Kingman Struggles with FAA Over Airport Land Development
In a bid to expand economic opportunities, the city of Kingman is seeking permission from the Federal Aviation Administration (FAA) to repurpose airport land for development. However, the FAA has currently stalled the city’s plans, citing unmet requirements.
Kingman aims to use 790 acres of land from the Kingman Airport to enlarge an existing industrial park, which is the largest in Arizona outside Maricopa County. The project is anticipated to bring approximately $250 million in investment to the airport area.
On February 12, the FAA turned down Kingman’s application, raising doubts over the appraisals submitted by the city.
“We’ve been working quite a bit with the local [FAA] office, and they have helped us out, but once we get up to that federal level, it just seems like it kind of, you know, falls apart on us,” said Tim Walsh, Kingman’s city manager.
The airport, originally a World War II aerial gunnery training base, was transferred to the city with deed restrictions, limiting its use to aeronautical purposes.
Federal regulations mandate the FAA to ensure that surplus land disposal does not negatively impact airport functions.
To lift these restrictions, the FAA required two independent land appraisals to ascertain the fair market value of the land.
The city’s appraisals yielded differing results: one valued the land at $8,500,000 ($10,750 per acre) and the other at $4,900,000 ($6,200 per acre).
The FAA dismissed the city’s application, indicating that one appraisal was unusable and, thus, insufficient to meet baseline requirements for land release.
“This presents a significant obstacle for the FAA to determine that the City has taken the actions necessary to protect or advance the interests of the United States in civil aviation,” the FAA communicated in a letter to the city.
Concerns were also raised over a valuation gap of more than $5 million between the appraisals, unclear property boundaries, and a requirement for a lump sum payment instead of previously agreed installments.
Payment for the deed release would not go to the FAA but would be a transaction from the city of Kingman to its owned Kingman Airport.
On April 4, the FAA proposed waiving the need for additional appraisals if the city accepted a valuation of $13,165 per acre, totaling approximately $10,715,000.
“They’re asking us to go out, get more appraisals, and basically get it until we can get to the price that I think that they think it’s worth,” Walsh noted.
On May 14, Arizona Senators Mark Kelly and Ruben Gallego penned a letter to the FAA, urging them to expedite the land release process.
“Completing this process will allow the City to move forward with a project that will create jobs, attract private investment, and strengthen the regional economy while maintaining the operational integrity of Kingman Municipal Airport,” the senators stated.
Walsh expressed that the city is appealing to the FAA to reevaluate its application.
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