Resolution amending Resolution R-2026-0824-210 authorizing the City Manager to execute the grant agreement for the Airport Traffic Control Tower Construction under the Federal Contract Tower Program.

Adoption of the attached resolution.

The FAA Contract Tower Competitive Grant Program, as part of the Infrastructure Investment and Jobs Act, provides grant funding to modernize and construct airport traffic control towers. This funding opportunity is the final year in which grants will be available at a 100% federal share.

Mankato Regional Airport was initially awarded $5,000,000, which was subsequently increased by $1,694,751 totaling $6,694,751 of awarded Federal Contract Tower funds for 2026. Council authorized the execution of grant agreement 3-27-0055-043-2026 in August (R-2026-0824-210).

Last week, Mankato was provided notice of a second subsequent increase of $2,354,859 totaling $9,049,610 of awarded Federal Contract Tower funds for 2026. This resolution amends the previous authorization (R-2026-0824-210) to account for the additional funding in federal grant agreement 3-27-0055-043-2026.
Tower construction costs and funding sources:
 

Source	Total	Federal Share	State Share	Local Share
Knutson Construction Estimate	$28,169,018
Federal Contract Tower Program	$9,049,610	$9,049,610	$0.00	$0.00
Congressionally Directed Spending	$3,684,210	$3,500,000	$92,105	$92,105
Remaining Construction Costs	$15,435,197

The latest projection (July 31, 2026) for construction of the Airport Tower is $28,169,018.

• Tower Construction Estimate                     $25,890,398
• Construction Administration                       $2,168,620
• FAA Reimbursable Commissioning           $100,000
• City Administration                                    $10,000

Additional costs which are only eligible for state funding include furniture, appliances, and fixtures estimated at $50,000 and Technology estimated at $120,000 with a 30% local share.

Mankato Airport has until April 19, 2029, to complete the FAA Operational Readiness Inspection.