Des Moines' southern suburbs hit up for $1 million toward airport expansion
Des Moines International Airport officials are asking Warren County and its three largest communities for a combined commitment of $1 million toward a new airport terminal.
Norwalk city officials plan to consider a commitment of $250,000 over 5 years in a draft resolution at the City Council's Feb. 3 meeting.
"I look at this expansion as a regional issue," Norwalk Mayor Tom Phillips said Thursday. "Norwalk gets some economic development benefits from the airport and our residents like being able to drive to the Des Moines Airport rather than Omaha or Kansas City or Minneapolis to catch a flight.
"Overall, I'm supportive of helping with the project."
The airport's executive director, Kevin Foley, met with Warren County, Norwalk, Indianola and Carlisle officials Wednesday to outline the airport's financial requests for the project.
"I have people ask me what is Plan B," Foley said Thursday. "This is Plan B. But we don't have a Plan C."
The total project for the new terminal, entrance, parking structure and other elements is expected to cost approximately $575 million.
Who else is being asked to pony up?
Foley is hitting the pavement all around central Iowa, asking for counties and communities within a 90-mile radius of the airport to help fund the project.
As of Thursday, 12 local governmental entities have committed to a total of $27,435,860 in funds for the project:
Altoona: $576,630
Ankeny: $2,020,650
Bondurant: $69,580
Clive: $517,260
Des Moines: $10,000,000
Polk City: $49,610
Urbandale: $1,331,370
Waukee: $722,670
West Des Moines: $2,000,000
Windsor Heights: $48,090
Polk County: $10,000,000
Pleasant Hill: $100,000
Warren County Supervisor Aaron DeKock said Wednesday he expects his board to take up the request in the next week or two, during its annual budget planning process.
"I would be supportive of devoting some number of dollars to the project, I just don't yet know what the number is or should be," DeKock said Thursday.
Indianola Mayor Stephanie Erickson also attended Wednesday's meeting, along with a majority of the City Council.
"As mayor, I don't have a vote on whether the city gives money to the project," Erickson said Thursday. "But we will put it on the agenda early in February to at least start our discussion."
During his presentation, Foley shared a list of counties and communities being asked to participate in the funding. The airport's financial requests are based on a number of dollars per capita, depending on the city's size, and the officials have asked that the funds be paid over a period of four years, although they say there's flexibility on that front.
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Other than Des Moines, communities with populations over 10,000 are asked to consider paying $30 per resident toward the project. Communities below 10,000 are asked to give $10 per resident.
The requests in Warren County, subsequently, amount to:
Norwalk: $383,970
Indianola: $474,060
Carlisle: $41,620
If Indianola were to agree to the same support that Norwalk is considering, and Carlisle were to agree to its request, of about $40,000, that would leave $460,000 for the county to make up the area's total support of $1 million.
What problem would the money solve?
The problem, Foley explained Wednesday night, is that the airport has run out of room to park jets and the current terminal is unable to expand. The plan is to build a new terminal to the south and demolish the current terminal to make more room for parking jets when they are not in service.
The airport is funded through a variety of revenue sources, including a federal trust fund created by excise taxes on ticket prices, aviation fuel, international flights and other elements related directly to the business of flying, Foley said. Other revenue streams include lease charges for space devoted to airlines, fees and rent from service providers like rental car companies located within the airport, restaurants and gift shops.
Other than the federal Airports and Airways Trust Fund, no other federal, state or local tax dollars are regularly allocated toward the airport.
The expansion's Plan A involved asking Congress for a raise in the passenger facility charge, which is capped at $4.50 per ticket, Foley said. Those funds don't go to the federal government for distribution; they go directly to the related airport.
But that rate hasn't increased since 2000. If the rate had kept up with inflation, Foley said, it would be $8.50 this year. That alone would fund the new terminal because the airport authority would be able to bond against the future revenue.
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"It's the airlines that have been fighting that increase," Foley said.
Serving the Midwest's fastest-growing major metro, the airport hopes to get about $25 million in a one-time infusion of funding through the infrastructure package President Joe Biden signed into law in November, Foley said in December. It's also qualified to apply for an additional competitive grant from a pool of $1 billion the Federal Aviation Administration made available through the bill, Foley said.
Gov. Kim Reynolds' administration has promised to provide financial help, as well, possibly with American Rescue Plan Act funds, on the condition that central Iowa cities and counties pitch in.
Foley is hoping for $34 million from local government entities.
He said he expects to meet with the governor in February, and hopes to have a stack of financial resolution agreements from area counties and communities in hand when he does.
"If we don't build this terminal and expand the airport, we will become — instead of an economic tool that enhances and supports our economy — we will become a liability to the whole state of Iowa," Foley said.
Teresa Kay Albertson covers Des Moines' southern suburbs for the Register and the Indianola Record-Herald. Reach her at talbertson@registermedia.com or 515-419-6098.
This article originally appeared on Des Moines Register: Warren County, Norwalk, Indianola, weigh support for airport expansion
