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RIAC management seems to have forgot a couple of things -- like $100 million!

Here is a quote from the governor's 2013 budget that has gone unanswered in this report in the Beacon and all the other papers:

T. F. Green Airport – General Improvements

The Corporation requests $50.3 million for the period FY2013 through FY2017 to finance general

improvements at T. F. Green Airport. ... The focus for FY2015 through

FY2017 will shift to runway rehabilitation and a master plan update.

What is that all about? Is that the $50 million Senator Reed is talking about? Unfortunately not. Other RIAC documents show that $40 million of that $50 million is for runway rehabilitation. That runway rehab was originally part of the $165 million scheduled for the EIS. Take that away and you get $125 million. Now that we know that FAA is to provide $80 million and RIAC must come up with $10 million for the crosswinds runway and $30 million for the extension ($50 million = 62% of x - according to another newspaper) leaves RIAC with $30 million for its share of the expansion. So at the end of the day -- believe it or not -- the $80 million provided by FAA plus the $40 million provided by RIAC plus the $40 million in the governor's budget for the runway rehab comes up with -- surprise -- $160 million. This is almost the same number we have been hearing for the past two years. RIAC is to pay $80 million for these projects when you include the runway rehab that is in the governor's budget that has been carved out of the story today.

But that is not all. Remember the glycol plant? First report is due on October 15, 2012 - the baseline. River study is due in July 2013. Built reports due in early 2014. This means RIAC needs to come up with another $20 million for the glycol plant.

Currently RIAC pays $28 million in debt service. That is almost 50% of all revenues - and astounding number. Now RIAC needs another $100 million of borrowing. This will drive the rating agencies nuts. Estimated interest rate of the bonds that can finance this - my guess 7% this means $7 million in more debt interest plus $3.3 million in payback ($100 million / 30) So this debt service will end up at $38 million which is two thirds or all RIAC revenue. Since RIAC lost $6 million this year according to its audited financial report it has no extra revenue for this additional debt service. The projects would end up with over $10 million of systemic losses per year for the foreseeable future.

How come RIAC officials did not tell the press about that problem?

From: Runway projects cleared for takeoff

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