Kingman Strives to Unlock Airport Land for Economic Expansion
In an effort to fuel economic growth, the city of Kingman is seeking approval from the Federal Aviation Administration (FAA) to repurpose a substantial portion of its airport land. However, the FAA has yet to give its nod, citing unmet conditions by the city.
Kingman aims to utilize 790 acres of the Kingman Airport property to enlarge an industrial park, which stands as the largest in Arizona outside Maricopa County. This development is anticipated to bring in approximately $250 million in airport investments.
The city’s proposal was initially turned down by the FAA on February 12 due to issues with the land appraisals submitted. Kingman City Manager Tim Walsh explained, “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.”
The Kingman airport’s history dates back to World War II when it served as an aerial gunnery training base. Upon transfer to the city, the land came with deed restrictions mandating its use solely for aeronautical purposes. This condition aligns with federal laws that obligate the FAA to ensure that surplus land sales do not impede airport functionality.
For the city to lift these federal restrictions, the FAA requested two independent appraisals to ascertain the land’s fair market value. Kingman presented two appraisals: one estimated the land at $8,500,000 (or $10,750 per acre) while the other valued it at $4,900,000 ($6,200 per acre).
The FAA dismissed one of these appraisals as unusable, thus rejecting the city’s application for failing to meet necessary criteria. The FAA elaborated in a letter, “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.”
Additional concerns from the FAA included a $5 million discrepancy between the appraisals and unclear property boundaries. The FAA also shifted the payment structure, requiring a lump sum payment for the deed release rather than installments. Notably, this payment would be directed from the city of Kingman to the Kingman Airport, which is city-owned.
On April 4, the FAA proposed a compromise, suggesting it would forego the need for further appraisals if the city accepted a land valuation of $13,165 per acre, totaling approximately $10,715,000. Walsh commented, “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.”
In a bid to expedite the process, Arizona Senators Mark Kelly and Ruben Gallego penned a letter to the FAA on May 14, urging the agency to cease delays in releasing the land. They emphasized, “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.”
As negotiations continue, Walsh noted that the city is appealing for the FAA to reassess its application.
