Dallas/Fort Worth Airport May Tap Bond Sale for Baggage Handling System

Posted on Wed, Mar. 03, 2004 
 
Dallas/Fort Worth Airport May Tap Bond Sale for
Baggage Handling System
Miami Herald, FL


Mar. 3 - Officials at Dallas/Fort Worth International
Airport may need to find an additional $17 million to
complete a new baggage handling system.

Airport officials plan to ask for board approval
Thursday to raise the funds, plus $2 million to cover
related expenses, in an upcoming bond sale.

The airport had previously planned to raise $180
million in a bond issue this summer, to cover
unexpected costs and additions to an expansion program
that includes Terminal D and the new SkyLink people
mover system.

The airport may need the extra money if it can't get
the U.S. Transportation Security Administration to
contribute more toward the project. Government
officials had originally pledged to pay 75 percent of
the costs and signed a letter of intent with D/FW
Airport to do so.

Congress later increased that reimbursement to 90
percent.

But the TSA has not amended its agreement with D/FW to
reflect the change.

Airport officials hope to resolve the issue with the
TSA before the sale, calling this a "stop gap" measure
to ensure the airport will have enough money to cover
the project when the time comes.

"We hope we don't have to use it," said Kevin Cox,
D/FW's chief operating officer and senior executive
vice president. "This is just a bump in the road."

If the matter is resolved before the bond sale, the
bond offering could be reduced by $19 million. If the
bonds have already been sold, the airport would use
the funds for other capital development programs, Mr.
Cox said.

Board chairman Max Wells said the airport should
pursue the matter aggressively.

"At some point, we're going to have to assert our
legal rights," Mr. Wells said.

 

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