Resolution authorizing the City Manager enter into a grant agreement with the FAA Contract Tower Competitive Grant Program for the Air Traffic Control Tower Project

Adoption of the attached resolution.

Mankato Airport was accepted into the Federal Aviation Administration Contract Tower Program (FCT) on April 19, 2022. To be admitted into the program, the safety and efficiency benefits of a tower must exceed its costs. The FAA is required to perform benefit-cost analysis (BCA) to determine eligibility for participation in the program, Mankato Airport’s BCA is 2.35.

Conditions of acceptance into the FCT program:

• Five years from the date of the acceptance letter (April 19, 2022) provide a control tower that has successfully completed an Operational Readiness Inspection (ORI).
• Enter into an Air Traffic Control Tower Operations Agreement (TOA).
• Tower funding is subject to availability.
• If the Airport fails to provide a control tower that successfully completes an Operational Readiness Inspection (ORI) within the 5-year period, the Airport returns to Phase 1 (Interest Phase) and can reapply for acceptance into the FCT Program.

On October 10, 2023, the City Council authorized the City Manager to respond to the 2024 Notice of Funding Offer for discretionary federal funds under the Airport Terminal Program. The Airport Terminal Program is a $5 billion grant program, distributed as approximately $1 billion annually for five years, (Fiscal Years 2022 – 2026). The Mankato Regional Airport was awarded $1,050,000 for fiscal year 2024. This grant is 100% federally funded with no local share. We have recently received the grant agreement. The next step is to enter into a grant agreement. As the Council is aware, we have been working on the environmental assessment and have started the architectural and engineering services for this project. The proposed grant funds a portion of the City’s design work. On July 22, 2024, the City Council accepted a proposal from TKDA to provide professional services for project formulation and administration, and environmental assessment services associated with the Environmental Assessment for the amount of $125,000.00. The City Council accepted on February 10, 2025, an EXP proposal to provide professional Architectural and Engineering Services to the City for the design of the New Federal Contract Air Traffic Control Tower at the Mankato Airport. The proposal for the work is in the amount of $2,622,909.00 contingent upon funding availability. This grant application funds a portion of the design work totaling $911,800.00. The remaining amount is to be requested under a separate FAA Airports Improvements Program grant agreement.