Marshall City authorized to apply for MnDOT Airport Fuel System grant to replace decades‑old tanks

The Marshall City Council authorized staff to submit an application to MnDOT’s one-time Airport Fuel System Grant program to replace aging fuel tanks at the Marshall airport.

City Engineer/Director of Public Works Jason Anderson told the council the airport’s two fuel tanks—one for Jet A and one for avgas—are more than 30 years old and need replacement. MnDOT Aeronautics created a one-time funding opportunity because many airports submitted fuel-system requests in the capital-improvement program. Anderson said the project cost estimate is about $1.2 million; the grant would provide a 60% share and leave an estimated local participation of approximately $480,000.

Anderson said the tanks are currently owned by the fixed-base operator (FBO), Midwest Aviation; if the city invests and takes ownership of new tanks, the lease with the FBO would need renegotiation to clarify fuel‑sales arrangements and any fuel-flowage fees. Anderson and staff said applying for the grant does not commit the city to proceed with the project; MnDOT requires bids and a grant agreement before funds are awarded, and the city would have time to consider budget timing if an award is offered.

Airport commissioners and the FBO support seeking grant money. Council discussion noted concerns about the city becoming a fuel retailer and emphasized the need for written arrangements with the FBO if the city assumes ownership. Council voted to authorize staff to apply; staff said MnDOT’s selection decisions would likely be announced in June and that project construction would likely occur in 2026 or 2027 depending on award and bidding timetables.

Sources: Public works presentation by Jason Anderson and council vote recorded during the meeting.