Grand Traverse County commissioners tackled a packed agenda Wednesday that included a 700-page packet and nearly four hours of meeting time. The Ticker has a look at key commission actions, from pledging the county’s full faith and credit to $71 million in airport bonds and approving several planning contracts to holding a public hearing on body art regulations and receiving a Project Alpha update.

Airport Bonds
Commissioners narrowly voted 5-4 Wednesday to pledge the county’s full faith and credit to up to $71 million in bonds Cherry Capital Airport will issue toward a planned $120 million airport expansion this spring. Commissioners agreed to back the bonds – lending the county’s credit rating to allow the airport to obtain a more favorable interest rate – along party lines. Republican Commissioners Rob Hentschel, Scott Sieffert, Penny Morris, Darryl Nelson, and Brian McCallister approved the resolution, while Democratic Commissioners TJ Andrews, Fern Spence, Ashlea Walter, and Lauren Flynn were opposed.

While several public commenters opposed Cherry Capital Airport’s expansion – citing concerns about its location in city limits and potential noise, traffic, and environmental impacts – TVC planned to build the expansion regardless of whether the county backed the bonds. The expansion (pictured, rendering) is necessary to relieve overcrowding and wait times for gates, Cherry Capital Airport CEO Kevin Klein previously said, with current airport traffic more than double what the existing terminal was meant to accommodate.

Using the county’s AA+ bond rating, however, will save TVC more than $16 million in interest over the 30-year life of the bonds, Klein said. TVC will invest those savings back into the airport and keep airline rates low, incentivizing airlines “to be here in Traverse City so that they invest and continue to grow…and doing that for our county residents,” he said. Airport officials and some commissioners argued that Cherry Capital Airport’s success has contributed to the county’s bond rating, as local economic strength is a factor in that rating. Hentschel said having a regional airport in the county benefits all residents, who have access to affordable air travel because of TVC’s growth.

Under the agreement, Grand Traverse County is liable for bond payments if TVC defaults on its debt. County financial advisors worked to build additional layers of protection for the county into the agreement, including a bond reserve account – in which funds equal to an annual payment will be socked away in case the airport is short on revenues. A rate covenant has also been added requiring TVC to set its fees and rates each year at a level that will cover the bond debt service, plus a surplus balance. If TVC had to rely on Grand Traverse County to help cover a payment, the county would be prioritized for reimbursement from future revenues under the agreement.

Still, commissioners opposed to the resolution expressed concerns about potential impacts to the county – both in assuming liability for the airport’s debt and the potential for the county’s credit rating to be downgraded if it needs to bond its own significant amount of debt for upcoming county projects. Following the meeting, Andrews posted on her commissioner Facebook page: “As I said at the meeting and elsewhere, there is real risk here, and now the county taxpayers are assuming it.”

Also at Wednesday’s meeting…
> Commissioners approved two consulting contracts related to planning for county facilities. The first was a $195,000 contract with GFC International to lead a planning process for a new justice center – a centralized complex envisioned to host a new jail and multiple law enforcement agencies. Commissioners also approved a contract with Plante Moran Realpoint to lead Grand Traverse County and the City of Traverse City through a joint planning process for the future of the Governmental Center (Boardman campus), the LaFranier campus, and the Woodmere Avenue campus. The firm will use an hourly rate structure for billing.

> Commissioners held a public hearing on a planned repealing of the county’s ordinance on body art. According to Health Officer Mike Lahey, the state recently adopted rules that are stricter than the county’s when it comes to tattooing, piercing, and other body art – including requirements for cleaning equipment and the use of numbing agents. Because the state rules are more stringent, the county’s rules are no longer enforceable. The county therefore plans to repeal its ordinance and follow the state regulations. Following Wednesday’s hearing, commissioners are expected to vote on December 17 to officially repeal the ordinance.

> Commissioners received an update on Project Alpha, the planned expansion of the county’s LaFranier campus. The estimated $26.2-$27.6 million project will add a new combined emergency operations and 911/Central Dispatch center along with a centralized storage facility for multiple county departments. Commissioners voted Wednesday to add solar panels to both buildings and to install a well as part of the expansion that can be used for irrigation and backup potable water if public water goes down. Commissioners also approved $9,000 in additional design expenses since the site plan has required some recent revisions. Construction drawings for Project Alpha are expected to be completed in January.