The City of Marion is pursuing an initiative to end its ownership of the runway at the Marion Municipal Airport later this year, thereby transitioning the entire airport to private ownership.
City manager Ryan Waller told the city council in a Feb. 4 work session that the city intends to exit its Fixed Base Operator (FBO) lease agreement with LuxAir Aviation, which owns most of the airport property beyond the runway and has served as the airport’s FBO since 2015.
The move comes after a series of negotiations between the city and LuxAir in recent years concerning the airport’s future.
In 2021, city officials approached LuxAir for discussions on amending the city’s FBO lease agreement. A new lease agreement was approved in April 2022, setting a year-long time frame for the city to further analyze its relationship with the airport.
In the fall of 2022, the city appointed an Airport Visioning Team composed of local residents, members of the Marion Municipal Airport Committee, and council members, to determine “what it would cost for the city to operate the entirety of the airport,” Mr. Waller said.
That committee examined airport budgeting, operating structures, the 2017 Airport Layout Plan (ALP) and other factors to learn how airport ownership would impact the city’s taxpayers.
The committee also worked with the Marion Economic Development Committee (MEDCO) for a survey of local business leaders.
After a series of meetings with LuxAir officials, Marion officials decided in January to pursue a Request for Proposal (RFP) to sell the airport runway, thereby moving the entire airport to private ownership. LuxAir had also been working on the possibility of forming an investor group that would own the airport, Mr. Waller said.
The RFP has now been published, with responses due by 10 a.m. March 3. The council has scheduled a public hearing on March 6 and plans to take action on any proposals received.
The RFP specifies a minimum purchase price of $875,000 for the runway, and also specifies the city’s desire that the property continues to be maintained as an airport, under private ownership but with public access.
“The proposal must demonstrate the ability, financial or otherwise, to close on the acquisition of the property by no later than June 30, 2025,” the RFP indicates.
The airport’s operations are unique in Iowa. The City of Marion owns the runway and the FBO building, but the airport is managed under a contract with LuxAir, which also owns the rest of the property. The city renewed its lease agreement with LuxAir in April 2022.
The 2017 ALP also included a proposal to add a second runway at the airport, running east and west, but those plans were eliminated in September 2023 after city officials determined the project’s $8.9 million price tag outweighed its potential benefits.
The Marion Municipal Airport, established in 1963, provides a number of public and private aviation, including hangar space, flight training, corporate charter flights, private flights and ag spraying. The airport also hosts a popular fly-in drive-in breakfast annually.
