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Michael: Sorry FAA only came up with $80 million spread over five years or $16 million per year. The other $30 million is for noise mitigation -- to buy people out up to a majical line where one neighbor goes and the other lives with the airport forever. The governor's budget requires an additional $50 million mostly for runway rehab - ironically the original reason for the EIS which was then ignored by the feds when it came to financing the deal. And then of course there is the $22 million for the glycol plant. The entire scope of this project is over $500 million. $16 million per year for five years does not even scratch the surface literally.

The $100 million that RIAC is required to borrow is very real. The debt service on this (about $10 million per year) needs to be covered by additional earnings of at least $12.5 million per year - a solid number not a horses *** projection. Last year the airport "earned" -- actually lost -- $6 million partially due to Intermodal issues. So, in order to finance this project RIAC needs about $18 million in new net earnings. The way RIAC has cut its "profit sharing" deal with the airlines -- where the airlines share in profits if they ever show up (thanks to Mr. Dillon) the required net earnings increase is more like $30 million which would be based on revenues minus expenses. Under this profit sharing agreement how much revenue would be required to pay the debt service? Probably double what the airport earns now. Do you really think that will happen years before the extension is built and the airlines start setting up non stop flights to Calfornia?

Here's the bottom line. FAA throws in $30 million for safety improvements for which RIAC has to dump in $10 million from its cash kitty. Then RIAC takes out another $22 million from its cash kitty for the glycol plant. This leaves RIAC with absolutely no ability to borrow even one dollar for the extension when it RIAC needs at least $30 million for that project and probably a whole lot more. So don't tell me to stop seconding guessing our elected officials! They are the ones barking up the 3,000-foot tree.

From: Runway projects cleared for takeoff

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