The Moose Jaw Municipal Airport Authority has received permission to continue accessing its line of credit so it can finish up its $3.2-million renovation project at the airport.
During its April 25 regular meeting, city council voted unanimously to extend the line of credit (LOC) to Oct. 31 and authorize city administration to create an amending bylaw that would adjust the deadline in the existing bylaw.
During a March 2021 meeting, council agreed to provide a financial guarantee to the authority so it could access a $1-million LOC from Jameson Gilroy and B&L Livestock Limited (JGL). The authority could use that money as cash flow during its runway and taxiway extension and rehabilitation project.
No money came from city coffers, but the $1 million did — briefly — count against the municipality’s debt amount.
The airport authority had until April 30, 2022, to repay the line of credit, which it has done, a council report said. However, the organization needs to access the LOC again to complete its project this year.
Greg Simpson, chair of the Moose Jaw Municipal Airport Authority (MJMAA) board, said in a letter to council that the organization needed an extension on the bridge loan since its surfacing contract was “significantly delayed” last year.
It had forecasted that the project would start on May 7, 2021, and be completed in six weeks, he noted. However, the authority did not start work until June, while the project paving and painting were not finished until October.
Furthermore, the electrical, signs, and grass will not be installed until June 30, 2022, while grant funding from the federal government has been delayed by at least 90 days because of year-end financial delays.
The runway project’s total cost is $3.2 million, with $2,199,990 coming from Ottawa, $500,000 from the City of Moose Jaw, $275,000 from the province and $275,000 from the authority itself.
Council discussion
Supporting this project is important since the airport authority has worked diligently to build up this asset, said city manager Jim Puffalt. The airport is a “tremendous asset” to the region and helps with economic development.
“I think this is important for our city. This municipal airport is not just a private club. Many industries use jets and they do not travel by car … ,” said Coun. Doug Blanc. “We have an area by the power plant and we hope to expand out there. Some companies are not based in Moose Jaw, while CEOs could be based anywhere.”
Mayor Clive Tolley supported the motion, saying he has attended some of the authority’s recent board meetings and heard good things about the project. He has also been out to the venue regularly and seen the development of the runway and hangars.
Tolley added that extending the guarantee on the line of credit ensures the organization — which has done “a very, very good job” — can complete the initiative.
The next regular council meeting is Monday, May 9.
