The city of Kingman is asking the Federal Aviation Administration to release airport land so it can move forward with development plans, but the agency says the city has yet to meet FAA requirements.
The city wants to use 790 acres of land from the Kingman Airport to expand an existing industrial park — the largest in Arizona outside of Maricopa County. The city said the development would provide around $250 million in investment at the airport.
On Feb. 12, the FAA rejected the city’s application because of concerns over land appraisals provided 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, the Kingman city manager.
Kingman’s airport was originally used as an aerial gunnery training base during World War II.
When the airport was handed over to the city, the property had deed restrictions requiring the land only be used for aeronautical purposes.
Federal law obligates the FAA to ensure the disposal of surplus land does not affect the development, improvement, operation or maintenance of the airport.
In order to lift the federal restrictions, the FAA required two independent land appraisals to determine the land’s fair market value.
The city submitted two appraisals — the first valued the land at $8,500,000 ($10,750 per acre) and the second valued the land at $4,900,000 ($6,200 per acre).
The FAA rejected the city’s application, stating that one one of the appraisals is unusable, so the city did not meet the baseline requirements for the 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 said in a letter to the city.
The FAA also expressed concerns over a valuation gap of over $5 million between the appraisals; ill-defined property boundaries; and required the land sale be paid in lump sum instead of previously agreed upon installments.
The required payment for the deed release would not be payment to the FAA, but a payment from the city of Kingman to the Kingman Airport, which is owned by the city.
On April 4, the FAA then countered their offer, stating they would waive the requirement for additional appraisals if the city accepts a valuation of $13,165 per acre, or approximately $10,715,000 in totality.
“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 said
On May 14, Arizona’s Sens. Mark Kelly and Ruben Gallego wrote a letter to the FAA asking them to stop delaying the land release.
“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 said in the letter.
Walsh said the city is asking the FAA to reconsider its application.
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