KAILUA-KONA A bill that would authorize the state Department of Budget and Finance to issue up to $50 million in special purpose revenue bonds to assist in developing the Kona Jet Center at the south end of the Ellison Onizuka Kona International Airport at Keahole passed another hurdle Tuesday morning. The Senate Committee on Ways and Means recommended the measure advance with amendments.
KAILUA-KONA — A bill that would authorize the state Department of Budget and Finance to issue up to $50 million in special purpose revenue bonds to assist in developing the Kona Jet Center at the south end of the Ellison Onizuka Kona International Airport at Keahole passed another hurdle Tuesday morning. The Senate Committee on Ways and Means recommended the measure advance with amendments.
The committee’s move sets the bill up for a final vote on the Senate floor. If it passes, it will cross to the House of Representatives.
Details about the specific amendments weren’t available Tuesday afternoon.
The original version of the bill, which passed unamended out of the Senate Committee on Transportation on Feb. 6, would authorize the Department of Budget and Finance to issue up to $50 million in special purpose revenue bonds to assist Keahole FBO I LLC in the planning, design, construction, equipping and operation of the Kona Jet Center, which would include a 36,000-square-foot hangar, a 7,000-square-foot fixed-base operation and a 50,000-gallon fuel facility as well as up to 6 acres of ramp for its clients.
Special-purpose revenue bonds allow the state to offer financing that helps private capital improvement projects considered to be in the public interest.
The bonds aren’t state funds and are instead bought by private investors. Matthew Clayton of AV8 Partners, which is developing the Kona Jet Center, previously said their investors are interested in investing directly with them and that they would only use as much capital raised through the bonds as they need.
This project is for the billionaire owners of private jets to have their own airport. They don’t want to use the same facility as the rest of us. Although this is not ‘tax payer’ money it is most likely going to lead to a loss of tax revenue to the state by granting the SPRB investors a tax-exempt status. Is it possible that a $50 million bond could be put to better use?