OK for Private Airport Bond

A bill that would authorize the state Department of Budget and Finance to issue up to $50 million in special purpose revenue bonds to assist in developing the Kona Jet Center at the south end of the Ellison Onizuka Kona International Airport at Keahole passed another hurdle Tuesday morning. The Senate Committee on Ways and Means recommended the measure advance with amendments.

The committee’s move sets the bill up for a final vote on the Senate floor. If it passes, it will cross to the House of Representatives.

Details about the specific amendments weren’t available Tuesday afternoon.

The original version of the bill, which passed unamended out of the Senate Committee on Transportation on Feb. 6, would authorize the Department of Budget and Finance to issue up to $50 million in special purpose revenue bonds to assist Keahole FBO I LLC in the planning, design, construction, equipping and operation of the Kona Jet Center, which would include a 36,000-square-foot hangar, a 7,000-square-foot fixed-base operation and a 50,000-gallon fuel facility as well as up to 6 acres of ramp for its clients.

Special-purpose revenue bonds allow the state to offer financing that helps private capital improvement projects considered to be in the public interest.

The bonds aren’t state funds and are instead bought by private investors. Matthew Clayton of AV8 Partners, which is developing the Kona Jet Center, previously said their investors are interested in investing directly with them and that they would only use as much capital raised through the bonds as they need.

West Hawaii Today