The North Carolina Department of Transportation, Office of The Inspector General has informed Smith Reynolds Airport that it is in breach of it’s grant agreement for runway improvements. Smith Reynolds received a grant back in 1997 for those improvements and contracted Mainline Contractors out of Raleigh which reportedly was not keeping up with payments to sub-contractors and subsequently filed for Chapter 11 Bankruptcy.

The airport and it’s Director, Larry Scantlin, were informed of the pending investigation on August 17th with a formal letter from the Department of Transportation in which Richard Walls, Director of Aviation, states:

That notice goes on to state that if the airport cannot address the above issues the “Department will take legal action.” On Tuesday it appears the Office of the Inspector has judged that the airport is at fault and it appears this means the airport will be forced to repay grant money, pay subcontractors for unpaid work or a combination of the two. Tom McKim, the chairman of the Airport Commission of Forsyth County disagrees with the state report and said:

"Obviously we disagree with (the report), and we believe that our contract with Mainline satisfied our obligation under the grant," McKim said. "The efforts we made to monitor what Mainline did with respect to payments were also adequate."� JournalNow

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