The Board of Mayor and Aldermen gave conditional preapproval Thursday for a UDAG loan that could fund cleanup and infrastructure work at the Tullahoma airport.

City staff explained UDAG (HUD economic development) loans are a revolving fund intended to support redevelopment and removal of blight. Sue (city staff) told the board that approving the availability of the loan tonight would not itself make funds disbursements; the Tullahoma Airport Authority must submit a formal application and go through the normal review and legal processes.

Contractor representatives described cleanup progress. A Coastal Environmental Services representative (Matt) reported that a release valve was installed recently and that, aside from weather-related delays, repairs should be complete. Staff earlier discussed an estimated remediation exposure of about $600,000, described as contingent on unforeseen issues.

Board members asked about fund capacity and repayment. Staff said the UDAG fund currently had roughly $820,000 available and that repayments return to the revolving fund for future projects. Aldermen said preapproval would help the airport move quickly if the authority chose to apply.

The board voted to preapprove making the loan available; the mayor announced the vote as 'Motion passes 6 to 0.' The vote is a preapproval and does not itself obligate city tax dollars as a grant; staff emphasized the loan would be repaid and secured as described in UDAG rules.

Next steps: If Tullahoma Airport Authority applies, the city committee would review the application and staff would proceed with legal work and loan documentation.