City of Prince Rupert sets May 14th date for final questions or comments on Airport Loan Payment extension plan

 

Last month, Prince Rupert City Council received a report recommending that the City extend the Prince Rupert Airport Authority's time to repay a loan on past airport renovations, with a three year extension the proposed term.

The main theme of the extension request, as noted by the City's CFO Corinne Bomben that of the airport having to deal with the COVID pandemic and a loss of service that came with it for portions of 2020 and for much of 2021 to date.

"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."

Last week, the City posted a notice to the back pages of the local newspaper (so far not noted on the city website or through their social media portals) to advise residents that if they have any enquiries about the plan, they have until mid month to share them with the City.

As part of the recommendation to Council, the city will extend the payment term of their partnership agreement with the Airport Authority to 23 years, that from the original large of 20 years.

Some further background on the Airport Loan situation is found in the Financial Statement report that will delivered this evening by the City's Chief Financial Officer Corinne Bomben, it comes from the Legacy Incorporated segment of the Financial overview.

For those with an interest in making a comment or asking a question related to the loan extension plan, you can contact the City's Corporate Administrator, the deadline to do so is this coming Friday by 4PM.

Ms. Rosa Miller can be reached by email at rosamaria.miller@princerupert.ca

More notes on the Prince Rupert Airport can be explored from our archive page.