Treasurer Cowell questions fiscal impact of Charlotte Airport Transfer Proposal

Per the March 28th League LINC Bulletin of the North Carolina League of Municipalities:

A letter from the Office of the State Treasurer this week indicated that a legislative transfer of ownership of the Charlotte airport could increase the cost of borrowing for all cities across North Carolina. The letter to Sen. Bob Rucho, the primary sponsor of SB 81 Charlotte Regional Airport Authority — which would transfer ownership of Charlotte Douglas International Airport from the City of Charlotte to a newly-established Charlotte Regional Airport Authority — indicated that transferring ownership of the airport could result in prolonged and expensive litigation. The uncertainties created by such a move could also undermine the ability of other cities and towns to issue bonds because they would have to be disclosed to potential lenders in the future, impacting borrowing costs and desirability. The letter was based on the opinion of outside bond counsel obtained by the Treasurer’s office. In an article in the Charlotte Observer supporters of the legislation downplayed the concerns. SB 81 is currently scheduled to be discussed in the House Transportation Committee on Tuesday.

Click Here to View the State Treasurer’s Letter (Per Charlotte Observer)

Leave a Reply