Stephenville mayor pleased that sale of town’s airport to the Greater NL Partnership has been approved
Tom Rose said the airport is just one of the good things happening in the area
STEPHENVILLE — Stephenville Mayor Tom Rose was “on top of the world” on Wednesday, June 29, following the announcement the day before that the sale of the town’s airport had been finalized.
The Stephenville Airport Corp. board approved the sale on Tuesday, June 28, and later signed a binding acquisition agreement with Greater NL Partnership, a newly created Newfoundland-based company owned by Carl Dymond.
Last September Dymond announced that his Dymond Group of Companies was entering into an agreement to purchase the Stephenville International Airport. While no cost had been released, Dymond said at the time that he intended to invest some $200 million into the airport and the town.
The deal took about nine months to complete, and the company said the purchase of an airport is a very large undertaking where, in addition to the usual concerns (legal, real estate, staffing, equipment and environment), the impact on the economy and business development of Stephenville and the surrounding communities must be addressed.
“Consequently, we needed to conduct feasibility, impact studies and proceed with strict due diligence processes. This takes time and should not be rushed,” it said in response to questions via email.
“There were many administrative milestones that needed to be overcome in the due diligence process, the Stephenville Airport Corporation worked diligently with us to resolve all issues and come to a final sale agreement, we were happy to work and co-operate with them to get this done.”
Rose agreed that the level of due diligence necessary to complete the deal was high.
“From when they signed the MOU (memorandum of understanding), from September to now is about nine months and I’m really surprised it has happened as quick as it has,” he said.
While a final date to complete the sale has not yet been set, the company said the agreement means it can begin to set its plans in motion for the now named Stephenville Dymond International Airport.
Work will start in the next few weeks on upgrading the runway lighting and the company plans to conduct apron viability tests.
Greater NL Partnership also plans to build a new terminal at the airport and design work will start immediately but the company did not provide a time for construction to start.
The town also stands to benefit from the sale as Dymond had committed $10 million to the construction of a new fire hall and the purchase of fire suppression equipment.
Rose said the town signed a corporate guarantee with the company on that.
The town’s fire department, which serves the town and the airport, is located at the town hall and has outgrown the space.
The town had planned to replace it but now will be able to do so at less cost to taxpayers.
Over the next three years, Rose said, the necessary engineering, planning work and construction would take place.
“It’s a big benefit to the Dymond Group, but also a big benefit to the town,” said Rose.
In terms of flight activity at the airport, Greater NL Partnership hopes the sale and media coverage of it will start a conversation and encourage airlines to consider Stephenville as a destination.
It welcomes airlines to reach out but added that now that it can officially represent the airport it plans to begin talks with airlines immediately.
Prior to the sale the airport had been run by the Winnipeg Airport Service Corp. (WASCO).
The company said the Greater NL Partnership and the Stephenville Dymond International Airport look forward to continuing to work with WASCO.
As for the current board, Rose anticipates it will wrap up as an incorporated body by the end of the year.
MORE GOOD THINGS HAPPENING
The airport sale is not the only thing happening in the area.
World Energy GH2 is proposing to build a wind farm on the port au Port Peninsula and a hydrogen/ammonia production plant at the Stephenville Port.
There are also gold mine developments in the Port aux Basques and Burgeo areas and talks of a salt mine being developed in the area.
All of that could be good for the airport.
“As we build this airport into a vital transportation hub for the region, we hope the airport will play a vital role in transporting materials and other necessary items for the area,” said Dymond in the statement from the company.
“The stars are aligning for us,” said Rose. “It’s amazing and they’re massive projects.
“All these big industries will really put a lot of attention on the opportunity for existing and new businesses to provide goods and services for these mega industries. It’s a good time for Stephenville, a good time for investment, a good business climate,” said Rose, adding thousands of jobs could be generated by the airport and wind farm alone.
“Fifteen years from now we could be the next city in the province of Newfoundland and Labrador.
“Maybe it will be a bit of a legacy for me,” said Rose, whose grandfather, Thomas Rose, was the first mayor of Stephenville when it incorporated in 1952.
“It’s a good time for Stephenville, a good time for investment, a good business climate.” Stephenville Mayor Tom Rose