An interim expenditure of an estimated $355,000 to construct a new airport taxiway to access a city-owned hangar has been approved by the Huron City Commission.

Most of the funds will come from annual allocations from the Federal Aviation Administration. The city expects to receive the funds at the rate of $150,000 per federal fiscal year.

In a memo to the commission, the Huron Airport Board said the recommendation comes after Wilbur-Ellis Air LLC of San Francisco, an international agribusiness which recently purchased Dakota Air Spray from Greg Krech, entered into a lease agreement to use the hangar built in 1994 for Great Lakes Aviation.

The hangar has been unoccupied since Mesa Airlines ended service to Huron two years ago.

Airport Manager Larry Cooper told commissioners Monday the airport board has entered into a 10-year lease with Wilbur-Ellis Air LLC for the hangar for $3,000 per month. The company plans to build an 18,000-square-foot loading facility on the north side of the hangar along with associated access taxiways that will bring in an additional annual lease income of $4,000 to $5,000.

“Coupled with the savings from not having to heat the building any longer, the overall impact should be a positive $50,000-plus for the airport department budget,” the memo read.

But in order for Wilbur-Ellis to operate the air spray business from the hangar, the airport needs to construct a taxiway for access because the existing taxiway used by commercial aircraft leads directly to the terminal airline ramp. Airline security requirements by the Transportation Security Administration won’t allow use of the existing taxiway by a private company.

The city’s total cost will be 3 percent. But it will finance the concrete taxiway construction and will then be repaid over a two-year period from the FAA entitlements. The taxiway will also be available for use by other aircraft.

Construction will begin in the spring and Wilbur-Ellis hopes to be operating out of the facility as early as July.

Meanwhile, the commission approved the expenditure of $47,657 to renovate the police department’s dispatch center in the municipal building.

It will be the first upgrade in 10 years. Funds will come from the E911 budget, which currently has a balance of more than $267,000. The project, which will make the dispatch center more space efficient, is expected to be completed in mid March.

The new layout will accommodate expansion and technology needs into the future.

“We’re getting a lot here for not a lot of money,” said Public Safety Commissioner Pat Haley.

In her quarterly report to the commission, Huron Chamber & Visitors Bureau Executive Director Peggy Woolridge outlined the activities of the various chamber committees and upcoming events.

“We have some incredible events happening in Huron this year,” she said.

She also shared some thoughts on what the new visitor and welcome center will provide when finished later this year. The facility will be part of the combined chamber and Greater Huron Development Corporation offices at the former Pizza Ranch building.

Woolridge said the center will have space for special event exhibits to showcase local artistic talent, manufacturing companies and cultures.

“There’s a lot of opportunities and we’re really excited about that,” she said.

Visitor spending in 2007 increased 8.9 percent, or just over $10 million, over the year before.

Mayor David McGirr acknowledged receipt of a $25,000 gift from the Hohm family in memory of Dr. Paul Hohm to be used toward the expansion and renovation of the Huron Public Library this year.

In a related matter, the commission approved an on-site construction manager contract with Dick Freske of Huron, who will be paid $42,500 to monitor the library project. Commissioners said Freske will be an asset in the effort to keep costs down, just as he was in a similar role for the Huron Event Center project.

Commissioners also:

• Approved a request to grant vacation to Pat Schmidt, newly hired human resource coordinator, based on prior work experience.

• Approved a 2008 contract with Gerry Kaufman, city attorney, for $4,190 per month, or 3 percent more than the year before.

• Purchased two police cars from Wegner Auto of Pierre off a state bid for a total of $44,806.

• Approved a request from the Huron Eye Openers Lions Club to have a raffle.

• Approved a request from the Crossroads and Huron Event Center to allow smoking in the Event Center and to have a special liquor license at the Huron Arena for the Heartland Pool & Dart Tournament March 28-30. The tournament has been held in Huron for many years.

After the event, the facilities are aired out and cleaned and the carpets are professionally cleaned in order to do as much as possible to remove the smoke smell.

• Delayed for one week a request from the Huron Kart Club to use city bleachers and garbage containers and have the city provide dust control for events this summer. The postponement was needed in order to clarifly the agreement.

• Approved requests from the State Fair to temporarily close designated streets for spring and summer events, including the Outdoor Expo, Wheel Jam, Wheel Jam parade, 4-H Horse Show and Summer Spotlight and the State Fair.

• Agreed to reissue a civil service call for a police officer after none of the 10 applicants in a recent call were considered for the opening.

• Accepted the resignation of Allen Shoultz, equipment operator in the solid waste department.

• Announced that some residents would be receiving phone calls as part of a confidential income survey, a requirement of the city’s application for $300,000 in federal grant funds for a $675,000 water main project.