"Louisiana airport's cost uncertain; new estimate vowed"

Tuesday, September 24, 2002

Airport's cost uncertain; new estimate vowed 
By WILL SENTELL 
The Baton Rouge (LA) Advocate


Promoters of a new airport near Donaldsonville said Monday they are
revamping cost estimates, including how much taxpayers might have to
spend to make the project reality.

Private investors have talked about a $5 billion airport.

Consultants for the project said earlier the first phase will cost $2.1
billion, with private groups paying $1.7 billion and taxpayers another
$380 million.

But those estimates were based on a hypothetical airport, officials said
Monday.

Now that the Louisiana Airport Authority has picked a site -- 25,300
acres in Ascension, Iberville and Assumption parishes -- cost estimates
will be done over.

"We just made some assumptions on how it could be financed," said
Winfield Beyea, project manager. "That is all going to be reviewed
again."

Beyea said new cost estimates are part of a detailed planning process
that will take six months or so. A draft is supposed to be ready by
March.

"When we determine actual capital outlay and land acquisition, we can
generate the new financial model," Beyea said.

Costs of the futuristic project have been one of several key sticking
points that raise questions on whether the airport will ever be built.

Taxpayers interested in the plans, including sugar-cane farmers and
other landowners that might lose their property, have complained that
they cannot get information on key issues surrounding the plans.

Critics have repeatedly questioned funding sources for the airport, and
that have asked why private groups are not financing any of the
preliminary studies.

The airport is supposed to include a major cargo operation and links to
water, rail and highways. Backers say it could open in 2008 and be the
biggest economic-development project in state history.

Based on earlier estimates, Beyea said taxpayers might have to finance
18 percent of initial costs, or $380 million.

Beyea said federal funding sources are the first choice, including the
Federal Aviation Administration. But revamped transportation priorities
to help finance anti-terrorism efforts make it harder to count on those
dollars, he said. That means private investors may have to absorb more
of the costs.

Beyea said he does not think state funds will play a big part in the
project because Gov. Mike Foster has said the state cannot afford it.
Beyea said the state might be asked to help finance road improvements
around the airport, which could total $500 million. No one has said how
the state would pay for any such improvements.


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