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Council approves joint EDA grant agreement with county and OKs $360,000 loan for T‑hangar match
Summary
Council authorized a joint grant-management agreement with Klickitat County related to a Regional EDA hangar project and approved a $360,000 city loan to match a Connect Oregon grant for T‑hangars; the EDA resolution passed 3–1, the loan passed by majority vote.
The council voted Feb. 24 to authorize a joint grant-management agreement with Klickitat County related to a U.S. Economic Development Administration (EDA) grant for airport hangar work, and separately approved a city loan to provide part of the local match for a Connect Oregon grant to build two rows of T‑hangars.
City Manager Matthew Clebs told the council the joint‑management agreement is a requirement of the EDA award for the Columbia Gorge Regional Airport hangar project and sets how the city and Klickitat County will jointly manage grant administration. Clebs said Klickitat County’s board chair, Lori Zoller, has signed the county’s counterpart resolution authorizing the agreement.
The council adopted Resolution 25‑010 to authorize the city manager to execute the joint grant-management agreement. The motion was moved by Councilor Runyon and seconded by Councilor McLaughlin; the motion passed on a 3‑to‑1 vote (one councilor recorded a nay) with one councilor absent. Staff noted the award remains subject to federal grant terms and that the council and staff will continue to monitor federal developments before making further project commitments.
Separately, council approved a city loan for the local match on a Connect Oregon grant (CO9‑006) to build T‑hangars at the Columbia Gorge Regional Airport. Staff reported the Connect Oregon award totaled $1,690,000 and required a 30% local match. The total match requirement was presented as $720,000; staff said $180,000 would be provided as a grant from the city and $180,000 from Klickitat County, and the council authorized a $360,000 city loan to cover the remaining match.
Staff proposed a five‑year loan at 4.5% interest to be repaid from hangar rents. Airport staff said there is strong demand for hangar space and a waiting list; the airport presentation said projected monthly rents of about $450 per unit would generate revenues sufficient to repay the note. Councilor McLaughlin moved to direct the city manager to execute the loan; Councilor Richardson seconded, and the council approved the loan.
City Manager Clebs cautioned that the EDA funding comes with federal terms and that staff would continue to watch federal policy developments that could affect grant obligations; he said staff’s EDA contact advised the city to “stay the course” while monitoring federal updates.
The council’s actions allow staff and Klickitat County to proceed with grant administration and with development plans for the hangars; staff said construction bids for portions of the airport program have been staged to align with grant requirements and to limit exposure until contracts are ready for award.
