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Lawton council authorizes up to $8 million bridge loan to support Firehawk Aerospace project
Summary
The Lawton City Council approved a resolution allowing the Lawton Industrial Development Authority to issue a note not to exceed $8 million as a short-term bridge loan to the Lawton Economic Development Authority to support construction of a Firehawk Aerospace manufacturing facility; LEDA has been awarded $22 million in state-administered grant funds that will repay the note.
The Lawton City Council on May 4 approved a resolution authorizing the Lawton Industrial Development Authority to issue a note not to exceed $8 million to be loaned to the Lawton Economic Development Authority (LEDA) to finance construction of an industrial manufacturing facility for Firehawk Aerospace Incorporated.
City staff described the measure as a short-term bridge loan to help LEDA begin project construction ahead of staggered grant payments from a state-administered program. Lawton Industrial Development Authority bond counsel Lynn Driver told the council LEDA has been awarded $22 million through a program administered by the Oklahoma Development Finance Authority, and the note would be repaid as grant proceeds are received. Staff said the loan may be repaid within the year, though the final maturity could be as late as 2029.
Chris Gander of Bank of Oklahoma attended to discuss placement of the note with local banks; staff asked the council to waive competitive bidding so the note could be negotiated and placed quickly. Council voted to approve the resolution and related documents by an 8-0 roll call.
Why it matters: Staff framed the action as time-sensitive financing to avoid construction delays while state grant disbursements are staged. The city’s approval waives normal competitive-bidding requirements for the sale of the note and authorizes execution of closing documents necessary to place the financing with local lenders.
What the council approved: The resolution authorizes the IDA to incur indebtedness up to the stated cap, approve negotiated placement of the note with local banks, waive competitive bidding for the sale, and execute associated documents. City bond counsel said proceeds, when drawn, will be loaned to LEDA; LEDA will repay from the awarded state funds. Council recorded the motion as carrying 8-0.
Next steps: Staff will proceed with negotiations and placement of the note with local banks and return any required closing documents for execution as authorized by the council.
