City of Powell River Council has approved a lease renewal at Powell River Airport that should see the return of commercial aviation fuel to the airstrip.
At the April 9 council meeting, councillors voted unanimously to approve a 10-year lease renewal at the airport for J3 Holding Corporation, which has an expiring three-year lease on airport property on which a hangar facility is situated.
Councillor Jim Palm said commercial aviation fuel is something that has been lacking at Powell River Airport for several years.
“It’s worth noting that Tye Leishman (J3 Holdings) is instrumental in this regard, bringing this forward,” said Palm. “This investment comes to about $200,000 in terms of the establishment and operation of the fuel service for our airport, which is much needed, hopefully, down the road, as we expand.
“The draft lease provides for a 10-year term beginning on May 1, 2020, and terminates on April 30, 2030, and provides the option of four renewable terms at the same length if the terms of the agreement are not broken. There is additional language in the agreement that protects the city if the investment in the fuel service is not made.”
Palm said the lease will bring the city $2,240.04 per year.
“I just want to say in conclusion that Tye Leishman is one of our finest corporate citizens in Powell River, in my estimation, who does all kinds of great service for our community,” said Palm. “I would just like to thank him for bringing this forward and making this a possibility to service our airport.”
According to a staff report, Leishman, in taking out the new lease, agrees that his company shall establish and operate a commercial aviation fuel service as a going concern in the leased area within three years of the commencement date and continue to operate commercial aviation fuel service as a going concern in the leased area of the agreement. If the tenant fails to do so, the term of the lease shall be amended to five years instead of 10 and the renewal option shall be limited to a single renewal period of five years.
The report states that the city’s airport has been operating for a number of years without commercial aviation fuel services. It has been identified in the draft airport master plan as a service that should be reinstituted to support the future viability of the operation.
“Staff consider the proposal to provide a longer-term lease to support a $200,000 investment in establishing and operating a fuel service at the airport a fair trade-off,” the report stated.
