PROGRESS: Graham Airpark expansion taking off in North Sioux City

The ongoing expansion and development at the private North Sioux City airport have been in the works for a couple years, with the first of several planned corporate hangars with runway access currently under construction.

Owner Stephen F. Jones anticipates this year will see more construction of the hangars, 30 are in the plans in his overall development plan, which includes commercial and residential development on airport-owned land, a runway expansion and other improvements.

The expansion could help Graham expand its footprint beyond Siouxland. Jones said businesses with aircraft typically conduct business not just locally but all over the country, and North Sioux City's central location puts target partners within reach of many major cities.

"Our target market are operators that may not currently operate in this area," Jones said. "We do anticipate that the current local aircraft market will recognize the significant tax savings and benefits that owning and operating aircraft in the state of South Dakota offers over Iowa and Nebraska. It's common sense that once you look at those savings it's more economical to hangar in South Dakota. When you add that you're operating out of a private airstrip, it's a unique combination that is conducive for business."

State economic development leaders also see the potential impact the airport expansion could have.

"The Governor's Office of Economic Development is pleased to be able to work with North Sioux City on the Graham Airpark expansion," GOED partner relations director Joe Fiala said. "As interest in our state continues to grow, the need for developed land and infrastructure puts South Dakota and its progressive communities in the forefront for development. This airpark will only help this area and our state."

Meanwhile, work continues or will soon begin on a number of airport improvements. Jones said workers have replaced existing concrete and are about 60% done with remodeling of the airport's original T-hangars.

Plans call for expansion of the runway from 5,400 feet to 6,600 feet, and Jones said work on that will begin this year and be completed in phases so the airport can remain open. By the end of the construction season, Jones said he hopes to have 3,000 feet of paved runway and 2,400 feet of turf runway. The full expansion to 6,600 feet won't take place until a flood-protection levee north of the airport is relocated.

A runway lighting system upgrade also is anticipated to be completed this year.

Future airfield redevelopment plans include residential lots southwest of the runway that will have private hangars from which owners can taxi to the runway.

"We like the concept of allowing folks to build residential living quarters in hangars. We initially plan to market this piece to the south as one large runway access lot to the aircraft/aerospace industry this season," Jones said.

Jones said he is also open to developing the east side of the airpark to non-runway access commercial development, but will offer it on the market for sale or lease this season with "through the fence" runway access.

Plans call for the redevelopment of approximately 370 acres at the airfield. Jones declined to comment on the project costs.

In the fall of 2021, the North Sioux City Council agreed to buy the land from Graham Aviation, which operates Graham Airpark, for more than $13 million, giving the city a large plot of available land to attract new business and industry.

North Sioux City bought approximately 480 acres of vacant land, closing on 94.9 acres in September 2022 and 387 acres in April.

The city plans to develop the land into an industrial park, but those plans currently are on hold while it works with the U.S. Army Corps of Engineers to relocate three miles of flood-protection levee that runs through the property closer to the Big Sioux River.

North Sioux City administrator Eric Christensen said city officials continue to wait on the corps to complete an environmental study before construction can begin. He's been given no time frame, but said construction and industrial development is likely a couple years away.

Until the levee has been moved, the city must wait to install utilities, build streets and begin marketing the land for development.

"We've had a little interest," Christensen said of possible buyers. "We're not actively shopping it around until we have a better idea what the time frame will be."

Original plans also called for about 120 acres of the land to be developed for housing, but Christensen said that is no longer the case. The city is working with developers on developing a different housing project, he said.