Kissimmee approves hotel LOI and a one-year pilot for transient landing fees, and authorizes Vector contract

The Kissimmee City Commission voted to advance a package of airport-related actions that together aim to support airport development and address airport funding needs but prompted extended public comment and debate from pilots and flight-training interests.

Unsolicited-proposal process and hotel LOI: The commission authorized staff to move forward with a letter of intent and first right of refusal with Kissimmee Place Development Group, an unsolicited developer proposal to build a Hyatt-branded 122-room Kissimmee Gateway Hotel on Martin Luther King Boulevard and a larger Toho Square hotel/conference facility downtown. Santiago Fernandez, the developer representative, described an 18—19-month timeline for the airport hotel and a larger three-year schedule for the downtown project; he said the airport hotel would serve flight students and airport tenants and could be part of a public'private (P3) structure that shares revenue with the city. Staff emphasized the statutory unsolicited-proposal process, including required public notices and at least two hearings before a final decision.

Landing fees and public comment: The commission also considered an amendment to the Kissimmee Gateway Airport rates-and-charges policy to implement transient landing fees (proposed $3 per $1,000 of aircraft value, a $20 transient helicopter fee, and an exemption of one free landing per day for aircraft under 5,000 pounds). The proposal drew sustained public opposition from pilots, flight schools and groups such as the Aircraft Owners and Pilots Association, who argued fees would harm student training, reduce traffic, and raise safety concerns if pilots turned off ADS'B transmitters. Commenters also raised procedural transparency concerns and asked for more study and an airport advisory board.

Pilot and Vector contract: After discussion and procedural clarifications from staff and the city attorney about statutory requirements and contract termination language, Commissioner Albers moved and the commission approved a one-year pilot to implement the fee schedule (to evaluate impacts) and then approved a three-year contract with Vector Airport Systems to administer fee processing with termination options after one year with 60 days' notice.

City staff said landing-fee proceeds are intended to support airport capital projects, including pavements and potential customs staffing; several commenters urged alternative revenue options and stronger outreach to the aviation community. The commission directed staff to continue negotiations on contract terms and to involve consultants for economic analysis as part of the unsolicited-proposal review and fee implementation process.