LuxAir owner seeking investors to buy Marion airport

MARION — LuxAir plans to submit a proposal to buy the Marion Airport runway, but it may be under a different name, according to Jeff Witter, LuxAir's owner.

LuxAir owns the airport property, but not the runway or fixed-base operations building, which the city of Marion owns and intends to sell.

Marion bought the runway in 2015 for $1.67 million. City officials have said it’s getting out of the airport business, given that the city has several expensive projects it is pursuing.

The city on Thursday published a Request for Proposals on the runway. The primary stipulations are two: a minimum bid of $857,500, and the runway cannot be developed for other uses, according to Marion City Manager Ryan Waller.

Proposals must be filed with the Marion city clerk by 10 a.m. March 3. The city council will review them, then hold a public hearing March 6, and possibly take action afterward.

If no proposals are submitted, or if none are acceptable, “we'll have to revisit (the issue) with the city council and see what our options are,” Waller said.

Witter told The Gazette he's unhappy about the short length of time he has to put together a proposal.

He said he’s trying to line up investors to work with LuxAir to buy the runway. When formed, the group may have another name, but LuxAir will be involved, he said.

He mentioned possibly asking another city or Linn County to be part of the deal. That would be no problem so long as LuxAir and others using airport have access to the runway, Witter said.

“We just want to save the airport,” Witter said.

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Sale is no surprise

Waller said LuxAir was told during the yearlong discussion about the runway that the city intended to sell it before June 30 this year. The schedule being used for the transaction, he said, was recommended by legal counsel.

The city manager also said LuxAir's lease expires June 30 and that it was told some time ago the city would not renew runway leases because of its intent to sell the property.

Witter on Thursday expressed frustration over past negotiations with the city, saying LuxAir’s previous proposals had been rejected.

“One included giving our portion (of the airport) to the city,” except for the hangars, “in return for a lease,” he said.

Waller said such a proposal “would require a significant investment by the taxpayers. That's not something the city wants to do.”

Witter said if the city sells the runway, it would have to repay the state a half-million dollars under terms of an Iowa Department of Transportation grant.

The amount, Waller said, is closer to $400,000 and that could be repaid from the sale of the runway.

In 2020, the city completed a $1.8 million runway extension project. The total included a $424,000 IDOT grant, along with other grants for the runway design and zoning. The rest of the cost was covered by city bonds.

The IDOT grant would have to be repaid if and when runway is sold.

Waller said the city wants to keep the airport open.

Witter concurs but said, “We feel like the only way to keep it (airport) open is if we own it."