Kamloops Airport rent agreement unchanged
By Jennifer Stahn
The Kamloops Airport continues to see increased traffic and has been catching the eye of potential new businesses. That doesn't mean the terms around a 45-year lease agreement are about to change though.
(JENNIFER STAHN / iNFOnews.ca)
May 30, 2013 - 2:58 PM
An agreement between the city and the airport management group will remain essentially unchanged after an arbitration ruling stated the lease agreement is to remain the same.
In 1997 a 45-year lease agreement was signed between the Kamloops Airport Authority Society and YVR Airport Services Ltd. to manage and operate the Kamloops Airport. The agreement allows for review every five years. The city tried to renegotiate new contract terms based on the changing demands of the market.
When an agreement could not be reached the city decided to bring in an outside party to review the contract and filed a notice of civil claim against the airport service company and Kamloops Airport Ltd. In 2011.
"The City of Kamloops made a business decision to file this claim. As both sides are unable to come to an agreement on rent, an arbitrated settlement seems to be the only way forward. This will ensure that the taxpayers of Kamloops and YVR receive a mutually beneficial contract," Mayor Peter Milobar said at the time.
The arbitration has now concluded and it was “ruled the lease agreement between the parties will remain essentially unchanged.”
The net income from the airport is split between Kamloops Airport Ltd. and the city. The city's half goes in to a capital reserve fund set aside for airport improvements.
The Kamloops Airport Authority Society is made up of council members, city staff and members of the public.
In 2009 the airport underwent an $18.5 million expansion, renovation and runway extension. The Kamloops airport, with two runways and a 1,500 square metre terminal, served more than 263,000 passengers in 2011.
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News from © InfoTel News Ltd, 2013