The City of Moose Jaw will continue to support upgrades at the community airport by extending a deadline for when the management group can access matching grant funds.
During its Oct. 28 regular meeting, city council voted 5-2 in favour of extending the $500,000 matching grant from the municipal land reserve fund by stretching the deadline to access those funds to Dec. 31, 2023. This is the first extension granted to the Moose Jaw Municipal Airport Authority to access this fund.
Councillors Brian Swanson and Dawn Luhning were opposed.
Council also voted unanimously in favour to approve an operating agreement with the airport authority.
Council discussion
The money from the municipal reserves account was built up through the selling of municipal property, said Swanson. Now it’s being given to the airport authority to match funds it receives from the provincial and federal governments for infrastructure funding.
The project to extend the airport’s runway is expected to cost $3 million, with $1 million coming from both the provincial and federal governments, $500,000 from the airport authority and its donors, and a matching $500,000 from Moose Jaw.
City administration presented a report recently about creating an infrastructure levy that would collect money from taxpayers and use it to fix roads and water lines, Swanson said. It seems as if residents have to dig into their pockets to pay if they want their roads and water pipes fixed, but the municipality will simply transfer money to the airport authority.
That defies user-pay models at most airports, he continued. On most airplane tickets, there is an improvement fee added to help upgrade that particular airport.
“The users of the airport pay for the airport, not the municipal tax base … ,” Swanson remarked. “If there is $500,000 lying around … let’s put it to road repairs.”
Most members on council have supported this project from the start, said Coun. Chris Warren. Recently the City of Regina gave the Regina International Airport major tax exemptions so it could reinvest that money to enhance economic activity.
Warren pointed out several levels of government are funding this project, along with private funding to match the municipality’s $500,000 grant. That grant would be paid back over five years.
“It’s another piece of the funding model that we can’t forget,” he added.
Regina was originally collecting property taxes from the airport authority, but gave up those taxes if the airport could secure an American carrier with direct flights to American cities, Swanson said. Giving up those taxes was meant to stimulate, incentivize and subsidize an American carrier.
United Airlines and Delta Airlines pulled out of Regina in 2015 and 2016, respectively, due to the low Canadian dollar and an economic downturn.
City council has also quadrupled the yearly operating grant it provides to the airport authority, increasing it to $140,000 per year from $30,000 per year, continued Swanson. This means council is using taxpayers’ money to pay back the loan it is receiving from the airport.
“Private investment there is a bit of a chimera — it’s not really there,” he added. “I’d like to point out that a $500,000 grant to the airport and an increase in the operating grant … (means) the legacy of this council — it’s biggest economic initiative percentage-wise — is with the municipal airport. That benefits very, very few at the expense of many others.”
Land sale
Also during the meeting, council voted 6-1 in favour of having city administration enter into a purchase and sales agreement with numbered corporation 102050303 Saskatchewan Ltd. for 82.21 acres at $180,000 as long as two issues are addressed:
- That the municipality commission an environmental phase 1, and if required, a phase 2. If remediation is required, city administration would negotiate a cost-sharing arrangement for council’s consideration;
- That the existing city tax incentive policies be applied.
Swanson was opposed to the motion.
Although the actual name of the business was not listed, a search of the province’s corporate registry indicates that the numbered company’s mailing address is 1500-1874 Scarth Street in Regina.
The next regular council meeting is Tuesday, Nov. 12.
