Salt Lake City Airport Nears $700M Bond Issuance as Construction Wraps Up

Key Takeaways

• Salt Lake City Council approved $700 million bond issuance in June 2025 for airport redevelopment.
• Bonds repaid exclusively from airport revenues over 40 years, no property tax increase to residents.
• Final construction phase adds 16 gates, completing by October 2026 with minor work into 2027.

Salt Lake City International Airport Moves Forward with $700 Million Bond Issuance as Redevelopment Nears Completion

Salt Lake City International Airport is entering the final stretch of its massive $5.13 billion redevelopment, with city officials preparing to issue up to $700 million in new airport revenue bonds. This major financial step, approved by the Salt Lake City Council in early June 2025, will provide the last round of funding needed to finish construction and modernize the airport for decades to come. The move comes after a smooth public review process and is set to shape the future of air travel in Utah and the broader region.

Who, What, When, Where, and Why

The Salt Lake City Council gave the green light for the bond issuance in June 2025, following a public hearing on July 1, 2025. No objections were raised during the hearing or the 30-day public contest period, clearing the way for the city to move forward. Airport officials expect to close on the bonds in early August 2025, after receiving final bond ratings and setting the bond price in late July.

The $700 million bond issuance is designed to cover the final phases of construction at Salt Lake City International Airport, repay short-term debts, fund interest payments, and ensure the airport has enough reserves to meet its financial obligations. The bonds will be paid back over up to 40 years, using money generated by the airport itself—such as landing fees, terminal rentals, and other charges paid by airlines and tenants. Importantly, these bonds are not backed by property taxes or general city funds, so local taxpayers will not see any increase in their tax bills as a result.

Key Details of the Bond Issuance

The Salt Lake City International Airport bond issuance is a carefully structured financial tool. Here are the main points:

• Maximum authorized amount: $700 million. However, the city expects to sell about $633.5 million, with the extra capacity included to handle any changes in the financial markets.
• Purpose: The money will be used to finish construction, pay off short-term debts, cover interest costs, and set aside funds in a reserve account.
• Maturity: The bonds can be paid back over as long as 40 years.
• Interest rate cap: The interest rate cannot be higher than 6.5% per year. If rates go above this, the city can delay or pause the bond sale.
• Sale price: The bonds must be sold for at least 98% of their face value.
• Security: The bonds are limited obligations, which means they are only paid back from airport revenues, not from city taxes.

This approach gives the city flexibility to respond to changes in the financial markets. If interest rates rise too high, officials can wait for better conditions before moving ahead. This protects both the airport and the city from taking on debt that would be too expensive to manage.

Who’s Involved?

Several key players are guiding the Salt Lake City International Airport bond issuance and redevelopment:

• Salt Lake City Department of Airports: This department manages the airport and oversees the entire redevelopment project, including the bond process.
• Bill Wyatt, Executive Director: Wyatt has called this bond the final funding step for the airport’s transformation, highlighting its importance for the region.
• Brian Butler, Chief Financial Officer: Butler has explained that the bond size includes extra capacity to handle market changes, ensuring the airport can finish construction without financial surprises.
• Salt Lake City Council: The council approved the bond resolution on June 3, 2025, after reviewing the project’s needs and financial plans.

Construction Progress and Timeline

The Salt Lake City International Airport redevelopment is one of the largest public works projects in Utah’s history. The project began in 2014 and has been completed in phases, with new terminals and concourses opening since 2020. The goal is to replace outdated 1950s and 1960s buildings with a modern, efficient airport that can handle up to 34 million passengers each year.

As of July 2025, 73 gates are already open and serving travelers. Ten more gates are expected to open in the fall of 2025, and the final 11 gates are scheduled for completion by October 2026. The last major construction activities—such as installing jet bridges, paving the airfield, and putting in glass walls—are underway and will wrap up by the end of 2026. Some minor paving and finishing work will continue into early 2027.

The final phase of construction, known as Phase 4, will add 16 gates to Concourse B. Five of these gates will open in the fall of 2025, with the remaining 11 ready by October 2026. This phased approach allows the airport to keep serving travelers while construction continues, minimizing disruptions.

Why the Redevelopment Matters

The Salt Lake City International Airport redevelopment is more than just a facelift. It’s a complete transformation of the airport’s infrastructure, aimed at meeting the needs of a growing region and a changing airline industry. The new airport will offer:

• Expanded capacity: More gates and larger terminals mean the airport can handle more flights and passengers, reducing delays and making travel smoother.
• Modern amenities: Travelers will enjoy new shops, restaurants, lounges, and other services designed for comfort and convenience.
• Improved efficiency: The new design makes it easier for planes to move around the airfield and for passengers to get to their gates quickly.
• Better safety and security: Updated systems and technology will help keep travelers safe and secure.

This project is also a major economic driver for Utah, creating jobs during construction and supporting growth in tourism, business, and trade. According to analysis by VisaVerge.com, the redevelopment is expected to boost the region’s economy for years to come.

How the Bond Issuance Works

The process for issuing the $700 million in bonds is detailed and transparent. Here’s a step-by-step look at what’s happening in 2025:

1. City Council Approval: The Salt Lake City Council approved the bond resolution on June 3, 2025.
2. Public Contest Period and Hearing: A 30-day period allowed the public to raise objections or ask questions. A public hearing was held on July 1, 2025, but no objections were received.
3. Bond Ratings Review: The airport is waiting for final bond ratings from agencies like Moody’s, which are expected by mid-July 2025. These ratings help determine the interest rate and terms of the bonds.
4. Bond Pricing: The city will set the final price for the bonds in late July 2025, based on market conditions and the ratings received.
5. Bond Closing: The sale will close in early August 2025, making the funds available for the airport to use.

This careful process ensures that the city gets the best possible deal and that the public has a chance to weigh in before any major financial decisions are made.

Financial Safeguards and Market Flexibility

One of the most important features of the Salt Lake City International Airport bond issuance is the built-in flexibility to handle changes in the financial markets. The city has set a maximum interest rate of 6.5% per year. If rates go higher, officials can delay or pause the bond sale until conditions improve. This protects the airport from taking on debt that would be too expensive to pay back.

The city is also setting aside extra capacity in the bond authorization—up to $700 million, even though only about $633.5 million is expected to be sold. This gives the airport a cushion in case market conditions change or unexpected costs arise.

The bonds are limited obligations, meaning they are only paid back from airport revenues. Airlines and tenants will continue to pay landing fees, terminal rentals, and other charges that support bond repayment. This approach ensures that the people and companies using the airport bear the financial responsibility, not local taxpayers.

Stakeholder Perspectives

The Salt Lake City International Airport redevelopment and bond issuance have drawn support from a wide range of stakeholders:

• Airport Officials: Leaders like Bill Wyatt see the bond as the final step in a long journey to modernize the airport. They emphasize the importance of finishing the project on time and within budget.
• City Leaders: The Salt Lake City Council and other officials support the plan, noting its importance for economic growth and the region’s future.
• Airlines and Tenants: These groups will continue to pay the fees that support bond repayment. They benefit from improved facilities and expanded capacity, which can help them grow their own businesses.
• Travelers and the Public: Passengers will enjoy a state-of-the-art airport with more gates, better amenities, and a smoother travel experience. The public can also rest easy knowing that the bonds will not impact property taxes.

Challenges and Achievements

The Salt Lake City International Airport redevelopment has not been without its challenges. The project has faced:

• An earthquake: Construction crews had to respond quickly to repair damage and keep the project on track.
• The COVID-19 pandemic: Like many large projects, the airport faced delays and supply chain disruptions during the pandemic.
• Complex site conditions: Building a new airport while keeping the old one running required careful planning and coordination.

Despite these hurdles, the project remains on schedule for completion in October 2026, with only minor finishing work expected to continue into early 2027. The airport is also optimistic about a possible upgrade in its bond rating from Moody’s, following positive reviews from Standard & Poor’s and Kroll in 2024. A higher rating could mean lower interest costs and more financial flexibility.

Policy Implications and Broader Impact

The Salt Lake City International Airport bond issuance is a model of financial responsibility and transparency. By using airport revenues to pay back the bonds, the city avoids putting extra pressure on taxpayers. The project also shows how careful planning and public input can lead to successful outcomes for major public works.

For airlines and tenants, the new facilities mean more opportunities to expand service and attract new customers. For travelers, the benefits are clear: more flights, better amenities, and a smoother airport experience.

The project also has implications for immigration and international travel. As the first new U.S. hub airport built in the 21st century, Salt Lake City International Airport will be better equipped to handle international flights and welcome travelers from around the world. This supports Utah’s growing role as a gateway for business, tourism, and cultural exchange.

What’s Next?

Looking ahead, the Salt Lake City International Airport bond issuance will close in early August 2025, providing the funds needed to finish construction. Five new gates will open in the fall of 2025, with the final 11 gates ready by October 2026. Major construction will wrap up at that time, with only minor paving and finishing work continuing into early 2027.

No further major bond issuances are expected for this redevelopment program, meaning the airport will soon be operating in its new, modern form for years to come.

For more information on the Salt Lake City International Airport redevelopment, including official documents and public notices, readers can visit the Salt Lake City Department of Airports website.

Takeaways for Stakeholders

• Travelers: Expect a better airport experience, with more gates, new amenities, and improved efficiency.
• Airlines and Tenants: Prepare for expanded capacity and modern facilities, with continued responsibility for usage fees that support bond repayment.
• Local Residents: No impact on property taxes, as the bonds are paid back from airport revenues.
• City Leaders and Officials: The project stands as a model for responsible public works and financial management.

As Salt Lake City International Airport moves closer to completing its historic redevelopment, the $700 million bond issuance marks a key milestone. With all procedural steps on track and no public opposition, the airport is set to finish construction on time and deliver a world-class facility for Utah and the region.

For those interested in the official public hearing notices and bond documents, the Utah Public Notice Website provides detailed information.

In summary, the Salt Lake City International Airport’s $700 million bond issuance is not just a financial transaction—it’s the final step in a decade-long effort to build a modern, efficient, and welcoming airport for millions of travelers each year. With careful planning, public support, and strong financial safeguards, the project is on track to deliver lasting benefits for all stakeholders.

Learn Today

Bond Issuance → A financial process where entities raise funds by selling debt securities to investors for projects.
Airport Revenue Bonds → Bonds repaid only through airport-generated income like landing fees and rentals, not taxes.
Public Hearing → An official meeting allowing public input or objections before governmental financial decisions are finalized.
Interest Rate Cap → The maximum annual interest rate allowed on the bonds, protecting against high borrowing costs.
Concourse → A large open area in an airport terminal where gates and passenger services are located.

This Article in a Nutshell

Salt Lake City’s $700 million airport bond funds final expansion steps, modernizing infrastructure for future growth. The bonds protect taxpayers while enhancing travel with new gates, facilities, and economic opportunity. Completion is slated for late 2026, marking a transformative milestone for Utah’s major airport redevelopment project.
— By VisaVerge.com