Des Moines International Airport now has a roadmap on how to fill a $200 million gap in its $420 million plan to build a new terminal, parking ramp, and facilities for cargo and small planes.

After meeting with key Iowa business and governmental officials, airport consultant David Fisher came up with possible sources of $228 million that relies heavily on assists from Congress and the Iowa state government. Fisher, a veteran businessman, longtime aide to Gov. Terry Branstad and a former member of the Iowa Board of Regents, detailed his findings in a report to the Airport Authority Board.

Here’s how he would erase the shortfall: 

• $130 million from an existing fee passengers pay for facilities. The fee would nearly double if Congress supports a plea from airports and economic development officials for the right to charge more to bring in cash for construction.
• $50 million from the state’s Rebuild Iowa Infrastructure Fund, which allocates gambling receipts for various construction projects. 
• $10 million from an Iowa Department of Transportation grant from an account aimed at promoting economic development.
• $21 million from an increase in parking rates at the airport. 
• $17.5 million from a $1 per day increase in the surcharge on rental cars. 
  

Kevin Foley, the airport’s executive director and general manager, said the airport will use that as a guide, though it will have to be adjusted. For starters, no one knows if Congress will approve the higher passenger fees. And the $130 million from higher passenger fees would have strings on it that would prevent the airport from using it all on the new terminal project, he added.

Notably absent from Fisher’s report is the prospect of selling naming rights for the terminal or some part of the airport complex. Foley said he’s looked at the idea, and at least at this point doesn’t think the rights would bring the kind of money he would want to see to allow that kind of visibility for decades.

The airport wants to build a $270 million terminal. A parking ramp would cost another $40 million. With shuffling of small-plane hangars and cargo operations to increase efficiency, the tab is an estimated $420 million. Federal grants, airport fees and related bonding and airport reserves would cover the portion of the cost not covered by Fisher’s report.

The airport’s project has been generally well-received by local leaders who see it as an important part of the city’s economic development engine, Foley and Fisher said. There have been some informal talks about financial support, but now it’s time to get more specific, Foley said.

“What we’re trying to do now is get in line with the entities that control these funds and get a hard number on what we can count on,” Foley said. 

The passenger fee increase is stuck in committees in Congress, where members wanted to get a transportation bill passed first. That has been done, and Foley expects more discussion in coming months.

Officials of key committees of the Iowa Legislature and at the Iowa Department of Transportation have said the roads leading into the new airport facilities would be candidates for the envisioned grants from the program called RISE, Foley said.

Should one or more of the sources fall through or come in far below expectations, the airport could still look at hiring a private firm to run some operations — perhaps the baggage claim, for example. Foley said the airport would then lease the facility at a savings. 

Foley said he needs to identify firm funding sources in the next four years so construction can begin in 2022 as scheduled. He hopes to have the new terminal in place by 2024.