RAPID CITY, S.D. (KOTA) – The city council advanced a financing plan earlier this week intended to help pay for an expansion of the Rapid City Regional Airport terminal.
The City Council voted to approve a bond plan totaling up to about $59 million.
City officials said the structure is designed to leverage Rapid City’s higher bond rating, allowing the airport to borrow at a lower interest rate than it could on its own.
Under the plan, roughly $15 million of the total would be backed by the city’s Vision Fund sales tax revenue. A separate agreement calls for the airport to repay the city each year to reimburse—or “backfill”—the Vision Fund.
Officials estimate the approach would save the airport about $2.5 million over the life of the bonds.
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