Sacramento, California – Sacramento International Airport officials have proposed to borrow over $500 million in municipal bonds in an ambitious effort to meet the rising number of passengers and boost local economic development. Set to be carried out over the next years, this money is specifically allocated as a major part of a larger $1.3 billion Sacramento International Airport development project.
Initiated last winter, the extension reflects the steady increase in passenger numbers and seeks to improve the capacity and facilities of the airport, so representing the times free from the Great Recession and the COVID-19 epidemic. Chris Wimsatt, Deputy Director of Finance and Administration at the Sacramento County Department of Airports, said this project is seen as a major engine of regional economic growth.
Sacramento County Board of Supervisors approved funds for the Sacramento International Airport development project
The approval of the Sacramento International Airport development project by the Sacramento County Board of Supervisors is unanimous; earlier this month, the bond issue was approved. This is a good time to make this choice since the central bank just announced a half-point rate reduction, which guarantees better interest rates for the next bonds. Wimsatt pointed out that the strategic scheduling might improve the conditions of the bonds, which also offer a refinancing choice after 10 years.
Officials claims that the Sacramento International Airport’s own produced income—including parking fees, concessions, lease agreements, and passenger ticket costs—will be mostly responsible for the repayment of these debts, therefore relieving local taxes.
The development project includes exit road, parking and pedestrian walkway
Bonds’ funding will support numerous important initiatives under the “SMForward” growth plan of the airport. Among these are a $15 million exit road for Terminal A, a new $390 million parking structure next to Terminal B, and some money needed for a $140 million pedestrian walkway meant to link Terminal B with Concourse B.
Further financial support for the pedestrian walkway comes from the Transportation Infrastructure Finance and Innovation Act (TIFIA) at $38 million and the Bipartisan Infrastructure Law at $33 million. This latter source is especially important as the airport negotiates last-minute to land a TIFIA loan. Historically concentrated on surface road projects, the TIFIA program has since grown to include airport projects—a transition Sacramento aims to lead successfully.
“We’re excited to be first,” Wimsatt said. “We’re hoping this will set a pattern, and create a path that other airports will be able to follow.”
Local politicians and the general public both eagerly await these large-scale changes as the Sacramento International Airport gets ready to see how they might transform the travel experience and strengthen the local economy. Fundamentally based on smart finance and creative planning, the SMForward project seems to be the pillar of regional development for many years to come.
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