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Board awards airport T-hangar bid to Olympic Builders, conditions award on FAA/state funding; approves entitlement transfer from Albert Lea
Summary
The county named Olympic Builders low bidder on the airport T-hangar project and approved an entitlement-transfer agreement with the City of Albert Lea that will temporarily provide $283,000 in FAA entitlement funds to the county, subject to a two-year repayment schedule.
Houston County awarded the airport T-hangar construction contract to Olympic Builders and approved paperwork to accept a $283,000 entitlement transfer from the City of Albert Lea at its April 2 meeting, but both actions include clear contingencies.
Staff reported Olympic Builders submitted the low bid of $1,497,400 against an engineer’s estimate of $1,539,000. The county’s planned funding package for the hangar project, as described by staff, is approximately 95% federal (FAA) entitlement funds, 2.5% state funds and 2.5% local funds; the estimated local share for the county’s portion is $40,960. Commissioners approved awarding the contract to Olympic Builders provided the anticipated federal and state funding materializes.
The board also approved an entitlement-transfer agreement in which the City of Albert Lea will transfer $283,000 of its FAA entitlement dollars to Houston County on the condition Houston County repays that transfer: $150,000 by May 15, 2026, and $133,000 by May 15, 2027. Staff said the transfer is administrative paperwork the county must file with the FAA and that no interest is charged on the transfer.
Why it matters: The airport award commits the county to a contractor if external funding is confirmed and the entitlement-transfer agreement obligates the county to a specific repayment schedule to the city. If FAA or state funding does not clear, the contract award remains contingent and the county can withhold execution.
Discussion and clarifications
- Bid amounts and budget implications: Staff compared the low bid ($1,497,400) to the engineer’s estimate and noted the low bid came in under estimate. The board required the funding contingency be included in the motion.
- Entitlement mechanics: Staff explained the entitlement transfer is paperwork filed with the FAA. The county would transfer newly received entitlement funds back to the City of Albert Lea after receiving its next FAA allocation, repaying the $283,000 in two installments per the approved schedule.
- Timing: Staff expected a federal funding announcement soon and flagged the need to file FAA forms promptly.
Ending
The board’s approvals allow staff to proceed with administrative FAA paperwork and to move toward contract execution if and when the FAA and state confirm the funding package. The county will monitor the FAA entitlement schedule and return funds to the contributing city per the approved repayment timetable.
