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City to seek FAA guidance after Inn at the Waterpark temporarily houses evacuated Meridian residents
Summary
After Meridian residents displaced by a water‑line failure were housed at the Inn at the Waterpark (an airport‑leased hotel), council asked staff to seek formal FAA confirmation that the Inn's temporary use as emergency housing — billed daily and subject to HOT tax — does not violate airport lease covenants that prohibit apartment or permanent conversions.
Council discussed the Inn at the Waterpark after the Meridian experienced a water‑main failure and many of its residents were temporarily housed at the Inn. City staff and the Inn's attorney said rooms are being rented on a daily basis, HOT tax is collected and the Inn continues to operate as a hotel.
Earlier this year council declined to approve a proposed lease assignment when the buyer planned to convert the property into apartments — an activity staff said would jeopardize FAA grant covenants. Council members asked why the current situation (longer‑term stays of displaced residents) was treated differently. City legal and the Inn's counsel said the current operator continues to run a hotel that bills daily and collects HOT tax; staff said the difference between a hotel and an apartment complex is the business model and sale/lease terms.
Council asked staff to request formal written guidance from the Federal Aviation Administration clarifying whether the Inn's present operations (daily billing, HOT tax collection, temporary emergency housing) are consistent with airport lease covenants and FAA expectations. Staff agreed to request FAA clarification and report back.
