Town of Osoyoos council has decided to allow Destination Osoyoos to make the final decision on whether public money will be used to finance a detailed business plan that would look at all options relating to possible expansion of the Osoyoos Airport.
The Osoyoos Airport Development Society was formed a couple of years ago to promote the expansion of the Osoyoos Airport airstrip.
Council had previously engaged this group as an advisory committee to look at possible airstrip expansion and had provided funding for two studies relating to this issue in the amount of $7,200.
Several weeks ago, members of the airport development society appeared before town council and requested funding to help pay for a professional business plan at a cost of approximately $15,000.
Late last year, administration had requested that council fund a business case to assess the merits of proceeding with a business plan to repurpose the airport lands to industrial use.
Council later denied that request and put off any decision on possible repurposing of airport lands.
During a presentation to town council last week, Chief Administrative Officer Barry Romanko said the airport development society gave no indication in a letter to the town about finding other sources of funding to cover the remaining $15,000 to pay for the professional business plan on possible airport expansion.
“Given the stated economic impacts of this airstrip development, other stakeholders such as the Osoyoos Indian Band and the Regional District of Okanagan-Similkameen (RDOS) can be viewed as benefactors,” he said. “The society clearly hasn’t articulated other economic development regional partnership involvement in this project.
“Administration has been closely monitoring the recommendations of the B.C. municipal auditor general. The auditor has provided recommendations to other communities that strong business cases be developed prior to making major municipal project spending. All indications are that any future decision relating to the future of the airstrip needs to be supported by a business case.”
Having a business case assessment for the airstrip development will not address the value added of the larger airport development project versus the option to repurpose the land to industrial use, he said.
“Having a business case for the airport enhancement may illustrate that issues relating to the development are insurmountable and community investment is not the best course of action,” he said.
An important feature of the business case is the terms of reference that includes the project scope, forecasted value added and assessment of development issues, said Romanko.
The 2015 budget identified $50,000 toward costs associated to repurposing the airstrip to industrial lands. A small portion of these funds has been expended on an environmental assessment plan, but sufficient funds are remaining to cover the $15,000 request for the business case, said Romanko.
However, staff had earlier requested using a portion of these funds to develop a business case for repurposing the airstrip plans to industrial lands.
Options presented to council included approving or denying the $15,000 request to help pay for the business plan.
The option recommended by staff was to refer the airport development society to Destination Osoyoos to seek out economic development and regional district funding to pay for all or a portion of the requested funding.
Several members of council said if money is provided to pay for a business case looking at options to promote airport expansion, then an equal amount should be spent to prepare a business case looking at economic development benefits available by repurposing the airport for industrial use.
Coun. C. J Rhodes said he “wasn’t comfortable” asking Destination Osoyoos to be make the final decision on providing funding for the proposed business plan.
“I don’t know if they have the funding,” said Rhodes.
The entire airport expansion debate has become a “very controversial issue” in this community over the past several months, said Rhodes.
Coun. Carol Youngberg agreed and said if a business case is approved to look at airport expansion, another business case should be prepared to look at the benefits of possibly repurposing the airport lands.
After the end of the debate, council voted unanimously to refer this matter to the board with Destination Osoyoos, agreeing the future of the airport falls within that organization’s mandate of handling all economic development opportunities for the town.
They also agreed to have Coun. Mike Campol appointed to a steering committee to look at the future of the Osoyoos Airport.
KEITH LACEY
Osoyoos Times
