Tulsa World: Airport bond pact revised, approved

MAKE US YOUR HOMEPAGE | Saturday, November 21, 2009 | WIRELESS

Home > Business

Newspaper View Print this story

Comment

RSS

Bookmark

Airport bond pact revised, approved

By D.R. STEWART World Staff Writer
Published: 11/13/2009 2:21 AM
Last Modified: 11/13/2009 4:10 AM

The Tulsa Airports Improvement Trust approved an amended bond indenture agreement Thursday, agreed to share consultants' expenses for an updated Foreign Trade Zone and approved replacing passenger terminal roadway signs at Tulsa International Airport.

Trustees approved the amended and restated bond indenture agreement on the advice of Mike Newman, a financial adviser with First Southwest of Dallas.

Newman said the prior bond indenture — a contract assuring bondholders or investors that they will be paid by the trust — is 25 years old. It preceded legislation that established Passenger Facility Charges, which generate airport revenue.

The PFCs, now $3 per ticket, produce $4 million a year for terminal improvements, the movement of passengers and baggage or dedicated debt service at Tulsa International.

The amended bond indenture assures investors that debt from the 2004A series bonds as well as debt from the 2009A series bonds that the trust proposes to issue in December will be paid with PFC revenue, Newman said.

The trust has $110 million in bonds outstanding.

"It should be a source of comfort that your creditors have consented (to the amended bond indenture) and the buyers of the bonds as well," Newman told the trustees. "It provides for clarity, improved functions in bookkeeping. It provides for insurance appropriate for airports."

The trust also approved a joint marketing and business development agreement by the city of Tulsa, the Rogers County

Port Authority and the Tulsa Airport Authority, which operates Tulsa International.

The agreement will permit the trust and the Tulsa Port of Catoosa to share the cost of hiring a Foreign Trade Zone consultant. The consultant will offer advice on updating the trade zone boundaries at Tulsa International and the port as well as help develop strategic business plans.

Airports Director Jeff Mulder said the trust's share of the consultant's fee would be about $10,000.

A Foreign Trade Zone allows a company to import items from outside the U.S. and defer import taxes until after the sale of the item or product manufactured from the item.

The trust also approved a $206,068 contract for replacement of road signs and the addition of signs along the passenger terminal roadway. Time Striping Inc. submitted the lowest of the two bids received. The engineer's estimate for the project was $326,141.

The trustees accepted and approved final payment in the $1.19 million widening of Tulsa International's Taxiway November to 150 feet. The taxiway, which had been 75 feet wide, provides access to the airport's North Development Area and American Airlines' new Hangar 80.

Also accepted and approved for final payment was the $1.76 million Phase III of the Southeast Storm Sewer Project at Jones Riverside Airport.

The contractor, Becco Contractors Inc., built storm drains and a retention pond to remove water from runways and taxiways and reroute it to the Arkansas River.

D.R. Stewart 581-8451
don.stewart@tulsaworld.com By D.R. STEWART World Staff Writer

Newspaper View Print this story

Comment

RSS

Bookmark

Reader Comments

Show: Most Recent Comment First

Add your comment

0 comments have been made on this story so far. Tell us what you think below!

Reporting Comments

If you see a comment that violates our terms and conditions, please help us by clicking the "Report this Comment" link next to a comment. That will alert the web staff to review the comment. Thank you. -- Web Editor Jason Collington

Add Your Comment
In order to post a comment on this article, you must sign in to Tulsaworld.com. If you do not have a site account, you can create an account for free.