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Tullahoma board preapproves UDAG loan option to help fund airport cleanup
Summary
The board voted to preapprove availability of a UDAG loan as a potential funding source for airport cleanup and infrastructure repairs; staff estimated cleanup at about $600,000 and emphasized the vote is only a preapproval—the Tullahoma Airport Authority must apply for the loan.
The Board of Mayor and Aldermen voted to preapprove a UDAG loan as a potential funding source to help cover cleanup and infrastructure repairs at the Tullahoma airport.
City staff described UDAG (Urban Development Action Grant) funds as an economic-development tool that city government can lend to the airport authority for cleanup, removal of blight and infrastructure improvements. A staff presentation said cleanup and repair costs were estimated at about $600,000 "absent any unforeseen issues." The loan discussed would be offered at 4 percentage points below prime (staff noted that would make it roughly 3% under current market conditions) and could be structured over a long term — up to 25 years — to match infrastructure repayment capacity.
Staff emphasized the board’s action was a preapproval making the loan available if the Tullahoma Airport Authority formally applies; it does not commit the city to disburse funds. Officials said contractors have completed key work (a valve installation) and that TDEC is awaiting a report. City staff and contractors said they have coordinated with adjacent property owners, including Ascend Federal Credit Union, where a release valve was placed to limit future spills; the board discussed procedures to ensure the valve can be operated quickly if needed.
Board members praised first responders and the OES team for the cleanup work. The resolution to make UDAG funds available for application by the airport was approved in the meeting transcript (recorded vote: 6–0).
What’s next: If the airport authority chooses to apply, the application would follow the city’s normal review and legal process; loan repayments would return to the revolving UDAG fund for future economic development use.
