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FAA had to wait until September 28, 2012 to take action on financing anything to do with the EIS projects except for the safety improvements. That is because CRMC did not issue its EPA-required conformance finding until June 28th kicking off a 90 day no action period. It was late because the CRMC had a quorum problem at at May meeting. The FAA makes its discretionary airport improvement grants during the third week in August to meet an October 1st funding date. Nothing could happen after that third week in August. It is no surprise that RIAC is in the funding situation that it is now in. It is hard to believe that anything but an FAA Letter of Intent would be acted upon prior to next August.

A letter of intent would allow RIAC to borrow private money in advance of future FAA funding awards. The eventual FAA funding awards would not be guaranteed - but if RIAC had reasonable credit ratings it could borrow millions and millions on the hope that FAA funding would happen. Given the current situation at RIAC and EDC does that make any sense???

A Letter of Intent one might be possible. However, few are being awarded during these crazy financial times. And the RIAC project does not meet the FAA criteria because it is not a capacity-related project. This becomes a bigger issue with each passing year because the airport operations have plunged since general aviation landing fees were intentionally raised to drive private planes to Quonset and North Central during a period when general aviation contracted across the country. Then starting in 2005 the Big Dig was finished and passenger counts started plunging too. Capacity improvement is a key ingredient to borrowing against a letter of credit. And RIAC is between a rock and a hard place on that one. Who is going to lend RIAC tens of millions on the hope that FAA might eventually fund the project???? This funding is not through tax free bonds at high interest rates but bank lending. Think about that one everyone.

This is all being complicated by the funding that was made available for the safety improvements. The newly changed configuration of the crosswinds runway to keep it "within the fence" of the existing runway requires additional environmental action of some kind. A restated EIS is needed with an additional public process of some kind. With the EIS reopened the issuing of a Letter of Intent becomes problematic.

The big problem for the City Council as nothing to do with all of the above - it is the total lack of progress in obtaining funding for the glycol management project. Where is that financing? The City Council cannot play nice guy and the mayor cannot back off from the glycol plant deadlines. EDC, RIAC's parent is stuck in a box. Only EDC can raise this money. How does that happen?

Peter Frazier threw his hat into the ring for RIAC President. I am glad he did and as I stated to the RIAC Board its members should look very favorably on a Frazier presidency. This RIAC mess is so fraught with twists and turns that Peter is probably the only person on earth who can grasp all that is going on and come out of this mess with a sane solution. Can you image a Yahoo riding into town in his giant SUV trying to solve the RIAC problems without all this background?

From: This airport extension comes without a fuss

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