The City received a request to purchase APN 310-21-028, located in the Kingman Airport & Industrial Park. A portion of the property is currently leased by Musket Corporation and supports its existing operations, including rail access.
Staff reviewed the proposed purchase and found that the application does not identify a specific business operation or development project for the property. It also does not demonstrate measurable economic benefits such as job creation, capital investment, or anticipated rail activity.
The property currently generates $61,032.31 annually in Airport lease revenue, approximately one-fourth of Industrial Park lease revenue. The current lease expires June 30, 2028, providing an opportunity to establish a new market-based lease rate with the current lessee or other potential lessee at that time.
The property also has strategic value due to its location near the planned Flying Fortress Parkway connection and future transportation and rail improvements associated with the FAA land release area.
Because the applicant has not demonstrated sufficient economic benefit to offset the property's existing revenue, current industrial use, and potential future value, staff recommends retaining APN 310-21-028 under City ownership and denying the purchase request.
The Airport Fund would no longer generate $61,000 in recurring annual revenues.
Staff recommends that City Council deny the application to purchase APN: 310-21-028 and retain the property under City ownership based upon its existing economic use and financial benefit to the Airport, support of an established rail-served Industrial Park operation and potential long-term strategic value.
Move to deny the application to purchase City-owned property identified as APN 310-21-028 and retain the property under City ownership.