jshank83 wrote: ↑Oct 04, 2017
Just curious everyone's thoughts on the airport privatization up to this point.
At this moment, I am against it for the following reasons:
1. I don't want the city taking more money out of the airport until the airport debts are paid or at least closer to being paid off.
2. The private operator is going to want a cut of profits. So until I see how they are going to bring in more money than they take out, it is going to be hard for me to be in favor of it.
3. It feels to me like it is a money grab for the city. They just want more money up front so they can waste it on something dumb like normal. The mayor says she wants airport to increase capacity but wouldn't that already be happening if that was an option? I don't know how some private company is going to do that.
I will keep an open mind but so much of this has been in the shadows, it is hard to really know much about what the plan is.
1. Indifferent is my thought,
Lambert like most airports will have debt and continue to have debt to remain relevant as planes evolve, travel patterns & amenities change, and security issues change.
2. Agree, something has to give that neither benefits the city, airlines and or airport employees.
However, the one I can think of that might change that equation is a private operator offers to buy the debt as its payoff & agrees to minimum payment, say $6 million, to the city. Buying the debt gives the private operator a chance to finance at lower rates, or pay himself a lower finance charge on that debt if using their own equity to work the margins differently/gleam profits from the finance savings while clearing the books of debt for city.
But that begs the response. Lambert should be refinancing, and believe they have, current debt and pocket the savings already. The difference and benefit is having debt off the city books would probably be a better outcome then an alderman money grab.
2. Feels like a money grab but the question worth asking. Is their a reasonable investment that can be made with he tpayoff for the benefit of St. Louis in the long range?
The only investment that comes to my mind is payoff goes to a significant fixed transit investment whether it Grand Ave BRT/Streetcar or St. Louis streetcar along central corridor, or if payoff large enough, N-S Light Rail in the city proper. Otherwise, a one time slush fund for alderman, new cars and big city pay raises without any meaningful change or reform of services or future revenue sources is the most likely outcome and scariest, a money grab