Owen Sound city hall. (photo by Claire McCormack)
Owen Sound council will consider a recommendation at its meeting Monday night to accept a $1.5-million offer to purchase the Billy Bishop Regional Airport and its lands.
A report by city manager Tim Simmonds says staff received an agreement of purchase of sale with the offer from a realtor on behalf of Clayton Smith.
- Owen Sound Declares Billy Bishop Regional Airport Lands Surplus, Allowing Sale Process To Move Ahead
Simmonds report says the offer price is below the $2.2-million appraised value of the Billy Bishop Regional Airport, but staff is satisfied accepting the offer “due to the intangible value of having an owner with a proven track record of airport ownership” and “a desire to expand and improve (the airport) and provide for the uninterrupted and ongoing operations, including; hangar ground leases and medical patient transport by ORNGE for residents of Owen Sound and the surrounding area.”
City staff are recommending council provide direction to bring forward a by-law to execute the necessary documents to complete the sale transaction.
According to the city manager’s report, 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.
“Mr. Smith has an extensive background in aviation as a pilot, airport owner, and operator. His knowledge of the aviation industry and marine ownership have also given him a unique strength in building a successful business and tourism brand,” Simmonds says in a report to council.
The proposed sale would close on Dec. 10, 2021. It would include the transfer of all assets including current agreements with hangar leases and Owen Sound Flight Services, but 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.
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.
City council approved a plan in July to initiate a process to declare the airport lands surplus and to seek a buyer after receiving a report about the rising operating deficit for the facility — projected to exceed $250,000 next year — and the need for $1.5-million in capital costs within two to five years for improvements.
Part of the resolution reached by council in July includes ceasing operations at the Billy Bishop Airport on Dec. 31, 2022 if no sale is completed by then.