Vernon city council has refused to be pushed into making a decision on the future of the regional airport and support is mixed on the question of expanding the runway. Staff had suggested council consider a plan to improve airport land but not to extend the runway. However Coun. Scott Anderson expressed concern over the loss of future corporate business if expansion did not happen. “What's difficult to factor is the lost opportunity.” The airport is used by Kal Aviation, Okanagan Skydive, Coldstream Helicopters and Advantage Helicopters as well as private owners. “We need discussions with core users to see how they'd benefit from an extended runway,” said Coun. Catherine Lord. A runway extension alone would cost $5.2 million, before other proposed improvements to the airport including land acquisition, new hangars and a helipad. Staff has warned council that proceeding with an extension to the runway would have to move speedily due to new Transport Canada regulations. Those regulations would not affect the runway if it was completed by Sept. 2017. “If there's going to be a great economic benefit, who's going to pay for it?” asked Coun. Bob Spiers, adding the numbers added up to a 1.5 per cent increase in taxes for residents for many years. “I'm quite happy with the airport we have now.” Coun. Brian Quiring said a number of his clients fly into the airport with no problem. While he could see the window of opportunity closing on the extension, he questioned the dollars and cents gain. “I'm struggling as to how we get there. I don't think it's right.” He likened a multi-million dollar expansion of the runway to “delusions of grandeur.” Coun. Dalvir Nahal said an extension could add to the noise problem in a residential area. No decision has been taken.
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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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