XNA Airport Board of Directors votes in favor of updated detachment offer in ongoing saga with Highfill
BENTONVILLE, Ark. (KNWA/KFTA) — The Northwest Arkansas National Airport Board of Directors has voted in favor of a new detachment offer in the continuing saga between the airport and the City of Highfill.
An XNA spokesperson told KNWA/FOX24 that the terms of the new agreement passed by the airport's Board of Directors on Tuesday morning were the following:
Highfill will agree to XNA's Nov. 24, 2024 proposal, as revised, that will, in effect, permit Highfill the use of up to $900,000 in sales tax revenue annually to be spent at the City's discretion.
XNA will not pursue a clawback of any sales tax revenue the city received after it filed its petition to detach
Each party will bear its own costs and attorneys' fees.
XNA filed the detachment petition following a judge's ruling in September 2024, which allowed the process to move forward.
Highfill said XNA's interpretation of Act 769, which allows airports to create a procedure for annexation and detachment, threatens the city's financial stability.
XNA adds diaper dispensers in bathrooms
The city said that while XNA had previously indicated the bill would have minimal impact, the airport's interpretation now requires the immediate impoundment of all city sales tax revenue until Highfill's bonds are paid off. This includes taxes collected from all businesses in the city, even those unrelated to the airport.
In November, XNA proposed Highfill would be allowed to retain $746,650 in annual sales tax revenue for operational use for the next 5.5 years, based on forecasts provided by the airport. The remaining sales tax revenue would go toward paying off Highfill's water and sewer bonds.
The airport said that Highfill had already received two years of sales tax revenue since the passage of Act 769. Additionally, in a statement released on March 15, XNA claimed that the city has misappropriated nearly $800,000 of sales tax revenue in violation of detachment law since XNA filed its petition to detach.
A special city council meeting will be held on Tuesday in Highfill where the offer will be up for a vote.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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