Duluth International Airport will ask Minnesota lawmakers for $4.9 million in funding during the coming legislative session to help support its plans to build a new terminal.
"It would leverage a significant amount of federal dollars," said Brian Ryks, executive director of the Duluth Airport Authority. He believes the requested state dollars would unleash an additional $10 to $12 million in funds from Washington.
Ryks contends the terminal project would be an excellent candidate for funding through a national economic stimulus package. The project to address safety and security concerns has been in the works for several years, and significant design work already has been completed. Groundwork could begin by the third quarter of this year, Ryks said.
Construction is expected to create more than 200 jobs, with completion likely by 2012 or 2013.
The long-term economic benefits of replacing Duluth's 35-year-old terminal also could be considerable, according to Nancy Norr, president of the Duluth Airport Authority Board and Minnesota Power's manager of regional development. She referred to the airport terminal as the "gateway of the region"
ADVERTISEMENT
"Having an efficient modern terminal would be a huge economic asset for us," Norr said.
The Duluth airport supports more than 4,400 jobs and generates $1.3 billion in economic impact, according to a report from the Minnesota Department of Employment and Economic Development.
All told, the terminal project is expected to cost about $65 million. The anticipated breakdown of funding sources is as follows:
- The federal government would pay 51 percent of the costs, or $33.5 million.
- The state would pick up 26 percent of the tab: $4.9 million in 2009 and $11.7 million in 2010.
- The Duluth Airport Authority would foot 12 percent of the bill, paying $7.8 million.
- The Airports Trust Fund would chip in 11 percent of the funding, or $7 million.
With the state of Minnesota staring down a budget deficit of at least $4.85 billion, Ryks said he recognizes that obtaining funding will be no simple task.
ADVERTISEMENT
"I understand the dire straits the state is in. But I still think this is a very worthwhile project because of the need to put money back into the economy and get people back to work," Ryks said.
Bills providing funding for the terminal have been introduced by Sen. Thomas Bakk, D-Cook, and Rep. Thomas Huntley, D-Duluth. Co-authors include Sen. Yvonne Prettner-Solon, D-Duluth, and Reps. Roger Reinert, D-Duluth, and Mary Murphy, D-Hermantown.
