A representative from American Airlines will speak before the Humboldt County Board of Supervisors today after the Headwaters Fund board agreed Monday to loan the county $1 million for an airline revenue guarantee.

The airline is considering starting twice-a-day service to Los Angeles from the Arcata/Eureka airport but has asked the county for an annual $500,000 revenue guarantee for two years. This means the county would be on the hook for up to $1 million if the airline doesn’t meet its capacity requirements.

Board members of the Headwaters Fund — created by the county to utilize $22 million in state and federal funds given to offset the sale of the Headwaters Forest Reserve — decided Monday to recommend the supervisors use Headwaters money to provide a revenue guarantee to American Eagle, the regional affiliate of American Airlines.

However, Headwaters Fund Coordinator Dawn Elsbree said the board didn’t offer to completely foot the bill.

”We’re recommending the supervisors use $1 million in loan funds,” Elsbree said. “The county would be repaying the loan.”

Third District Supervisor Mark Lovelace said Headwaters board members didn’t want to simply grant the county the money. He said the board was uneasy giving funds for a proposal that has yet to appear on paper.

”There was some back and forth about the particulars still,” Lovelace said about the Headwaters Fund board’s discussion with an airline representative.

Lovelace said if the supervisors agree on the loan idea, they’d direct staff to apply for a Headwaters loan and continue negotiations with the airline. He said the airline is interested in starting service in June.

Megan Hansen can be reached at 441-0511 or mhansen@times-standard.com.