Resolution 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 Federal Aviation Administration (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 provided notice of awarded 2026 Federal Contract Tower funds of $6,694,751.

Funding awarded for construction includes:

	Total	Federal	State	Local
Federal Contract Tower Program	$6,694,751	$6,694,751	$0	$0
Congressionally Directed Spending	$3,684,210	$3,500,000	$92,105	$92,105
State Airport Fund	$1,265,000	$0	$1,265,000	$0
Total Funding Award	$11,643,961

The latest projection 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 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.