Airport hotel proposals sought

BLOOMINGTON - A hotel, restaurant and conference center could open at the Central Illinois Regional Airport in the future.

In an effort to boost airport revenue, the Bloomington-Normal Airport Authority voted unanimously Tuesday to seek proposals from hotel developers who would construct and operate the hotel but lease land from the airport at Illinois 9 and CIRA Drive, at the entrance to the terminal.

The authority also approved a $3.47 million operating budget for fiscal 2008, nearly mirroring last year?s expenditures.

With revenues projected at $3.56 million without a tax-rate increase, the airport would report its first surplus in at least three years. In fiscal 2007, the airport is operating with a $564,678 deficit.

In other matters, the authority approved a $1.12 million renovation of the old terminal and the former Arnie?s Etc. to accommodate the relocation of CJ?s Restaurant, currently at 2613 S. Veterans Parkway, Bloomington. A timeline for the move hasn?t been set.

The annual revenue stream from the proposed hotel development is unknown, said airport Executive Director Carl Olson. The airport is looking at a 40- to 50-year lease, he said.

The development would join a growing list of hotels recently opened or under construction in the Twin Cities, including a Holiday Inn & Suites with adjoining J. Buck?s Restaurant right across the street on Illinois 9.

"I think if we get no responses from the (request for proposals), we will know the market is not ready for this at this time," said Paul Harmon, authority board chairman.

The market also would determine hotel details, like room counts and amenities, Olson said.

Airport officials have marketed airport land for commercial use for several years, looking to grow the airport?s revenue stream.

In 2005, the airport sold 2.4 acres along Illinois 9 to Commerce Bank for $1.25 million. The Bank should open in September.

The airport also leases land to cargo carriers FedEx and DHL.

If it moves forward, the hotel development would not exhaust the airport?s options for more development, Olson said.

The development would use up to 5 acres, he said. At one point, the airport sought to develop around 50 acres.

The acreage currently available for development remains unknown as the airport completes a long-term master plan.

CUTLINE: Paul Harmon

PUB: The Pantagraph

PUB DATE: 20070516

Section: News

EDITION: Main

QRKPAGE: 1

PAGE SLUG: A3

XMLFILE: 23518916.txt

DOC NAME: A03 051607 airport hotel

CREATOR:

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