Gulf Shores airport poised to get $2.5M in federal grants for terminal expansion

GOVERNMENT - GULF SHORES CITY COUNCIL Posted Tuesday, September 8, 2026 12:47 pm Gulf Shores is looking to cash in on a handful of grants from the Federal Aviation Administration totaling more than $2.5 million as work continues toward a new passenger terminal as well as work on the existing temporary terminal at the city's growing airport. The new terminal expansion is expected to be completed by summer of 2027. 'Those were received by the FAA basically to reimburse for our existing terminal but also our new terminal,' Airport Director Jesse Fosnaugh said. 'That's what all three of those grants cover. We're really, really excited to be receiving those as we continue to grow.' Councilors will discuss three items to approve accepting those three grants during a work session on Tuesday, Sept. 8, at city hall. The meeting was moved to Tuesday from the typical Monday date because of the Labor Day holiday. A final vote to accept all three is likely to come in the next regular session on Sept. 14. The largest of the current grants is for $1.9 million to help 'construct terminal related project,' according to a memo from Fosnaugh. The airport authority's match for this grant is $100,000, making the total amount $2 million. A second grant for $240,685 is also for help with the general project with a match of $12,667 from the authority for an overall amount of $253,353. Another grant is for $308,560 for phase four for the construction of four passenger boarding ramps. The match for that grant is $16,240 for a total of $324,800. Beginning with a $6 million grant for the air traffic control tower that began operating in November 2021, the airport authority has welcomed a stream of funding from the FAA as well as state monies from the Alabama Department of Transportation. Even as construction continues, traffic still grows daily, Fosnaugh said. 'Since opening in May of 2025 through July of 2026, we've had 176,000 passengers travel through our terminal,' Fosnaugh said. 'That's a big number. We started with six destinations our first summer, and we have 13 destinations this summer. Allegiant's been very pleased with the results of our service, and we're continuing to pursue new destinations for next year and next summer with Allegiant.' With everything on schedule for the opening this summer, Fosnaugh said the airport will reach another milestone this summer. 'It'll be ready for two flights at the same time in late May of 2027, and then they'll be doing some internal renovations next summer,' Fosnaugh said. 'But the new terminal space will be open next summer, maybe May.' During the work session, council will also discuss: Setting dates for the municipal court in 2027, which will meet monthly on the first and third Thursdays; Amending an agreement with Safe Harbor Animal Coalition to reduce a yearly appropriation from $17,500 to $10,000 'due to the amount of services needed in Gulf Shores'; An assembly permit for the 39th annual Coastal Cleanup 2026 in Baldwin, Mobile and Escambia counties in Alabama. Gulf Shores will have collection sites at Gulf Place West; Approving a conditional use permit for expansion of Gulf Shores Utility's water treatment plant on West Street, which runs west off of State Route 59 just north of Coastal Community College; An assembly permit for a Fall Art Festival staged by the Gulf Coast Arts Alliance on Sept. 19 at 116 E. 24th Ave. on property owned by 24 Canal. The open area has been used in the past for other festivals and events; and An assembly permit for the Skippin and Sippin Phun Walk on Oct. 24 at LuLu's at Homeport Marina. It is part of the Jimmy Buffett Meeting of the Minds annual gathering Oct. 21-25 and proceeds will benefit local breast cancer patients.