Group drops plan to borrow cash from Iowa State for airport - KWWL - Eastern Iowa Breaking News, Weather, Closings

Group drops plan to borrow cash from Iowa State for airport

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AMES (AP) -

A business group has scrapped plans to borrow $175,000 from Iowa State University to pay for its share of a new terminal at the Ames airport.

In a memo to board members last week, Ames Economic Development Commission president Dan Culhane said securing a bank loan instead of university funds makes more sense given "the recent scrutiny of the Ames airport."

Iowa State's role in financing renovations at the city-owned airport has faced questions amid a scandal involving President Steven Leath's use of university planes, which are stored there.

Iowa State agreed to pay $250,000 upfront and cover any shortfall in the airport budget through 2035, which could amount to $1.3 million more. The commission had planned to borrow the majority of its $250,000 commitment to the project from ISU.

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