Barrie could take flight out of the aviation business.
Councillors will consider a motion Wednesday night to sell the city’s entire 10 per cent share of Lake Simcoe Regional Airport (LSRA) to the County of Simcoe, making it the sole shareholder as of Jan. 1, 2024, for the airport located on Line 7 North in Oro-Medonte Township, north of the city.
Barrie Coun. Sergio Morales, who represents council on the LSRA board, says he supports the move.
“The City of Barrie selling its share of the airport allows both the county and the city to better realign their respective taxpayer money in a manner that optimizes these strategic investments for its own residents,” he said, “while still allowing county and city investments to complement each other in a way that betters economic development conditions for both the city and the county.”
In June 2019, Barrie council approved the sale of airport shares to the county, reducing the city’s investment in the LSRA from 60 to 10 per cent. There was also a corresponding reduction in the amount of the financial contribution to the LSRA’s operating, capital and borrowing charges, and a reduction in the number of seats held on LSRA’s board.
The next month, Oro-Medonte sold its entire 20 per cent ownership stake in the LSRA to the county, giving the latter 90 per cent ownership.
Selling the remainder of its LSRA shares would also mean Barrie doesn't have to contribute to the airport’s future capital projects.
The base infrastructure for its planned expansion includes the expansion of the runway to 7,000 feet long and 150 feet wide. This permits medium-sized corporate and intercontinental aircraft to operate at maximum take-off weight under dry and wet runway conditions. The runway widening has been completed and the lengthening is currently in the planning stages.
A water/wastewater servicing solution will also be critical as a result of expected development and expanded services.
The estimated cost for infrastructure works in the shorter term is approximately $40 million, with water/wastewater servicing infrastructure for the northeast commercial area.
The 10-year, long-term plan calls for a total investment of about $51 million, not including future terminal infrastructure requirements.
The current shareholding of the LSRA and resulting contributions for the $40-million expansion would require an investment of $4 million from Barrie. This requirement increases to $5.1 million during the next 10 years.
From 2020 to 2023, Barrie’s share of the capital costs has been approximately $438,000.
City staff say it would be prudent to eliminate any additional investment in the LSRA, given the city’s financial pressures for capital works within Barrie and the current city debt levels.
Last January, Barrie's forecasted debt was $321 million this year, $329 million next year, $322 million in 2025 and 2026, and then $327 million in 2027.
Staff are recommending that the city sell its remaining 10 per cent shares, thereby eliminating LSRA ownership and any future financial investments by the city.
If Barrie council approves, County of Simcoe staff would present to their council on the acquisition of the remaining 10 per cent city shares.
The proceeds associated with the county’s purchase of Barrie’s shares, with an approximate value of $1.3 million, would be applied to the LSRA’s outstanding capital budget requests to the end of 2023, with the remaining balance of $1.2 million to be allocated to the county capital reserve.
The $3.36-million balance in the city’s airport infrastructure reserve would be transferred to the county capital reserve.
The sale would also end Barrie’s contribution to LSRA for maintenance, operation, capital or borrowing charges, end the management services agreement between the city and LSRA and have no more Barrie directors appointed to the LSRA board by city council.
If councillors, sitting as general committee, approve the motion to sell the city’s 10 per cent of LSRA to the county, city council could consider final approval of the matter at its Nov. 22 meeting.
