Aviation centre in the cards for Powell River

Architects and engineers have been contracted by Gaoshi Holdings (Canada) on plans for developing an aviation centre at Powell River Airport.

On August 16, at the regular council meeting, it was announced that City of Powell River had entered into a $600,000 99-year lease with Gaoshi to build an aviation centre at the airport.

“It's not fake,” said Mayor Dave Formosa.

According to City of Powell River manager of economic development and communications Scott Randolph, a $50,000 deposit has been received by the city’s lawyers, Lidstone and Company, and the remaining $550,000 is being held by Gaoshi’s lawyers in Powell River, Villani & Company, until the lease and tax revitalization bylaw is approved.

Gaoshi Canada is a privately held numbered company in the Lower Mainland.

Its owner is Deqian Gao, a Chinese investor. His son Victor represents his father and Gaoshi interests in Canada, which include real estate development in the Lower Mainland, according to Victor.

The project at the airport is not the company’s first attempt at investing in aviation.

In 2017, Gaoshi tried to purchase Murphy Aircraft Manufacturing with the intention of moving Murphy to Powell River, according to Formosa.

“He got all the way to that deal,” he said. “The lawyers were paid promptly on the work that fell through there.”

Pacific Coastal Airlines president Quentin Smith said he has met both Deqian and Victor and toured the Murphy facility with them.

“It took a step backwards when he couldn't make a deal with Murphy,” said Smith. “It sounds like Gao is interested regardless of Murphy and doing something here.”

Smith added that he is interested in talking to Gaoshi about a potential fit for Pacific Coastal to participate even if it's just in a supporting role.  

In October 2014, the city came close to a deal with Upper Valley Aviation that involved Pacific Coastal but that fell through because of a disagreement among the owners of Upper Valley, according to Randolph.

Currently, Victor said Gaoshi also owns a company that specializes in dock kits for float planes. He added, “We have a package for the design of aircraft docking. We are still looking for opportunities to affect those designs.”

According to the non-distributing Canadian holding company’s certificates and filings, Gaoshi Holdings (Canada) was incorporated in 2004, dissolved in September 2008 and then revived two months later.

“My father started Gaoshi Canada and started doing a lumber business,” said Victor, who was raised and educated in Canada. “In 2008, business was going too well in China so he had no time to deal with Gaoshi Canada so he shut it down. I asked my father, can you restart the company and this will be my company? So he restarted the company.”

Victor said Gaoshi has sought to do an aviation project for some time and, through introductions and meetings with Formosa, when the mayor was in China on city business, and in-camera with city council, it was convinced to invest in Powell River.

Although the lease and tax revitalization bylaw still has to be approved and signed, Victor has architects and engineers contracted for the first phase of the airport facility.

“In about two more weeks they'll finish the first preliminary design for Powell River to review and we will hand in the development permit application and later on see what the city needs completed for the design,” he said.

His goal, Victor said, is to start the project in the first quarter of next year because zoning, design and building permits have to first be complete.

“At first it will be a brand new terminal,” said Victor, “with offices rented out and a cafeteria. I want to have some coffee while I'm waiting for the aircraft.”

Victor said Gaoshi has done studies of other small community airports around BC. “They all have glossy exteriors with very beautiful enhanced interiors,” he said. “I want my designer to go that way. When you see it, you're going to love it.”

Formosa said he is more than convinced the Gaos have the ability to pull off the airport project.

Smith agrees. He also thinks they have the funds. “I've been associated with multiple different Chinese people in the aviation industry and he certainly is a fellow who puts his money where his mouth is,” said Smith.

Smith said the city and Gaoshi can do all of the business cases but never know until it’s tried. “In my opinion, if Powell River's been lucky enough to find a strong supporter of that and has the financial wherewithal and the belief that this will be a long-term investment then kudos for them,” said Smith. “I can tell you that all over BC [cities are] clamouring for the same type of support and interest because all of them are sitting on undeveloped land and struggling to survive. If any of us can attract an investor like that...I don't know why we wouldn't try to diversify our economy.”

Since the announcement, there have been questions from the public about Gaoshi Canada, the deal and the politics.

“Experience or not, we're all happy that vacant land is finally going to be developed creating more jobs and benefiting the community,” said Victor. “The new terminal is going to be set down benefiting all of Powell River transportation. I wish some people would not criticize community development.”