Chattanooga Airport officials move toward TAC Air buyout in deal that could cost more than $12 million

Chattanooga Airport officials move toward TAC Air buyout in deal that could cost more than $12 million

January 8th, 2014 by Mike Pare in Local - Breaking News

A Tac Air hanger at the Chattanooga Airport.

Photo by Laura-Chase McGehee/Times Free Press.

Chattanooga airport officials today took the first action toward a buyout of general aviation provider TAC Air's operations at Lovell Field.

The airport authority agreed to an initial resolution for the issuance of up to $10 million in revenue bonds to help finance the purchase of TAC Air facilities.

Airport officials declined to immediately talk about the resolution after a called meeting of the airport authority board. But sources say that the deal could cost about $12.3 million.

The airport board is expected to meet Friday to approve another resolution related to the issuance of the bonds.

Airport attorney Hugh Moore said the city of Chattanooga is not obligated in any way by the issuance of the bonds. He also said that the city is not guaranteeing repayment of the bonds, nor do the bonds affect the city's credit.

The airport and privately-held TAC Air have been in a long-running dispute related to general aviation services at the airport. Nearly four years ago, airport officials agreed to construct their own general aviation terminal on the airport's west side, which competes with TAC Air.

See more in tomorrow's Chattanooga Times Free Press.