Montrose, CO—The Montrose Board of County Commissioners awarded the airport terminal construction financing to Bank of the San Juans in this week’s board meeting. The bank submitted the best value proposal as reviewed by bond counsel and Montrose County staff. A fixed, tax-exempt rate of 2.03% is in the process of being secured for $10 million of debt issuance over a term of 10 years.
“We know interest rates could change any day—it’s highly important we get this done in an expedient manner,” said Commissioner Roger Rash. “I’d like to thank and recognize the finance team for their hard work in securing this next important step.”
Staff and bond counsel issued a request for proposals for project financing on Jan. 28. A total of eight proposals were submitted and evaluated based on tax-exempt rate, taxable rate, call features, upfront costs and legal fees, and any additional stipulations. Next, the team conducted additional research on the top two proposals. Ultimately, Bank of the San Juans provided the best value proposal. The anticipated closing date for the financing is April 20. Additional documents will be brought forth before the board as the process continues.
Montrose Regional Airport is under construction for a terminal reconstruction and expansion project. The board of county commissioners allocated funds for this project in the 2021 and 2022 budgets, as well as received approximately $12.2 million dollars of grant funding from the Federal Aviation Administration in support of this project. The additional funds being borrowed are to cover the remaining costs associated with the project.
“It’s important to note that the airport is an enterprise fund within the county budget and its operations come from airport revenues, not sales or property taxes,” said Montrose County Finance Director Cindy Dunlap. “The funds budgeted for this project in 2021 and 2022 came from airport passenger facility charges, the airport fund balance, federal grants, and state grants.”
The first phase of the project, which includes the north addition and second story, is scheduled to be completed by the winter of 2022. The south addition is set to be completed in the fall of 2023. For more information on construction updates, please visit flymontrose.com/construction.