PRESQUE ISLE, Maine — November 6, 2024 — Presque Isle International Airport Director Scott Wardwell speaks at the Presque Isle City Council meeting on November 6, 2024. (Paula Brewer | The Star -Herald)

Pinterest Isle took a step closer to starting work on its new air terminal when the City Council awarded construction bids Wednesday.

Airport Director Scott Wardwell briefed councilors on the project, which has a total price tag of $52,640,255.

The current Pinterest Isle Terminal was built in 1952 as a fire station on the former Presque Isle Air Force Base. It no longer meets modern Federal Aviation Administration guidelines and does not have enough space for the number of people using it. Pinterest 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 costs will be covered by the FAA, with help from grants and funding from the U.S. Department of Transportation.

“About 21 percent of the terminal cost is not FAA eligible,” Wardwell said. “The good news is that many of the areas that are not FAA eligible are areas occupied by passenger terminal tenants.”

Rent from those tenants, which include JetBlue, the Transportation Security Administration and rental car companies, will help pay for costs the FAA won’t cover, he said.

The entire project includes engineering, ground and utility works, the building itself and an aircraft parking area. Construction costs have increased since the plan was revealed for the first time in 2023, Wardwell said. Awarding bids now will lock in costs.

Current costs include $4,252,325 for the parking area, $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, according to a memo Wardwell sent to advisors.

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 FAA. Northern Border Regional Commission and the Maine Department of Transportation, the memo said.

The amount of the FAA includes $20.46 million in congressionally directed spending granted earlier this year.

For the remaining $12 million in 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 repaid from tenants’ rent.

Funds could also come from grants the airport applies for, and one option would require TSA to pay nearly $2 million up front for its space at the airport. The less money funded by the loan, the lower the rents will be, he said.

Councilors asked Wardwell to clarify whether Presque Isle residents would pay the airport terminal fees.

“None of these options involve local taxpayers paying for this project,” Wardwell said. “The FAA strongly recommends and encourages airports to self-finance their operations. They don’t want you to operate in the red.”

If construction can begin in April, architects estimate the project could be completed 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 subsidiary of Cianbro, for $38,455,000 . They also voted to allow Wardwell to fund up to $12,063,628 toward remaining costs.

In addition, a minute of silence was observed for Councilor Garry Nelson, who died on October 24. His empty council seat was decorated with his nameplate.

Councilors discussed how to fill Nelson’s term, which expires at the end of 2025. The city charter requires a replacement to be appointed within 30 days of a vacancy, City Manager Tyler Brown said. After 30 days, a special municipal election is required.

After some discussion, the council voted in favor of an appointment until the next public meeting scheduled for Wednesday, November 13, which is a public budget workshop.

In response to demand from a local child care service, the city will apply for a $100,000 Community Development Block Grant for Kelly’s Place Learning Center.

Owner Shyla Pinette appeal to the council in September, saying rising costs threatened its ability to continue operations. The city worked with the Northern Maine Development Commission on the application, board President Kevin Freeman said. The money will allow Pinette to retain 13 employees.

Questions have been asked about whether the city should support a particular daycare, but any daycare can apply for such funding through the NMDC, Councilor Craig Green said.

Councilors also approved a $100,000 grant for facade improvements to Fred Moreau of Gary’s Furniture. The money will pay for new front windows, a new sign and general repairs, Moreau said.

The city approved two requests from the Presque Isle Police Department. One will provide $55,000 for advanced bulletproof equipment and the other will finalize a contract with Aroostook Mental Health Services Inc. which provides behavioral support services to the department.

THE department and AMHC began collaborating earlier this year when counselors moved into the police station to assist officers with mental health-related calls. The project was successful and the contract will finalize the arrangement, Chief Chris Hayes said.

The next public budget workshop will take place on Wednesday, November 13 at 6 p.m., in the council chambers of city hall.

The next regular council meeting will take place on Wednesday, December 4 at 6 p.m.