A major project at The Hillsdale Municipal Airport is set to take another step forward, as the Hillsdale City Council voted to approve the contract with the Federal Aviation Administration and the Michigan Department of Transportation for the construction of a new terminal building.

Kalleward Group, of Kalamazoo, was awarded the project earlier this year, after submitting the low bid for construction..

The most recent action involves the contract between the City, MDOT and the FAA for the project funding. 

The largest share of the funding–$2.5-million–-will come fromThe FAA.

The city’s share is $506,000, which is significantly lower than initially estimated. 

City Manager David Mackie said City’s share will come from the Airport Improvement Fund of $635,000.

 He said, over the past several years, the fund has grown through fuel sales revenue, hangar rental fees and other fees.

M-DOT will contribute $65,000 toward the work. 

Council voted unanimously, Monday, to move forward with the project.

News, Public Service

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