay the proceeds of this guarantee with federal airport infrastructure grants that it receives every year.
"This is really a bridge to the airport to get them to the federal grant that will come to them in pieces over a number of years," Key-Wallace said. "This allows the state to provide that support up front."
The apron will provide an on-ramp to the airport as well as parking to support the to-be-built cargo terminal.
Kitchens said along with construction jobs, the project is critical to the hiring of additional pilots, cargo handlers, administrative, cleaning and maintenance staff once the cargo terminal is built.
The council unanimously approved a $11.5 million financing for the Portsmouth Christian Academy of Dover to make repairs to a roof, expand athletic fields, refinance existing debt and perhaps acquire an adjacent building.
The state doesn't guarantee this financing, but state approval is needed for the K-12 private school to receive tax-exempt financing, Key-Wallace said.
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