CAA: GA News, "Iowa airport looks to land tenants"

["Stephen Irwin" <Stephen.Irwin@pmail.net>]

Wednesday, May 31, 2000

Airport looks to land tenants
54-acre commercial park intended to put airport on path to self-sufficiency
Adam Lowenstein
Cedar Rapids (IA) Gazette


IOWA CITY -- Formal efforts to recruit local, regional and national tenants
to a 54-acre commercial park on Iowa City Airport property could begin soon,
as city officials near completion of plans for a self-sufficient airport.

Nearby businesses have expressed interest in relocating to the area, which
sits on the north end of the 365-acre airport complex, Iowa City Airport
Commission member Tom Bender said. He declined to name specific businesses.

"We have people knocking on our door right now to get in there," commission
Chairman Rick Mascari said during a meeting he, Bender, Mayor Ernie Lehman
and City Council member Ross Wilburn had Tuesday to discuss the commercial
park.

The city has studied for some time having businesses north of the runway on
airport land. Income from the commercial park could provide enough income to
replace some $80,000 the city gives the airport for operating expenses each
year, proponents say.

"If that's the goal, and the goal is reached, that gives more flexibility to
the city's budget," Airport Manager Ron O'Neil said. It also will add to the
city's tax base, he said.

The Airport Commission will seek businesses with an interest in, or product
related to, aviation, airport representatives said Tuesday. Also, the
commission wants general tenants, such as offices, trucking and automotive
businesses, Bender said.

Some lots in the commercial area's southern portion are expected to have
access to a taxi-way to the airport. Bender said.

One possible tenant is the Iowa City Science Center. Bender said the
commission would consider holding space the center favors for one year, if
center funding is in place. But, he added, "we haven't had anybody ask about
that space yet. So that could change it."

The area, to be zoned commercial industrial, likely will not feature
restaurants, supermarkets or other traditional retailers. But O'Neil said it
nonetheless would lend a strong commercial presence to the area while
helping to foster economic development.

To make the project happen, the city will, in essence, lend the airport
about $1.7 million starting in July, when fiscal 2001 begins, to bring
water, sewer and a new road to the commercial and industrial area. That
money, from the city's water fund, road taxes and bonds, will be repaid to
the city with money from leases.

A fully leased commercial park would generate an estimated $477,000 in
income each year, Bender said. He said it could be four to six years before
full occupancy is reached.

Although the City Council technically could review and approve each tenant
wanting to locate in the park, Lehman said it is unlikely the council would
exert that authority. Instead, it probably would let the commission handle
the task, he said.

The council will play a role in working out an agreement on loan repayment
terms. And within three months, a bid could be let on the project, Public
Works Director Chuck Schmadeke said.

Construction is not expected to affect airport operations.


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