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Blair County asked to support loan

Airport wants funds for hangars

HOLLIDAYSBURG — Blair County commissioners on Tuesday asked representatives of the county airport authority to consider a shorter payback period for a pending loan, with an option for lengthening the payback period if needed.

Commissioners Chair­man Bruce Erb said he has concerns about the county guaranteeing the proposed $1 million bank loan because the payback period extends 37.5 years.

“Twenty-five years would be my preference,” he said.

The payback period of 37.5 years is “significantly longer,” Erb said, than any other county debt payment period.

The airport authority has put together plans to build 12 aircraft hangars that can help the airport generate more rental income. The authority has been working with M&T Bank to set up a $1 million loan that will leverage matching funds from the U.S. Department of Agriculture’s Rural Devel­op­ment Program.

But to get the $1 million loan, the airport authority needs the county to be its guarantor.

Airport Authority Chair­man Drew Swope recognized Erb’s desire for a shorter payback period. Swope said the 37.5 years was a compromise with authority members who preferred a 40-year payback period, based on the projected monthly payments.

While the project is expected to generate new revenue for the airport, at least some of that revenue could be available for airport expenses if the debt payments are lower rather than higher.

Erb and Commissioner Terry Tomassetti also expressed interest in addressing a stormwater drainage issue that could be increased during construction of the hangars or in the future.

The county currently provides the airport authority with about $50,000 annually. That includes $32,000 designated as rental payments for the magisterial district judge office and the Penn State Extension Office on the airport grounds. The county designates the remaining $18,000 as a cash contribution.

Swope told the commissioners at Tuesday’s meeting that other counties provide more financial support to their airports. A survey, he said, found commissioners designating $160,000 to $300,000 annually for their county airports, Swope said.

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