POCATELLO — The Pocatello Development Authority Board approved seeking a $6 million loan to tackle a major upgrade in infrastructure near the airport for a new business only identified as “Project Pipe” at Wednesday's PDA meeting held at City Hall.

The planned project calls for a new road, a railroad spur, additional electrical service and new water and sewer upgrades for property located southwest of the existing Pocatello Regional Airport terminal.

Action by the PDA and city of Pocatello is being fast-tracked and PDA board chairman Michael Orr expressed some concern about the quick action.

“This seems to be a trend in government that everything is last minute,” Orr said.

“We do need to make a decision,” countered Mayor Brian Blad. “We have a company that is waiting for this meeting to be over.”

“This is the speed of business,” said city Planning and Development Director Lon Crowell.

The total commitment to the project actually exceeds $9 million with the expansion costs estimated at $6.67 million and city maintenance projects on existing infrastructure on the airport propertyestimated at $2.48 million.

A new electrical substation and power lines are estimated to cost $4.1 million. The rail spur to connect to the Union Pacific Railroad would be $1.63 million. New water, sewer and road work is estimated at $1.1 million.

The airport property is one of several Tax Incremental Funding or TIF districts managed by the PDA as the independent body responsible for overseeing urban renewal and economic development projects.

In addition to the loan, the PDA will contribute millions from its reserve fund to get the airport infrastructure project done. In a separate action Wednesday, the PDA authorized the annual collection of 10 percent administrative fees from the other TIF districts it oversees which will generate about $990,000 this year. It is also closing out one of the TIF districts which will bring about $1.6 million into the PDA's general fund.

The $6 million loan would be paid off over the next 19 years — the existing lifespan limit for the airport TIF.

The city's financial manager, Joyce Stroschein, told PDA board members that collecting the 10 percent administrative fees from the taxing districts each year — if the moneyis available — is wiser than waiting to collect the fees when the districts are closed out.

Stroschein presented two different loan proposals from Citizens Community Bank and D.L. Evans Bank to the PDA board Wednesday. The loan proposals were sought in June. Stroschein said the Citizens' proposal had the most flexibility because the Evans' proposal called for the PDA to set establish a $2 million deposit that would remain in place for three years until tax revenue from the new business started coming in.

“In the end, you meet all your obligations and leave a healthy balance in your general fund,” Stroschein said.

Mayor Blad said activities at the new business would occur much faster with plans to begin operations as soon as possible.

Orr said there have been some changes to the exact amount the PDA is seeking to borrow and he wanted to give both banks an opportunity to make adjustments to their proposals. The board voted to give Citizens Community and D.L. Evans until Nov. 25 to deliver alternative proposals, but authorized a $6 million loan limit for the airport TIF project.

Crowell said in the past few years about a dozen different companies have looked at locating on airport property and that would have meant billions of dollars in investments, but the lack of infrastructure improvements made them bypass the Gate City.

“Our responsibility as a PDA is economic development,” Blad said.