Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-07-05

Government nearly SIT mil
lion.
With this background. what
is the proposal made in the
Buckley report? He suggests
that a public authority issue
nonipterest bearing revenue
bonds in amount Of $11.5 mil
lion to acquire the airport,
that a certain percentage of
the earnings be earmarked to
retire these bonds over a
period of years.
DR.. Buckley in his testimony
before the Virginia Airport
Study Commission, gave as his
opinion that efficient opera
ton under a public authority
would increase revenues from
10 to Is per cent. I believe
that any investor would feel
that a return of over a mil
lion dollars q year on an in
vestment Of $11.5 million was
sound.
The Commerce Department
is not interested in disposing
of the National Airport unless
the supplementary airport is
acquired at the same time.
The reasons for this are obvi-
Gus, as the same public au-
thority must operate both
airports. The necessity for CO.
ordination of schedules, flight
patterns and interchange of
passengers is such that it would
not be feasible to have COM
petitive airportS. If a Virginia
authority is to operate both
airports. the supplementary
airport must be located in Vir-
ginia. The Civil Aeronautics
Administration, after an ex-
tensive study of all sites that
are available. has recommended
Burke.
Assuming that the Federal
Government would construct
this airport, since the Presi-
dent has already recommended
money for this purpose, the
authority would acquire the
Burke Airport at one half its
cost. Such a proposal is in
line with the present policy of
the Federal airport grant-in-
aid program which gives as
sistance up to SO per cent in
the construction of airports.
Assuming that the Burke Air
port costs $48 million. this
would necessitate the issuance
Of revenue bonds in the
amount of $24 million which
would be amortized over a
number Of years. At present
it is proposed that the Burke
Airport be constructed in three
phases, which would not re-
quire the expenditure of the
full amount Immediately.
The profit of income over
operating expenses for the ifs
cal year 1856 for the Ma
tional Airport was $685.. 470.
Based on returns to date, it
appears that the profit for
1867 will be $l.4oS,674.
The Buckley survey esti-
mates net revenues for the
National Airport for 1860 Of
$1,375,750 and for 1865 of
$2,l3l.250. 1t is estimated
that the Burke Airport would
not be in operation before
1860, with a net revenue of
$805.o07 for that year and
1922, 500 by 1865.
This would give q net profit
for the two airports for 1860
Of $2,181. 657 and for 1865,
$3.413.849. This revenue would
be available to retire nom
Understanding bonds issued
to the Government in the sum
Of $35.5 million. 1t is esti-
mated that the administrative
costs of the Airport Authority
would be approximately S1l5.-
900 per year.
1t would appear that, in
view Of these figures, by 1881
the airports would be clear Of
any encumbrance and be oper-
ating with a substantial profit.
The establishment Of the pub
lie authority would be Of ma
terial benefit to the Federal
Government, the State and
community. The Federal Gov
eminent would be able to get
out Of the airport business and
be repaid some s35 million.
The community would deal
with q State-created authority
which could cooperate with
community planning. coming
and industrial development.
After the Indebtedness to the
Federal Government had been
paid, the lands owned by the
authority could be placed on
the local tax rolls and be SUBJ
ject to the local real estate
taxes.