SIOUX FALLS, S.D. (KELO) — More gates and potentially more flights at the Sioux Falls Regional Airport could hinge on some city and state money.
Dan Letellier, the executive director of the airport said in a KELOLAND interview on Wednesday, that it’s time for the city to at least consider a financial contribution to a proposed $108 million expansion of the airport. He’d also like the state of South Dakota to contribute to the project.
“(The airport) is a benefit to the state. The airport is a benefit to the city,” Letellier said. “The organizations that benefit should chip in a bit.”
The project would add several new gates up to 14 and expand the terminal capacity. It is at least an 18-month project. Letellier describes it as a “generational project.”
The airport has six gates with hold room areas and a makeshift seventh gate now.
As demand for air travel to and from continues to grow, more gates can ensure that flights stay affordable and even that flights can be added, Letellier said.
“Quite often all of our gates are full,” Letellier said of the busiest times of early morning, midday or late afternoon. There may be three 150-seat aircrafts leaving at the same time, “Quite literally it’s standing room only,” Letellier said of space near terminals.
Increasing the gate and terminal capacity could result in attracting flights to hub airports in Salt Lake City, Houston, New York and Washington, D.C., he said. The airport already has a healthy passenger flow to and from D.C., Letellier said.
More flights would also mean the airport could be busier throughout the day.
The project would take about $53.6 million in federal money. Although confident in the federal money, Letellier described $8 million in FAA discretionary money as tentative. Another $20 million in federal congressional designated spending is included in the 2025 appropriations.
The project has another $31.6 million in confirmed federal money.
The airport itself will provide $26 million in possible bonds and $2.5 million would come from the state.
The unfilled source for 2026 is $20 million which the airport would like to come from federal money, the state, or the city. The airport could add to bonding but is uncertain, Letellier said.
While the total project cost is $108 million that does include two alternates. If those are removed the cost dips to $83.5 million. The full bid with alternates would include allowing for the build-out of the lower level to clear flights from Mexico directly into Sioux Falls and additional food and retail space.
“All those buckets need to be filled,” Letellier said of funding sources.
If the project were proposed five to six years ago, it’s unlikely the airport would be seeking more state and new city money, Letellier said. But construction costs have increased by nearly 300% to 400% in some cases with increased costs of steel and plastic and other items, he said.
Neither the state nor the city have a consistent history of financial support for airports.
The city of Sioux Falls donated the land when the airport was built in 1970. There’s been no monetary contribution, city officials said during a Tuesday city council informational meeting.
The council seems at least receptive to advocating for more state money for the proposed project.
The city council got an update on the proposed project during Tuesday’s informational meeting as part of its homework on legislative priorities, council member Rich Merkouris said during the meeting.
“I can tell you that many of the state legislators are biased (against) giving any funding from the state to Sioux Falls,” Letellier said on Wednesday.
But, while Sioux Falls is a regional airport it benefits the entire state, he said.
More than half of the state flies out of Sioux Falls, Letellier said.
Travel and the economy of the state and Sioux Falls would look different without the regional airport.
A state study shows the airport has a $500 million impact on the Sioux Falls area, Letellier said during Tuesday’s meeting.
A dip in the local economy would cause a dip in the penny sales generated in Sioux Falls. A report earlier this year showed that Sioux Falls accounts for about 28% of per penny taxable sales in the state.
