Legislature(1997 - 1998)
1998-02-05 Senate Journal
Full Journal pdf1998-02-05 Senate Journal Page 2406 SB 277 SENATE BILL NO. 277 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act relating to international airports revenue bonds; and providing for an effective date. was read the first time and referred to the Transportation and Finance Committees. Fiscal note published today from Department of Revenue. Zero fiscal note published today from Department of Transportation and Public Facilities. Governors transmittal letter dated February 4: 1998-02-05 Senate Journal Page 2407 SB 277 Dear President Miller: The Anchorage International Airport is a vital business center and major force in Alaska's economy. As our economy grows, Alaska's largest airport must be poised to accommodate and assist that growth. This bill I transmit today authorizes the issuance of $204 million in revenue bonds to pay for a much-needed redevelopment of the Anchorage International Airport to better meet airport user needs today and into the next millennium. A record number of passengers - more than 5 million - used Anchorage International Airport last year. Analysts expect a 4 percent annual domestic growth rate to continue through the year 2005. The airport generates 7,000 direct jobs and another 4,000 indirect jobs, and that job growth also is expected to increase by about 5 percent in coming years. Along with this demand and growth, Anchorage's domestic terminal suffers from major deficiencies. The terminal area is only 75 percent of the space needed, while the baggage claim and ticket lobby areas are only 40 percent of necessary space. Concourse C, built in the 1950s, is functionally obsolete and code deficient. The airport redevelopment plan is projected to cost about $191 million with $26 million coming from federal funds. The plan will expand the existing ticket lobby, baggage claim, and retail areas by 350,000 square feet; add five new aircraft jetways, seven aircraft parking spaces for regional carriers, and a tour-group handling facility; and extend curbside space for vehicles. The airport redevelopment plan is the product of a comprehensive needs assessment that examined existing terminal facilities and forecast passenger demand. Based on international aviation standards, the assessment identified major deficiencies for both passengers and aircraft. Airport officials and airlines spent six months carefully examining 14 different terminal master plan concepts. This effort 1998-02-05 Senate Journal Page 2408 SB 277 resulted in a generally agreed upon concept for terminal redevelopment and expansion for the year 2005. The plan accommodates a variety of future development options for the next 20 years. Airlines that have signed the airport's five-year operating agreement recently committed to provide the revenue necessary to pay the debt service on these bonds through user fees, as provided in the operating agreement. It is vital to the state's economy that we improve and expand the Anchorage International Airport to keep pace with public and business demand. This bill is a necessary element to permit financing of the airport expansion project. Sincerely, /s/ Tony Knowles Governor