LINCOLN – The town is leasing a parcel of land at the Lincoln Regional Airport to a local businessman who plans to build a 24-hour aviation fuel dispensary.

Town Manager Glenn Aho said the town was very serious about economic development and wants to grow.

“In our attempt to diversify our economy, we need to develop our resources,” said Aho. “The airport is a tremendous resource. We want to encourage any and all development and will work with anyone who wants to develop a viable business at our airport.”

The Town Council on Monday unanimously authorized Aho to enter into a 25-year lease agreement with Robert Enochs to provide a fueling facility at the airport.

Enochs will lease a small parcel of land measuring about 22 feet by 40 feet where he will establish an aviation fueling facility. He will pay the town $400 a year for the lease plus personal property taxes. He plans to have the 24-hour, self-service fueling facility available to pilots by early summer.

Aho said the agreement would result in the town expanding services offered at the airport in an effort to increase aviation activity.

The new fueling facility Enochs plans to build was one of the items recommended by a state-retained planner who is working with the town to update its master plan. The plan is expected to be completed in a few months, said Aho, who also serves as the airport manager.

Aho said some of the goals for the airport include: improving both ends of the runway, building a parallel taxiway, installing fencing to keep deer and other wildlife off the runway, and to improve public access both to the land runway and the seaplane base, located on the Penobscot River. He said the goals were developed by a public advisory committee, officials of the Federal Aviation Administration, the state and the town.

Aho said the town needed to concentrate on developing the airport to make it more of a moneymaking enterprise. He said airport improvements and maintenance generally are funded 90 percent by the FAA and 5 percent each from the state and town. He said the FAA wanted the town to take a more aggressive approach in collecting fees.

Aho said FAA officials do not believe the local taxpayers should be paying for maintenance of the airport. He said the goal of the FAA was to have the 5 percent grant contribution from the town offset by airport revenues. “We are not meeting that goal,” said Aho. “The airport is not a moneymaker at all. We want to improve the airport so it will be better utilized and will become a moneymaking enterprise,” he said.

Aho said increased airport activity also would improve the business climate for people to start new businesses. “We need to diversify. We have ignored our airport for too long,” he said.

In other business, the council voted to award a contract to George Edwards of Edwards Real Estate Agency in Lincoln to sell a town-owned house at 27 High St. Edwards’ low bid included a commission of 4.75 percent. The minimum sale price is $45,000.

Earlier this year, the town acquired the house for $1 from HUD, which had foreclosed on the property.

Aho said proceeds from the sale would be used to enhance economic development. He said the money would be used to pay off the $45,000 the town spent to buy the Vincent Rush property at 17 Main St.

The town plans to tear the Rush building down, create “green space” and a memorial there in the late Lee Rush’s memory. “Having that green space will increase pedestrian foot traffic for the downtown area we are trying to develop,” he said.