Tupelo council approves loan documents to cover airport tower grant lag

Ben (staff member) told the council the loan documents authorize a short-term loan to the Tupelo Airport Authority because a lag in FAA grant funds left the airport temporarily outstanding to a contractor. Nut graf: Council authorized loan documents and said the loan is intended to be temporary; the airport authority has already approved a promissory note and the city expects grant reimbursement within weeks to months. Ben said, “We've prepared an order that authorizes us to loan the airport some money to, there was a lag in their grant, that was paying for the tower out there, and then and that caused them to be outstanding on some of their obligations to the contractor.” He told the council the city has statutory authority to loan municipal airports and that the airport authority had already passed a promissory note. The council moved and approved the loan documents by unanimous voice vote. Ben said he had the signed note returned and would circulate originals; he did not state the loan amount on the public record during the explanation. Ending: City staff indicated the grant reimbursement should resolve the short-term need in a few weeks to months; terms are on an exhibit to the order that the council approved, and the council did not alter those terms in the meeting record.