Hold a Public Hearing, Present, Discuss, and Consider Action on a Resolution Approving the Financing and Refinancing of a Project for the Development of Airport Facilities at the Addison Airport Solely for Purpose of Section 147(f) of the Internal Revenue Code of 1986, as Amended and Section 66.0304(11)(A) of the Wisconsin Statutes, as Amended.
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The Town of Addison, owner of Addison Airport, is considering a long-term ground lease arrangement at with Addison Hangars, LLC (“Addison Hangars”), a wholly owned subsidiary of Sky Harbour Capital (“Sky Harbour”). Addison Hangars intends to finance the design, construction and operation of their aeronautical facility (the “Project” as described below) with loan proceeds originating from private activity bonds (PABs”) issued by the Public Finance Authority ("PFA"). The PFA was created by local governments, for local governments, for the purpose of issuing tax-exempt conduit bonds nationwide for development projects regarded as “qualified private activities” which present no risk to the taxpayer or any state or local government. Qualified projects that may be financed by public activity bonds include airport development and redevelopment.
Addison Hangar is requesting the Town of Addison as the host jurisdiction, acting through its City Council, hold a public hearing to approve the issuance of the PABs to finance and refinance the Project, solely in order to satisfy the requirements of Section 147(f) of the Internal Revenue Code if 1986, as amended (the “Code”) and Section 66.0304(11)(a) of the Wisconsin Statutes, as amended (the “PFA Act”).
In August 2021, Sky Harbour secured $166.34 million in financing through the sale of Series 2021 PABs tax-exempt senior bonds through the Public Finance Authority to finance the acquisition and development of a portfolio of aircraft hangar projects nationwide. As part of the financing plan, Sky Harbour has obligated $68 million in equity towards the program.
Sky Harbour and its subsidiaries including Addison Hangars, LLC; Sky Harbour Sugar Land Airport (Houston); LLC, Sky Harbour Opa Locka Airport (Miami), LLC; Nashville Hangars, LLC, APA Hangars, LLC (Denver Centennial); and DVT Hangar, LLC (Phoenix Deer Valley) are qualifying projects under the financing plan and constitute an “obligated group”, whereby on a joint and several basis their leasehold interests and building improvements secure the bonds while their operating revenues repay the bonds.
Public/Private Activity Bonds do not constitute a:
- Debt, loan of credit or, a pledge of the full faith and credit or taxing power of PFA, the Town or, the State of Texas; or
- Monetary liability of PFA, the Town or, State of Texas; or
- Contingent liability or obligation, charge directly or indirectly against the general credit of PFA, the Town or, the State of Texas
In keeping with Section 147(f) of the Internal Revenue Code of 1986, as amended, and the other regulations:
Description of Project: The design, construction and operation of an executive aeronautical hangar development consisting of five (5) 14,200 square foot private jet hangars, and one (1) 30,000 square foot semi-private jet hangar on a 6.5-acre site at Addison Airport, Town of
Addison, TX.
Project Location: Where commonly known as 4505 Claire Chennault Drive at Addison Airport, Addison, Dallas County, Texas.
Maximum Amount of Bonds to be Issued with Respect to the Project: $20,300,000. |