Muskegon County approves application for federal grant to pursue airport fuel farm amid local concerns

The Muskegon County Board of Commissioners voted to authorize staff to apply for and, if awarded, enter into an agreement for an Airport Improvement Grant (IIJA/AIG) not to exceed $1.5 million to build a county-owned self-serve aviation fuel farm at the Muskegon County Airport. The motion does not, by itself, authorize construction; county staff and the airport director repeatedly clarified the application is an administrative step while FAA eligibility is determined.

The airport director said the application deadline and the FAA’s timing require board authorization now so the county does not forfeit funds it has already earned based on passenger metrics. "This motion ... doesn't build anything. It doesn't approve the fuel farm," the director said, urging the board to approve the application to preserve funding options.

Supporters framed the grant as a tool to reduce the airport’s annual subsidy needs and capture revenue currently leaving the county. The director noted a targeted market for the fuel farm would be operators that fuel offsite today, citing examples of aircraft that buy fuel at other airports.

Opponents on the board and in public comment urged caution. Terry Moore of 2nd Air Transport, who identified himself as an FBO operator, testified the county-run fuel farm would make it impossible for existing fixed-base operators to compete and asked the board to table the item until the airport advisory committee had formally reviewed it: "We are not in favor of this fuel farm ... competing with a county run fuel farm is not possible," he said.

Commissioners pressed staff for additional details on lease provisions for the airport’s current on-site operator and asked whether the advisory committee had given a formal recommendation. Staff said the advisory committee had been consulted on technical matters but had not been convened for an official recommendation and pledged to call a public advisory‑committee meeting in March and return a comprehensive report to the board in April.

The board’s action authorizes pursuit of the federal funds and budget adjustments if the grant is awarded; it does not obligate the county to build the facility. The airport director said a back-up plan to spend certain previously earned entitlement funds on runway/seal coating exists if the FAA finds the fuel farm ineligible for federal funding. The board signaled further review and public discussion will follow as bids and technical reports are completed and the advisory committee is convened.