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Major Jackie Clayton and the rest of the Tupelo Police Department get settled into their new temporary headquarters located at the Tupelo Regional Airport. The city and airport currently are finalizing the details of the lease agreement.
By Rod Guajardo
Daily Journal
TUPELO – Though members of the Tupelo Police Department have been located at the Tupelo Regional Airport for more than a month, a lease agreement between the city and airport authority is still in the process of being finalized.
The City Council tabled Tuesday night a version of the lease agreement that has been going back and forth between the two entities since early April, when the police department began moving from its building on Front Street where mold was discovered to the old Army Aviation Support Facility at the airport.
Universal Asset Management, which disassembles and recycles large passenger jets, occupies nearly 60 percent of the old facility.
The police department is using some of the remaining space, including 20 rooms and offices at varying sizes, until its new facility is completed next year. Officials broke ground on the new $10 million police headquarters on Front Street in early April.
The lease agreement, which calls for the city to pay $3,042 a month to the airport, has been tabled by both the city and airport board several times.
The current issue in discussion deals with regulations set in place by the Federal Aviation Administration, according to the airport’s executive director, Cliff Nash.
“There are various agencies involved when you lease property at an airport,” Nash said. “We want to make sure we’re in coordination with all of those before taking action on it.”
The agreement was slated for a vote Tuesday night, but City Attorney Ben Logan said during the meeting that airport officials called him late Tuesday evening asking the matter be tabled.
Logan said he hopes to work through the federal regulations holding back the lease agreement from moving forward in the coming weeks.
The agreement was previously tabled because of the two sides debating how lease payment money will be used and how much the city will pay in utilities.
At one point, the city hoped to apply all of the rent payment toward the airport’s debt.
In 2011, the city agreed to borrow $1.5 million on behalf of the airport from the Mississippi Development Authority to pay for improvements made at the AASF in 1997. The total debt was $1.8 million. Because the National Guard moved to a new Army Aviation Support Facility in late 2011, and the old complex wasn’t used for its original purpose, the note became due immediately to the U.S. Treasury.
The city agreed to repay MDA annually $125,649.87 every July 1 for 14 years.
Airport board members worried the entire payment going to pay of the debt, however, would leave the airport vulnerable if maintenance or other issues were to arise. The final lease agreement states $2,281.72 of the monthly payment will be applied to the debt.
And while the initial lease agreement didn’t include any cost of utilities, the final agreement states the city must pay for all utility charges in excess of $1,900.
Logan said he was confident in the agreement being finalized soon and clarified that the police department is legally able to stay at the location while those matters are resolved.
rod.guajardo@journalinc.com
Twitter: @rodgjournal