DSM awarded $58M grant for airport improvements
The Des Moines International Airport received nearly $58.8 million from the Iowa Department of Transportation for its airport improvement project that includes construction of a new terminal.
The award, announced Thursday by the IDOT, was part of $100 million designated for commercial airports in Iowa. The funding comes through the Iowa Commercial Aviation Infrastructure Fund, announced by Gov. Kim Reynolds in March using federal American Rescue Plan Act funds.
The more than $58 million awarded to Des Moines will go toward the construction of a five-story parking garage and a new road adjacent to the parking garage, and will complete 30% of the design phase for a new terminal.
Other airports to receive funding included Cedar Rapids, Sioux City, Dubuque, Waterloo and Burlington.
The Des Moines International airport has struggled with capacity to handle increased air travel, which hit record levels in Des Moines in 2019, and officials say a new terminal and related improvements are an integral component to continuing the economic development momentum the region has seen in recent years.
The airport project has faced increasing costs caused by inflation and other factors. A review showed the estimated costs increasing by as much as $180 million, bringing the total cost to $583 million. That caused airport officials to consider changes to the plan, including a phased approach, which would lower the cost to about $411 million, Kevin Foley said in a conversation with the Business Record earlier this year.
Currently, the airport has about $336 million available for airport improvements, which include a new terminal and entrance road and a parking garage expansion. That amount includes the airport’s own bonding capacity ($70 million), cash reserves and the $58 million grant award announced Thursday.
It also includes $29 million that at least 19 communities in the region have committed to the project.