{"id":148137,"date":"2023-12-27T07:13:54","date_gmt":"2023-12-27T12:13:54","guid":{"rendered":"https:\/\/doppleronline.ca\/rwddev\/?p=148137"},"modified":"2023-12-27T07:14:00","modified_gmt":"2023-12-27T12:14:00","slug":"proposed-changes-to-airport-governance-could-cost-more-than-300000","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/proposed-changes-to-airport-governance-could-cost-more-than-300000\/","title":{"rendered":"Proposed changes to airport governance could cost more than $300,000"},"content":{"rendered":"\n

By Thomas Goyer<\/em><\/p>\n\n\n

<\/broadstreet-zone><\/strong><\/div>\n\n\n\n

Changes to the governing structure of Muskoka Airport could cost the District $343,200.<\/p>\n\n\n\n

A report presented to The District of Muskoka Finance and Corporate Services Committee outlines the implementation of a new governing structure for the Muskoka Airport. This new structure would be a Municipal Services Corporation (MSC) which is a corporation whose shares are owned by a municipal government.<\/p>\n\n\n\n

In 2017 District Council endorsed a new governing structure for the Muskoka Airport. This led to the creation of a new skills-based board for the airport, a new Strategic Plan and a Master Plan approved in 2021. The Strategic Plan has stated that the airport must build value and gain return from real estate and infrastructure assets. Real estate development refers to attracting large companies to the airport. <\/p>\n\n\n\n

Despite these plans and changes, the airport has continued to underperform. Earlier this year the Finance and Corporate Services Committee approved a motion directing staff to develop a report on how to implement the transfer of the Muskoka Airport to a Municipal Services Corporation. <\/p>\n\n\n\n

The District can create an MSC after developing a business case study for the proposed MSC, consult with the community about the plan to create the proposed MSC and adopt and maintain policies concerning the transfer of assets. The estimated cost for this implementation was between $50,000 and $250,000, while the total costs of the project could be $343,200. <\/p>\n\n\n\n

Issues surrounding the Muskoka Airport have been before District council and committees several times over the last several years. This is a key reason for the change in governing structure and was highlighted by Councillor Peter Koetsier. <\/p>\n\n\n\n

\u201cThere\u2019s too many things that come in front of this council about the airport,\u201d Koetsier said. <\/p>\n\n\n\n

Several councillors expressed concern over the large price associated with implementing an MSC. Councillor Don Smith stated that these resources could be applied towards other municipal needs. <\/p>\n\n\n\n

\u201cThat money would be better spent towards housing, which was a priority that we identified. It would be much better spent on mental health. It would represent 25% of what we allocated for climate change at our meeting this past Monday and we felt that that was a significant contribution,\u201d Smith said.<\/p>\n\n\n\n

District Chief Administrative Officer Julie Stevens stated that the price was due to the uncertain obstacles and choices that the council and committee may make. Stevens stated that this includes asset transfers, tax implications and service requirements. It was stated that because of this uncertainty staff provided a wide margin on budget estimates. <\/p>\n\n\n\n

According to District Chair Jeff Lehman, the rationale for the decision was to ensure that the Muskoka Airport runs more effectively. <\/p>\n\n\n\n

\u201cThe whole point is to create a more agile tool for the airport to accomplish its goals and those goals are economic development and ultimately, you know, return of scheduled service and in doing that it will become more fiscally sustainable,\u201d Lehman said. <\/p>\n\n\n\n

Councillor Guy Burry highlighted how rather than being a profit-producing vehicle for economic development, the Muskoka Airport has been subsidized by the District. <\/p>\n\n\n\n

\u201cIt has been a $2 million subsidy item for a number of years,\u201d Burry said. <\/p>\n\n\n\n

Burry stated that political pressure and distractions have prevented airport boards from effectively running an airport. He stated that he supported an MSC because it would allow the airport to operate as a more effective business.  <\/p>\n\n\n\n

\u201cIt will allow a good board to make business decisions around what\u2019s best for the airport, recognizing that one of the things in the shareholder agreement is you\u2019re going to balance the budget. And a good airport, a good Municipal Airport. should be able to have a balanced budget,\u201d Burry said. <\/p>\n\n\n\n

Despite the high cost, Burry stated that if there were larger cost savings in the future then it made sense for the District. <\/p>\n\n\n\n

\u201cIf investing $300,000 to ultimately save $2 million a year is a trade. I\u2019ll make [that trade] all day every day,\u201d Burry said. <\/p>\n\n\n\n

Other potential ideas such as delegating authority to the board rather than a MSC were discussed. However, it was determined that an MSC was the best option. <\/p>\n\n\n\n

The committee approved the staff report which will lead to further consultation with stakeholders within Muskoka about the future of the Muskoka Airport. <\/p>\n\n\n

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<\/broadstreet-zone>\n","protected":false},"excerpt":{"rendered":"

By Thomas Goyer Changes to the governing structure of Muskoka Airport could cost the District $343,200. 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