JUNEAU, Alaska (AP) — Juneau officials have said that the Alaska’s capital is expected to win a $15 million federal grant for an airport terminal reconstruction project.

Juneau Airport Manager Patty Wahto said that the Federal Aviation Administration announced the grant award last Thursday, KTOO Public Media reported.

Airport officials originally hoped to receive about $12 million in smaller grants over four years rather than the larger grant, which will be distributed in a lump sum, Wahto said.

Recipients of these types of grants would normally be required to contribute a few pennies of municipal funds for every federal dollar contributed, Wahto said.

But Juneau will only be responsible for about $534,000 because of provisions in the federal coronavirus economic recovery funding law passed by Congress earlier this year, Wahto said.

Work began in February to tear down and rebuild about 35,000 square feet (3,252 square meters) of the older end of the airport terminal. Airport employees have offices in the area, which is also used by small airlines.

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City officials approved the $16.2 million contract in January with expectations the project would be funded primarily by debt to be repaid primarily through airport passenger facility charges and some city sales taxes and property taxes.

“This essentially wipes out maybe six years of PFC collections that we don’t have to do now for this project,” Wahto said.

Airport fee rates are unlikely to change, but the grant allows the use of funds for other airport infrastructure projects, Wahto said.

The Juneau Airport Board and Juneau Assembly must approve the grant.

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