The runway at the Wiarton Keppel International Airport. (image from The Loomex Group report)
Grey County councillors have decided to defer a decision on next steps about the county’s involvement in the Georgian Bluffs owned Wiarton Keppel International Airport.
A partial bailout for Georgian Bluffs was discussed at Grey County council’s meeting on June 24, with staff proposing the county negotiate a two-year agreement with Georgian Bluffs that would start in 2022 to provide a 50 per cent contribution towards the operating deficit of the airport — capped at $175,000 annually over the two years.
It didn’t fly.
Prior to passing a motion to defer to give staff more time to consider a recommendation, county councillors endorsed amendments to remove any financial commitment and to explicitly include Bruce County and South Bruce Peninsula in a clause that directed county staff to work collaboratively with Georgian Bluffs to issue an expression of interest for a public-private partnership to undertake development and operations at the airport.
Mayor of the Blue Mountains and county councillor Alar Soever proposed the amendment concerning Bruce County and South Bruce Peninsula, expressing concerns about subsidizing a neighbouring community which he believes should share costs.
“My concern is that the communities closest to the airport in Bruce County, we haven’t gotten them to the table for whatever reason” Soever says. “… I think if we’re going to progress it, it should be with South Bruce Peninsula and Bruce County, because they are the ones that are going to benefit the most.”
Grey County’s Manager of Economic Development Steve Furness made the recommendation to council. He told county councillors the investment opportunity at the Wiarton Keppel International Airport is more about its 400 acres of land. He says the recommendation was intended to “buy some time” to be able to explore public-private partnerships for the airport.
Grey County CAO Kim Wingrove explains the Wiarton Keppel International Airport is grandfathered to have an aerodrome and customs clearance at the level it exists today.
“If you were going to try and recreate that from new, it would be a multi-million dollar investment,” Wingrove explains. “(This recommendation) is trying to protect an asset that’s already had the benefit of public investment over a number of years. We believe there is potential here.”
Prior to their discussion, county councillors heard details from a report by consultants The Loomex Group, which was commissioned by Georgian Bluffs and Grey County. The Loomex Group currently manages the Wiarton Keppel Airport on a month-to-month basis.
The Loomex Group study says the airport’s economic impact on the region is $2.4-million through direct, indirect and induced economic impacts. It says closing the airport would have negative and direct impacts on the economy, and include costs of over $2.5-million.
One of the key findings of the report was status quo operations at the Township-owned airport is not sustainable, with annual deficits of around $300,000 being shouldered by Georgian Bluffs. The Township took over sole ownership of the airport in 2015, purchasing South Bruce Peninsula’s share in it then for $600,000.
The Loomex report also includes a proposition to develop a “Grey-Bruce Prosperity Hub” at the airport lands. It lacks detail about expansive plans for the development of a viable hub, but includes a recommendation to create a a business plan to support the prosperity hub development.
The hub is one of three options suggested by The Loomex Group for the future of the airport in its report, along with the status quo and solvency.
The feasibility study says total economic loss and closure costs for Georgian Bluffs could reach more than $5-million. Aside from expense, it says solvency would result in the loss of the region’s only Transport Canada Certified Airport.
“If there is such a compelling story here, why has Georgian Bluffs not capitalized on this in the six years they’ve owned this?” Southgate mayor and county councillor Brian Milne wonders. “If I was in Georgian Bluffs’ shoes I’d be looking for somebody to help me with this too. But financial help alone is not going to solve or crack this.”
Georgian Bluffs Mayor Dwight Burley says he doesn’t want to give the impression the township is looking for a handout.
“We do not have the expertise when it comes to economic development as the county does,” Burley explains. “All we want is the opportunity to be able to work with the county … to see if it’s reasonable if we can advance this great asset we have in our municipality.”
County councillor Brian O’Leary, the deputy mayor of Owen Sound, says the Wiarton Keppel International Airport is a discretionary service and questioned how county staff differentiates between all the others in Grey County’s nine municipalities to propose providing funding too.
“How do I support spending $175,000 because Georgian Bluffs is losing $350,000, when my own airport is losing $250,000?” O’Leary asks, referring to the Owen Sound Billy Bishop Regional Airport. “We’re looking after our own losses. And I can’t support to look after Georgian Bluffs’ losses when we’re in the same ballgame.”
Hanover Mayor Sue Paterson also raised concerns about the county providing funding to assist one airport in the region, when other municipalities face similar challenges to Georgian Bluffs to make their airports viable. Hanover is one of three municipal owners of the Saugeen Municipal Airport, along with West Grey and Brockton.
“We would love to have some funding to assist us with this, in fact I think all the airports would,” Paterson explains. “But, if we’re going to get into the airport business, which I don’t think should be a priority right now, we need to be fair to all the airports.”