For Immediate Release:
March 16, 2023
Treasurer of Spokane County and Spokane Airport Board Announce $30 Million Loan Supporting Terminal Expansion Project
Spokane County, WA – Treasurer of Spokane County Michael Baumgartner, Spokane Airport Board Chair Nancy Vorhees and Chief Executive Officer Larry Krauter announced today an agreement on a $30 million Spokane Public Investment Fund financing package. The financing package will support the ongoing Concourse C Terminal Renovation and Expansion (TREX) Project at Spokane International Airport.
The agreement allows for the Airport to borrow up to $30 million from the Spokane Public Investment Fund (SPIF) across two tranches. The first $15 million tranche is expected to be drawn on March 20th, 2023 and re-paid over a one-year term. The second tranche is likely to be drawn by the end of the year. Financing will be used to support the TREX Project, a $150 million, 144,000 square foot expansion that includes additional ticket counter positions and modernizing existing Concourse C infrastructure while also increasing airline capacity by adding additional gates.
As the Treasurer of Spokane County, Baumgartner overseas the nearly $1.7 billion Spokane Public Investment Fund. The pooled public funds of over eighty regional government entities are invested in fixed income securities including U.S. Treasury notes and federal agency debt. Per the SPIF investment policy, up to ten percent of the fund can be made available in the form of Local Direct Investment loans to local public entities, subject to the Treasurer’s discretion.
“Expanding Spokane International Airport is key to growing the region’s economy,” said Michael Baumgartner, The Treasurer of Spokane County. “I am impressed with the Airport’s leadership team as well as the Airport Board and the plan that they have developed to deliver this important project. Spokane Public Investment Fund financing will help the airport expansion project be completed quicker and at lower cost to the traveling public.”
“Utilizing a short-term bridge loan from the Spokane Public Investment Fund allows the Airport to remain on track to deliver the first phase of the TREX Project while maintaining financial flexibility to seek federal grants deferring the need for long-term debt. We appreciate Treasurer Baumgartner’s initiative and leadership in transforming the way the Treasurer’s Office serves our community.” said Nancy Vorhees Spokane Airport Board Chair. Airport CEO Larry Krauter added “Treasurer Baumgartner has long-supported economic development efforts associated with Spokane International Airport and his commitment to our success through this kind of teamwork and support of the TREX project financing package is very much appreciated.”
SPIF investment income is distributed monthly supporting local public services without raising taxes or fees on the public. Over $82 million of SPIF investment income has been earned for local government entities since 2019. Recent Local Direct Investments have included financing towards fire district vehicle purchases and medical equipment upgrades, conservation futures real estate acquisitions, and bridge financing for county road construction.
The Spokane County Treasurer’s Office collects, safeguards, and invests public funds on behalf of over eighty regional government entities. For more information on the TREX Project, visit www.gegtrex.com.