Assembly approves $32.9M in grants and local match for Ketchikan airport terminal phase 1

The Ketchikan Gateway Borough Assembly voted May 5 to appropriate $32,881,974 for phase 1 of the Ketchikan International Airport terminal expansion and to provide the local match required by federal grants.

Finance Director Charlene Thomas told the assembly the appropriation is budgeted with a mix of federal grants and local funds: about $23.9 million from the FAA Airport Improvement Program (FFY 2025), $1.8 million from a Community Development Block grant secured by a federal legislator, and $1.0 million from a bipartisan infrastructure grant. A second AIP grant of approximately $9.0 million is programmed for federal fiscal year 2026 and is expected to complete phase 1 funding.

Local match will be met through $5.0 million in airport revenue bonds repaid with Passenger Facility Charge (PFC) receipts and an approximate $2.0 million draw from airport reserve funds. The assembly unanimously approved ordinance 2067 to appropriate the funds.

Alex Pierra, the airport manager, told the assembly the FAA has programmed the additional federal funding but has not yet appropriated it; the state is the grant sponsor and will administer the funds. Pierra said the borough and the state will be obligated to complete the project once federal money is drawn and warned that the existing operator, the state or sponsor, would need to coordinate any transition work with subsequent contractors.

Assembly action: Assemblymember Bailey moved adoption; second by Assemblymember Palmer. Roll call recorded six yes votes; ordinance 2067 passed.

Project funding and next steps: Staff said the borough has accounted for the anticipated grants and local matching bonds and will return with any required implementation steps and procurement approvals for construction administration and a construction manager at risk.