Cherry Capital Airport Board Inks Deal with Terminal Expansion Design Firm

May 26—TRAVERSE CITY — Cherry Capital Airport is taxiing toward a terminal expansion that could cost $120 million.

While the project is a ways from takeoff, the airport's governing body agreed to move the planning process forward. Northwest Regional Airport Authority members voted unanimously Thursday on two contracts, one to design the terminal expansion itself and another to design the surrounding apron changes a bigger terminal would require.

The authority will pay construction planning and engineering firm Mead & Hunt $1,891,604.19 in total, of which $391,623.19 is for the apron expansion portion, documents show. Both contracts are for preliminary work to what's known as the 30-percent design phase.

Bob Nelesen, Cherry Capital Airport's engineer, said that's in keeping with a contracting method called construction manager at risk. The airport plans to hire a construction manager once the 30-percent designs are done, and that manager would then work with the design firm on 60-, 90- and 100-percent design phases. That creates a better package for bids and securing the money needed to build the project.

"So the intent is to be able to bring a construction manager on board by the end of the year, and start to be able to put together the final design and get it to, hopefully, bid packages by the end of the following year," he said.

That would set the stage for what airport CEO Kevin Klein said should be a two-year build open to the public by 2028. It'll take some work to get there, and Klein said that date assumes "all the stars and the moon align."

Passenger growth at an airport that saw more than 700,000 travelers in 2023 is behind the project. Klein said the current, 25-year-old terminal was designed for more like 450,000 passengers per year. Studies pointed to growing the terminal to 14 jet bridges from the current five, and the design to be drafted would add five more from a second concourse.

"It really comes down to those using the terminal today," he said. "We've reached a point where we've exceeded our peak hour, peak time a day, so we've done multiple studies in looking at that."

Traffic growth at the airport isn't slowing down, either, with Klein telling the board that April's passenger counts were up 9.1 percent compared to the same month in 2023, and were up 7.6 percent year-to-date.

Plans so far call for keeping the front of the building the same, with the second concourse branching off past the security checkpoint, Klein said. A third phase — envisioned for the building's 50th year — would add a third concourse and add to the main building over what is now the employee parking lot.

Phase Two will require securing roughly $60 million in grants from both the Federal Aviation Administration and the Michigan Department of Transportation, Klein said. Airport administrators will be looking for funds from the federal Airport Improvement and Airport Terminal programs, plus discretionary spending from both state and federal lawmakers.

Borrowing through bonds would pay for the rest, with the $4.50-per-passenger facility charge repaying that debt, Klein said. That amount is set by law, he said, and wouldn't change as a result of the project.

Money from entitlement dollars, airport improvement grants or both will pay for the 30-percent designs, Klein said.

In other action, the board unanimously approved zoning for a technology and logistics hub planned for airport-owned land east of Costco.

Project Versa plans include 200,000 square feet of warehouses and distribution, light industrial, research-and-development and related uses across several buildings, according to what the airport authority's planning and zoning board approved in April.

Authority board member Doug DeYoung said Thursday he believed the company was working to "create a great atmosphere" for neighbors by adding a vegetative buffer and fencing, as well as working with the Grand Traverse County Road Commission and others.

Board member Rob Hentschel said he agreed, calling Versa a "class act" that has been transparent and proactive with the community.

"I think this is a great partner for the airport, and I hope to see more partnerships like this," he said.

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