Presque Isle moved a step closer to starting work on its new airline terminal when the City Council awarded construction bids Wednesday.
Airport Director Scott Wardwell briefed councilors on the project, which carries a total price tag of $52,640,255.
Presque Isle’s current terminal was built in 1952 as a fire station at the former Presque Isle Air Base. It no longer meets modern Federal Aviation Administration guidelines and does not have enough space for the numbers of people who use it. Presque Isle boarded nearly 20,000 passengers last year, city officials said. The new, two-story terminal will expand services and accommodate more travelers.
Most of the cost will be covered by the FAA, with the help of grants and U.S. Department of Transportation funding.
“About 21 percent of the cost of the terminal is not FAA eligible,” Wardwell said. “The good news is that a lot of the areas that aren’t FAA eligible are areas that are occupied by the tenants of the passenger terminal.”
Rent from those tenants, which include JetBlue, the Transportation Security Administration and car rental companies, will help pay costs the FAA won’t cover, he said.
The entire project includes engineering, ground and utility work, the building itself and an aircraft parking apron. Construction costs have risen since the plan was first unveiled in 2023, Wardwell said. Awarding bids now will lock in costs.
Current costs include $4,252,325 for the parking apron, $5,192,075 for site work and utilities, $4,740,855 for project engineering and, using the lowest bid from A/Z Corp, $38,455,000 for the terminal building, according to a memo Wardwell sent to councilors.
So far, the airport has received more than $40 million in grants, including $38.5 million from the FAA, and about $1 million each from the Northern Border Regional Commission and the Maine Department of Transportation, the memo stated.
The FAA amount includes $20.46 million in congressionally directed spending, awarded earlier this year.
For the $12 million in remaining costs, Wardwell presented several options to councilors. Each involved financing all or part of the $12 million through a USDA Rural Development loan, which would be paid back from tenant rent.
Funds could also come from grants the airport will apply for, and one option would ask the TSA to pay nearly $2 million up front for their space at the airport. The less money that is financed by the loan, the lower rents will be, he said.
Councilors asked Wardwell to clarify whether Presque Isle residents would pay any of the airport terminal costs.
“None of these options involve local taxpayers paying for this project,” Wardwell said. “FAA recommends and highly encourages that airports self-finance things. They don’t want you to operate in the red.”
If construction is able to start in April, architects estimate the project could be complete in 18 months, he said.
Councilors voted to award the terminal apron project to Soderberg Construction of Caribou for $4,252,325 and the building construction bid to A/Z Corp, a Cianbro subsidiary, for $38,455,000. They also voted to allow Wardwell to finance up to $12,063,628 for remaining costs.
In other business, a moment of silence was observed for Councilor Garry Nelson, who died on Oct. 24. His empty council seat was set up with his nameplate.
Councilors discussed how to fill Nelson’s term, which will expire at the end of 2025. The city charter requires a replacement be appointed within 30 days of a vacancy occurring, City Manager Tyler Brown said. After 30 days a special city election is required.
After some discussion, the council voted to table an appointment until the next scheduled public meeting on Wednesday, Nov. 13, which is a public budget workshop.
In response to a local child-care provider’s request, the city will apply for a $100,000 Community Development Block Grant for Kelly’s Place Learning Center.
Owner Shyla Pinette appealed to the council in September, saying rising costs threatened her ability to continue in business. The city worked with Northern Maine Development Commission on the application, Council Chair Kevin Freeman said. The money will allow Pinette to retain 13 staff members.
There were questions as to whether the city should support one particular day care, but any child-care facility can apply for such funding through NMDC, Councilor Craig Green said.
Councilors also approved a $100,000 facade improvement grant to Fred Moreau of Gary’s Furniture. The money will pay for new front windows, a new sign and general repair, Moreau said.
The city approved two requests from the Presque Isle Police Department. One will provide $55,000 for advanced bulletproof gear, and the other will finalize a contract with Aroostook Mental Health Services Inc. that provides behavioral support services to the department.
The department and AMHC started collaborating earlier this year as counselors moved into the police station to assist officers on mental-health-related calls. The project has been successful and the contract will finalize the arrangement, Chief Chris Hayes said.
The next public budget workshop will be held at 6 p.m. on Wednesday, Nov. 13, in the council chambers at City Hall.
The next regular council meeting will be at 6 p.m. on Wednesday, Dec. 4.
