COLUMBIA, Mo. (KMIZ)

The City of Columbia filed a response on Monday in a lawsuit over its revenue guarantee with American Airlines.

Two Columbia residents -- Mark Winter and Richard Shanker – filed a lawsuit against the city in June alleging the city’s revenue guarantee with American Airlines violates the gift clause of the Missouri Constitution.

Previous reporting says funds for the revenue guarantee would come from $750,000 of private contributions and $750,000 from the Transportation Sales Tax. The Goldwater Institute – which is a right-wing think tank – had published a letter in May questioning the legality of the agreement under the Missouri Constitution weeks before the lawsuit was filed.

The city in its response says its agreement does not violate the state’s constitution.

“The challenged Agreement does not constitute a “grant” of public money within the meaning of Article VI, § 23 because any payments are made pursuant to a bargained-for contractual exchange for public air-service benefits,” the response says. “The Agreement does not constitute an unconstitutional lending of public credit because the City does not become liable for American Airlines' debts, the City does not guarantee third-party creditors; no municipal debt is issued on behalf of American Airlines, and no municipal credit is pledged within the meaning of Article VI, §23.”

View the city’s full legal response below.  

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