Hoping to recoup the $385,000 the Town of Ponoka put into their Industrial Airport, the Town recently sold their Airport to the Ponoka Flying Club, for a price of $385,000.

Mayor of Ponoka Rick Bonnett says the City-owned airport being located out in Ponoka County was causing too many hurdles when it came to trying to get contractors on site for improvements or other developments.

“Working with two jurisdictions was making it too hard to get development happening, so technically with the dollars that the Town put in to it in the last few years, we wanted to recoup that because we have the motion on the books that basically says we had to get out $385,000 back… so their covering and that cost and then they are going to take over the operation of it.”

The Town also agreed to a $20,000 per year, five-year grant to the Flying Club to help offset operational costs.

Mayor Bonnett says the Flying Club knows way more about how to improve and keep the airport up a certain standard. He used the Lacombe Flying Clubs takeover of the Lacombe Regional Airport a few years ago as an example of different municipalities and groups working together for a common goal.

He says with the airport located in Ponoka County but owned by the Town, it was causing too many issues when it came to trying to get things done.

“We tried to take a different approach in the last 4-5 years, but we are finding with the two jurisdictions, with the property sitting there, it was making it too hard to get confirmation. So this way, they (the Flying Club) just have to deal with the County to get the growth and development happening, and they know how to clean a runway. They have to take off it, I don’t.”

The Town also has a 25-year option to buy the building back at the same price, plus inflation, if the land is no longer being used as a community airport.

 

From the Town of Ponoka:

Ponoka Town Council Approves Motion to Sell Airport to Ponoka Flying Club

Sale Agreement Includes 25-Year Repurchase Option

(February 13, 2020 – Ponoka, Alberta) – Ponoka Town Council approved a motion this week authorizing the Town to enter into a sale agreement with the Ponoka Flying Club for the sale of the Ponoka Industrial Airport (Labrie Field) in the amount of the $385,000, which would include transferring operating authority for the airport to the Flying Club. The sale agreement will include a 25-year option for the Town to repurchase the airport for $385,000 plus inflation if the land is no longer to be used as a community airport. Council also approved a motion authorizing the Mayor and CAO to sign a five-year grant funding agreement for the Town to grant $20,000 per year to the Flying Club. “Council is pleased that we have a buyer that is highly motivated to continue operating the airport for the benefit of local aircraft owners and for our community as a whole,” said Ponoka Mayor Rick Bonnett. “Council’s decision was made in the interest of the efficient operation and future development of the airport, and is in the best interest of the public,” said Mayor Bonnett.

Sale Will Reduce Town’s Annual Financial Obligation

The sale of the airport to the Ponoka Flying Club will allow the Town to recover money that has been invested into the airport in recent years. “The sale along with the operating grant will also significantly reduce the Town’s ongoing annual financial obligation to the airport,” said Mayor Bonnett. He adds the sale of the airport will free up Town staff resources and equipment to address other priorities in the community. Mayor Bonnett noted the five-year grant funding the Town will provide to the Flying Club will help offset the Club’s operational costs over the short term. “The grant funding is also an acknowledgement that the Town recognizes the ongoing importance of the airport to the community for services like air ambulance and medevac. With lot sales, volunteer labour and strategic improvements to the airport, the hope is that the Flying Club will be eventually be able to run the facility on as close to a break-even basis as possible,” said Mayor Bonnett. He added, “The Town and Ponoka County have always supported having a local airport in our community and have both provided financial support for airport operations.”

Purchase Price to be Deposited in Development Reserve

The Town invested $385,000 for construction of a taxiway and the subdivision of hangar lots in 2018 with the provision that these funds would be returned to the Town’s Development Reserve once the new airport hangar lots were sold. With the sale of the airport to the Ponoka Flying Club, the purchase price of $385,000 will be deposited in the Town of Ponoka Development Reserve once it is paid in full upon closing of the agreement. The Flying Club will then take over the airport in its entirety, assuming all existing leases and subdivided lots which it can proceed to offer for sale with lot sale revenue being directed back into operations and improvements to the facility. The Flying Club will also provide financial reporting on the airport to the Town on an annual basis. “The Ponoka Flying Club thanks the Town for the opportunity to purchase the airport and for continuing to support airport operations through the annual grant as we work to grow the airport over time,” said Ponoka Flying Club spokesperson Neil McLaren.

‘Ponoka Flying Club Well-Equipped to Run Airport’

Mayor Bonnett said, “The sale of the airport to the Flying Club will place the facility in the hands of a community-oriented, non-profit entity that is well-equipped with the knowledge, experience and skills to run the airport efficiently and successfully to best meet the needs of local airport users and for the benefit of the Ponoka community at large.” The closing date for the sale agreement to be completed and signed by the Town and the Ponoka Flying Club is on or before April 15, 2020. The Ponoka Industrial Airport (Labrie Field) was purchased by the Town of Ponoka in January 1968 for $26,300 from Joseph Hector Labrie. Since that time it has been operated and maintained by the Town.