Bids for pavement reconstruction at Degner Regional Airport came in well below the original $1 million estimate. Owatonna City Council recently approved a $672,900 bid for the project, much of which will be covered by state and federal grants.
Degner Regional Airport is due for additional maintenance, on top of a repair project approved last month.
Owatonna City Council approved a $672,900 bid last week for pavement reconstruction at the airport, well below the estimated $1 million price tag for the project. The project will replace deteriorated pavement on a section of the aircraft apron, the area where aircraft are parked for loading, boarding, refueling and other procedures.
The existing asphalt will be removed in order for subsurface failures to be repaired. The area will then be repaved and the existing tie-downs for securing aircraft will be replaced. The winning bid came from JJD Companies, of Blooming Prairie, and was the lowest of seven. Bids ran as high as $891,000, still below the engineer’s $1 million estimate.
“We kind of knew we would get some competitive bids, just because of the size of the project and the need for some work for some of the businesses that bid on it,” said Community Development Director Troy Klecker.
JJD’s bid was 33.5% under the estimate.
The greatest source of savings, however, will be state and federal grants. The project is eligible for FAA and Minnesota Department of Transportation funding, bringing the local share down to $40,615.50. Klecker told the council that figure was higher than expected, as some portions of the project did not qualify for federal funding.
The city’s share is approximately $24,786 over what was budgeted in the 2026 capital improvement plan, but the difference will be covered by surpluses from other recent airport projects. Prior to the council’s unanimous vote, the project had been reviewed by the Airport Commission and recommended for approval.
The timing of the project is contingent on when the grants come in. Klecker said it will likely take place in 2027, because grants are typically disbursed around September or October and there won’t be enough time to complete the work this year. JJD’s price is locked in place through 2027.
During the same session, the council also approved a professional services agreement with consultant SEH, which is providing engineering services for the project. The deal includes a lump sum payment of $159,100, much of which is also eligible for state and federal funding.
The city’s actual cost for SEH’s services will be approximately $6,617. Due to the FAA’s involvement and funding, the city had to obtain a third-party fee estimate to confirm the quoted price was appropriate.
“This amount that they’re proposing here is actually on the low side of the window of what would be acceptable for a project of this size. It provides some guarantees that what we’re paying for is actually a market value,” said Klecker.
City council previously approved a crack sealing project to preserve the existing asphalt on other areas of the airport, including one of the runways and around the hangar. The maintenance work totaled $177,546, but that project was also largely funded by grants. The local share came in at just $6,000.
Airports nationwide are heavily supported by FAA grants. The agency recently announced it is investing $870 million in airport infrastructure improvement projects, the final installment of $2.89 billion earmarked by Congress in 2021 as part of a bipartisan infrastructure package. According to the FAA website, Degner Regional Airport has received more than $1 million in infrastructure funding since 2022, funding perimeter fencing, reconstruction of a terminal access road and other expenses.
