$1.5 Million Runway Sells to 530 Investments LLC for $500k

Iowa’s Marion Airport (C17) is being temporarily saved in a $500,000 runway sale, representing less than a third of the city’s original purchase. The new owner, 530 Investments LLC, will be required to maintain the runway for at least the next 10 years.

City officials purchased the Marion runway and its FBO more than a decade ago for a hefty $1.67 million. Five years later, in 2020, they spent another $1.8 million to extend the runway. All other airport property is owned and operated by LuxAir, which is also responsible for daily FBO operations.

In more recent years, however, the city decided that it wanted to escape the airport business in order to pursue some more expensive endeavors. It published a request for proposals in early February in hopes of finding a quick buyer willing to comply with two small stipulations: a minimum bid of $857,500 and a promise not to redevelop the runway.

Despite an initial bite by LuxAir owner Jeff Witter, the deadline for proposals came and went with no offers. Marion City Council members reviewed several other options and conducted studies to determine the airport’s worth, but eventually confirmed that the lack of federal funding available made the project out of reach. They voted to shut down the runway by June 30, 2025.

“It was never looked at as ‘we need to close this,’” noted City Council member Sara Mentzer. “It has been three and a half years of trying to find a way to keep it open, trying to find solutions and partners. It’s a conundrum of a setup because of the structure of it. It is not to be found anywhere else. It’s not private. It’s not public. We’re next to a large airport which keeps us from federal grants.”

Under intense community pushback, the council changed course and reopened the request for proposals with a lower starting bid. The one and only offer, placed by 530 Investments LLC, is set to be finalized by June 25.

“The desired goal was to save this runway and (therefore) save the airport,” commented Marion City Manager Ryan Waller. “This lets us do what we had hoped to do.”

FMI: www.luxairaviation.com