On July 1, 2025, the Tupelo City Council authorized city officials to negotiate a short-term loan to the Tupelo Regional Airport Authority to cover remaining costs from construction of a new air-traffic control tower.

The council voted unanimously to let the mayor, the city attorney and the chief financial officer finalize terms for a loan not to exceed $685,758.14 and return the loan document to the council for approval on July 15. Ben Logan, the city attorney, explained the request on behalf of the airport authority and city negotiators.

Why it matters: The airport completed a control tower that exceeded the initial budgeted funding. The airport authority expects to receive grant funding to repay the loan but needs interim cash to pay the contractor.

Details: Logan said the control tower project was originally bid at about $2.5 million and included $1.5 million in anticipated grants. After delays in federal appropriations, the airport requested short-term city assistance so the contractor could be paid. The proposed loan would carry a 4% interest rate tied to the city’s municipal reserves and be repayable in full when grant or other funding arrives; prepayment would be allowed with no penalty.

Repayment terms discussed included monthly payments of $7,000 at first, and a plan to increase to $8,333 per month (about $100,000 per year) in the new budget year, to be drawn from lease payments the airport makes to the city. The council asked negotiators to return a final agreement at the next regular meeting for formal approval.

Council discussion and next steps: Council members asked about the expected length of the loan; staff said the loan is intended as a short-term measure and will be renegotiated no later than Sept. 30, 2026, if it is not paid off earlier. The motion to authorize negotiation passed unanimously.