Falls poised to ditch airport
City threatens to withdraw funding if region won’t take over operations
Niagara Falls is considering getting out of the airport business as it appears Niagara Region will not assume control of Niagara District Airport.
City council passed a resolution brought forward by Coun. Wayne Thomson giving the Region notice that prior to the municipality’s 2018 budget, “we’re going to make a decision with respect to pulling out of the airport.”
“I’ve been talking about this for probably 15, 18 years to have this turned over to the Region,” he said.
“The economic value for development of our communities is extremely important.”
Regional councillors recently voted against paying for an environmental assessment of the land at Niagara District Airport in Niagaraon-the-Lake and Niagara Central Dorothy Rungeling Airport in Pelham.
That effectively blocked Niagara Region from assuming control.
The environmental assessment was a condition of the Region taking over.
In early September, the Region’s public works committee agreed in principle that the upper-tier municipality take over operations.
The plan passed at full council on Sept. 22 but was amended to insist the lower-tier municipalities pay for the environmental assessment.
The issue of that environmental assessment returned to regional council recently. A vote on waiving it ended in a 14-14 tie.
Because it was a reconsideration of something previously passed, it needed the support of two-thirds of council.
In north Niagara, St. Catharines, Niagara Falls and Niagara-onthe-Lake fund Niagara District Airport.
In south Niagara, Welland, Pelham, Port Colborne and Wainfleet pay the cost of operating the Dorothy Rungeling airport.
And it also means funding money for capital upgrades.
Mayor Jim Diodati said he recently read a story in a national newspaper about Pearson Airport looking at privatizing.
“They said the value is in the many billions, and they said airports do have value,” he said.
“If the Region doesn’t want to come in as our partner, we can sell a portion of it to a private operator and they’ll run it like a business, and they’ll bring in their money.
“This puts them on notice. If they don’t want to be a partner, we’ll find a partner.”
In terms of footing the bill in south Niagara, Welland paid $46,585, Port Colborne $16,940, Pelham $15,246 and Wainfleet $5,929 to run the Dorothy Rungeling airport in 2016, according to a report to regional council.
In north Niagara, St. Catharines paid $324,785, Niagara Falls $211,462 and Niagara-on-the-Lake $39,238 for Niagara District Airport in 2016.
Payments are calculated on a per capita basis.
The operating budget in 2016 for the Dorothy Rungeling airport was $154,700 with $30,000 in capital costs. Revenue was $100,000.
The operating budget in 2016 for Niagara District Airport was $632,500 with $229,083 in capital costs. Revenue was $276,100.
In total it cost $1,046,283 to run both airports. Total revenue for both was $376,100.
Regional Chairman Alan Caslin said the Niagara Falls motion is their “posturing and their message” to regional council on what they’d like to have happen with the airport.
“But at the same time, they count on the airport for their casinos and for their business travel as well,” he said.
“Now that we’ve got an airline flying between Toronto and Niagara district, it kind of makes sense for us to maintain that airport in some fashion. Really what we’re talking about is what does that fashion look like?”
Caslin said he approaches the issue from a business perspective.
“What about the notion that Niagara-on-the-Lake, who owns the property, why don’t they just go out to the north airport communities and say, ‘Why don’t we just split it across all six north?’
“And why doesn’t the south, why doesn’t Pelham, go to all the south airport communities and say, ‘Let’s split the cost on the south airport between all the south guys?’
“It will certainly lessen the burden on Niagara Falls, but if there’s a notion that we ought to have a community airport, then let’s all pay for it.”
He said while there’s some push back from the outlying areas, “fair is fair.”
“They get certain advantages that the larger cities don’t, like lower taxes.”
Caslin said he acknowledges there’s a “change afoot” with how different communities want the airport to operate in the future.
“What that change ultimately looks like, obviously there’s some posturing and positioning, but what that change looks like has yet to be determined,” he said.
“We, as a council, endorsed the notion of uploading the airports by a margin. It’s now an opportunity to shape what that looks like.”