Crossings Aviation, the former occupant of a large facility at the airport, has defaulted on its loan. The note holder, Sunriver Asset Management LLC, would like to sell the buildings to the city, a proposition for which officials are seeking public comment.

The council is considering making a $2.5 million interim interfund loan out of Convention Center Construction Fund to be repaid by Dec. 31, 2003 so the city can purchase the Crossings Aviation buildings and make other improvements. If the council eventually OK's the purchase, the city will pursue a commercial paper loan for long-term financing. The interim financing would allow the city time to work through the commercial paper administrative process. None of the airport revenues could pay for General Fund services, such as police, fire, libraries or parks.

The cash flow from the hanger rentals of these buildings would repay the interfund loan as well as the commercial paper loan. The city says it intends to make improvements to the 56 hangers and a main building and maintenance facility-a total of 382,000 sf.