Shelbyville reviews $6 million federal set‑aside and candidate projects for city airport

Shelbyville city staff on Friday reviewed federal and state grant options and candidate projects for a $6,000,000 federal set‑aside awarded to the city for airport improvements and said formal council action will follow after bids and grant paperwork are prepared.

Paul, the airport director, told the special‑call workshop that Middle Tennessee State University (MTSU) had sought approximately $8.9 million through the congressional appropriations process and the city wound up as a line item for $6,000,000 in the House appropriations listing. "We were a line item on the appropriations list for $6,000,000 that was a set aside for airports," he said, adding the funds are administered through the U.S. Department of Transportation and the FAA.

The director said the money is AIP‑style funding with program restrictions: it must be used for public airport facilities (not for a single tenant) and the typical funding structure is 90% federal with a required 10% local match. "You have to have a 90% — that's a 90% grant. So you have to come up with 10% of the local share," he said.

City staff outlined four primary candidate projects to absorb the set‑aside: construction of an aircraft run‑up (bypass) area (preliminary estimate ~ $700,000 plus engineering), rehabilitation/extension of a taxiway that would open roughly 10 acres for development, construction of a corporate hangar (estimated building cost cited around $2,000,000), and an ADA‑compliant terminal remodel (quoted about $1,200,000 plus $100,000 in design fees). Paul emphasized those figures were broad, preliminary estimates and that formal bids will be required before any funds are obligated.

Officials also discussed grant packaging options to reduce the city’s local share. Paul said the state offers a 50/50 terminal grant up to $500,000 that, when combined with federal reimbursement rules, can lower the city's out‑of‑pocket match. He also said the city continues to apply for Bipartisan Infrastructure Law terminal funding (he cited an application amount of about $997,000) and that if additional grants are secured the city could reallocate local funds to meet match requirements.

On schedule, Paul said staff hope to begin some design work as early as September and to bring consultant work orders and grant requests to the October city council meeting. He told the council the federal set‑aside must be under grant by federal FY26 and that reimbursement schedules differ between state and federal programs.

Council members thanked airport staff and representatives of MTSU for assistance in securing the appropriation. Henry credited MTSU employees for ‘‘hand walking this through Congress and the appropriations process’’ over the past two years. No formal motions or votes occurred at the informational workshop; council members said they expect to receive documented bids and consultant agreements and to consider formal grant acceptance and matching arrangements at a future meeting.

The meeting was livestreamed for council members not present; the mayor adjourned the session after closing remarks of appreciation to Congressman Desjarlais.