Sisters airport hasn’t repaid nearly $400K in ‘misused’ grant money

Published 5:39 am Thursday, October 26, 2017

Almost seven months after the Sisters Eagle Airport was asked to repay nearly $400,000 in grant money the state says was misused, the money still hasn’t been repaid.

Negotiations between the airport and the Oregon Department of Transportation are still taking place, and representatives from both sides refuse to comment, saying the situation is “in the hands of our attorneys,” according to both Sisters airport manager David Campbell and ODOT spokesperson Dave Thompson.

Benny Benson, owner of Sisters Eagle Airport, misused some of the money he received in transportation grant funds for runway and airport improvements, according to a review by ODOT. The state agency found more than half of the misused portion of the grant money was paid to Benson, airport managers and two companies headed by Benson.

In a March 21 letter to Benson, ODOT detailed its findings and asked Benson to repay $390,185 in misused funds by April 6.

ODOT entered a grant agreement with the airport in 2015, agreeing to provide Sisters Eagle Airport $733,259 in ConnectOregon funds to be used “solely for construction of a taxiway on the property, pavement of aircraft parking and ramp areas, installation of runway lighting and improvements associated with these projects.” ConnectOregon uses lottery money to fund projects that would improve various nonhighway modes of transportation.

The March 21 letter from ODOT administrator Jerri Bohard said the agency had received a “citizen inquiry expressing concerns” about the use of the funds for the runway project. The letter listed various ineligible projects and expenses, including $215,436 that was paid to Benson, airport managers Campbell and Hobbs Margaret, and two companies — ENERGYneering Solutions, Inc. and B2 Aviation — where Benson and his wife, Julie, are ranking officials.

Sisters Eagle Airport also owes $13,033 to meet the minimum match requirement that was set up in the grant agreement but was never paid.

The misused funds were to be repaid by April 6, and now residents in Sisters are asking for answers.

“We have gotten a lot of calls from concerned citizens and the press but we can’t comment on the state of the negotiations,” Thompson said. “We have no updates at this time.”

That answer hasn’t satisfied some.

“I understand if they can’t talk about the legalities, but they should be able to tell us that we will in fact see the outcome or that it will be corrected fairly soon,” said retired Sisters resident Bob Norman. “This is a small town but it’s a substantial amount of money.”

— Reporter: 541-617-7829, acolosky@bendbulletin.com

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