Northwest Arkansas National Airport (XNA) has reached an agreement with the city of Highfill in the case that involves the airport detaching from the city.
In a special meeting Monday (Aug. 18), XNA Board of Directors unanimously approved a “memorandum of understanding” with the city that will end city taxes for XNA customers on Dec. 31, 2030, according to an XNA statement. The agreement ensures the city will repay its bonds and that XNA and Highfill will come to a “formal agreed order” in the coming weeks.
According to the agreement, along with making monthly payments on its bonds, the city will pay an additional $72,380 each month from its sales tax fund. The additional amount will be paid in 63 installments starting in October 2025, allowing the bonds to be paid off by Dec. 31, 2030.
The agreement also shows the city and XNA will be responsible for their own attorneys’ fees and that all pending court cases will be dismissed upon entry of the final order of detachment.
“We are pleased to have reached a clear path forward with the city of Highfill,” said XNA CEO Aaron Burkes. “This understanding safeguards our passengers, fulfills financial commitments and allows us to stay focused on the airport’s mission of serving Northwest Arkansas well into the future. It is also a testament to the power of regional collaboration and the importance of working together as good neighbors.”
In a special meeting Monday evening, Highfill City Council voted 4-0 to approve the same agreement.
“This understanding reflects a shared commitment to our community’s future,” said Chris Holland, mayor of Highfill. “It protects the interests of our residents, provides stability for our city, and allows both the city and the airport to move forward with confidence.”
Officials with XNA and the city spent Monday negotiating a settlement. This comes after the city and XNA approved different agreements in March. According to XNA, its offer would’ve allowed Highfill to have $900,000 annually in discretionary money. Highfill’s offer would result in about $1.5 million annually in discretionary money. XNA rejected Highfill’s offer in June.
XNA officials previously said once the city’s existing bonds are paid, the airport will no longer have to pay sales tax on its parking revenue or collect the city’s 2% sales tax on purchases made by XNA’s passengers and guests or the 4% tax for rental cars.
On Monday, city and XNA officials, along with their attorneys, negotiated behind closed doors in meeting rooms at the DoubleTree Suites by Hilton Hotel in Bentonville. This was one of the first uses of a new state law that excludes court-ordered negotiations from provisions of the Arkansas Freedom of Information Act (FOIA).
According to Olivia Tyler, public affairs manager at XNA, the Arkansas FOIA doesn’t authorize an executive session for court-ordered negotiations. Instead, Act 505, which went into effect Aug. 5, 2025, shows that a gathering to discuss a settlement in a court-ordered dispute isn’t a public meeting. Because of this, the negotiations that took place between XNA and Highfill on Monday “can occur outside FOIA’s open-meeting requirements,” Tyler said.
Also, the XNA Board of Directors approved the following in a special meeting Monday:
• Awarding Emery Sapp & Sons a $22.46 million contract for the first stage of the terminal apron expansion and reconstruction. Garver was awarded a $962,300 contract for construction administration and oversight.
• Revising XNA’s investment policy and financial management policy, including maintaining at least 400 days of operating expenses in reserves.
• $774,000 in various consultants and professional fees to help XNA through the application process for the Build America Bureau of the U.S. Department of Transportation’s Transportation Infrastructure Finance and Innovation Act program loan, at a rate of 2.43%.