HIA Seeks to Raze Old Airport Terminal Building for New Development

June 25, 2013
The old terminal building at Harrisburg International Airport could be coming down by this fall.

June 22--The old terminal building at Harrisburg International Airport could be coming down by this fall.

Tim Edwards, Susquehanna Area Regional Airport Authority executive director, said six companies Thursday submitted bids, which roughly range from $2.1 million to $2.7 million, for the demolition project.

The project also would include knocking down the former Sunburst restaurant and the old barracks building in Lower Swatara Township, Edwards said. Crews would do environmental work, such as removing asbestos, from an old Air Force administration building, as well.

The restaurant is on the North 29 lot -- a total of about 23 acres the authority owns next to HIA -- which the authority is looking to develop.

"We're very excited about the prospect of getting this project underway," Edwards said.

Edwards said he hopes to see the demolitions begin this fall.

SARAA expects to use $1.8 million from Federal Aviation Administration grant money for the project, Edwards said. The agency will use a Commonwealth Financing Authority loan to offset the cost of the remainder of the project.

The agency expects its board to approve funding for the contract at its July 24 meeting and to announce a contractor at that time, Edwards said.

SARAA has been looking at taking down the old terminal for some time. It's been sitting empty since 2004 when the new terminal opened, Edwards said. In 2007, the authority capped all the utilities and shut down the building's power.

The airport authority's original plan, however, was to redevelop the old terminal, Edwards said. While the authority had a couple proposals, nothing worked out. Developers lost interest when they saw the "complications" involved in using an old terminal building, Edwards said.

Once the old terminal building is down, Edwards said he expected developers' interest would peak regarding that site.

Additionally, the airport is seeking a Keystone Opportunity Zone -- which allows for abatement of state and local taxes for 10 years -- for that land, as well as the North 29 lot, Edwards said.

And that would only sweeten the deal, Edwards said.

The authority is negotiating with a company to develop the North 29 lot, which is on Route 230 and Rosedale Avenue in Lower Swatara Township.

It's also waiting for a release from the FAA to use the property for non-aeronautical purposes. Edwards said that's "kind of a formality," but the authority needs that release before they can move forward with an agreement with the developer.

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