Juneau airport officials got some very good news Thursday when the Federal Aviation Administration announced a big grant for the terminal reconstruction project that’s already underway.
“It was really good for the airport. So, we’re just shy of getting $15 million for this project,” said Airport Manager Patty Wahto.
Wahto originally hoped for about $12 million in smaller grants over four years. This is a bigger grant, and it’s coming as a lump sum.
The project has been underway since February. About 35,000 square feet of the older end of the airport terminal is being torn down and rebuilt. Smaller airlines use it, and airport employees have offices there.
When city officials approved the $16.2 million contract in January, the project was to be funded primarily by debt. Repaying that debt fell mostly to airport passenger facility charges, or PFCs. Some city sales taxes and property taxes were also in the mix.
“This essentially wipes out maybe 6 years of PFC collections that we don’t have to do now for this project — somewhere between 5 and 6,” Wahto said.
Wahto said those fee rates are unlikely to change; they seldom do. But it does free up money to move forward with other airport infrastructure projects.
This money is also unusual for another reason. Normally, the recipients of these types of FAA grants would need to kick in a few local pennies for every federal dollar. Wahto expected those pennies to add up to almost $6 million for this project.
But because of special provisions Congress put in the CARES Act earlier this year, most of that match has been waived. Wahto said Juneau will only have to come up with about $534,000.
The Juneau Airport Board and Juneau Assembly must take action to accept the grant.
