SIOUX FALLS, S.D. (KELO) — Rising construction costs have created a challenge for regional airports in Rapid City and Sioux Falls to fund projects on their own.
Senate Bill 127 would have taken some of the burden off. The bill would have allocated money to help fund projects like Sioux Falls Regional Airport’s concourse expansion and Rapid City Regional Airport’s terminal expansion.
“We felt that was a good fit and responsible for the state to participate as well to some extent,” Sioux Falls Regional Airport executive director Dan Letellier said.
The bill failed on the House floor Monday with 37 yeas, 32 nays and one legislator excused. The legislation required a two-thirds majority vote to pass.
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It’s left airport officials with some tough decisions to make.
Sioux Falls Regional Airport was hoping to move ahead with its $120 million plan to design a new concourse. It would add gates and ensure airfares don’t go up.
“That was certainly a key component of our funding plan. And so, we have to decide do we try to take on more of that project ourselves with additional debt?” Letellier said.
Rapid City is in the middle of its $222 million terminal expansion project.
“It’s a disappointment,” Rapid City Regional Airport executive director Patrick Dames said. “This definitely is going to slow our project down going forward into the future. We’re in a position where we have to move forward.”
South Dakota airports are public entities, but are limited in what funding they can receive and what they can charge.
“Airports are kind of like the mall,” Dames said. “Basically, we are the infrastructure. The airlines are your anchor stores that come and operate in there. So, when it comes to what it is that we as an airport can charge, we’re really limited in what we can charge.”
The outcome is also disappointing to some travelers.
“I’ve traveled a lot of places, and I would travel a lot out of Sioux Falls, so I consider it a real asset to the city. I believe it would be even more of an asset with the appropriate funding,” Julie Deans said.
