The organization needed a bridge loan extension as their lining contract was “significantly delayed” last year.
The Moose Jaw Municipal Airport Authority has been granted permission to continue accessing its line of credit so it can complete its $3.2 million renovation project at the airport.
At its regular meeting on April 25, city council voted unanimously to extend the line of credit (LOC) until October 31 and authorize the city administration to create an amending by-law that would adjust the time limit in the by-law. existing.
At a March 2021 meeting, the board agreed to provide a financial guarantee to the authority so that it could access a $1 million line of credit from Jameson Gilroy and B&L Livestock Limited (JGL). The authority could use this money as cash flow during its project to extend and rehabilitate runways and taxiways.
None of the money came from city coffers, but the million dollars did — briefly — count toward the municipality’s debt load.
The airport authority had until April 30, 2022 to repay the line of credit, which it did, according to a board report. However, the organization must again access the LOC to complete its project this year.
Greg Simpson, chair of the Moose Jaw Municipal Airports Authority (MJMAA) board of directors, said in a letter to the board that the organization needed a bridging loan extension since its coating contract was ” significantly delayed” last year.
He had planned for the project to begin on May 7, 2021 and be completed in six weeks, he noted. However, the authority did not start work until June, while the paving and painting project was not completed until October.
Additionally, power, signs, and grass will not be installed until June 30, 2022, while federal government grant funding has been delayed for at least 90 days due to end-of-term financial delays. year.
The total cost of the trail project is $3.2 million, including $2,199,990 from Ottawa, $500,000 from the City of Moose Jaw, $275,000 from the province and $275,000 from administration herself.
Supporting this project is important because the airport authority has worked diligently to develop this asset, City Manager Jim Puffalt said. The airport is a “tremendous asset” for the region and contributes to economic development.
“I think it’s important for our city. This municipal airport is not just a private club. Many industries use jets and don’t travel by car…” Coun said. Doug White. “We have an area near the power station and we hope to expand there. Some companies are not based in Moose Jaw, while CEOs could be based anywhere.
Mayor Clive Tolley supported the motion, saying he had attended some of the authority’s recent board meetings and heard good things about the project. He also visited the location regularly and saw the development of the runway and hangars.
Tolley added that extending the guarantee on the line of credit ensures that the organization – which has done “a very, very good job” – can carry out the initiative.
The next regular council meeting will be held on Monday, May 9.