Commission recommends lease for fuel service on Lots 5A–5B despite questions about terminal-adjacent parcel

The Kenai Municipal Airport Commission recommended that the City Council approve a lease application from A L L C to use Lots 5A and 5B in Subdivision No. 10 for a fuel-service fixed-base operator (FBO).

The recommendation came at the commission’s Feb. 13 meeting after staff said the applicant submitted a land-use application and planned about $3,000,000 in improvements and a five-year lease to operate fuel services and an FBO on the lots.

Commissioners emphasized that the vote concerned only whether the proposed aviation use was appropriate for these specific lots, not whether an FBO should locate elsewhere on the field. “What we're looking at is the lease here specifically if it's appropriate and aviation use,” a staff member said during the discussion.

One commissioner raised multiple concerns about siting the fuel operation on the northern lots rather than the parcel next to the terminal that had been cleared and prepped in prior years. The commissioner said the terminal-adjacent parcel had been “designated” and prepped as the preferred FBO location and warned that allowing fuel service farther north could leave the terminal parcel underused and make it harder for a traditional terminal-area FBO to locate there in future.

The commissioner also questioned market capacity, saying that having three fuel providers on the field—two existing suppliers plus the proposed operation—“is pretty ridiculous,” and that fuel sales are a primary revenue source for an FBO. The airport manager told commissioners the application before them was limited to the two lots and their proposed aviation use, and that questions about other parcels were separate discussions.

After discussion the commission voted to recommend the lease application. Chair Tara Beacon recorded an affirmative vote and the roll call recorded yes votes from Vice Chairman Elga; Billfold; Caldwell; Knizek; Wicker; and Student Representative Bolling. The motion passed.

Why it matters: The location of an FBO affects apron configuration, transient parking and the airport’s ability to attract a full-service operator next to the terminal. Commissioners said they were weighing the immediate application against longer-term site planning already done for the terminal area.

What’s next: The recommendation will go to the City Council for final action. The commission limited its consideration to whether the proposed aviation use for Lots 5A and 5B was appropriate under the city’s land-use rules.