City councilors will vote on a resolution later this month approving the incurring of indebtedness by the trustees of the Tulsa Municipal Airport Trust for up to $375 million for improvements to American Airlines maintenance base.
The funds will be used to finance, refinance and reimburse the costs of the work.
The resolution was mistakenly placed on Wednesday night’s council agenda but was pulled prior to the meeting.
“This authorizes them to go out to market and to actually sell the bonds,” said Kian Kamas, the city’s chief of economic development.
The bonds are not an indebtedness of the state of Oklahoma or the city of Tulsa, nor are they secured by airport revenue, according to information provided to the City Council on Wednesday morning.
American announced in February that it planned to spend $550 million on new improvements at its Tech Ops-Tulsa maintenance facility.
The airline provided councilors with a list of more than 20 initial projects totaling $234.6 million that will be funded through the sale of revenue bonds. They include work on hangars, water and sewer line replacement, the reroofing of the facilities maintenance building, and replacement of the base’s fire system alarm.
“The fact that they are investing in excess of $200 million in the base I think really signals that they are committed to being here,” Kamas said. “It is one of the few places that they are investing in in their entire global operations because they recognize the importance of the maintenance base and the work that is done in Tulsa.”