The city has agreed to pay $600,000 to airport operator Dixie Jet Services for the company's business records and equipment at the airport.
The agreement was reached in mediation, City Attorney Ed Crudup said Wednesday, following the city's decision to terminate its contract with Dixie Jet in 2010. The contract was set to extend through 2019.
Dixie Jet Owner Bob Riddell had threatened litigation because he was unhappy with the contract's early termination clause, which called for him to receive only $367,000. He said he had invested millions in the airport and asked the city to agree to mediation to reach a compromise. The city will pay Dixie Jet both the $600,000 and $367,000 totals.
The Covington City Council approved the mediation agreement Monday night in executive session, Crudup said. The $600,000 figure is approximate, because the agreement will include the remaining fuel left in the fuel tanks. In addition, the mediator was paid $740.
Crudup said the final agreement had not been officially signed as of Wednesday, but the plan was for both parties to sign the agreement and exchange the money at the same time.