Fairhope, Alabama
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| New east side terminal site. |
CONSTRUCTION ALREADY UNDERWAY
The city council voted to loan the Fairhope Airport Authority $600K to use as required matching funds for a $2 million federal FAA grant already received to construct a new general aviation terminal building on the airport's east side.
The authority could not independently finance the loan with such favorable terms; the city already subsidizes the AA over $300K per year and the new terminal is expected to eventually result in more revenue to "wean it off" dependence on the city, according to councilman Burrell.
Funds are to be "taken in draws" as needed over time -- not by "lump sum" according to the resolution.
Repayment is with interest based on terms listed in the resolution below.
Construction by contractor Crucible Construction began last month and is expected to be completed next fall
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| Terminal loan resolution. |
Comments
The Airport Authority has received preliminary data from a pre-covid, 2019 economic benefit study.
Alabama Airport Economic Impact Study (commissioned by the Aeronautics Bureau) for the Fairhope Airport:
In 2019 the Fairhope Airport was responsible for $28.8 million in annual economic activity with employment impacts of 278 jobs. By comparison in 2004, the Airport was responsible for $8.14 million in annual economic activity with employment impacts of 79 jobs.
Total Employment – 278
Total Payroll - $9,040,700
Total Spending - $19,785,800
Total Economic Activity - $28,826,500
Total State and Local Tax Revenue - $1,431,900