Title
From the Director of Transportation and Public Works and the Airport Director, submitting a verbal informational report regarding the status of negotiation with Republic/Frontier Airlines regarding continued tenancy of the skyway hangar. (INFORMATIONAL UNLESS OTHERWISE DIRECTED BY THE COMMITTEE)
Body
Pursuant to Wisconsin Statutes Section 19.85 (1)(e), the Committee may adjourn into closed session for the purpose of receiving an informational report on airline hangar lease negotiations.
POLICY
Informational Report
BACKGROUND
In 2003 the County agreed to assist Midwest Airlines in order to allow additional credit capacity to be made available to Midwest Airlines by guaranteeing payment of amounts required to be paid by Midwest Airlines with respect to certain Letters of Credit (LOC). Pursuant to a resolution adopted by the County Board of Supervisors on April 17, 2003, the County Board approved, on a conceptual basis, the provision of credit relief to Midwest Airlines with respect to certain 1998 Bonds. Subsequent to conceptual approval of the transaction by the County Board, the State of Wisconsin proposed to provide a $4,000,000 Community Development Block Grant for Economic Development (the “Grant”) to Racine County which would be made available to Milwaukee County to assist in giving economic relief to Midwest Airlines and, given the additional security provided by the availability of the Grant, it was proposed that the County provide credit support with respect to certain 2001 Bonds as well as the 1998 Bonds. This economic assistance was memorialized in a Credit Assistance Agreement (CAA).
Changes in the airline industry in general and the competitive landscape of that business at General Mitchell International Airport in particular provide the basis for a revisitation of Milwaukee County’s obligations under the existing LOC and CAA and are the basis for this informational report.
RECOMMENDATION
This report is informational only.
Prepared by: C. B...
Click here for full text