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AGENDA RECOMMENDATION       
   5.P.
City Council Regular Meeting
Meeting Date:
08/10/2026

Agenda Item:

Resolution to apply for additional awarded Airport Traffic Control Tower Construction Funds under the Federal Contract Tower Program.

Recommendation/Action(s):

Adoption of the attached resolution.

Summary:

The Infrastructure Investment and Jobs Act (IIFA) established the Airport Terminal Program (ATP) as a competitive grant program which provides approximately $1 Billion in grant funding annually for five years, between FYs 2022-2026, to upgrade, modernize, and rebuild airport terminals and airport-owned airport traffic control towers. This is the final year in which ATP will be available at a 100% federal share.

Previously, Mankato Regional Airport was provided notice of awarded 2026 Federal Contract Tower funds of $5,000,000. The Minnesota Airports District Manager this week informed staff that an additional $1,694,751 through the same program was available for the Mankato Control Tower Project.

Awarded Funding for Construction includes:
Source Total Federal Share State Share Local Share
Federal Contract Tower Program (100%) $6,694,751 $6,694,751 $0.00 $0.00
Congressionally Directed Spending (95%) $3,684,211 $3,500,000 $92,105 $92,105
State Airport fund (100%) $1,265,000 $0.00 $1,265,000 $0.00
Total Funding Award $11,643,962      

The lates projection for construction of the Airport Tower is $28,169,081.
  • 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 state capital funding eligible include furniture, appliances, and fixtures estimated at $50,000 and Technology estimated at $120,000 with a 30% local share.

Mankato Regional Airport is one of 17 sponsor-owned towers conditionally approved for the FAA Contract Tower program and one of 179 airports eligible for the competitive program.  Also included is Anoka County-Blaine and St. Cloud Regional.

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