FAA rules, zoning limits shape Flagstaff Airport development plans

FLAGSTAFF, Ariz. — At a Flagstaff Airport Commission meeting, Airport Director Brian Gall said federal oversight of city-owned airport land constrains what the city can build on the airfield and that rezoning and federal approvals will be required before the airport can add non-aviation uses or expand certain developments.

Gall told commissioners that the Flagstaff airport sits on about 800 acres of property the U.S. government conveyed to the city in 1948 for airport purposes and that the airport also holds roughly 313 acres of navigation easements. He said the Federal Aviation Administration treats land conveyed for airport use differently from land the city bought or annexed and that the FAA requires consent for non-aeronautical uses on conveyed property.

"The incompatible land uses on the airport, including residential use, are prohibited by FAA policy and are contrary to federal obligations," Gall said, reading FAA guidance to explain why housing is effectively off limits on conveyed parcels. He added that the FAA evaluates mixed-use proposals case by case to determine whether the non-aeronautical component would conflict with current or future aeronautical needs.

Gall and commissioners discussed three paths for adding aircraft storage or non-aviation revenue: (1) construct city-owned hangars and lease them, (2) pursue ground leases to private developers, or (3) seek a federal release for property the FAA deems no longer needed for aviation (a release requires selling the parcel under current rules). Gall said development work already under way across JW Powell Boulevard involves a privately led mixed-use proposal for about 32 acres that previously received an FAA release; that project is expected to generate ground-lease revenue for the airport in several years.

The commission received additional project updates from airport staff including short-term tenant amenities and facility work. Adam Miali, programs manager, said the airport is moving forward with an "express visitor center" (the former café space) and a micro-market inside the terminal; both vendors were selected and contracts are proceeding with an anticipated April installation window. Miali said the airport expects minor electrical and plumbing work for the storefront and that it will sell travel items and maps for visitors.

Gall also told commissioners the airport is evaluating whether to build new hangars itself or seek private developers. He said either route requires rezoning parcels now classified as research-and-development or, in one case, erroneously mapped as rural residential under the city code. "If the city doesn't change," Gall warned, "that land would be undevelopable under the FAA's interpretation." Commissioners were told the city planning department requires a concept zoning map amendment and council approval to change those designations.

Commissioner Gail Jackson asked whether other potential conflicts with FAA policy exist beyond the rural-residential designation; Gall replied that most of the parcels inside the airport perimeter are expected to be held for aeronautical or aviation-support uses and that anything proposed as a mixed use would need FAA review through the Phoenix Airport District office. Commissioner Schaus asked whether the FAA's opposition to housing is mainly noise-related; Gall said noise, emissions and safety concerns factor into the FAA's guidance.

Gall summarized two near-term paths the airport staff are pursuing: preparing to finance or bid city-built hangars and continuing outreach to potential private developers for ground-lease developments similar to the project across JW Powell. He said both approaches will require coordination with city finance, procurement and legal staff and would follow public competitive-selection processes under the city charter.

The commission also heard operations and finance figures during the meeting: January emplanements were 4,540 (up 11% from January 2024), total operations for January were 2,551 (down about 11% from 2024), parking revenue for January was $41,498 (about 14% above the prior year), and January fuel flow reported by the FBO was 68,592 gallons.

No formal land-use vote was taken at the meeting. Commissioners asked staff to continue work on rezoning options and development strategies and to return with more detailed cost, financing and timetable information.

Gall and staff said they would also coordinate with the FAA on any mixed-use proposals and with city planning for the required concept map amendment before any rezoning or development occurs.