Texarkana Regional Airport Authority Board members agreed last week to tentatively secure a $3 million line of credit to help finance the proposed new 38,000-square-foot, $37 million passenger terminal.
Board members accepted the proposal contingent on approval by both the Texarkana, Texas, City Council and Texarkana, Ark., Board of Directors, since the cities jointly own the airport.
Farmers Bank and Trust President and former Texas-side Mayor James Bramlett offered the proposal Thursday during the board's regular monthly meeting.
All the proposed new terminal's design work should be completed by August, which will enable airport officials to deliver final financial estimates to the Federal Aviation Administration. The FAA will then be able to issue construction grant funding for the project.
Terminal construction could start in 2020 and be completed within five years. The first two years would be devoted to building the project's exterior, followed by two more years of interior work before adding the jet bridges in one more year. The objective is to have the terminal, which has been in the planning stages for nearly 20 years, finished in five years or sooner.
Bramlett said the credit line should help pay for a project that is forecast to take up to years 2024 to 2025 to construct.
"This line of credit should get us to the end of the project's construction. And even if it happens to go on longer, we can extend it out for at least another year," he said. "This should help get the construction contractors their payments while you are getting your reimbursements from the FAA."
Board member Adger Smith said the credit plan will help a lot since the airport is owned by both cities and therefore isn't permitted put up any airport property as collateral.
"This will have to first be approved by both cities in order for us to accept this measure and approve it," he said.
Smith said it's possible that the airport will need only $1.7 million of credit, but having more will afford some leeway if needed.
"I appreciate Farmers Bank, but we got to get both cities to approve of this," Smith said.
Following additional discussion, board members approved the line of credit contingent on the cities' approval.