Cost projections for DeKalb Taylor Municipal Airport’s proposed fixed base operator building will be discussed by the DeKalb City Council and the Airport Advisory Board during a meeting at 7 p.m. today.

DeKalb City Manager Mark Stevens said bids for the project came in substantially higher than estimated costs, causing the city to reduce some of the parts of the project.

Original estimates were $750,000 for the building and $175,000 for site improvements, Stevens said. But the original bids were 15 to 20 percent higher than planned, said Ron Naylor, DeKalb public works director.

The latest bid from Diversified Municipal Services of Lebanon, Ind., was lower than the city’s estimates, Stevens said, at $695,742 for the 100-foot by 200-foot building and $155,000 for site improvements.

The building will contain 3,000 square feet in the center office area and 1,500 square feet on each of the ground and second floors.

Because the proposal is valid only through Sept. 20, after which the price could increase by about 4.5 percent, Stevens said he would not recommend the council approve the bid.

“We do not have a firm and mutually agreed commitment with R&M Aviation about terms and conditions under which they would lease the building,” Stevens said. R&M Aviation is the fixed base operator that provides services to the airport.

“The city would borrow money to construct the building and recoup its costs during a 20-year period through lease payments (from R&M Aviation),” Stevens said.

The city is working under time constraints to meet its spring completion target date. “We would like the foundation of the building in the ground by this fall,” Stevens said.

The other low bidder for the project was Cheeseman Construction Co. of Freeport.