Palmer in a tough spot between its beloved golf course and expansion of airport, an economic driver

It’s still some time off, but Palmer faces some tough decisions over the future of its beloved golf course and expansion of its city-owned airport that may be needed in a few years.

It’s a complicated problem and there’s no way out that doesn’t involve spending a lot of money. The City of Palmer doesn’t have a lot of money.

Here’s the issue:

The city owns the golf course, which is operated by a private contractor. However, the land was purchased by the city with help from the Federal Aviation Agency and there were strings attached, that the property is for aviation use if there are airport-related needs.

Until there are new aviation needs the city can use the land for other purposes, like a golf course. But the day of reckoning may be nearing.

“The Palmer Airport is nearing build-out, and the remaining parcels, including the land currently used as a golf course, represent aeronautical development space,” Palmer city manager Kolby Zerkel said in an e-mail.

“Under FAA policy, land that may be needed for future aeronautical use cannot be permanently released for non-aeronautical purposes (like the golf course). The FAA would likely deny a release request, even if the city offered to purchase the land at fair market value,” she said.

The parcel has always been shown as for aeronautical use on the FAA-approved Airport Layout Plan including. The FAA treats that as evidence that the land is part of the functional airport system.

Changing that designation would require an ALP revision, a complex process. “The FAA would not approve such a revision without clear and documented proof that the land is truly no longer needed for aeronautical purposes, which the city cannot demonstrate,” Zerkel said.

That’s because there is interest from the aviation community, Palmer airport manager John Diumenti said. “The Valley is growing at a rapid pace. Merrill Field, Lake Hood, and the Birchwood Airport (in the Anchorage area) are all full. The Wasilla Airport is expanding. Those are all indicators in my mind that the interest in the Palmer Airport is increasing,” Diumenti said.

Palmer’s airport is important to the local economy but so is the golf course, which has a dedicated group of local enthusiasts. Golfing brings people to Palmer for seasonal recreation, which typically results in them spending time in downtown Palmer in restaurants and stores, supporters of the golf course say.

But besides its own local economic and recreation benefits the airport is strategic infrastructure for the state because it can accommodate heavy aircraft and complex flight operations.

For example, the state Division of Forestry and Fire Protection bases its aerial fire-fighting operations at Palmer including tankers that carry fire-suppressant liquids.

“I have spoken to a number of people about developing at the Palmer Airport. This is the longest, most weight-bearing runway between Anchorage International and Fairbanks International. I think that it's only a matter of time before our remaining lots are leased,” he said.

There are approximately 120 tiedown spaces at the airport. “In the summer season,” although there are vacancies in the winter,” Diumenti said.

“There are over 20 separate hangar developments on the airport, with an additional one pending next year,” he said.

Beyond the runways, taxiways, aircraft tie-downs and hangers the FAA-allowable permanent uses include facilities for flight instruction, maintenance, repair and fueling.

Zerkel said the FAA allows for the potential release of airport land for public or community purposes like parks, playgrounds, or community centers, but only when the land is not needed for aeronautical use. “The use must be non-commercial and publicly accessible. Commercial ventures or businesses operating on obligated land do not qualify as a community space,” she said.

Any land used for business purposes that generates revenue for private parties cannot be considered for a release, because it conflicts,” with the FAA grant.

That affects the golf course. “The golf course is operated for-profit (by a contractor) demonstrating that it is not a community space,” she said. That’s because fees are charged for golfing.

Meanwhile, the airport is nearly full. “There are three lots remaining for lease at the Palmer Airport, covering about 13 acres of land,” Diumenti said.

“Those three lots can be leased tomorrow, or it may take ten years for them to be leased. At the current rate of development, it is my opinion that they may be developed in three to five years,” he said.

However, things could happen sooner. “If a lease application was submitted today requesting to develop part of the golf course (for an aviation facility) even before the other lots were developed, I don't know that the city would have legal standing to reject a qualified application,” Diumenti said.

Zerkel said “The city can offer to purchase the land at fair market value, however the FAA would likely deny a release request as the land has been designated for aeronautical use since it was purchased 1975-1986,” which would mean the required FAA-approved airport plan would have to be done first.

“Additionally, the city is not in a position to financially cover the fair market value of the land at this time, and it is not budgeted for 2026. The land is cleared and has utilities, which further increases its value,” she said.

Palmer did recently solicit for a contractor to do a fair market value determination of the golf course land, which would be the first step in an attempt to repay the FAA grant and obligation, but there were no responses to the Request for Proposals.

Zerkel said a new RFP for a land market value study is in the works. “We’re going to simplify it to try and get more response,” from potential contractors,” she said.