News Column

Airport Authority approves financing

July 17, 2014

By Chris Olson, The Jamestown Sun, N.D.



July 17--The Jamestown Regional Airport Authority approved the financing for the T-hangar building project, with construction expected to start in early August.

The authority approved financing the new hangar building by a construction loan through Bank Forward for 25 years. The interest rate for the first five years will be 4.5 percent, then will be renegotiated. The total amount to be financed is $535,000

Schumacher Construction, Jamestown, was awarded the bid for the project in May.

The authority also awarded Schumacher Construction the bid for the taxilane construction that will connect the airport's runway to the new T-hangar building. Steve Aldinger, project engineer for Interstate Engineering, said Schumacher was the only firm to bid on the project. Schumacher's bid of $444,027.24 was about 2 percent higher than Aldinger's estimate of $434,518.50. This project will be paid for by funds from the state through the North Dakota Aeronautics Commission.

With Schumacher winning the bids for the T-hangar building and the taxilane, Aldinger said construction on the T-hangar building should start in early August.

As part of the financing for the building, Mayor Katie Andersen, who serves as the city of Jamestown's representative on the Airport Authority, will present a request to the Jamestown/Stutsman Development Corp.Executive Committee on July 28 for a Flex Pace interest buy down on the construction loan.

The T-hangar building will create eight new hangars that the Jamestown Regional Airport will own and rent out to private individuals or companies. There will be six 1,123-square-foot hangars, a slightly larger one of 1,266 square feet and the largest will be 1,738 square-feet. The six equal-sized hangars will rent for $240 per month, the second largest will rent for $250 per month and the largest $325 per month.

Airport Authority Chairman Jim Boyd said those rents will produce $2,000 a month in income to pay back the construction loan.

Andersen said to secure the construction loan with Bank Forward, the authority needs to have letters of intent signed by people who say they will rent the hangars once the building is completed.

Jamestown Regional Airport Manager Matt Leitner said he has a list of people who indicated they would rent hangars at the airport if they were built. The authority held an informational meeting in February 2012 to gauge interest in the community for building new hangars. Leitner said it was at that meeting that he secured possible renters for the new hangars.

Wayne Mathson, authority member, said it is important that the people who indicated an interest in renting one of the new hangars in the T-hangar building know how much the rent will be.

Sun reporter Chris Olson can be reached at 701-952-8454 or by email at colson@jamestownsun.com

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(c)2014 The Jamestown Sun (Jamestown, N.D.)

Visit The Jamestown Sun (Jamestown, N.D.) at www.jamestownsun.com

Distributed by MCT Information Services


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Source: Jamestown Sun, The (ND)


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