The Moose Jaw Municipal Airport Authority can access its $1-million line of credit (LOC) for another five months after receiving the official go-ahead from city council.
During its May 9 regular meeting, council gave three unanimous readings to a bylaw amendment that would extend the line of credit re-payment deadline to Oct. 31 from April 30. The amendment went into effect immediately since there was no opposition from council.
Making the amendment ensures the airport authority can continue to access funding for its $3.2-million runway capital upgrades program.
During a March 2021 meeting, council agreed to provide a financial guarantee to the authority to access a $1-million LOC from Jameson Gilroy and B&L Livestock Limited (JGL). The authority can 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.
Greg Simpson, chair of the Moose Jaw Municipal Airport Authority (MJMAA) board, said in a letter to council in April that the organization needed an extension on the bridge financing since its surfacing contract was “significantly delayed” last year.
The authority had forecasted that the project would start on May 7, 2021, and be completed in six weeks, he said. 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.
The next regular council meeting is Tuesday, May 24.
