Merrill Field managers told the Anchorage Assembly Infrastructure, Enterprise and Utility Oversight Committee on May 31 that they will propose a roughly 10% across‑the‑board rate increase for fiscal 2026 covering land leases, aircraft tie‑downs and long‑term vehicle parking, and that the airport is evaluating purchase or lease of the nearby City Electric property to host advanced air mobility infrastructure.

The proposal, presented by Merrill Field Director Earl Malbus and Deputy Director Amy Garcia, was introduced for committee awareness; Malbus said “we are proposing a 10% increase across the board on the, for the, land leases and also, increase the tie downs for the aircraft, 10% as well.” He told members a formal written proposal and line‑item budget will be provided to the assembly.

The rate discussion centers on a multi‑year pause in annual adjustments. Malbus said the current land‑lease rate is 24¢ per square foot and that, had annual CPI adjustments been applied over six years, the rate would be about 39¢ per square foot; he said airport staff judged that CPI would be “too high” and instead plan a 10% increase. The proposed rise would also cover long‑term vehicle parking, short‑term and transient parking, and new fee schedules for some landing and transient‑operator services; Malbus said staff intend to add a phone‑pay option for tied‑down customers to improve convenience.

Committee members sought documentation. Assembly member Mitch Carlson asked for a written breakdown of proposed rates and the underlying budget changes; Malbus said the administration will provide the detailed proposal. Members also flagged comparisons to other Alaska airports and predicted public pushback: Malbus said state‑run facilities such as Lake Hood show lower nominal square‑foot rates but that differences reflect other revenue streams at larger airports (fuel flowage fees, landing fees), and that the FAA has been encouraging rate adjustments at state airports.

Malbus also raised the City Electric property, describing the parcel’s current sale listing price of $3,750,000 and saying the current owner, Spire Properties, has completed soil studies and engages with the U.S. Environmental Protection Agency on mitigation; he said the FAA could reimburse as much as roughly 90–93% of eligible costs if the property and cleanup meet FAA and EPA requirements. He said partners such as Launch Alaska and the University of Alaska Fairbanks have expressed interest in collaborating on electric charging and other advanced air mobility infrastructure at a campus north of Fifth Avenue.

Assembly members urged early, robust community engagement and cautioned about neighborhood impacts. Assembly member Christopher Constance and others noted the parcel sits adjacent to residential areas and asked the airport to study buffers, noise impacts and cleanup responsibilities before pursuing acquisition. Malbus said he has discussed the idea with Fairview community leaders and that a Merrill Field master plan and public outreach process are being accelerated to explore options, including sites north of Fifth Avenue.

No formal action was taken by the committee at the meeting; staff presented the proposal for awareness and follow‑up. Malbus said the airport will return with written rate schedules, the economic impact study and more detailed proposals for any property acquisition or FAA grant applications.

Clarifying details provided in the meeting: the current nominal land lease rate cited was 24¢ per square foot; staff estimated a CPI‑adjusted rate at about 39¢ per square foot over six years but are proposing a single 10% increase instead; the City Electric asking price discussed was $3,750,000; FAA cost‑share figures discussed were in the neighborhood of 90–93% for eligible remediation or acquisition costs; staff cited an economic impact study for Merrill Field showing roughly $85,000,000 in wages tied to airport jobs and about $241,000,000 in total statewide economic contribution, with $64,000,000 attributed to transporting patients to Anchorage for medical care.

The airport said next steps include delivering the written rate proposal to the assembly, continuing the Merrill Field master plan with public outreach and, if there is assembly interest, returning with a refined proposal linking property acquisition options to advanced air mobility infrastructure and grant strategies.