UPDATE: South Dakota’s Senate just passed a vital bill aimed at securing state funding for airport construction. The unanimous vote on Senate Bill 76 occurred today at the Capitol, with significant backing from the state’s largest cities, including Sioux Falls and Rapid City.
This legislation comes after Governor Rhoden announced intentions for airport funding back in December. Following debates, the bill was modified to alleviate concerns among lawmakers, particularly regarding the transfer of funds. Initially, the proposal sought to redirect money from a housing fund but has now been adjusted to ensure both housing and airport needs are met.
Key provisions of Senate Bill 76 will allow qualifying airports to secure loans of up to $15 million at zero percent interest, significantly aiding expansion projects crucial for economic growth. Eligible airports must be located in metropolitan areas with populations exceeding 125,000, which means facilities in Pierre and Watertown will not qualify.
The urgency for this funding arises as the airports in Sioux Falls and Rapid City are crucial economic engines, generating billions annually. Sioux Falls airport is projected to serve 1.5 million passengers in 2025, while Rapid City has seen a surge to 400,000 passengers over the past two years alone.
Airport officials stress the importance of this funding. Patrick Dame, Executive Director of Rapid City Regional Airport, stated, “It takes a lot of work to get a major project like this off the ground.” Currently, the airport is facing a $30 million shortfall for its expansion project, which needs state backing to proceed.
Supporters of the bill emphasize that these are public infrastructure projects that benefit all South Dakotans, similar to roads and bridges. The repayment plan for the loans extends over a twenty-year period, with airports planning to repay through revenue generated from parking fees and passenger facility charges.
As the state’s airports prepare for significant expansions, this funding will meet the growing demand for air travel—a vital necessity for many residents. The passage of Senate Bill 76 marks a critical step in enhancing South Dakota’s infrastructure and supporting its economic future.
Stay tuned for updates as this story develops.
