|The current state of Airport loan repayments was a topic|
of note from Monday's City Council session
The City will be stepping up to lend a hand to the Prince Rupert Airport Authority, approving a proposal from Chief Financial Officer Corinne Bomben to extend an agreement in place by an additional three years to allow for the Airport to recover from some of the challenging impacts they have faced as a result of COVID-19.
Ms. Bomben outlined the details of a report she had prepared for Council that provided some background to the current situation that the airport authority finds itself in after a year of suspended air service to the community.
In her presentation the CFO began with some details related to the original loan for renovations from 2014 and then brought the topic up to present and noted how COVID has impacted on the Airport's ability in making its debt obligations.
"In 2013 the City entered into a partnering agreement to provide a loan, obtained in 2014 to the Airport to upgrade their terminal, principal repayments of that loan to the city are made annually and are funded through fees the airport charges commercial and charter air traffic.
Given that the pandemic shut air travel down in Spring 2020 and it hasn't returned to normal since that time, the Airport needed relief in meeting its debt obligations under the agreement. The airport intends to repay the loan in full so an extension to the partnering agreement is being sought to provide the additional time that the airport will need."
Ms Bomben further observed for Council how the extension of three years would provide the additional time for the airport to meet those obligations, with resumption of repayments on the loan from the airport to come in 2023.