Land Purchase Near Airport is Postponed

After more than an hour's discussion at a joint City Council/Grove Municipal Airport Authority meeting Tuesday, members of both groups agreed informally to have more discussions with the property owners, Mike & Linda Prather, of 59 acres of land on the west side of the airport currently for sale for $315,000.
The airport trust authority wants to purchase the land based on grants from the FAA of around $250,000, but only $100,600 of this is guaranteed, since President Bush has not signed the next appropriations bill for the FAA.
The city had put out bids from local banks for a six month loan which would come due in June 2006, but there is no guarantee that the FAA money will be in hand by then, as the FAA is not currently even taking applications for the $150,000.
The note cannot be extended because it would go into next year's fiscal year budget; the city cannot borrow above revenue projections without a vote of the people; and there is no guarantee that the final $150,000 from the FAA would arrive on time to pay off the note.
The trust authority can make long term loan agreements but the city cannot, without a vote of the people. Closing on the loan was to be held this week but has now been delayed.
The city currently has a cash reserve of just over $1 million which has existed for many years, said Mayor Nuckolls. City Manager Bill Galletly said he was not willing to roll the dice on a Federal grant being received in time for the note payoff, and neither official felt that taking money from the cash reserve would be proper.
A Grove citizen in the audience with considerable real estate experience, Michael Granum, volunteered to assist the city in negotiating for a small down payment on the property and an extended closing date.