Wednesday, January 27, 2016

Runway plan gets clearance

by Richard Rolke - Vernon Morning Star posted Jan 27, 2016 at 1:00 AM— updated Jan 27, 2016 at 6:00 AM
Support for extending the runway at Vernon Regional Airport is taking flight. While city staff had recommended not extending the runway, a majority of council voted Monday to further investigate lengthening the runway from 3,500 to 4,000 feet at a cost of $7.2 million. “If we don’t do the runway extension and lose some business, what will the impact be?” said Coun. Catherine Lord of local corporations that use the airport. “Our airport is an economic driver and creates a lot of jobs. It (extension) could be a large driver.” Coun. Scott Anderson is concerned not having a sufficient runway will prevent new companies from moving to Vernon. “Every community cries for high-tech and green jobs and we have to put that infrastructure in place,” he said. However, staff has previously stated that only marginal increases in economic activity would come from a longer runway and the current length meets the needs of 97 per cent of aircraft movements. Another issue that has been raised is noise. “There are a lot of houses and development there,” said Coun. Dalvir Nahal. As part of the process, a committee will review the option of extending the runway, including potential economic benefits. Discussions will be held with corporations that use the airport. “We haven’t explored this as aggressively as we need to,” said Coun. Juliette Cunningham. Transport Canada has dictated that any runway extension must occur by September 2017. Coun. Bob Spiers opposed endorsing the $7.2 million project and possibly an ultimate $11 million extension because of the burden on taxpayers. “If there is such a great economic benefit, who is it going to and why don’t they pay for it?” he said. “I’m happy with the airport we have now.”
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Don Quixote Note:
Latest Cost Link of various options presented to Council:
The recommended option that was put forward in the report is at the far right ($5,892,000) which is a hybrid between Option 2 and the  addition of the Triangle land acquisition and a few other items taken from option 3.

I stated that I could support Option ($2,056,000) which essentially are life cycle maintenance items and adding some runway expansion and apron improvements.

From P.124 of report: (taxation possibility)
'Excluding the runway rehabilitation costs and the land acquisition costs, funding the remaining amount of $2,430,600 over 20 years would require an additional $121,530 per year, amounting to an annual tax increase of 0.357% (based on the current assessment roll). However, this assumes that all of the land acquisition costs can be accommodated within the Land Reserve. Should this not be the case, then a higher tax increase would be required.'

If the 11,603,500 (Full runway extension option) was ultimately approved and had to be solely funded from taxation based on the same ratio above over 20 years then the tax would be required to be 11,603,300/2,430,600x$121,350 =$579,305 per year (1.7042%). On the same page of reports are other possible funding sources that could reduce the future tax burden.

https://www.vernon.ca/sites/default/files/docs/meetings/agendas/160125_regular.pdf (p.456)
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KISSFM Poll Results as at 4:30 PM
Would you like to see the runway extended at the Vernon Airport to encourage more economic activity?
Yes 38.3%
No 48.6%
Need more information 13.2%

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Kelowna Airport Master Plan
http://apps.kelowna.ca/CityPage/Docs/PDFs/Kelowna%20International%20Airport/2025%20Airport%20Master%20Plan.pdf

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