To the editor:
The Des Moines Airport Authority Board has put in place a plan to have a new terminal in use during the year 2028. Many issues have been dealt with that are instrumental in completing the plan. The Airport Authority has determined the best site for the new terminal is in the east quadrant of the airport grounds along Fleur Drive.[wpedon id=”85410″ align=”left”]
Most of the area for the new terminal is now part of the current location of Des Moines Flying Service and Signature Flight Support. Des Moines Flying Service and Signature Flight Support will be moving to new facilities on the southside of the airport.
Several infrastructure projects, known as “enabling projects,” have been completed, and some are in the process of completion that are part of the comprehensive plan for the new terminal. These are: an additional parking lot that will accommodate an additional 750 cars, a new electrical vault and updating and repairing of the main runways.
The runway reconstruction is a $50 million, three-year runway project. No new runways will be needed for the new terminal.
Engineering and architectural firms have completed the new terminal programming that includes space requirements, new paerking facilities and pre-design of the terminal facility, including entrance and exit roads. This terminal programming phase has identified approximately $68 million in cost reductions from the original estimate of $500 million for the project.
In addition, the Des Moines Airport Authority has engaged the firm of RS&H to start the environmental assessment phase of the new terminal project.
The Authority Board is now identifying revenue streams that will be necessary to finance the new terminal. Conversations with local, state and federal officials are underway. State and federal agencies have been optimistic as to the funding they hope to provide.
Probably the most important issue the Airport Authority is dealing with is encouraging Congress to increase the passenger facility charge (PFC). Currently, airports add $4.50 to each ticket (user fee), which goes directly to each airport where the ticket was issued. This $4.50 can only be used by the Airport Authority for approved infrastructure uses.
Hopefully, in 2019 congressional action will increase the PFC by $4, taking the PFC to $8.50. Again, this is a user fee that only passengers pay. It is not a tax on the general population.[wpedon id=”85410″ align=”left”]
With this in mind, the Des Moines International Airport set a passenger record count of both enplanement and deplanement in 2017 of 2.6 million passengers. With approximately 1.3 million passengers boarding in Des Moines, the additional $4 PFC will generate an additional $5.2 million a year that would go toward paying off a large part of the bonding portion of the financial plan.
This revenue stream would allow the financing of a 25-year bond that will generate $130 million that could be amortized over 25 years. The project is now estimated to cost between $400 and $450 million.
This PFC component, along with other sources of revenue that have been identified, will certainly make the new terminal project a reality.
It is important we let our Iowa congressional delegation know the importance of passing a bill that includes a $4 per ticket increase. We need their support.
Our 1948 terminal is not able to accommodate the 2.6 million passengers in a manner passengers demand and deserve. With 2.6 million passengers, certain very critical services, such as luggage handling, number of functional gates and TSA process areas are delaying passengers.
This airport serves 75 percent of the state, and it is the first and last impression many passengers have of Iowa. The steady expansion of the Iowa economy requires a first-class airport that can accommodate customers, employees and visitors in all areas of airport services.
I urge you to contact our Iowa congressional delegation in Washington and other members of Congress to show your support for a PFC increase of $4. It is very important for the future of the Des Moines International Airport and the State of Iowa.
David J. Fisher
West Des Moines
