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Airport manager outlines large private development interest, taxiway projects and grants; airport posts $1.08 million revenue year-to-date
Summary
City staff reported progress on a potential large-scale private development (developer LOI estimated around $250 million), contract negotiations, taxiway and lighting projects, hangar leasing activity, a $450,000 Arizona Commerce Authority grant for industrial-park road reconstruction and year-to-date airport revenues of about $1.08 million.
Airport management told the commission the city is close to finalizing a contract with the Atlas Group for a major airport development; staff said the LOI and procurement process envision a project that could reach roughly a quarter-billion dollars and involve substantial ground hardening and new hangars. The city has engaged Kauffman Associates for airport planning and environmental review to finalize hangar layouts for efficient use of the airport property.
Staff reported one responsive RFP for a ground lease on 6500 Flight Line Drive from West Coast Netting; that developer proposes an approximately $1,500,000 hangar to be sited adjacent to existing hangars. For Taxiway Bravo, Sunland is the low bidder and staff said the contractor’s bid is within the engineer’s budget; staff expect to begin preliminary work in late April or early May pending final contract review.
On remediation and environmental review, staff said they had received as-built documentation for the Dross project and are working with the Arizona Department of Environmental Quality (ADEQ) on closeout; consultants reported pollutant levels within residential ranges but ADEQ has not yet issued final sign-off. The airport is advancing a Master Drainage Study (under staff review) and a Taxiway Delta rehab and redesign project is about 60% complete; electrical and lighting upgrades, including conversion to LED fixtures, may require regulator adjustments.
Staff said runway-closure trailer-mounted X signs have arrived and will shorten the time needed to close a runway for maintenance or incidents. The PAPI (precision approach path indicator) project for Runway 3 is in design and awaiting ADOT/FAA review; staff expect construction before the end of the fiscal year. For a proposed land release, the city is seeking two appraisals for about 790 acres to support an FAA letter of intent and a National Environmental Policy Act review; staff said they hope the NEPA/EA process will be shorter than a year because much prior work is in place.
Budget and occupancy: staff reported airport operating revenue of about $1,081,000 year-to-date and industrial-park revenue of about $110,000 for total reported receipts of $1,192,553; expenses reported were about $1,026,917 for the airport and $13,200 for the industrial park (figures as of Jan. 31). Staff said most hangars are leased; a small tiedown remained open and there are approximately eight names on the hangar wait list.
Industrial park and development: rail revenue for 2024 was reported at $145,230.75 with more than 2,800 carloads; the economic-development team is using a commercial analytics product (Pacer AI) to estimate visits and visitor origins. Staff noted Chambl and Sons and Progressive Pipe completed a new facility and received a certificate of occupancy in January 2025; the economic-development report described this as a material expansion of those operations. The city also received a 2024 Arizona Commerce Authority grant award (presented to council on Feb. 18, 2025) for $450,000 to fund reconstruction of industrial-park transport infrastructure; staff said the next step is to go to bid after updating plans.
Staff added that the MCC Advanced Manufacturing Training Center is under construction and expects to begin classes in August 2025. Management also said fuel sales and flight operations are tracking slightly higher than last year, with some increased military and training activity.
