Lake Simcoe Regional Airport (LSRA) officials made their approach to Barrie city council, Monday night, to gauge support for a possible $66-million expansion.
With Toronto Pearson International Airport transitioning to a “mega-hub” focused on long-range, wide-bodied aircraft, LSRA officials say smaller carriers are being asked to find new operational facilities.
To take on additional such air traffic, several upgrades would be needed at the Line 7 facility in Oro-Medonte Township, including a longer runway, better navigational aids and perhaps even a new terminal building.
The City of Barrie is the airport’s majority shareholder, at 60%, and shares ownership with Simcoe County and Oro-Medonte Township.
Scott Running and Brent Hill, who are members of the airport’s board of directors, updated council on LSRA’s strategic plan and said now is the time to act.
LSRA is already home to corporate air traffic, such as the OPP and Hydro One, but the expansion possibilities would allow the facility to accept passenger and cargo planes.
“But there’s a more significant cost, the cost of doing nothing,” Hill said. “We would forfeit both immediate and future opportunities, and we’ve already received significant expressions of interest from companies looking to relocate.
“But we would also potentially lose some of our current business to other regions that have already made these investments in their airport infrastructure,” he added.
Waterloo Airport has a proposed capital budget of $28.3 million over the next 10 years, while Peterborough Airport could see a $48-million investment.
At a combined cost of almost $66 million, LSRA expansion would be phased in and based on demand.
There was some concern around the council table about such a big-ticket item, even if it’s shared with the county and the township as well as other levels of government.
“We have to figure out why somebody on Dunlop Street is going to care to have an airport,” Coun. Mike McCann said. “That’s obviously going to be a factor most councillors are going to think about.”
“It is hard to sit here and stomach these numbers when I haven’t seen the business case,” said Coun. Andrew Prince. “It’s very difficult. I could never to a bank or a lending institution and say, ‘Well, I’ve got some prospective clients, so lend me some money based on that’. That’s very difficult to do.”
Running likened the airport to Highway 400, in that it may not make money itself, but helps generate business by bringing people and goods into the area.
“This isn’t a (situation of) build it and hope they will come,” he said. “We have people right now actively pursuing this as a solution.”
Some businesses have talked about 60 to 80 high-tech, well-paying jobs and a 100,000-square-foot facility, Running said.
The $27.5-million first phase would include lengthening and widening LSRA’s runway, land acquisition, enhancement of electronic and visual aids, including installation of an approach lighting system, as well as certification and zoning changes.
The second phase, at a cost of $350,000, would bolster the air-service business case through an economic impact study and investigate air-service incentives while also looking at a new/expanded air terminal in the third phase.
The $38-million third phase would include an air terminal building, ground-side infrastructure as well as expanded services and utilities to the terminal.
“It’s a demand-based strategy that cannot be achieved overnight,” Hill said. “We recognize this is not an insignificant amount of taxpayers’ money. However, in our view, the cost of doing nothing is much higher.
“This opportunity may never come again,” he added. “I realize that’s a little dramatic, but that’s the facts.”
Running said LSRA has several advantages which could attract business.
“We have connectivity to the GTA, both via highway and via the train service we have, and infrastructure-wise, we’ll have all the capabilities for landing, for servicing the aircraft, for meeting the customs and security requirements,” he said. “With the complete proposal, we’ll have it all.”
Coun. Steven Trotter said his council colleagues shouldn’t be scared off merely by the dollar figure.
“We have to be careful about not getting shocked by the number, and looking at what the content is,” Trotter said. “Ultimately, what they’re asking for is an endorsement of the concepts that are being presented. They’re not asking for an endorsement of the budget, because when we decide to do it, the pricing could be entirely different.”
Mayor Jeff Lehman said council has to weigh its options.
“I suspect if you were here tonight and you were saying we have a 500-job, major employer who’s willing to relocate to Lake Simcoe airport, and their jobs average $100,000 a year, we would be moving heaven and earth to get that runway built yesterday to make sure that we landed those 500 high-paying industrial jobs for the city of Barrie,” the mayor said.
However, Lehman also said it’s a matter of how much certainty there is around the expansion plan that those jobs would come here.
“That makes a difference, I think, to some members of council,” he added.
A city staff report will come back to council.
Airport officials have made a similar presentation to Simcoe County council and will also speak to Oro-Medonte Township council on July 18.
