BEND, Ore. — A state agency has filed a counter lawsuit against an airport in central Oregon, seeking the repayment of more than $730,000 in grant funding the state says was misused.

The Bulletin reports the owners of the Sisters Eagle Airport filed a lawsuit against the state on Friday, requesting a judicial declaration that no money be repaid to the state.

Oregon Department of Transportation officials say the agency has filed a counterclaim demanding full repayment.

The department had sought the repayment of nearly $400,000, but the repayment amount was nearly doubled after negotiations failed to reach a settlement.

The department had entered into a grant agreement with the airport in 2015, providing it with more than $730,000 for infrastructure upgrades.

Information from: The Bulletin,