The nearly $16 million lawsuit against the Tulsa Airports Improvement Trust filed by the Bank of Oklahoma could be settled through mediation. The lawsuit came about following a loan made by the bank in 2000 in an effort to have a Tulsa-based airline.

Tulsa Mayor Dewey F. Bartlett Jr. stated following the vote for mediation that the decision to mediate is both good for the city and good for the airport. He also noted that he’s eager for the lawsuit to come to an end.

The motion for mediation was made by several members of the trust, as well as the airport’s attorneys. Those involved refused to say whether mediation was suggested by the bank or the trust initially and representatives of the bank are not speaking publicly about the issue.

Problems began when the industrial authority mortgaged property adjoining Tulsa International Airport for $30 million which would be loaned to Great Plains Airlines. The trust agreed to buy that property, should a default occur, which it did in 2004.

The airport stated that it refused to buy the property based on an FAA ruling making it an illegal diversion of airport revenues because it would serve as a subsidy to an airline. The airport attempted to have the case tried in a district court in Oklahoma, but it was sent back to Oklahoma County courts. This meant it could ultimately become a federal case if the bank was successful.

In addition to the principal amount of the loan, the bank is also seeking more than $1800 in interest per day.  This is the second lawsuit filed by the bank against the trust after a previous suit was settled by then-Tulsa mayor with $7 million from the city’s sinking fund. That was determined to be illegal and the money was later returned to the city.