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Page 1 of 2 Ogden City Council Meeting: March 21, 2017 INTERFUND LOAN PROMISSORY NOTE – OGDEN-HINCKLEY AIRPORT ($50,000) – Purchase of Air Start Equipment Action: Adopt or Not Adopt Resolution Executive Summary The City Council will consider a Resolution authorizing an interfund loan from the BDO Enterprise Fund to the Airport Enterprise Fund in the amount of $50,000 to facilitate the purchase of airport equipment, specifically an air start system. This action is one of several actions the Council is considering to entice additional commercial air service to the airport. Background March 7, 2017 The City Council Office received an Administrative Transmittal requesting the Council approve an interfund loan in the amount of $50,000 from the BDO Enterprise Fund to the Airport Enterprise Fund to facilitate the purchase of an air start system. During the regularly scheduled meeting, the Council set a public hearing on a proposed FY2017 Budget Amendment totaling $3,005,000, which includes the $50,000 appropriation from BDO to the Airport. March 14, 2017 The Council adopted Resolution 2017-6 establishing the parameters for an incentive package valued at $1.1 M to entice airlines to provide charter service to Ogden Hinckley Airport. The proposed package includes escrow funds for mobilization and revenue guarantees, as well as fee waivers. Additional investment from the City is needed to provide necessary infrastructure and equipment to support new air commercial air service at the Airport. March 21, 2017 The Council will consider several actions related to the City’s efforts to bring additional commercial air service to the Airport. ---PAGE BREAK--- Page 2 of 2 Ogden City Council Meeting: March 21, 2017 Proposal The Administration is requesting the Council approve an Interfund Loan Promissory Note between the Airport Enterprise Fund and the BDO Enterprise Fund in the amount of $50,000. Terms of the Promissory Note are as follows: Term: Five Years Interest Rate: Variable at the PTIF Rate, starting at 1.18% Payments: No regular payments required. All unpaid principal and interest due five years from effective date of Note Source Of Repayment: Airport revenues from parking and baggage fees Questions Please review the terms of the loan, particularly related to repayment. Council Staff Contact: Janene Eller-Smith, (801)629-8165 ---PAGE BREAK--- ---PAGE BREAK--- 2017-7 ---PAGE BREAK--- ---PAGE BREAK---