Owen Sound council has given its blessing to an agreement to sell the Billy Bishop Regional Airport for $1.5-million.
Council voted unanimously at its meeting Monday night to approve a recommendation to direct staff to bring forward a by-law to authorize the mayor and clerk to execute documents necessary to complete the land sale transaction.
The airport buyer is Clayton Smith, a member of the Canadian Owners and Pilots Association who has experience in airport ownership and operations. A report by city manager Tim Simmonds says Smith owns Lake St. John Airport and Float Plane Base in Orillia and has performed several capital improvements to the facility since acquiring it in 2016. He also owns Georgian Bay Airways, a float plane service in Parry Sound.
“In approving this recommendation, council is ensuring that the Billy Bishop Regional Airport will continue operating as an airport,” Simmonds says. “It will provide for medical air transport, as this was one of the themes raised during the stakeholder engagement, and continue to serve the general aviation community.”
The sale is due to close on Dec. 10, 2021 and will include the transfer of all assets at the airport property including current agreements with hangar leases and Owen Sound Flight Services. The current operations contract the city has in place with Loomex would not continue with the new airport owner.
Simmonds’ report says due diligence was completed and both the seller and buyer have waived conditions.
Smith, the airport buyer, provided a statement that was read by Owen Sound Mayor Ian Boddy at Monday’s meeting: “We found the council’s approach to be very respectful and very professional. Our business is airports and our desire is to inject capital to create and foster an atmosphere of commerce. We see growth potential for the Owen Sound Billy Bishop Airport, growth that will enhance the local community as well as the region. We are excited to protect this aviation treasure for local pilots, commuters, civilian and military training, as well as medical transfers. This airport is part of a very important aviation network in Canada. And we are honoured to have been chosen as your partner.”
The Owen Sound Billy Bishop Airport was built in 1991 and has operated as a municipal asset since 1993. It is located along Highway 26, east of Owen Sound, in the Municipality of Meaford.
Simmonds told city councillors on Monday night in 1988 a master plan was prepared for the development of a special purpose piece of infrastructure: the Owen Sound Billy Bishop Airport. He says those working on building the airport did so with the notion that upper levels of government would be there continually to support its ongoing operations and capital needs.
“Unfortunately, as we now know, shortly after operations began in 1993 the funding from those other levels of government came to an end,” Simmonds says. “This created the ongoing operational and capital funding gap that has been subsidized by the Owen Sound taxpayer ever since.”
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The approval of the airport sale agreement completes a process initiated by council in July when it endorsed a series of recommendations respecting the potential airport disposition. In September, the lands were officially declared surplus by council.
The sale process started after council received a report from Simmonds about the rising operating deficit for the facility — which has more than doubled from $100,000 in 2010 to over $235,000 in 2020 — and the expectation of $1.5-million in capital investments needed for improvements within the next two to five years.
The $1.5-million offer price accepted by Owen Sound is below the $2.2-million appraised value of the Billy Bishop Regional Airport, according to a report by Simmonds. However, the city manager says staff were satisfied accepting the offer due to the intangible asset of having an owner with a proven track record of airport ownership who has a desire to improve and expand the facility.
Deputy Mayor Brian O’Leary, among other councillors, applauded the city manager for his work on the airport sale: “I never thought we’d get that much for the airport. It’s certainly the right decision for this council. It’s the right decision for the city.”
Coun. Brock Hamley, who moved the recommendation, called the decision a win-win-win: “It’s a win for Owen Sound’s taxpayers. This sale would free up $250,000 on our operating budget … It’s a win for the the proponent, Clayton Smith who has incredible experience and a track record of making this size of airport not just succeed, but thrive. And I have no doubt he will do the same for this airport. And it’s a win for users.”
Coun. Marion Koepke acknowledged she’s always been in favour of maintaining and retaining the airport as a municipal asset, but says this sale accomplishes “exactly what we want to do.”
“It’s helping out our taxpayers. It’s helping out the people at the airport and the people who want to use the airport,” Koepke says. “So I do believe it is truly a win-win.”
